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  • 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
  • What Can the Fed Do Now? [View article]
    Good commits. How soon we forget also, that the crash in 2008 was not a monetary failure, but a credit failure. Stupid lending, Stupid borrowing.
    Jul 11, 2010. 05:07 PM | Likes Like |Link to Comment
  • What Can the Fed Do Now? [View article]
    Milton was opposed to central banking because he felt they never get it right. They always overshoot whether they ease or tighten, therefore THEY create boom or bust cycles, the very boom & bust cycles the Fed was created to prevent. Since were are going to keep the Fed, we should make it as efficient as possible. His soulution was to ease on a slow and steady stream of money to keep the economy on an even plain. I think the last two boom & bust cycles show that they do get it wrong.
    Jul 11, 2010. 03:44 PM | 1 Like Like |Link to Comment
  • Are We Setting Up for a Repeat of Summer 2009? [View article]
    Alcoa is going to fall short? Oh no not again.
    Jul 11, 2010. 12:08 PM | 1 Like Like |Link to Comment
  • What Can the Fed Do Now? [View article]
    Two thoughts on what you write. One of the first items of business for FDR was to buy up all the gold and make it illegal to own gold. He knew where the money would flock to. Like today, money is indeed flowing into gold reserves or is being hoarded. Keynes theories are not having the same results today as they did 80 years ago. World governments have a greater demand for money than the private sector, and they bring it back faster than the Fed can push it out the door. As for Milton Friedman, it was central banking that did not understand his theories. He understood the Fed, and did not like what he saw.
    Jul 11, 2010. 12:01 PM | 2 Likes Like |Link to Comment
  • What Can the Fed Do Now? [View article]
    The Fed has done enough. It is now the responsibility of Congress to allow the money to flow in the economy, rather than pulling it back in through debt and taxes. The congress and this administration needs to extend the tax credits and intstill confidence towards business and consumers. As long as the government has the biggest demand for money and not the private sector, banks, business, and consumers will continue to save and hoard cash.
    Jul 11, 2010. 09:34 AM | 2 Likes Like |Link to Comment
  • Are We Setting Up for a Repeat of Summer 2009? [View article]
    Stimulus spending had little effect because the government has such a high demand for money to finance their debt. The government pulls the money back in one door as fast as the Fed can push it out another door. With the tax cuts ending in Dec., any new stimulus will be pulled in even quicker thru higher taxes. Banks need incentives and confidence to lend and be ALLOWED to take on risk, business needs incentives and confidence to expand and hire, and consumers need incentives and confidence to spend. We need jobs, jobs, jobs and less demand of money from the government. If we want to get out of a deflationary cycle, we must allow money to stay and work in the economy, instead of rushing back into the treasury. Paul Krugman and the other followers of Keynes need to realize that philosophy is dead and will not have the same effect as it did 80 years ago. Governments around the world are too far in debt, and demand too much debt and taxes to allow the dollars to stay in the economy.
    Jul 10, 2010. 10:14 AM | 3 Likes Like |Link to Comment
  • Long-Term Unemployment Is Still a Problem [View article]
    Thank you for the charts John. The first time I heard the phrase "jobless recovery", I shouted nonsense. There will be no sustained recovery until the unemployment rate is down to the 6% range, and we add 400,000+ jobs monthy. The one key ingredient we need from our leaders is confidence, not stimulus or placement of blame for what went wrong. Instead of putting a strangle hold on risk and reward, our congress should be promoting risk. Fear of the unknown is preventing business from freeing up capital for hiring and capital improvements. Fear of the unknown is preventing the consumer from buying and taking on new debt.
    Jul 5, 2010. 11:34 AM | 3 Likes Like |Link to Comment