rbblum

Is the U.S. Dollar the Fed's Next Weapon?

I believe a case can be presented that there is already a quiet, unstated policy in effect to sanction a U.S. dollar devaluation as a means to stimulate the domestic economy . . . whether by having implemented a round of quatitative easing or other global market players quietly moving away from the US dollar as the world currency reserve . . . it has just not yet been honestly reflected on 'the books'.

$200 Oil Is Coming While We Waste a Perfectly Good Crisis (Part 3)

Rahm Emanuel's comment regarding not letting a good crises go to waste was referring to self-interested members of the political class who regularly play in the political sand box at the taxpayers' expense . . . and was not referring to patriotic individuals, successful businessmen or distinguished statesmen with foresight.

The need of implementing a transitional plan into multiple energy sources (oil, coal gasification, natural gas, geothermal, solar, nuclear) at reasonable market rates to the masses should have been engaged in upon oil trumpetting a market price of $147/BBL . . . as though a global war had been declared. For it will be a break down on a global order for facilitating cheap transport of food stuff to many highly populated areas that will become evident to the shortsighted individuals who just so happen to occupy political positions (of national leadership and oversight).

The false political leaders will still be selling dreams of hope and change; touting more power should be given to government . . . all the while remaining silent about or preventing the powerful free market forces being unleashed in order to function in an efficient and effective manner.

And although, after a few trillion dollars being spent and a national deficit becoming recognizably unsustainable, the people are belatedly catching on. It is most unfortunate that the awareness will be of little consequence in preventing the pain and suffering that we will all be exposed to by not already having implemented plans for our not so distant, future energy needs.

Enough with the outrage: "If you want to be angry about something, get pissed at a media culture that goes beserk about bonuses one week and forgets all about them the next. And be worried, quite worried, about a society for whom anger is a form of entertainment."

Media culture? It is the media culture that presented the tour buses driving to the AIG executive bonuses recipients homes . . . and failing to mention the tour was organized and funded by . . . yep . . . ACORN.

Mexico's Declining Oil Production: Clarion Call for Cantarell

Losing the ability to export oil, Mexico will be another defining moment in modern history . . . presenting the American environmentalist movement in a position to further define who they are and what they truly represent . . . all the while America transitions into the next chapter redefining itself with the use of more expensive oil reserves and determining which alternative energy sources will likely be the most efficient and economical for the long term.

Unfortunately, there are very few, readily available, acceptable options that the American environmentalist movement will accept in addition to US politicians having no experience nor track record in planning and implementing a reasonable and reliable energy business plan that would pass economic muster on the open global market . . . thus, guaranteeing a bumpy ride for all.

Food stamps, rebranded as "nutritional aid," now help feed one in four U.S. children, and one in eight adults - even as welfare rolls have stayed virtually flat.

Any government (bureaucratic) program established will do what it can and must in order to establish the program's justification for its permanant, ever growing existance,

Cap-and-Trade and the Cheap Energy Illusion

If any historical notes are to be referenced, it should be one in which the basic laws of economics can not be controlled by the will of man . . . no matter how magnanimous the intention(s) may be.

Besides, it is most perverse that man holds himself to be so wise while voting for a legislative bill that is neither read in its entirety nor fully understood.

World Oil Snapshot: Big Picture and Investable Advice

Oil men don't give a damn whether the billions they pay in royalties and taxes are wasted.

Perhaps . . . but oil men of the United States are also not going to be caught flat-footed and have the real possibility of revised US tax laws and regulations wantonly rape and pillage their bank accounts either. Already relocating to Zug, Switzerland has been Noble Corp, Transocean, Foster Wheeler and Weatherford International. And as the national deficit climbs to a more unsustainable level coupled with the value of the US dollar drifting lower, time will determine whether the class warfare in America continues and the companies of the oil energy sector will be huge targets of our current administration and congress; thus, increasing the incentive to move on . . . from US shores to a friendlier territory.

The Muddle Through Economy, R.I.P.?

Why not be like Japan? Possibly because Japan's overall popoluation is decreasing while its senior citizens segment is growing. And, it does not help to have Japan's GDP so heavily dependent on the strategy of exporting manufactured goods, which has been decreasing. . . But worse, the new government of Japan believes they can extend more social programs which needs more borowing. . . which will lead to payback time (economic straits) in the year 2010.

Somehow, lack of solid and sensible fiscal and monetary policy is not only found in the US. . . which can not flourish if the business environment is polluted with a lack of understanding that the government that governs least IS the best.

Washington's Dilemma: This Isn't a Recession, It's a Collapse

The United States of America bail out each and every State 'in need' ? I DON'T THINK SO . . . Otherwise, why couldn't/shouldn't the Great State of Texas buy out Petrobras and Saudi Aramco? With the inability to honor the contract to buy, The US Government would have to follow precedent and put up the funds that would directly benefit the State of Texas and its citizens.

Even if the fiscally irresponsible state of california were math intollerant, that was by 'choice' and 'determination'.

Automakers: Investment Risk

The Chrysler story today really could be confused and given erroneous credit for the line 'Mr. President, this has disaster written all over it' . . . But it was actually the the movie The American President and a line from the character Sydney Wade as played by Annette Bening who delivered the appropriate, perhpas perfect, line.

But it still could appear to be a comedy of errors by the time Chrysler makes it through the gauntlet of bankruptcy court. It was painful enough for billions of taxpayer dollars going to prop up an American capitalist company in the business of manufacturing vehicles that, by most accounts, would appear to be in a downward spiral resulting in be a slow, painful crash, but Chrysler's storyline will not have a merciful ending for it really is, and has been, many things to many people. Not only was Congress determining by committee a myriad of regulations overseeing the final product but also a sense of push-me/pull-you as evidenced by management vs union. And if it was not bad enough that the current administration whipsawed Chrysler on its way to the barkruptcy court but somehow is giving the belief that Chrysler will be on the 'fast track' through the judicial system that is anticipating the merging of FIAT, an Italian manufacturer of adult-kiddie cars with an American machine that will be represented by dealerships that have somehow survived through a process of cut-throat, back-stabbing and luck. But worse, will be Chrsler's management role overseen by union through union eyes as well as a push by the invisible hands of the current administration, dictating what type of product it should sell, establishing the cost structure of manufacturing the product and the cost of selling the product as well as how the corporate structure should be established . . . all for the good of society.

Gotta go back to the line that describes the Chrysler story best . . .
Mr. President, this has disaster written all over it . . . albeit, in torturous, slow motion.

Big oil is giving Obama's grand plans for alternative energy the cold shoulder: We don't oppose alternative energy sources and the development of those. But to hang the future of the country's energy on those alternatives alone belies reality of their size and scale.

It should be no surprise IF or when our current congressional body makes a move towards taxing the ever living hell out of the oil, coal, nuclear and natural gas sectors for no other reason than to have readily available funds . . . 'possibly' under the guise of applying the monies (from the reliable, well-established, successful energy companies) towards expanding alternative, renewable energy sources . . . whether all of the alternative, renewable energy sources are ready for prime time or not.

Offshore U.S. Drilling Proposals Bullish for National-Oilwell Varco

The difference between the US Congress and environmentalists . . . US Congressional representatives will take any position benefitting themselves and lobbyists. Environmentalists will take any position benefitting earth, preferably without the presence of humans.

And yet, the article (Offshore US Drilling) is presenting a viable investment opportunity during the transitional times for our primary energy needs.

The hell with the distractors and the distractions.

Long NOV and RIG.

Jim Chanos Bets Against China

Even if China were to falter slightly with US accounting standards or recordkeeping, I would still say that China, today and for the long term, is positioned well ahead of the US in most economic categories
and standards . . . in addition to being more fiscally & monetarily sound and fostering a friendlier environment towards businesses.

Recession, Depression, Deflation, Inflation, Collapse or Recovery?

Bob Chapman's storyline just does not make sense . . . the banks have not been openly lending money to main street businesses for quite some time now . . . how and why would the Federal Reserve place conditions on TARP funded banks to be more restrictive . . . so much so that would almost guarantee a negative event being triggered which could cascade out of control?

On the other hand, it didn't make sense when two close friends told me that their bank issued credit cards had raised their annualized interest rates to 30% with no forewarning and no grace period on the existing personal debt incurred.

Grantham on the Financial 'Titanic'

Although I personally couldn't agree with enigmaman more regarding Paul Volcker being 'used' purely for show by President Obama, it is also my belief that President Obama will continue such an extravagant drollery until someone actually calls him on it publicly . . . Until that time actually presents itself, President Obama will continue to act in an arrogant, shameless fashion while
ignoring the sage insight of Paul Volker.

And, although Barack Obama stated that he should be judged by the people who surround him, Abraham Lincoln observed that an individual can not fool all of 'the people' all of the time.