Goldsaint, the reversal of foreign capital flows and dumping of things like Fannie and Freddie will require an upkick in monetization by the FED and Treasury. There is no other alternative.
I predict alternative energy and creative technology will have us peddling our bikes off of the ground , soon. If Orville and Wilbur can do it, we can too.
Interesting that gold can rise and rise and nary a word in the press but the slightest little dip right in mid trading range and it's news on CNN Money...odd, methinks. It's almost like all the forces are trying to keep people away from gold for some reason but they hype that the stock market has found the bottom and is set to surge. There is a certain strangeness in the media, almost like the media is being directed by some master moderator in some kind of political/investor group think. Just odd, nothing to see here, move along..."You don't need a weatherman to know which way the wind blows." >>
This has existed since the early 1960's. It's apparent that all news is written in a room in New York and distributed. They even all make the same grammatical errors at the same time and change the names of cities on cue.
How many fraudulent companies are there in the world? Is there no end to the losses shareholders will take? How many more victims were there just today?
Satyam Chairman: We're Just a Gigantic Fraud, Too
Jan. 7, 2009:
Another day, another deca-billion dollar fraud:
"Dear Board Members, "It is with deep regret, and tremendous burden that I am carrying on my conscience, that I would like to bring the following facts to your notice..."
WSJ: Satyam Computer Services Ltd. Chairman B. Ramalinga Raju Wednesday resigned admitting to falsifying company accounts and inflating revenue and profit figures over several years, sending the company's shares plunging 91%. India's benchmark index plunged 7.2% after Satyam Computer Services said it had been inflating its earnings for years, sparking a rout in its shares and rocking confidence in the broader Indian market.
Raju also said Satyam's balance sheet as of Sept. 30 had a non-existent cash balance of 50.4 billion rupees; nonexistent accrued interest of 3.76 billion rupees; an understated liability of 12.3 billion rupees; and an overstated debtor position of 4.9 billion rupees compared with 26.51 billion rupees reflected in its books.
Edited to add: I particularly like the nomenclature..."advanced refunded munis". Now, that sounds like something I would really like to put my life savings into. Surely these people are crazy.
I was reading a page back about local governments needing to be leaner and not offer so many services so I wanted to ask something.
About a week ago someone was on the radio lamenting the local goverments who maintain "director" and "board member" positions. She was stating how much these individuals make and their only work requirements are typically a single meeting a month.
Is this true?
I think local governments will expand by taking federal money and putting the unemployed to work on "beautification" projects throughout our cities and towns.
"About a week ago someone was on the radio lamenting the local goverments who maintain "director" and "board member" positions."
Not sure of your particular location but typically, most members of local government serve on many boards as officers. These postions usually don't pay anything but are considered positions of influence because they direct monies and projects. Typically they meet once a month but most government officials belong to a number of boards in some position. These boards may be Metro transit boards, planning committees, sports authorities, transportation committees and the like; mostly pretty boring stuff and usually unpaid but necessary work none the less. Some board postions do pay and of course they are sought after. Most government folks are held to high standards of behavior on these boards because they can not have conflicts of interest such as serving on a sports board when you have ownership or interest in a sports team or serving on a city planning commission when you have an interest in hotel/motels business and set tax rates for these businesses. Another standard is that they must avoid the appearance of impropriety meaning that they should not (nor should their family members/relatives) be seen as having a private financial interest that is related to their public responsibilities.
So, yes, some postions do pay but most don't. It's kind of like a conversation I had with one of the higher placed local office holders in the elevator a few weeks back. The poor guy just looked whipped and I asked him how his day was going and he looked at me and said "Do you know how many Rotary Clubs there are in this town?" Meaning that he had been speaking at these places non stop since he took office. Public service is hard and very demanding and most of the work other than the salaried position is gratis. You see the abuse reported in the news papers and it is news because most public folks are held to high standards of accountability for their actions and when there is abuse it is news. Public officials seem to be news magnets also because the public feels that governance is cushy and you just sit on your can and rake in tons of money but it is rarely the case. If you ask a public official how many hours they work a day and they will usually respond with between 14 and 16 hours and the pay is considerably less than a comparable job in the private sector.
So, yeah, some meetings only last an hour a month and some do pay but most committee positions involve many hours of coordination, correspondence, phone calls and many other tasks other than the one hour meeting that you read about in the newspaper and most office holders are on a number of committees and boards. Some pay and some don't but all committee and board work is important for governance and most don't pay an extra nickel. Now on the perk side, you do get invited to nice parties and gatherings and you get some social benefits and also some influence and social standing so it's not all for naught but it is still very hard work and to do it well is extremely hard and politically treacherous work. Others may have different opinions but having been in it and watched it, that's my take. So, when you see or hear some one running down some public official, don't be too quick to pile on.
Dave if we combine these storms with all the space junk our governments have put in low orbit, it certainly won't be long before there is NO wireless T.V. and wireless phone service. Don't give up your hard lines!
IOUSA was just on CNN. BHO's $1.2 trillion spending and $800 billion stimulus and his prediction of foreseeable trillion dollar deficits were not part of the videos forecast. The forecast was bleak before this recent obama-nation. Sometime around 2015 SS payout is greater than what is paid in. From then on our overall debt accelerates. The graph explodes downward toward -1 trillion then -2 trillion some tens year out. BHO will get us into bankruptcy much quicker than anticipated.
<< <i>I HIGHLY RECOMMEND THE FOLLOWING BOOK........
The Oilcard by James Norman. ... >>
I just read the review on Amazon. Interesting proposition. I hope it is correct. >>
Really? Now that oil has crashed, China can pick up all the cheap oil it wants and stockpile it. And we have bankrupted ourselves in the process of manipulating the market....great.
Mark Piersall Random Collector www.marksmedals.com
21 of 21 people found the following review helpful: THE OIL CARD, September 30, 2008 By J. Richard Perkins (Old Saybrook, CT USA) - See all my reviews
The Oil Card: Global Economic Warfare in the 21st Century
The author has done an excellent job of researching an incredibly complex subject and committing it to paper...He shows a real depth of knowledge and perception of not only the mechanics of the energy markets, but also the history and politics behind them.
He daylights the government's strategy against Russia starting during the Reagan administration ...He documents and proves beyond doubt the point that the US government and its allies artificially kept oil prices low for years to starve the Soviets of income, an important tactic that was essential to winning the Cold War. The contrarian thesis of this book is that the government is now attempting to do the same to China by weakening China's economy by keeping energy (and other commodity) prices high. Showing the background and illuminating the methods employed in the futures/derivatives markets and by controlling the physical oil market supply itself, the author makes a compelling argument that is entirely believable. He very accurately and completely portrays the genesis and the implementation of the energy price manipulation activities in the futures/OTC markets that many of us firmly believe is exactly what has occurred. For years many of my colleagues and former major players in the energy market have critically discussed the Wall Streeters and hedge funds involvement and tactics of bringing non-oil players into the energy markets. The net result is these players are driving market prices and ignoring traditional market fundamentals, artificially driving oil prices upward based upon self generated bogus risk factors and alleged technical analysis.
This is definitely not a book for amatuers however...Because of the detailed information provided, it takes considerable energy market knowledge and experience to understand what he is saying, not an easy read, more like a text book and a great primer for market players. Certainly many will find the chapter on China itself interesting and informative. However if you want to read a fascinating story of how and why we got to $146/bbl crude oil, this is the book for you.
Richard Perkins
The problem about China getting all the cheap crude is incorrect. If the book is true and can be believed ---every looney leftie will be quite dissapointed to know that our soon to be ex VP was implementing a strategy to have India bid up the Chinese on any oil reserves around the world that became available. READ THE BOOK. You will be amazed at how GW and Cheney played Russia and China like a snare drum.
Europe will have to lower interest rates due to their economy going down and not doing something about it earlier. Thus the dollar should do well over the next months... which means gold is about to lose some shine in my opinion.
safe haven buying might be going up, but the major buyers like India has been shrinking. Jewelry fabrication down 30% easy. More sellers then buyers over there. Hopes that the new year will bring new sales.
Inflation is no where to be seen right now. Oil hitting 37ish a barrel is astounding. All other commodities have dropped right along with it.
Gold will need a lot of help to get over 1000 again... anytime soon.
I do not question the premis of the book. I am just asking if it was worth doing. (FWIW my formal training is in both Poly Sci and Econ, and have read many books on this topic, albeit not this one) Bidding that oil that high has had a serious and direct impact on our own people and our economy. So China has to give up some more of its US Treasuries to 'overpay' on oil reserves. All this does is weaken the USD further.
So again, was all this 'chess' Bush & Cheney were playing worth it? How has it helped the USA or our economy?
Mark Piersall Random Collector www.marksmedals.com
As of June 30, Kentucky’s largest fund for state workers held about 52 percent of the assets needed to pay current and future benefits to its 117,000 members. The plan had an unfunded liability of $4.8 billion at that time, while the entire system’s liabilities totaled about $16 billion
June 30?? They probably are down to 30% now.
Of the 109 state funds, 43 were funded at 79 percent or less of estimated current and future costs. Those below 80 percent “constitute the weakest cases,” said Ted Hampton, an analyst with Moody’s Investors Service Inc. in New York. The average level is 85 percent, according to an analysis prepared for a Moody’s report published in July 2008, Hampton said
I would imagine this is more like 90% of state funds are woefully underfunded now. So the choice is raise taxes to fill the coffers or cut benefits, or both. Neither of which will restart the economic engine.
With SOOOO many comparisons between the 1930's and now. Is Hoover to Bush as FDR is to BHO? Hoover's 29 is Bush's 08? Will FDR's 20% unemployment be akin to BHO's xx% unemployment? Will FDR's taxes be BHO's taxes? Will FDR's New Deal be BHO's Greater and More Expensive Deal? And will FDR's gold confiscation be BHO's dollar destruction? And finally will the 20th Century America resemble the 21st Century America in terms of individual freedoms?
<< <i>"Inflation is no where to be seen right now."
What planet does FC live on???
>>
Well, fan of bad football teams, I am on the same planet. This mornings economic news.
December Import Prices m/m -4.2% vs -5.3% consensus, prior revised to -7.0% from -6.7%; y/y -9.3% vs -9.5% consensus, prior revised to -5.4% from -4.4%
You are looking at what prices did last year and in previous years. Look forward, and ye shall see the truth.
There is----in my humble opinion--deflation right now in the USA.
capital, yes land, yes labor, yes materials, yes--- unless the supplier is buried with older higher cost basis. In which case the supplier is probably close to BK.
<< <i>There is----in my humble opinion--deflation right now in the USA.
capital, yes land, yes labor, yes materials, yes--- unless the supplier is buried with older higher cost basis. In which case the supplier is probably close to BK. >>
Regarding labor, I feel the pain big time. Starting February I get to enjoy a 35% pay cut!
There's no deflation apparent at my local grocery store...
Tonight went grocery shopping with my wife. Hadn't done that for several months. Prices of just about everything were noticeably higher. I was pretty shocked, as I had assumed that the "higher" prices I recall seeing in the late summer were a result of $5 diesel (expensive transportation bumping up food prices). However, prices today are clearly higher than even then. Maybe just an abberation (I doubt it), but seeing that fuel prices are significantly lower now, there must be other factors in play. Some people must really be getting squeezed financially.
Previously noted here that $60 oil is necessary for Chavez to keep his socialist agenda working. I was wondering how long it would take for $40 oil to start hamstringing him. It didn't take long, just a few months and he's looking for help.
Two things...1. The closest refinery that can distill his tarry (heavy, sour) crude are the 11 refineries in the US that can deal with his oil because of it's qualities and there are very limited other opportunities for him to get his oil refined short of Africa. 80% of vene's tarry crude is refined in the US because of this. 2. Chavez nationalized the US oil companies interest (and others) last year and they are still in court over the abuse.
So, now, we are importing less and less of his oil and now he's back at our door step asking the same companies that he nationalized to come back and do it again. Of course, the US companies are just kind of looking at him and going huh?
He may have to capitulate and not only pay the US Conoco and Exxon their court demands but also have to cowtow to get someone to even bother to get involved with his stuff. As they say in baseball, he's trapped between home and 3rd base...he's in a pickle. His need for US refining capacity may indeed lower the price for his oil even further; this will get more interesting.
Early report of Obama's stimulus package. IMHO, this will do ABOSOLUTELY NOTHING to help the economy. Where is this massive infrastructure investment? Just more free handouts....
Jan. 15 (Bloomberg) -- An $825 billion economic-stimulus measure drafted by the U.S. House of Representatives would provide $550 billion in new government spending along with $275 billion in tax cuts for families and businesses.
A summary of the measure released today said it would provide about $90 billion in infrastructure spending, $87 billion in aid to states struggling with surging Medicaid costs and $43 billion in unemployment and job training programs.
Other provisions would provide $20 billion for federal nutrition assistance, $15.6 billion to Pell Grants, which help low-income families send their children to college, and $6 billion to expand broadband access in underserved areas.
Individuals and families will get at least $140 billion of the tax cuts, including credits for workers worth up to $1,000 per family or $500 per individual. The bill would also expand tax credits for the working poor, including making more families eligible for a child tax credit.
The tax section contains a provision allowing businesses to convert losses into cash by claiming a refund of taxes paid in previous years. Fannie Mae, Freddie Mac and companies that received aid from the Troubled Asset Relief Program are not eligible for the tax break, according to a summary of the bill.
The three-dozen tax provisions also would give businesses incentives to invest in equipment and remove a requirement that first-time homebuyers repay a special $7,500 tax credit enacted last year to stimulate the housing market.
“This recovery package will provide tremendous tax relief, health care and job training benefits for families struggling to make ends meet while also giving businesses the boost they need to create jobs,”
Comments
roadrunner
<< <i>soon there will be two classes - government 'and friends"
and the rest of us. >>
It's a lot closer to that now than what many people think. ( If they think at all )
Coin's for sale/trade.
Tom Pilitowski
US Rare Coin Investments
800-624-1870
Yes we can !
<< <i>Gold at 2 week low
Interesting that gold can rise and rise and nary a word in the press but the slightest little dip right in mid trading range and it's news on CNN Money...odd, methinks. It's almost like all the forces are trying to keep people away from gold for some reason but they hype that the stock market has found the bottom and is set to surge. There is a certain strangeness in the media, almost like the media is being directed by some master moderator in some kind of political/investor group think. Just odd, nothing to see here, move along..."You don't need a weatherman to know which way the wind blows." >>
This has existed since the early 1960's. It's apparent that all news
is written in a room in New York and distributed. They even all make
the same grammatical errors at the same time and change the names
of cities on cue.
VIDEO LINK
<< <i>Which of the talking heads you pay attention to were right about todays economic mess??
VIDEO LINK >>
Excellent!
Coin's for sale/trade.
Tom Pilitowski
US Rare Coin Investments
800-624-1870
New York unemployment system crashed :A tsunami of jobless claims
Coin's for sale/trade.
Tom Pilitowski
US Rare Coin Investments
800-624-1870
<< <i>Which of the talking heads you pay attention to were right about todays economic mess??
VIDEO LINK >>
there was an article in last weeks WSJ.....here it be with Peter Schiff and others
How many fraudulent companies are there in the world?
Is there no end to the losses shareholders will take?
How many more victims were there just today?
Satyam Chairman: We're Just a Gigantic Fraud, Too
Jan. 7, 2009:
Another day, another deca-billion dollar fraud:
"Dear Board Members,
"It is with deep regret, and tremendous burden that I am carrying on my conscience, that I would like to bring the following facts to your notice..."
WSJ: Satyam Computer Services Ltd. Chairman B. Ramalinga Raju Wednesday resigned admitting to falsifying company accounts and inflating revenue and profit figures over several years, sending the company's shares plunging 91%.
India's benchmark index plunged 7.2% after Satyam Computer Services said it had been inflating its earnings for years, sparking a rout in its shares and rocking confidence in the broader Indian market.
Raju also said Satyam's balance sheet as of Sept. 30 had a non-existent cash balance of 50.4 billion rupees; nonexistent accrued interest of 3.76 billion rupees; an understated liability of 12.3 billion rupees; and an overstated debtor position of 4.9 billion rupees compared with 26.51 billion rupees reflected in its books.
Edited to add: I particularly like the nomenclature..."advanced refunded munis". Now, that sounds like something I would really like to put my life savings into. Surely these people are crazy.
The Oilcard by James Norman.
One of the best books I have read in 30 years and Mr Norman ties the Geo-Political mess together in a way that amazed me.
Bottom line it for you........95% probability that we will be alright.
Please pick up the book and read it. You will never forget it.
regards, c
About a week ago someone was on the radio lamenting the local goverments who maintain "director" and "board member" positions. She was stating how much these individuals make and their only work requirements are typically a single meeting a month.
Is this true?
I think local governments will expand by taking federal money and putting the unemployed to work on "beautification" projects throughout our cities and towns.
Not sure of your particular location but typically, most members of local government serve on many boards as officers. These postions usually don't pay anything but are considered positions of influence because they direct monies and projects. Typically they meet once a month but most government officials belong to a number of boards in some position. These boards may be Metro transit boards, planning committees, sports authorities, transportation committees and the like; mostly pretty boring stuff and usually unpaid but necessary work none the less. Some board postions do pay and of course they are sought after. Most government folks are held to high standards of behavior on these boards because they can not have conflicts of interest such as serving on a sports board when you have ownership or interest in a sports team or serving on a city planning commission when you have an interest in hotel/motels business and set tax rates for these businesses. Another standard is that they must avoid the appearance of impropriety meaning that they should not (nor should their family members/relatives) be seen as having a private financial interest that is related to their public responsibilities.
So, yes, some postions do pay but most don't. It's kind of like a conversation I had with one of the higher placed local office holders in the elevator a few weeks back. The poor guy just looked whipped and I asked him how his day was going and he looked at me and said "Do you know how many Rotary Clubs there are in this town?" Meaning that he had been speaking at these places non stop since he took office. Public service is hard and very demanding and most of the work other than the salaried position is gratis. You see the abuse reported in the news papers and it is news because most public folks are held to high standards of accountability for their actions and when there is abuse it is news. Public officials seem to be news magnets also because the public feels that governance is cushy and you just sit on your can and rake in tons of money but it is rarely the case. If you ask a public official how many hours they work a day and they will usually respond with between 14 and 16 hours and the pay is considerably less than a comparable job in the private sector.
So, yeah, some meetings only last an hour a month and some do pay but most committee positions involve many hours of coordination, correspondence, phone calls and many other tasks other than the one hour meeting that you read about in the newspaper and most office holders are on a number of committees and boards. Some pay and some don't but all committee and board work is important for governance and most don't pay an extra nickel. Now on the perk side, you do get invited to nice parties and gatherings and you get some social benefits and also some influence and social standing so it's not all for naught but it is still very hard work and to do it well is extremely hard and politically treacherous work. Others may have different opinions but having been in it and watched it, that's my take.
So, when you see or hear some one running down some public official, don't be too quick to pile on.
Powerful Solar Storm Could Shut Down U.S. for Months
Knowledge is the enemy of fear
LINK TO DEBRIS
<< <i>Another reason why 2012 is so important.
Powerful Solar Storm Could Shut Down U.S. for Months
Dave and Terry
folly, but interesting
there IS a lot of solar and galactic as well as earthly things happening or "aligning"
Box of 20
<< <i>Merrill Lynch says rich turning to gold bars for safety >>
Merrill predicted that gold would soon blast through its all time-high of $1,030 an ounce, and would hit $1,150 by June.
<< <i>I HIGHLY RECOMMEND THE FOLLOWING BOOK........
The Oilcard by James Norman.
One of the best books I have read in 30 years and Mr Norman ties the Geo-Political mess together in a way that amazed me.
Bottom line it for you........95% probability that we will be alright. >>
I just read the review on Amazon. Interesting proposition. I hope it is correct.
<< <i>I HIGHLY RECOMMEND THE FOLLOWING BOOK........
The Oilcard by James Norman.
One of the best books I have read in 30 years and Mr Norman ties the Geo-Political mess together in a way that amazed me.
Bottom line it for you........95% probability that we will be alright.
Please pick up the book and read it. You will never forget it.
regards, c >>
The Oil Card
linky
<< <i>
<< <i>I HIGHLY RECOMMEND THE FOLLOWING BOOK........
The Oilcard by James Norman.
... >>
I just read the review on Amazon. Interesting proposition. I hope it is correct. >>
Really? Now that oil has crashed, China can pick up all the cheap oil it wants and stockpile it. And we have bankrupted ourselves in the process of manipulating the market....great.
Random Collector
www.marksmedals.com
THE OIL CARD, September 30, 2008
By J. Richard Perkins (Old Saybrook, CT USA) - See all my reviews
The Oil Card: Global Economic Warfare in the 21st Century
The author has done an excellent job of researching an incredibly complex subject and committing it to paper...He shows a real depth of knowledge and perception of not only the mechanics of the energy markets, but also the history and politics behind them.
He daylights the government's strategy against Russia starting during the Reagan administration ...He documents and proves beyond doubt the point that the US government and its allies artificially kept oil prices low for years to starve the Soviets of income, an important tactic that was essential to winning the Cold War. The contrarian thesis of this book is that the government is now attempting to do the same to China by weakening China's economy by keeping energy (and other commodity) prices high. Showing the background and illuminating the methods employed in the futures/derivatives markets and by controlling the physical oil market supply itself, the author makes a compelling argument that is entirely believable. He very accurately and completely portrays the genesis and the implementation of the energy price manipulation activities in the futures/OTC markets that many of us firmly believe is exactly what has occurred. For years many of my colleagues and former major players in the energy market have critically discussed the Wall Streeters and hedge funds involvement and tactics of bringing non-oil players into the energy markets. The net result is these players are driving market prices and ignoring traditional market fundamentals, artificially driving oil prices upward based upon self generated bogus risk factors and alleged technical analysis.
This is definitely not a book for amatuers however...Because of the detailed information provided, it takes considerable energy market knowledge and experience to understand what he is saying, not an easy read, more like a text book and a great primer for market players. Certainly many will find the chapter on China itself interesting and informative. However if you want to read a fascinating story of how and why we got to $146/bbl crude oil, this is the book for you.
Richard Perkins
The problem about China getting all the cheap crude is incorrect. If the book is true and can be believed ---every looney leftie will be quite dissapointed to know that our soon to be ex VP was implementing a strategy to have India bid up the Chinese on any oil reserves around the world that became available. READ THE BOOK. You will be amazed at how GW and Cheney played Russia and China like a snare drum.
and not doing something about it earlier. Thus the dollar should do well over
the next months... which means gold is about to lose some shine in my opinion.
safe haven buying might be going up, but the major buyers like India has been
shrinking. Jewelry fabrication down 30% easy. More sellers then buyers over there.
Hopes that the new year will bring new sales.
Inflation is no where to be seen right now. Oil hitting 37ish a barrel is astounding.
All other commodities have dropped right along with it.
Gold will need a lot of help to get over 1000 again... anytime soon.
Bidding that oil that high has had a serious and direct impact on our own people and our economy. So China has to give up some more of its US Treasuries to 'overpay' on oil reserves. All this does is weaken the USD further.
So again, was all this 'chess' Bush & Cheney were playing worth it? How has it helped the USA or our economy?
Random Collector
www.marksmedals.com
As of June 30, Kentucky’s largest fund for state workers held about 52 percent of the assets needed to pay current and future benefits to its 117,000 members. The plan had an unfunded liability of $4.8 billion at that time, while the entire system’s liabilities totaled about $16 billion
June 30?? They probably are down to 30% now.
Of the 109 state funds, 43 were funded at 79 percent or less of estimated current and future costs. Those below 80 percent “constitute the weakest cases,” said Ted Hampton, an analyst with Moody’s Investors Service Inc. in New York. The average level is 85 percent, according to an analysis prepared for a Moody’s report published in July 2008, Hampton said
I would imagine this is more like 90% of state funds are woefully underfunded now. So the choice is raise taxes to fill the coffers or cut benefits, or both. Neither of which will restart the economic engine.
Knowledge is the enemy of fear
What planet does FC live on???
The risk of losses on European government bonds is mounting as the economic slowdown threatens credit ratings in Spain, Portugal, Ireland and Greece
Knowledge is the enemy of fear
<< <i>"Inflation is no where to be seen right now."
What planet does FC live on???
Well, fan of bad football teams
December Import Prices m/m -4.2% vs -5.3% consensus, prior revised to -7.0% from -6.7%; y/y -9.3% vs -9.5% consensus, prior revised to -5.4% from -4.4%
You are looking at what prices did last year and in previous years. Look forward, and ye shall see the truth.
Knowledge is the enemy of fear
Global Default Rate Will Jump to 15.1% by Year-End
Knowledge is the enemy of fear
capital, yes
land, yes
labor, yes
materials, yes--- unless the supplier is buried with older higher cost basis. In which case the supplier is probably close to BK.
<< <i>There is----in my humble opinion--deflation right now in the USA.
capital, yes
land, yes
labor, yes
materials, yes--- unless the supplier is buried with older higher cost basis. In which case the supplier is probably close to BK. >>
Regarding labor, I feel the pain big time. Starting February I get to enjoy a 35% pay cut!
Ren
"I am the banking....."
Directions:
1. play last 2:40 of audio
2. while listening scroll down to bottom of page for words
3. sit back and enjoy
Ren
Tonight went grocery shopping with my wife. Hadn't done that for several months. Prices of just about everything were noticeably higher. I was pretty shocked, as I had assumed that the "higher" prices I recall seeing in the late summer were a result of $5 diesel (expensive transportation bumping up food prices). However, prices today are clearly higher than even then. Maybe just an abberation (I doubt it), but seeing that fuel prices are significantly lower now, there must be other factors in play. Some people must really be getting squeezed financially.
More than you can imagine.
U.S. December Producer Prices Fall 1.9%, First Annual Drop in Seven Years
ECB Cuts Interest Rate Half-Point to 2% as Recession Forces Trichet's Hand
Knowledge is the enemy of fear
Previously noted here that $60 oil is necessary for Chavez to keep his socialist agenda working. I was wondering how long it would take for $40 oil to start hamstringing him. It didn't take long, just a few months and he's looking for help.
Two things...1. The closest refinery that can distill his tarry (heavy, sour) crude are the 11 refineries in the US that can deal with his oil because of it's qualities and there are very limited other opportunities for him to get his oil refined short of Africa. 80% of vene's tarry crude is refined in the US because of this. 2. Chavez nationalized the US oil companies interest (and others) last year and they are still in court over the abuse.
So, now, we are importing less and less of his oil and now he's back at our door step asking the same companies that he nationalized to come back and do it again. Of course, the US companies are just kind of looking at him and going huh?
He may have to capitulate and not only pay the US Conoco and Exxon their court demands but also have to cowtow to get someone to even bother to get involved with his stuff. As they say in baseball, he's trapped between home and 3rd base...he's in a pickle. His need for US refining capacity may indeed lower the price for his oil even further; this will get more interesting.
Jan. 15 (Bloomberg) -- An $825 billion economic-stimulus measure drafted by the U.S. House of Representatives would provide $550 billion in new government spending along with $275 billion in tax cuts for families and businesses.
A summary of the measure released today said it would provide about $90 billion in infrastructure spending, $87 billion in aid to states struggling with surging Medicaid costs and $43 billion in unemployment and job training programs.
Other provisions would provide $20 billion for federal nutrition assistance, $15.6 billion to Pell Grants, which help low-income families send their children to college, and $6 billion to expand broadband access in underserved areas.
Individuals and families will get at least $140 billion of the tax cuts, including credits for workers worth up to $1,000 per family or $500 per individual. The bill would also expand tax credits for the working poor, including making more families eligible for a child tax credit.
The tax section contains a provision allowing businesses to convert losses into cash by claiming a refund of taxes paid in previous years. Fannie Mae, Freddie Mac and companies that received aid from the Troubled Asset Relief Program are not eligible for the tax break, according to a summary of the bill.
The three-dozen tax provisions also would give businesses incentives to invest in equipment and remove a requirement that first-time homebuyers repay a special $7,500 tax credit enacted last year to stimulate the housing market.
“This recovery package will provide tremendous tax relief, health care and job training benefits for families struggling to make ends meet while also giving businesses the boost they need to create jobs,”
Knowledge is the enemy of fear
This is just the tip of the iceberg. I can see this being compounded by other states being forced to do the same thing.
Box of 20
If you just support jobs with new jobs, throw "good" money after bad....what good can come out of bailouts and TARP?
Bank of America: CNBC says FED, FDIC officials are discussing a Citi-type guarantee for BAC of between $100-200 bln
Knowledge is the enemy of fear
Deflation and severe recession in 09
followed by raging inflation from 2010 -2014.
What will short circuit the entire issue, may be
a significant world wide war, for resources. Russia,
Syria, Iran, N.Korea, China, Pakistan , Turkey are
possible opponents. Mexico is also on the edge of
becoming a non functioning State. I guess that leaves
corruption, crime, stupidity.poverty, disease and famine
to worry about.
Camelot
Box of 20