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  • 5 Undervalued Basic Materials / Energy Dividend Stocks  [View article]
    I also own SCCO and considering adding to my position. The mine in Mexico you mentioned has been closed for about 3 years, and just received a favorable ruling from the Mexican Supreme Court against the striking miners. It is the largest mine in Mexico, and company wide their copper reserves are among the largest in the world. Also SCCO is the lowest cost producer per ton in the industry.
    Jul 20, 2010. 12:03 AM | 2 Likes Like |Link to Comment
  • 5 Undervalued Basic Materials / Energy Dividend Stocks  [View article]
    I think unrest is a major risk for most mining and other commodity stocks. SCCO does seem to have more labor problems than most. Only you can determine what risks you want to take for the reward.
    Jul 19, 2010. 10:52 PM | 1 Like Like |Link to Comment
  • Misunderstanding Modern Monetary Theory  [View article]
    Your assertions may be correct, but see my posts below. The theories that are being stated can never be implemented in a free democratic society with as diverse political opinions as our society is blessed with. Only in an authoritarian type system, such as China, are these theories plausible. In our two party system, one party never wants to tax and spend, and the other party never knows when to stop. Also because of political favors, stimulus will never be directed where it should be. And we are in constant election cycles, where politicians can never lose their base.
    Jul 18, 2010. 09:42 PM | 2 Likes Like |Link to Comment
  • Misunderstanding Modern Monetary Theory  [View article]
    My comment will only add to your question. One of the main reasons Milton Friedman was opposed to central banking lies in the answer. His opposition to the Fed was, how effective can their policies be if everyone knows what their next move will be. I think this is the main reason the Fed has always been so secreative and opposed to opening up their balance sheet.
    Jul 18, 2010. 03:58 PM | 3 Likes Like |Link to Comment
  • 5 Undervalued Basic Materials / Energy Dividend Stocks  [View article]
    It is part of Grupo Mexico, and Grupo Mexico is a public company. I beleive their is a family that holds a large stake in the company. This may explain how they are able to manuver the political environment in Mexico. I may be wrong on this, but I beleive the Mexican government may have a stake in Grupo Mexico.
    Jul 18, 2010. 02:13 PM | 5 Likes Like |Link to Comment
  • Misunderstanding Modern Monetary Theory  [View article]
    Krugman and Keynes view is that you flood the economy with money in depressed times, and soak up the liquidity in good times with high taxes to avoid devaluing the currency. But what has people scared now and hoarding dollars is the policy with the current administration and future tax policy. In other words, we are afraid the policy will be to tax and take the liquidity out of the system when we are still in a deflationary environment. These are directions we are looking for from Washington. If congress sits on their hands, we know the tax cuts will expire. It sometimes looks like the Fed and this administration are not playing with the same playbook. The Fed is using a monetary solution, our elected officials are using a political solution. This has always been my one complaint against Keynes theory, it can never be implemented. Politics never pulls the correct levers at the correct time.
    Jul 18, 2010. 02:03 PM | 4 Likes Like |Link to Comment
  • Time to Focus on Protecting Assets  [View article]
    Agree with most of what you write, and will add one question? What about the personal responsibility from the borrower who took on debt they knew could not be paid back. I beleive individuals who take on debt that they know can not be paid back are quilty of fraud. But with our bankruptcy laws it is just, oh well.
    Jul 18, 2010. 01:38 PM | 5 Likes Like |Link to Comment
  • Misunderstanding Modern Monetary Theory  [View article]
    Edward, I think you hit the nail on the head. Paul Krugman is stuck in Keynes world of the past when we were on the gold standard. I do not think he has a full understanding of fiat currencies. If he thinks society will flock to lumps of coal, does he not think people will now flock to gold or other commodities? I beleive FDR even made it illegal to own gold and bought up private stocks of the yellow metal. He knew people would hoard it, just the way banks, business, and households are hoarding dollars today. As for assets being electronically created, I am not so sure they are not now. Do we yet know the toxic assets sitting on the banks balance sheets? Or whatever happened to those assets?
    Jul 18, 2010. 12:19 PM | 3 Likes Like |Link to Comment
  • Time to Focus on Protecting Assets  [View article]
    Finally something I can relate to.
    Jul 18, 2010. 11:36 AM | 1 Like Like |Link to Comment
  • 5 Undervalued Basic Materials / Energy Dividend Stocks  [View article]
    I believe the current yield on SCCO is around 6%, making it the highest yield of this group. Keep in mind that this stock's payout varies from quarter to quarter based on revenues.
    Jul 18, 2010. 11:27 AM | 8 Likes Like |Link to Comment
  • ECRI Index Annualized Change Almost a Lock for Double Dip Territory  [View article]
    Since the beginning of April, my thoughts were that we go back into a recession in Q4 of '10 and Q1 of '11. I have seen no data yet that has changed my mind. The data is only confirming my thoughts. As for the tax cuts on the rich ending, Alan Greenspan came out in favor of letting All of the tax cuts expire. His concern Now is the massive deficits, but was not bothered by them as they were happening. This will only suck money back onto the government account balance sheet, and off of the household and business balance sheet. Seems like a catch 22 to me. Thanks alot Alan, a fine mess you left us with.
    Jul 16, 2010. 02:03 PM | 4 Likes Like |Link to Comment
  • Carloads Decline, Rail Traffic Moderates From Highs  [View article]
    What percentage are the rail loads taking goods from ports, taking goods to ports, and moving loads from within the interior of the country? In other words, are we importing, exporting, or selling to one another.
    Jul 16, 2010. 01:13 PM | Likes Like |Link to Comment
  • The Dollar Is Weak Because the World Is Not Ending as Expected  [View article]
    Thank you for the article Scott. I also do not believe the economy is struggling because of a lack of money supply. Many commentators opine about debt as a cause for low money supply, but debt IS part of the money supply. It is just a matter of the account balance sheet in which it rest. Is it household, business, government, or foreign obligation.
    Jul 16, 2010. 01:01 PM | Likes Like |Link to Comment
  • One Step Closer to Deflation  [View article]
    Take out food and energy and the rate is up .2%, or 2.4% yoy. When energy prices are falling we always want to tout energy prices in the rate, but when they rise we discount energy prices. Funny how economist can look at individual components and make an argument.
    Jul 16, 2010. 09:56 AM | 7 Likes Like |Link to Comment
  • Rail Traffic Indicator Derailed  [View article]
    Thank you for the chart. Could we have the chart that breaks down rail traffic per commodity? I would think rail traffic for coal being shipped to China would still be steady to rising.
    Jul 14, 2010. 07:48 PM | Likes Like |Link to Comment