sunnsea's Comments

Housing Can Indeed Be a Good Investment

Fri, 11 Dec 2009 10:14:48 -0500

It may be there is an 18-year cycle from down to up to down again. So if the bottom was 1997 then to 2006 with 9 years of gains then another 9 years of decline so the bottom will be in 2015 or so. We may bumble along from 2010 to 2015 without much gain then the forces that create bubbles, i.e. Republican tax cuts with low tax rates on the extremely wealthy, low Fed or no Fed rates, etc. will be back with accelerating gains a la 2002 to 2006 back for 2016 to 2020.
I'm not sure I would use Philly as an example because the Philadelphia metro area did not see the bubble like appreciation that was seen in California or Florida where any and all gains in real estate went through all areas.

On Dec 10 09:03 AM logicalthought wrote:

> You make your money in real estate on the day you buy it. In other
> words, if you buy at the right point in the cycle, you'll do fine.
> Historically, real estate up-cycles lasted five-to-seven years, after
> which you'd have a three (or so) year correction during which prices
> would fall 20% to 30% from the peak, and then the up-cycle would
> begin again. The problem this time is that the up-cycle began in
> early 1993 (!), and prices didn't peak until 2007 in many parts of
> the country, and who had ever heard of a 14-year real estate up-cycle?
> So, my guess is that if you can buy a place today for 40% off what
> its peak price would have been (not peak "asking price" but peak
> "actual comparable sale price"), you'll wind up doing fine, although
> the market (I suspect) will first go nowhere for three or so years
> once it finally bottoms. If you then sell once you've had five to
> seven years of appreciation and rent for a few years, you'll do great.
> Personally, I couldn't care less whether I rent or own my home (give
> me a roof, a bed, a high-speed internet connection, a big TV and
> a bathroom, and I'm happy) and, in fact, I'd rather rent so that
> I have more capital available for the markets. Unfortunately, though,
> I realize that I'm a bit of an "outlier" there, and my girlfriend
> (and most people) seem to think it's very important to have "a place
> of one's own", which they define as something they own.

As the Dollar Rises and Gold Falls, Should We Get Ready for Fed Rate Hikes?

Mon, 07 Dec 2009 09:51:04 -0500

As I and many other posters continue to say, without manufacturing high quality products suitable for the many global export markets we will not be getting out of this any time soon. Our economy also has to be protected from products made in low wage countries and stop the race to the bottom that we have been engaged in since 1981. Americans are going to have to put all of their right wing/libertarian talk radio sound bites to the test and work their way out of this, not financially trade their way out. You remember what real work is, don't you?

Our Current Economic Illusions

Fri, 04 Dec 2009 09:57:15 -0500

If you want to see what a real growth recovery looks like, check the GDP numbers from 1933 to 1936. Then it was 9 to 10% annually climbing out of a 25% unemployment rate in 1932. Enough to cut the unemployment rate to 14% by 1936, an 11% drop. You need at least 8 to 9% annual growth to reduce unemployment by 3%.

In our situation you have TARP money being day-traded, stimulus money that is mostly tax cuts with only about 10% directed toward actual projects. Therefore, most of the GDP "growth" is non-productive and even today's job figures all of the high wage sectors are still losing lots of jobs. So the overall "productivity" numbers are highly misleading. Simply adding trillions of dollars from day-trading gains divided by a shrinking workforce is not "productivity." Clearly a whole new set of numbers and criteria are needed to match an economy that is doing less and less work and more and more program stock trading but not distributing the gains from the program trading throughout the economy, in fact I would call this new paradigm, the "anti-economy." It is in fact, the end of work for most people but not the end of program trading.

The U.S. Dollar: Now at Parity with the Swiss Franc

Thu, 26 Nov 2009 10:11:31 -0500

It would be better if we pegged the USD to the Z dollar.

On Nov 26 09:04 AM Davewmart wrote:

> I believe that Bernanke still denies that his medium term objective
> is parity with the Zimbabwean dollar.....

Another Crisis Looms Right Around the Corner

Wed, 25 Nov 2009 16:00:12 -0500

One thing that Japan has that we no longer have is a great industrial base from which to operate. That is why our "recovery" will not last. Two mistakes that Japan made: 1) not letting the big banks fail and 2) putting more money into infrastructure in a country which already had an excellent physical infrastructure, so it came down to make-work projects (kind of like our "defense" budgets) such as bridges to no where, high speed rail lines in thinly populated parts of northern Japan, etc.. Many Japanese I speak to feel that in retrospect the social and health infrastructure should have been upgraded instead and there would have been much more benefit and money circulating in the real economy.

On Nov 25 12:33 PM woollyB wrote:

> What scares the perma bears is that the debt bubble that we are (not)
> dealing with right now is far greater than the one that caused the
> Great Depression. Notwithstanding his claims of Depression "scholarship,"
> Bernanke & Co. are following the same patterns that were followed
> back then, and repeating all the mistakes that Japan made.
>
> This isn't the end of the world. We will come through it. But not
> without a depression, no matter how hard we try to fight it off.
> The time to avoid a depression was years ago.

Another Crisis Looms Right Around the Corner

Wed, 25 Nov 2009 15:36:48 -0500

Good post. Thanks for the link to globalresearch.ca. Leave it to a Canadian to provide a good history which pretty much sums up the past 40 years. It does take a look back that far to see how all this got started and developed. It also shows how much we have lost in many different ways and that really there is no economy left, only printing money. I especially like the part about Nixon, China and the banks. This part of the 70s is often overlooked and is at the root of the Great American De-industrialization, an act of national suicide by a 1000 cuts.
Only quibble is about FDR and the GD. The common US folk wisdom is that WWII got us out the GD and not the New Deal.. However, I take a different view. When FDR took office unemployment was at 25% and by 1936 it was down to 14% or an 11% drop in the rate, so some people were going back to work. This employment growth coincided with annual growth rates of from 8 to 9.5% from 1934 to 1937, like China now. (We are far, far from this type of growth rate now). The economy was definitely recovering. But the mistake FDR made was in not continuing his recovery policies forcefully after 1936 thinking that they were not fully necessary. However, the recovery from the GD was too fragile in 1937 and without cotinued jobs programs and direct stumulus, it could not be sustained. There was stagnation from 1937 to 1941. If you think about it, the huge increase in public spending and manpower utilization of WWII shows just how much stimulus and direct spending was needed to pull the US out of the Depression. Same as now except we do not have the industrial base any longer and essentially have to start over from scratch, an immense effort that would require a unified nation in a common cause of rebuilding, like China now. But, sapped as we are from endless cable TV and a fraudulent financial sector, we have neither the will nor the ambition for any large undertakings anymore that are not in some way connected to violence. We prefer to bash each other calling each other names on cable-TV and have the upper class get richer from better ratings.

On Nov 25 08:24 AM SusanGrisanti wrote:

> You are right on. For a 40 year amazing look also see globalresearch.ca/...

10 Reasons to Believe That We're in a Depression

Fri, 20 Nov 2009 10:15:13 -0500

It would have been better, in retrospect, to have Palin as President and Gramm as Treasury Sec so that the Depression would occur full bore without any dancing around and full pain for everyone, not just the middle class. Then from the true wreckage of a false and fraudulent financial services economy and its limo-driver two political parties,a strong progressive leader would emerge with programs ready to be put in place on Day One in 2012: re-institute Glass-Steagall, restart manufacturing via machine tools, increase tariffs on goods from low-wage countries (EU, Japan, South Korea, Taiwan: no tariffs), end corporate tax exemptions on profits earned on foreign operations, large banks broken up, phase out the Federal Reserve, increase funding for creating worker-owned enterprises, institute a single-payer health care system.

Unfortunately, Obama was elected in the wrong place and time. (It's still only 1930 on the year-to-year comparison with the GD, so instead of Palin/Hoover, we have Carter/Obama) So we will have to live through at least 2016 before the final collapse occurs and then the true progressive era can begin, assuming he does not get re-elected.

On Nov 20 08:57 AM Tom B wrote:

> AND Obama has to show SOME positive improvement in the economy by
> next November or he could lose seats in the House and Senate-- nevermind
> the whole deprsesion is "W's" fault; people have short memories.
> So far, we have lots of stim, money spent with NO really obvious
> results--employment still sucks and that's the biggest number in
> people's consciousness.

Our Steroid Pumped Economy

Thu, 19 Nov 2009 10:46:46 -0500

So what did you really expect to happen, Mr. Steroids? When you ship all of your manufacturing to China or Mexico and expect the left over American labor to work at Walmart at half the wages without health care, do not protect yourself against low-wage countries products, have tax write-offs for corporations making their products in low-wage countries, then have consumers borrow from you to make up the difference in their standard of living from the loss of the aforementioned manufacturing, you actually expected that they could pay you back? No, so you created derivatives and credit default swaps, but then it is YOU who can't pay those obligations and now we have the collapse you helped create.

The real problem here is that the collapse did not go far enough or deep enough. It was deep enough to destroy the last vestiges of the American middle class, but not deep enough to destroy the upper class. There are enough of them around now to fund the anti-Obama propaganda machine and sweep to a Republcian victory in 2010 and 2012. Obama is the unfortunate one caught in a vortex not of his making. It would have been better in retrospect to have a Palin victory. This would have ensured a total and complete collapse with Phil Gramm as the Treasury Secretary, deep enough so the upper classs would have been taken down, too. Destruction of the upper class with its entitlements and tax benefits, is the key to eventual recovery and the rebuilding of this country to a better, brighter future and a return to its middle class roots.

Murdoch: Without eTablets, 'Newspapers Will Go Out of Business'

Wed, 18 Nov 2009 11:39:15 -0500

Your "young civilians" did not "expose" Acorn except in the limited minds of you on the right. Acorn employees in most cases (not hyped on FAKE "News") either threw the imposters out or called the cops. Of course none of this was reported on FAKE. The two situations where that did not happen (in San Bernardino CA and Baltimore), the employees were fired immediately. However, your "civilians" (are you a "militarist"?) probably committed felonies in California and Maryland, where in both states, it is illegal to record a person without their knowledge and permission (ask your buddy Linda Tripp how this works) and I believe that there is an investigation underway in CA by the state AG on the San Bernardino incident. But who really cares? You got what you wanted out of it, 24 X 7 Cable and talk radio on Acorn and got their funding cut by a cowardly and easily intimidated Congress that does not own 3000 A.M. talk radio outlets and 3 Cable TV "news" networks. The law is only for suckers, right? and does NOT apply to FAKE, "young civilians," Limbaugh or yourself ("militarist"?).
You right wing law breakers got away with one this time.

On Nov 18 08:37 AM tmorris007 wrote:

> Please let me know where you get your "credible" news. Is it the
> mainstream media? When was the last time the mainstream media broke
> a "Watergate' or "Contra" type story?
>
> Today we rely upon the creativity of two young civilians to expose
> the likes of "Acorn"
>
> The internet will democratize news and peoples reputation will once
> again become their calling card. Matt Drudge is a pioneer in this
> regard and there are many others.

And Bernanke Didn't Think Unemployment Would Reach 10%

Sun, 08 Nov 2009 09:30:18 -0500

Yes, Reagan's path to recovery: cut taxes on the wealthiest Americans, borrow the difference from foreigners amd change from being a creditor nation to a debtor nation. Then start allowing the same foreigners to buy up US companies with the remaining US corporations start having their products made in the foregin countries. And of course curse government from the inauguration for the next eight years. Yes, let's keep following that path. It sure has been working....Wrong. I want a government big enough to stand up to the largest global corporations, not kowtow to them. And that "govmunt" that Reagan hated was ultimately you and me.

On Nov 08 09:05 AM long_on_oil wrote:

> My God, we have been through this once before when Reagan got elected.
> For Petes sake politicians, swallow your pride and do what Reagan
> did. His plan set us on a path to recovery and prosperity that lasted
> over 20 years. We all know what he did now all we have to do is replicate
> it.

George Soros: The Guru Outlook

Thu, 29 Oct 2009 09:54:21 -0400

Agree. People who watch Fake News and listen to right-wing talk radio all day generally have a very limited vocabulary. Soros has lived under both fascism and communism. He knows a lot more about either of them then any Fake News pundit or corporate dupe teabagger.

On Oct 29 09:46 AM kmf wrote:

> Because he is so smart!
> You guys should stop yelling "liberal" every time you don't agree
> with a person's view. You gave up communist when the Wall came down.
> How about "not-conservative"

George Soros: The Guru Outlook

Thu, 29 Oct 2009 09:50:12 -0400

Yes, but only if it is MADE here not in a BRIC country.

On Oct 29 09:11 AM kagame wrote:

> US needs startling new technological innovation to recover its economic
> dominance. Just think what we could have accomplished if any substantial
> part of that bailout and TARP stimulus was put into real industries
> that could produce actual products and create industrial jobs and
> supporting service jobs. We need more research and development! Think
> how bad the future will be for the US if we truly lose our innovative
> edge along with everything else.

How to Boost U.S. Exports

Tue, 27 Oct 2009 10:16:35 -0400

It's the US corporations that benefit from the 0% US tariffs and it is the US Chamber of Commerce among other lobbyists that promoted this. They have never been interested in exporting US- made products. Their entire interest has been in finding lowest wage, no tax or subsidized locations anywhere on the planet from which to increase profit and then reducing US tariffs from the same countries to zero under the false rhetoric of a "global economy." It has nothing to do with a "global economy" only in destroying uppity US workers. Of course, this foolish short-term thinking is the basis of our current economic calamity. Your article leaves out the critical percentage of the so-called "China trade" made up of US products made under contract or in a special economic zone in China and shipped bacl to the US. It may be as high as 60% of all "China trade" is simply US products made there.

Nouriel Roubini, One on One: More Doom and Gloom

Sat, 24 Oct 2009 10:32:19 -0400

Since 1968 you have had essentially two political choices: 1) The Government run by the U.S. Chamber of Commerce (popularly known as the Republicans) or 2) Government run by Goldman Sachs (neo-liberal Democrats). What both 1) and 2) have in common is they both stand for low wages for Americans due to cutting all tariffs, especially from low wage countries. The difference between them is their disposition toward the displaced American workers. Number 1) does nothing and while 2) gives "tax credits" to people who have lowered income and indirect "stimulus" packages. Neither one of these poor alternatives should be allowed to continue. To put it another way, Number 1) is for low wages and low welfare and 2) is for low wages and high welfare. I am for a complete New Deal revivial as currently embodied in Germany and Japan (ironically), that is high wages and low welfare. Revival of manufacturing through employee-owned high-tech factories exporting high quality products world-wide and high tariffs on products from countries that exploit workers. It's about raising the global standards on everything from wages to environment and not lowering them to satisfy the egos of the American predator class or "shareholder value."

On Oct 24 10:15 AM TeresaE wrote:

> The lost wages are directly attributed to cheap foreign labor, both
> imported and outsourced.
>
> Want better pay? Quit buying your stuff at the WalMart and start
> buying AMERICAN.
>
> Anything else will just price MORE jobs out of the country.
>
> It really is that simple. Too simple for this entertainment based
> generation to understand.
>
> The days of family-supporting wages are over. Soon black market jobs
> and government dole will be the only way the average American can
> afford to buy their Chinese-made Sam's Choice foodstuffs & socks.
>

Nouriel Roubini, One on One: More Doom and Gloom

Sat, 24 Oct 2009 09:53:21 -0400

Yes. And the American form of toxic, predatory capitalism is dead. That is our great hope. The next step in the process is accelerated movement toward democracy in the workplace via employee owned firms so American workers can begin to recoup the losses they have suffered in lowered wages over the past 35 to 40 years.

On Oct 23 10:37 AM rcstocks wrote:

> "There is a global recovery." No there isn't. There is global coordinated
> government spending, e.g., cash for clunkers. We truly are all socialists
> now that economic commentators accept this as a recovery. Marx has
> won.

What Goldman Learned from a Trip to China

Fri, 23 Oct 2009 09:59:17 -0400

And surely this will result in a continued explosive situation in Pakistan/Afghanistan spilling over into India and Southwest China. China is also making solar panels and other green technologies. What about that?

Three Asset Classes that Can Actually Outpace Coming Inflationary Price Increases

Tue, 20 Oct 2009 11:42:46 -0400

You should also mention that the 11% cut in the 1995 Canadian budget also led to the rationing of health services that you on the right like to use as criticism of a "public option." As far as Ontario is concerned, the job losses are part of the overall extreme downturn in the global demand, i.e., U.S. demand for cars and trucks. Prior to in 2006 that GM for example moved engine production from Detroit across the river to Ontario mainly because they have a single-payer health insurance system at lower cost to GM.

On Oct 19 09:34 PM derryl wrote:

> E Nuff Said:
> Good point about turning around a "hopeless" fiscal situation.

>
> In 1995 Finance Minister Paul Martin balanced Canada's federal budget
> by cutting the federal health and social transfer to the Provinces
> by $11B. Scaled up 10X to the US economy that would equal a $110B
> reduction in annual transfers from Washington to the states. Canada's
> provinces use the health and social transfer mainly to fund health
> care and education, which are provincial responsibilities under Canada's
> constitution. The provinces all squealed but responded by rebalancing
> their own budgets and cutting whatever they could from the 2 big
> ticket provincial budget items, health and education. So if there
> was 'pain' it was dispersed as widely as possible by Martin's budget
> balancing move. And now Canada leads the OECD in fiscal (and banking)
> health.
>
> In 1993 Alberta Premier Ralph Klein and Treasurer Jim Dinning attacked
> Alberta's deficit spending, that began with the oil collapse and
> depression (in Alberta) of 1982. They required ALL gov't departments
> to find 5% cuts, which actually happened. Alberta had a 25 year plan
> to pay off its net debt, but after oil began rising in 1998 and natural
> gas took off the debt was paid out in full 10 years early. Alberta
> now has no net debt (some debts are longer term and can't actually
> be paid out until they come due, but Alberta has set money aside
> to pay these). This year due to the collapse in natural gas, Alberta's
> major royalty cash cow, Alberta is running an $8B deficit. But over
> the past few fat years the province has saved $17B in a sustainability
> fund, so no new borrowing will be required to fund the deficit. Gas
> royalties are still low but tarsands construction is starting up
> again so Alberta should endure the present recession quite well.
>
>
> Most other Cdn provinces have been behaving as fiscally responsibly
> as Alberta (and some are doing even better which is why political
> change is in the Alberta air), with the exception of Canada's biggest
> province--Ontario. Ontario's socialist premier is determined to 'go
> green'. Admittedly, Ontario has suffered fully 1/2 of all Cdn manufacturing
> job losses as steel and autos are way down, but if you want to see
> what Obama's greenonomics might do to America just have a look at
> Ontario.

Who Is Carlos Slim in Today's Market?

Sun, 18 Oct 2009 18:07:04 -0400

This is getting to smell more and more like the Weimar Republic, not the United States of America. And the populism could take a very nasty turn. But then again we never had our right-wing tendencies bombed out of us like Germany, Italy and Japan. Since we have not had such a regime, I suppose it follows naturally than one must go right first, have a national conflagration, have a benefactor nation come in help rebuild truly democratic institutions and develop the New Deal that was meant to be before being short-circuited by the 1946 Republicans with the passage of Taft Hartley and it has really been downhill for labor since and since 1970 for the American Middle Class as a whole. But when in power the Democrats, instead of standing up for working and middle Americans, have proven themselves nearly as corruptible as their Republican partners. So the whole of cards will start collapsing. Unfortunately, Obama, as with Clinton before him, appears more like the tottering 84-year von Hindenberg not a strong "I welcome their hate" FDR. So we have a continuation of the Carter-Clinton neo-liberalism: that post-Nixon toxic combination that is fully at home with false "globalism, aiding and abetting with their Republican pals in creating a low-wage, high-welfare state based on cheap imported products, and high interest credit, instead of adjusting New Deal principles and strategies and maintaining the high-wage, low welfare policies that the New Deal promoted. Will Europe and Japan need to come in and help us rebuild our nation to that high wage, low welfare state, eliminating the dominance of Goldman and JP Morgan? Afterall, those Mercedes and BMWs that many posters love to drive did not come out of nowhere.

Will Windows 7 Resurrect IT Spending?

Mon, 05 Oct 2009 09:58:35 -0400

Your article sounds like a plant by Microsoft. If 7 can't emulate the er or recognize XP, Vista, etc., forget it.

Beware the Current Bull Market in Derivatives

Thu, 01 Oct 2009 15:04:18 -0400

Here we go again. Sorry for all who thought it was safe to go back in the water.

Capacity's Comeback Strongly Indicates Recession's End

Thu, 17 Sep 2009 14:07:52 -0400

They must pay for their employees health care unlike competitors with national health single-payer systems.

Also, how much of the CU figures include US plants in Mexico and China? Do we really know for sure?

On Sep 16 02:33 PM Dirk McCoy wrote:

> The trend in downward capacity utilization will continue as long
> as labor price controls dampen utilization. Further weakening of
> the dollar may mitigate this some, but having filled out these reports
> in the past I know that what is currently called "capacity" is understated
> in terms of potential capacity, and overstated in terms of short
> term capacity. The difference lies in capital investment, and companies
> will be hesitant to do that if they don't sense they can be competitive
> over the longer term such that they can achieve payback on their
> investment.

Will Chimerica's Demise Take Down Global Economy?

Tue, 15 Sep 2009 10:24:44 -0400

If what you are saying is true, this key part of the story has been curiously omitted in the MSM reporting. This type of deal is typical if the "investments" made by US companies. All the production is sent back here, not for China consumption, that has always been the rule there. Poor reporting and non-reporting of these arrangements for the past 25 years would only lead to more outrage if they were widely known. People think these are Chinese companies, but they are American companies that are doing the dumping.

On Sep 15 09:27 AM axelrod608 wrote:

> >> "But when Barack Obama chose to slap 35% tariffs on Chinese tire
> imports, this was an unmistakable act of active protectionism" >>
>
>
> Oh, please, cut the hyperbole. The tariff was imposed on ONE company's
> tires - Cooper Tire - which made a deal with China to build a factory
> there and to export 100% of its production to protect China's domestic
> tire industry. China would NEVER permit a Chinese company to do any
> such thing, but the US - with close to zero control over its companies
> - did nothing to stop the unfair deal.
>
> Our government cannot control companies that enter into these totally
> one-sided agreements, so it is using the only tool it has left -
> levy tariffs.
>
> Let's get a little objectivity in the reporting of these issues.

Will Chimerica's Demise Take Down Global Economy?

Tue, 15 Sep 2009 10:17:32 -0400

If you want to join two economies it should be Euroamerica. We should join the EU. They are open to US products if they are of excellent quality and we don't dump on them. They would help us rebuild our manufacturing base with infrastructure grants. OF course we would have to raise our standards on a lot of items including meeting ISO9000 on all goods produced. But to join up we would need to: abolish the death penalty, guarantee worker rights to organize in all parts of the US (abolish Taft-Hartley), have national uniform policies on vacation time, health care system that covers everyone, need to institute a VAT and have 20% VAT on all products made outside of Euroamerica. Sure Japan can join up to if it wants (must abolish the death penalty). Then we have a union of all high-wage, low welfare states, a true embodiment of the New Deal. As far as China, when it establishes higher wages, stimulate domestic spending, abolishes the death penalty and has democratic elections, it can join too.

How Low Can the Dollar Go?

Sun, 13 Sep 2009 10:39:42 -0400

you forgot Blackberries, small jet liners, Bombardier transit cars....and now the relocation of a Toyota plant from California to BC. See what a single payer national health insurance system will get you? Instead of paying extortion money to private health insurance you can take the savings and put it to useful manufacturing.

On Sep 12 04:43 PM Mad Hedge Fund Trader wrote:

> iivn Hedge fund longs have been bunching up in the Canadian dollar
> for the past two months. Canada makes what everyone wants and doesn’t
> have enough people to consume it, making them a major exporter of
> everything hot. I bet you didn’t know that the frozen wasteland to
> the North is our largest foreign oil supplier. Most people guess
> Saudi Arabia. The Canadian supply is slated to double over the next
> 20 years, thanks to the environmental atrocity of oil sands. The
> land of Mike Myers, Jim Carey, and Pamela Anderson (note gratuitous
> photo below) is also a big supplier of gold, silver, lead, grain,
> uranium, wood, and other hard things. As for mosquitoes, they’ve
> got a lock on the market. Use dip to accumulate the loony. If you
> catch me singing “O Canada” in the shower, you’ll understand why.

The Non-Stimulating Stimulus Bill

Wed, 02 Sep 2009 11:12:16 -0400

Sorry, what's really been happening since 1981 has been robbing Paul to pay Peter. What else do you call tax cuts for the rich, repeal of Glass-Steagall and two unnecessary wars? And your now worried about trillions of debt. If anything, Obama is proving himself just another in a string of corporatized neo-liberals paid by Wall Street to salve their guilt. He looks like a socialist to you because he isn't a right-wing looney-tune, that's how far we dropped in this country.

The Renminbi as a Reserve Currency (Part 1)

Tue, 01 Sep 2009 10:16:48 -0400

Like the Soviet Union and even today's Russia, America has nothing to sell that the rest of world wants. Manufacturing is the key to wealth creation as the Chinese well know. So a major applicance company closes its Evansville, Indiana plant today and 1100 more good paying manufacturing jobs are lost and of course the community wide impacts are greater than that number. Mexico is where refrigerators will now be made. And who cares in America that this has happened? No one. That is the problem. Like the Roman Empire in the end, no one really cared enough to even lift a finger.

4 Dividend Stocks to Hedge Against Social Security Failure

Wed, 26 Aug 2009 10:34:33 -0400

Now your talking! Repubs have hated SS since inception. They hate the high wage, low welfare approach embodied in the New Deal. Why? Because lots of low wage jobs obviously enhance profits, but its corollary, the high welfare state we have now with 40% not paying taxes, gives them something to run against, to play off what's left of the middle class against the working class and the poor (read black people). This is the way America has been run in the South anyway since 1609, playing whites off against blacks while the the oligarchs sit back on their plantations collecting their "dividends."
This is also related to the illegal immigrant problem. Largely driven here by NAFTA and the allowing of cheap US agricultural products in to Mexico, many Mexican and Central Americans really have no other choice. So instead of creating a reasonable response like a guest worker program we have illegals. Very useful, even cheaper labor and they can once again play Americans off against illegals. And because the illegals do not pay into the social programs that they use since they are "illegal" it's even better to create a backlash...Always, in America the upper 1% of the income chain wins.
Put a guest worker program in place, having them pay into SS and Medicare and you are half way there to solving the problems. But no, we don't really want to solve any of these issues, now do we?

On Aug 26 10:09 AM Marxwuzrite wrote:

> Fixing SS is no problem. Get income tax rates for upper income people
> back to Eisenhower levels. Put a chunk of it into SS. Cut the completely
> unnecessary $1 trillion budget for the National Security State. You
> know, military, "homeland security" so-called. Start making stuff
> again, i.e., rebuild our manufacturing base. You don't get rich exporting
> raw materials to China and importing manufactured goods. Duh.
>
> What is this nonsense of proposing raising the retirement age? This
> betrays a true ignorance of real economics, as opposed to the phony
> kind practiced by the corporate shills who masquerade as economists.
> Now cut the retirement age to 55. Yes 55. We can afford it. We only
> need to start creating wealth again and properly allocate the surplus.

Rational Exuberance?

Sun, 16 Aug 2009 12:29:30 -0400

Germany and France will lead us out the Depression.

2009 Is Looking an Awful Lot Like 2008

Thu, 13 Aug 2009 13:01:57 -0400

The "government" isn't controlling the rally unless you want to call Goldman's takeover of the government the government. Their program trading fueled by TARP and other Fed money is controlling the market. Media is a clueless adjunct to what is really going on. The author's analysis provides us with some guidance as to the end of this fake rally.

On Aug 12 02:02 PM aaavoid wrote:

> It's all about market psychology. If the government can manufacture
> such a phenomenal rally since march low, why don't you think they
> can control the damage this time by controlling the media? Unless
> something major gives like big drop in housing prices, or major spike
> is oil price or sudden big movement in the dollar, I really doubt
> we going to drop that much down. Remember, any bad news can but put
> forth by the media in any way they wish to make it look not so damaging.
> It's all about positive spin.

The Market Bubble Is About to Pop

Wed, 12 Aug 2009 10:59:39 -0400

I don't think this business of a bottoming out or a possible start of recovery is really meant for US domestic consumption. We know better. Rather it is probably used to hoodwink foreign buyers of Treasuries one more time as they think we are still the center of their universe. Remember who we have had running our Treasury and Fed. They are masters of deception. Maybe there is a correlation between such stories appearing in the MSM over the past 30 years and the date of the issuance of Treasuries.