This is a video of a George Carlin performance from 1990. It is profanity laced, so if that offends you don't listen. But, this is on target. They call it the American dream, because you have to be asleep to believe it.
Just like in George Orwell's Book "1984" where critical thinking is a crime -- Thought Crime. What he says is cynical and a few years ago people would have told you that this was "Conspiracy Theory," but now it is obvious that he was on target. That is what bothers me and it should scare you to death.
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Sunday, April 1, 2012
Saturday, March 31, 2012
Economic Stories of Relevance in Today's World -- April 1, 2012
Amidst the Deepest Slump since the Great Depression, Obama is Touting an "Economic Recovery" - Global Research.ca - Barry Grey - March 28, 2012 - The overall result of the Obama recovery, besides the impoverishment of ever wider layers of the working class, is a further staggering growth of social inequality. One stark metric of the decline in the social position of the American working class is the fact that in the third quarter of 2011, the share of the US gross domestic product going to corporate profits was at its highest (10.3 percent) since the 1960s, and the share going to wages was at its lowest (45.3 percent) on record. In officially announcing the AFL-CIO’s support for Obama’s reelection earlier this month, the union federation president, Richard Trumka, denounced the frontrunner for the Republican nomination, Mitt Romney, declaring, “Everything he’s done helps the 1 percent.” A Reuters article published March 15 provides statistical proof that when it comes to helping the top 1 percent at the expense of everyone else, Obama takes a back seat to no one. The article notes that the movement of US incomes during the Obama “recovery” contrasts sharply with that which occurred in 1934, during the Great Depression.
Home prices fall to 2002 levels - CNN Money - Les Christie - March 27, 2012 - The housing market started the new year with a thud. Home prices dropped for the fifth consecutive month in January, reaching their lowest point since the end of 2002. The average home sold in that month lost 0.8% of its value, compared with a month earlier, and prices were down 3.8% from 12 months earlier, according to the S&P/Case-Shiller home price index of 20 major markets. Home prices have fallen a whopping 34.4% from the peak set in July 2006. The housing market started the new year with a thud. Home prices dropped for the fifth consecutive month in January, reaching their lowest point since the end of 2002. The average home sold in that month lost 0.8% of its value, compared with a month earlier, and prices were down 3.8% from 12 months earlier, according to the S&P/Case-Shiller home price index of 20 major markets. Home prices have fallen a whopping 34.4% from the peak set in July 2006.
Choosing the Road to Prosperity - Why We Must End Too Big to Fail—Now - 2011 ANNUAL REPORT - FEDERAL RESERVE BANK OF DALLAS - The too-big-to-fail institutions that amplified and prolonged the recent financial crisis remain a hindrance to full economic recovery and to the very ideal of American capitalism. It is imperative that we end TBTF. As a nation, we face a distinct choice. We can perpetuate too big to fail, with its inequities and dangers, or we can end it. Eliminating TBTF won’t be easy, but the vitality of our capitalist system and the long-term prosperity it produces hang in the balance. When competition declines, incentives often turn perverse, and self-interest can turn malevolent. That’s what happened in the years before the financial crisis.
The term TBTF disguised the fact that commercial banks holding roughly one-third of the assets in the banking system did essentially fail, surviving only with extraordinary government assistance. Psychological side effects of TBTF can’t be measured, but they’re too important to ignore because they affect economic behavior. The verdict on Dodd–Frank will depend on what the final rules look like. So far, the new law hasn’t helped revive the economy and may have inadvertently undermined growth. Higher capital requirements across the board could burden smaller banks and probably further crimp lending. These institutions shouldn’t face the same regulatory burdens as the big banks that follow risky business models. A financial system composed of more banks—numerous enough to ensure competition but none of them big enough to put the overall economy in jeopardy—will give the United States a better chance of navigating through future financial potholes, restoring our nation’s faith in market capitalism. The road to prosperity requires recapitalizing the financial system as quickly as possible. Achieving an economy relatively free from financial crises requires us to have the fortitude to break up the giant banks.
Massive $17 Trillion Hole Found In Obamacare - ZeroHedge - Tyler Durden - March 30, 2012 - Two years ago, when introducing then promptly enacting Obamacare, the president stated that healthcare law reform would not cost a penny over $1 trillion ($900 billion to be precise), and that it would not add ‘one dime’ to the debt. It appears that this estimate may have been slightly optimistic… by a factor of 1700%. Because coincident with the recent Supreme Court debacle, in which a constitutional law president may be about to find that his magnum opus law is, in fact, unconstitutional, someone actually read the whole thing cover to cover, instead of merely relying on the CBO’s, pardon Morgan Stanley and Goldman Sachs’, funding estimates. That someone is Republican Jeff Sessions who after actually running the numbers has uncovered that the true long-term funding gap is a mind-boggling $17 trillion, just a tad more than the original sub $1 trillion forecast. This latest revelation means that total underfunded US welfare liabilities: Medicare, Medicaid and social security now amount to $99 trillion! Add to this total US debt which in 2 months will be $16 trillion, and one can see why Japan, which is about to breach 1 quadrillion in total debt (yen, but who's counting), may want to start looking in the rearview mirror for up and comer competitors. And while Obama may have been taking creative license with a number that is greater than total US GDP, he was most certainly correct when saying that Obamacare would not add a penny to US debt. Because the second the US government comes to market to fund a true total debt/GDP ratio of 750%, it is game over, and the Fed will have its hands full selling Treasury puts every waking nanosecond to have any time left for the daily 3pm stock market ramp.
Charles Biderman: The Problem with Rigged Markets - "Even Wile E. Coyote had to come back down to earth sooner or later", says Charles Biderman, founder of TrimTabs Investment Research. In his opinion, the prices of stocks and bonds - enabled by excessive financialization of our economy and central bank money printing - have been defying gravity for a dangerously long time. If we continue to do all we can to preserve the status quo -- to maintain "phoney" asset price levels as Charles calls them -- at best we will restrict overall growth and handicap the economy. The problem isn't so much the unfairness and malinvestment evident in a rigged market. As Charles shrewdly asks: what happens when the market becomes un-rigged? We've never experienced the unwinding of an entirely manipulated financial system, so we can't predict for sure. But at this point, a painful collapse of our markets and loss of the US dollar as the world's reserve currency seem entirely plausible.
The 1934 rebound saw strong income gains for the bottom 90 percent of earners and a decline for the super-rich (the top 0.01 percent). The year 2010, saw the opposite. The income of the super-rich ($23.8 million on average) rose by 21.5 percent over the previous year, while that of the bottom 90 percent fell by 0.4 percent. National income rose overall in 2010, but all of the gains went to the top 10 percent. Just 15,600 super-rich households pocketed an astonishing 37 percent of the entire national gain. The article further reports that the top 1 percent’s share of real income growth has increased with each economic expansion, regardless of whether a Democrat or Republican was in the White House. The top 1 percent captured 45 percent of Clinton-era income growth, 65 percent of Bush-era growth, and 93 percent of Obama-era growth, through 2010.
These facts demonstrate the existence in the US of a plutocracy that controls the Democrats and Republicans and the entire political system. Its deadly grip can be broken only by an independent political movement of the working class, fighting for workers’ power and socialism.
Home prices fall to 2002 levels - CNN Money - Les Christie - March 27, 2012 - The housing market started the new year with a thud. Home prices dropped for the fifth consecutive month in January, reaching their lowest point since the end of 2002. The average home sold in that month lost 0.8% of its value, compared with a month earlier, and prices were down 3.8% from 12 months earlier, according to the S&P/Case-Shiller home price index of 20 major markets. Home prices have fallen a whopping 34.4% from the peak set in July 2006. The housing market started the new year with a thud. Home prices dropped for the fifth consecutive month in January, reaching their lowest point since the end of 2002. The average home sold in that month lost 0.8% of its value, compared with a month earlier, and prices were down 3.8% from 12 months earlier, according to the S&P/Case-Shiller home price index of 20 major markets. Home prices have fallen a whopping 34.4% from the peak set in July 2006.
Don’t be fooled by the money illusion - Commentary: Many economic numbers don’t account for inflation - MarketWatch - Irwin Kellner - March 20, 2012 - Now that inflation is beginning to pick up, it is vital to distinguish between what is real and what is just an illusion caused by inflation. If one does not, one might very well come away with the impression that the economy is shifting into higher gear when, in fact, it is not. Take retail sales, for example. On the surface they are encouraging, since February’s sales gain was the most in five months. And since retail sales are one-half of consumers’ spending, which in turn makes up two-thirds of overall economic activity, one might be tempted to conclude that the worst is over. One would be wrong. First of all, these are dollar figures, adjusted for the time of year but not for inflation. Second, most of the rise reflected a 6% surge in gasoline prices. Excluding gasoline, retail sales went up at a much more subdued pace. And if you factor in higher prices for such other items as heat, food and health care, retail sales were virtually unchanged in the month — if not for the past few. It is always important to strip away the effects of inflation and look at actual units purchased. After all, real spending determines real output which in turn provides real jobs. And when day is done, jobs are of paramount importance to this economy. To be sure, certain stats are real — that is, they are expressed in unit terms, free from the influence of rising prices. These include employment, unemployment and the unemployment rate.
Choosing the Road to Prosperity - Why We Must End Too Big to Fail—Now - 2011 ANNUAL REPORT - FEDERAL RESERVE BANK OF DALLAS - The too-big-to-fail institutions that amplified and prolonged the recent financial crisis remain a hindrance to full economic recovery and to the very ideal of American capitalism. It is imperative that we end TBTF. As a nation, we face a distinct choice. We can perpetuate too big to fail, with its inequities and dangers, or we can end it. Eliminating TBTF won’t be easy, but the vitality of our capitalist system and the long-term prosperity it produces hang in the balance. When competition declines, incentives often turn perverse, and self-interest can turn malevolent. That’s what happened in the years before the financial crisis.
Massive $17 Trillion Hole Found In Obamacare - ZeroHedge - Tyler Durden - March 30, 2012 - Two years ago, when introducing then promptly enacting Obamacare, the president stated that healthcare law reform would not cost a penny over $1 trillion ($900 billion to be precise), and that it would not add ‘one dime’ to the debt. It appears that this estimate may have been slightly optimistic… by a factor of 1700%. Because coincident with the recent Supreme Court debacle, in which a constitutional law president may be about to find that his magnum opus law is, in fact, unconstitutional, someone actually read the whole thing cover to cover, instead of merely relying on the CBO’s, pardon Morgan Stanley and Goldman Sachs’, funding estimates. That someone is Republican Jeff Sessions who after actually running the numbers has uncovered that the true long-term funding gap is a mind-boggling $17 trillion, just a tad more than the original sub $1 trillion forecast. This latest revelation means that total underfunded US welfare liabilities: Medicare, Medicaid and social security now amount to $99 trillion! Add to this total US debt which in 2 months will be $16 trillion, and one can see why Japan, which is about to breach 1 quadrillion in total debt (yen, but who's counting), may want to start looking in the rearview mirror for up and comer competitors. And while Obama may have been taking creative license with a number that is greater than total US GDP, he was most certainly correct when saying that Obamacare would not add a penny to US debt. Because the second the US government comes to market to fund a true total debt/GDP ratio of 750%, it is game over, and the Fed will have its hands full selling Treasury puts every waking nanosecond to have any time left for the daily 3pm stock market ramp.
Charles Biderman: The Problem with Rigged Markets - "Even Wile E. Coyote had to come back down to earth sooner or later", says Charles Biderman, founder of TrimTabs Investment Research. In his opinion, the prices of stocks and bonds - enabled by excessive financialization of our economy and central bank money printing - have been defying gravity for a dangerously long time. If we continue to do all we can to preserve the status quo -- to maintain "phoney" asset price levels as Charles calls them -- at best we will restrict overall growth and handicap the economy. The problem isn't so much the unfairness and malinvestment evident in a rigged market. As Charles shrewdly asks: what happens when the market becomes un-rigged? We've never experienced the unwinding of an entirely manipulated financial system, so we can't predict for sure. But at this point, a painful collapse of our markets and loss of the US dollar as the world's reserve currency seem entirely plausible.
Friday, March 30, 2012
The Zagaroli's side of the story is coming
I have been asked to meet with the Zagaroli's to discuss their side of the story related to the structure being built on Union Square. This meeting will take place early next week. They feel that Pseudonymous doesn't have all of the facts. It was conveyed to me that Zagaroli Construction is not the general contractor, Pete and Charlie Zagaroli were only the creative entity that made the design presentation to the city. There are many other details about the structure that they will expound on to help better understand what will be the final outcome. They feel that Pseudonymous and other bloggers should not jump to conclusions before knowing the facts and they want the public to fully understand this project.
The Zagaroli's do deserve to be heard and I am going to let them make their case in an objective manner. I have always said that what the Hound's objective is, when it comes to the issues that effect our community, is to get all sides of the story and let the public make an informed decision.
I do have questions to ask related to this and they won't be softballs, but I don't think any of us look at the Zagaroli's as bad guys in this issue. As has been stated here time and time again, it isn't about the project, it is about the process.
I am going into this discussion open minded. Maybe Pete and Charlie can give us some ideas about Union Square and Downtown that we haven't even thought of.
The Zagaroli's do deserve to be heard and I am going to let them make their case in an objective manner. I have always said that what the Hound's objective is, when it comes to the issues that effect our community, is to get all sides of the story and let the public make an informed decision.
I do have questions to ask related to this and they won't be softballs, but I don't think any of us look at the Zagaroli's as bad guys in this issue. As has been stated here time and time again, it isn't about the project, it is about the process.
I am going into this discussion open minded. Maybe Pete and Charlie can give us some ideas about Union Square and Downtown that we haven't even thought of.
Wednesday, March 28, 2012
New Revelations about the Union Square Tent - Pseudonymous Logica
The following contribution was submitted to me today by Pseudonymous Logica, whose name translates to Common Sense.
As with any issue, the Pavilion project currently under construction on Union Square has it’s supporters as well as it’s critics - as it should be. And time will be the ultimate judge.
Whether you agree or disagree with THAT it’s being done, my main concern is HOW it’s being done.
It’s agreed that:
- this is a $285,000+ project (annual maintenance costs must be taken into account)
- no specific vote was taken regarding the appropriation of these funds
- no public hearing was held
- citizen comments/concerns were never heard/considered regarding this issue
Why is all of this important? Some believe that this will be the best thing that’s happened to Union Square in years; that it’s just what downtown needs; that it’s a long overdue addition. While all of this may be true, one FACT that I left out is that:
The Zagaroli's, who own Zagaroli Construction, the company the City awarded the construction rights, filed for BANKRUPTCY in October of 2011.
Back when the Hound first began covering this issue I commented that my suspicion was that this amounted to nothing more than a BAILOUT to a local insider who was experiencing a “slump”.
Is helping out a local company a good thing? Yes, without question. But again, this isn’t a matter of THAT it was done. It’s about HOW it was done. Is Zagaroli the only local business in a slump - no. Yet, this project was rushed through Council with the claim of urgency. What would it have hurt to open this matter to public comment; to have held a public hearing?
It may have come out that Zagaroli had filed for bankruptcy - probably not exactly the news that they would want current clients or potential clients to know about. So, luckily, “friends” with the City were able to circumvent the taxpayers RIGHT TO KNOW, and simply hand Zagaroli this GIFT. Most would agree that it would be nice to have those that were responsible for the construction to be around for any potential future problems that may arise or to carry out the maintenance that will surely be required - but will Zagaroli be around to meet these needs/obligations?
One last thing. This one I can’t quite wrap my head around. From everything I’ve read, seen, and researched on my own, a large component of this Pavilion project is made up of a canvass-type material, an “awning” as the HDR accurately reported. The City/City Council has demonstrated a nearly uncontrollable desire to help out a local business. Does this willingness only extend to Zagaroli? It would certainly appear so. You see, exactly 1 mile away from the construction site (less than 2 minutes by car) is located Annas Awning. The name alone suggests the possibility that it might be interested in contributing to this Pavilion project. It’s location would easily qualify it as a local business. Admittedly, there is the possibility that they could not meet the needs related to this project. But, that my friends, is something we will never know - remember, the public was not invited to participate in the discussion of this very public project.
The Hound: I am sure that I will be attacked for publishing this contribution. It is what this Community does best. I harbor no ill will towards the Zagaroli's. I have quite often shown an appreciation of Pete Zagaroli's vision. One example happened four years ago when I wrote a contribution in the Hickory Daily Record entitled Let Him Build It. In that Article, I point to the City's micromanagement of development in our community and how it has stifled the growth in our community. That micromanagement cuts both ways folks. In layman's terms it means that Hickory City Government is picking winners and losers, instead of allowing the marketplace to do so.
I am sorry that the Zagaroli family is being outed about financial difficulties. I truly do feel for them. We are in a Real Estate Depression and everyone associated with that line of work is feeling the anxiety associated with that sector of the economy. It isn't only the Real Estate sector, we have a lot of families that are suffering as a result of the lack of economic activity in our area. The problem I believe that Pseudonymous has is the same one that I have had for a long, long time and anyone can objectively see it. The Hickory City Government is not consistent and they make the rules up as they go. They put the Cart before the Horse. They determine the outcome before the process has even begun. And a fair question to ask is how much has this cost the citizens of this community?
In the end this project is not going to make or break the Zagaroli's, but it definitely shows manipulation by the City. We saw manipulation of the process related to the Swimming Pool issue and we have seen it with the Airport and we saw it with the City keeping the Cercil Brothers from opening a Club in Downtown. It is my contention that in each of these examples we have seen less than satisfactory objectives, which in my opinion led to less than satisfactory results. The general public doesn't understand how this has affected them, because they are for the most part comatose. But, if you ever wonder why things just don't seem to feel right or add up, then maybe it is time to start challenging the "All of One Mind" ... "Business as Usual" Status Quo scenario that keeps on a keepin' on in Good Ole Hick'Ree.
$285,000+ : Bang for the Buck???
Newsletter about the City Council meeting of December 20, 2011 -- Addendum on Union Square's largest Awning yet - $285,000
No Public Hearing for the Big Tent on Union Square
Hickory Farmer's Market questions the Big Tent on Union Square - March 17, 2012
As with any issue, the Pavilion project currently under construction on Union Square has it’s supporters as well as it’s critics - as it should be. And time will be the ultimate judge.
Whether you agree or disagree with THAT it’s being done, my main concern is HOW it’s being done.
It’s agreed that:
- this is a $285,000+ project (annual maintenance costs must be taken into account)
- no specific vote was taken regarding the appropriation of these funds
- no public hearing was held
- citizen comments/concerns were never heard/considered regarding this issue
Why is all of this important? Some believe that this will be the best thing that’s happened to Union Square in years; that it’s just what downtown needs; that it’s a long overdue addition. While all of this may be true, one FACT that I left out is that:
The Zagaroli's, who own Zagaroli Construction, the company the City awarded the construction rights, filed for BANKRUPTCY in October of 2011.
Back when the Hound first began covering this issue I commented that my suspicion was that this amounted to nothing more than a BAILOUT to a local insider who was experiencing a “slump”.
Is helping out a local company a good thing? Yes, without question. But again, this isn’t a matter of THAT it was done. It’s about HOW it was done. Is Zagaroli the only local business in a slump - no. Yet, this project was rushed through Council with the claim of urgency. What would it have hurt to open this matter to public comment; to have held a public hearing?
It may have come out that Zagaroli had filed for bankruptcy - probably not exactly the news that they would want current clients or potential clients to know about. So, luckily, “friends” with the City were able to circumvent the taxpayers RIGHT TO KNOW, and simply hand Zagaroli this GIFT. Most would agree that it would be nice to have those that were responsible for the construction to be around for any potential future problems that may arise or to carry out the maintenance that will surely be required - but will Zagaroli be around to meet these needs/obligations?
One last thing. This one I can’t quite wrap my head around. From everything I’ve read, seen, and researched on my own, a large component of this Pavilion project is made up of a canvass-type material, an “awning” as the HDR accurately reported. The City/City Council has demonstrated a nearly uncontrollable desire to help out a local business. Does this willingness only extend to Zagaroli? It would certainly appear so. You see, exactly 1 mile away from the construction site (less than 2 minutes by car) is located Annas Awning. The name alone suggests the possibility that it might be interested in contributing to this Pavilion project. It’s location would easily qualify it as a local business. Admittedly, there is the possibility that they could not meet the needs related to this project. But, that my friends, is something we will never know - remember, the public was not invited to participate in the discussion of this very public project.
The Hound: I am sure that I will be attacked for publishing this contribution. It is what this Community does best. I harbor no ill will towards the Zagaroli's. I have quite often shown an appreciation of Pete Zagaroli's vision. One example happened four years ago when I wrote a contribution in the Hickory Daily Record entitled Let Him Build It. In that Article, I point to the City's micromanagement of development in our community and how it has stifled the growth in our community. That micromanagement cuts both ways folks. In layman's terms it means that Hickory City Government is picking winners and losers, instead of allowing the marketplace to do so.
I am sorry that the Zagaroli family is being outed about financial difficulties. I truly do feel for them. We are in a Real Estate Depression and everyone associated with that line of work is feeling the anxiety associated with that sector of the economy. It isn't only the Real Estate sector, we have a lot of families that are suffering as a result of the lack of economic activity in our area. The problem I believe that Pseudonymous has is the same one that I have had for a long, long time and anyone can objectively see it. The Hickory City Government is not consistent and they make the rules up as they go. They put the Cart before the Horse. They determine the outcome before the process has even begun. And a fair question to ask is how much has this cost the citizens of this community?
In the end this project is not going to make or break the Zagaroli's, but it definitely shows manipulation by the City. We saw manipulation of the process related to the Swimming Pool issue and we have seen it with the Airport and we saw it with the City keeping the Cercil Brothers from opening a Club in Downtown. It is my contention that in each of these examples we have seen less than satisfactory objectives, which in my opinion led to less than satisfactory results. The general public doesn't understand how this has affected them, because they are for the most part comatose. But, if you ever wonder why things just don't seem to feel right or add up, then maybe it is time to start challenging the "All of One Mind" ... "Business as Usual" Status Quo scenario that keeps on a keepin' on in Good Ole Hick'Ree.
$285,000+ : Bang for the Buck???
Newsletter about the City Council meeting of December 20, 2011 -- Addendum on Union Square's largest Awning yet - $285,000
No Public Hearing for the Big Tent on Union Square
Hickory Farmer's Market questions the Big Tent on Union Square - March 17, 2012
Tuesday, March 27, 2012
Garden Time - Ideas for the coming season
Building a Raised Bed Garden
Mother Earth News: How to Make Instant No-dig Garden Beds
Using Pressure Treated Lumber in Raised Garden Beds - Backyard Gardening Blog - April 12th, 2009 - ... Should you go out and buy CCA pressure treated lumber to build your raised beds? Well no, you can’t. You see, despite the tiny safety risk, CCA pressure treated lumber was banned for consumer use by the EPA in 2003. Any pressure treated lumber manufactured for consumer use after that date has no arsenic in it. The ban all told was a better safe than sorry issue grown out of kids touching/playing on/eating off of/ CCA playground equipment, not garden contamination, but nevertheless, for the last 5 years pressure treated lumber has not contained arsenic. So, for those worrying about it, don’t. Save yourself a few hundred dollars and get pressure treated lumber for your raised bed or other garden projects. It is cheaper than cedar, and worry free. Even if it still contained arsenic it’d be pretty safe, but it doesn’t even have that small risk anymore.
How to Build a Cold Frame Hoop House Greenhouse
Mother Earth News - Vegetable Garden Planner
Mother Earth News: How to Make Instant No-dig Garden Beds
Using Pressure Treated Lumber in Raised Garden Beds - Backyard Gardening Blog - April 12th, 2009 - ... Should you go out and buy CCA pressure treated lumber to build your raised beds? Well no, you can’t. You see, despite the tiny safety risk, CCA pressure treated lumber was banned for consumer use by the EPA in 2003. Any pressure treated lumber manufactured for consumer use after that date has no arsenic in it. The ban all told was a better safe than sorry issue grown out of kids touching/playing on/eating off of/ CCA playground equipment, not garden contamination, but nevertheless, for the last 5 years pressure treated lumber has not contained arsenic. So, for those worrying about it, don’t. Save yourself a few hundred dollars and get pressure treated lumber for your raised bed or other garden projects. It is cheaper than cedar, and worry free. Even if it still contained arsenic it’d be pretty safe, but it doesn’t even have that small risk anymore.
How to Build a Cold Frame Hoop House Greenhouse
Mother Earth News - Vegetable Garden Planner
Sunday, March 25, 2012
Economic Stories of Relevance in Today's World -- March 25, 2012
Gas could hit $8 on Iran showdown, experts say - USA Today - Tim Mullaney - March 21, 2012 - Gas prices could double if Iran acts to close the Strait of Hormuz to oil-tanker traffic near the beginning of next year, cutting global economic growth by more than 25%, a leading energy-consulting firm says. Iran lacks the military might to close the strait for long, but it may be able to disrupt global oil supplies for up to three months by laying mines in the 6-mile-wide shipping passage that the U.S. and its allies would have to find and remove, analysts at IHS Global Insight said on a conference call with reporters Wednesday. About 17 million barrels of oil a day pass through the strait, or nearly 20% of the global market. Brent crude oil prices could briefly hit $240 a barrel in the first quarter of 2013, said Sara Johnson, senior research director for Global Economics at IHS. Brent, the benchmark European oil, which IHS uses as a proxy for global prices, closed at $123.07 in London Thursday. In the U.S., West Texas Intermediate, the benchmark U.S. crude oil, closed at $105.35 a barrel. Prices could stay as high as $160 in the second quarter before reverting to somewhere around $120, she said. The firm forecast that such an oil shock could bring back gas lines in much of the world, and shave global economic growth next year to 2.6% from a current forecast of 3.6%. "If it did hit $240, you're looking at about a doubling of where gas prices are now," said Jim Burkhard, managing director of the global oil group at IHS CERA, the firm's energy-research arm. "And the U.S. is at $4."
Saudi Arabia And China Team Up To Build A Gigantic New Oil Refinery - Is This The Beginning Of The End For The Petrodollar? - The Economic Collapse Blog - The largest oil exporter in the Middle East has teamed up with the second largest consumer of oil in the world (China) to build a gigantic new oil refinery and the mainstream media in the United States has barely even noticed it. This mammoth new refinery is scheduled to be fully operational in the Red Sea port city of Yanbu by 2014. Over the past several years, China has sought to aggressively expand trade with Saudi Arabia, and China now actually imports more oil from Saudi Arabia than the United States does. In February, China imported 1.39 million barrels of oil per day from Saudi Arabia. That was 39 percent higher than last February. So why is this important? Well, back in 1973 the United States and Saudi Arabia agreed that all oil sold by Saudi Arabia would be denominated in U.S. dollars. This petrodollar system was adopted by almost the entire world and it has had great benefits for the U.S. economy. But if China becomes Saudi Arabia's most important trading partner, then why should Saudi Arabia continue to only sell oil in U.S. dollars? And if the petrodollar system collapses, what is that going to mean for the U.S. economy? Those are very important questions, and they will be addressed later on in this article. First of all, let's take a closer look at the agreement reached between Saudi Arabia and China recently. The following is how the deal was described in a recent China Daily article.... So what happens if the petrodollar system collapses? Well, for one thing the value of the U.S. dollar would plummet big time.
U.S. consumers would suddenly find that all of those "cheap imported goods" would rise in price dramatically as would the price of gasoline. If you think the price of gas is high now, you just wait until the petrodollar system collapses.
In addition, there would be much less of a demand for U.S. government debt since countries would not have so many excess U.S. dollars lying around. So needless to say, the U.S. government really needs the petrodollar system to continue. But in the end, it is Saudi Arabia that is holding the cards. If Saudi Arabia chooses to sell oil in a currency other than the U.S. dollar, most of the rest of the oil producing countries in the Middle East would surely do the same rather quickly. And we have already seen countries in other parts of the world start to move away from using the U.S. dollar in global trade. For example, Russia and China have agreed to now use their own national currencies when trading with each other rather than the U.S. dollar. That got virtually no attention in the U.S. media, but it really was a big deal when it was announced. A recent article by Graham Summers summarized some of the other moves away from the U.S. dollar in international trade that we have seen recently.... Yes, the days of the U.S. dollar being the primary reserve currency of the world are definitely numbered. It will not happen overnight, but as the U.S. economy continues to get weaker it is inevitable that the rest of the world will continue to question why the U.S. dollar should automatically have such a dominant position in international trade. Over the next few years, keep a close eye on Saudi Arabia. When Saudi Arabia announces a move away from the petrodollar system, that will be a major trigger event for the global financial system and it will be a really, really bad sign for the U.S. economy. The level of prosperity that we are enjoying today would not be possible without the petrodollar system. Once the petrodollar system collapses, a lot of our underlying economic vulnerabilities will be exposed and it will not be pretty. Tough times are on the horizon. It is imperative that we all get informed and that we all get prepared.
Forget Keystone, The US Desperately Needs An East-West Pipeline - The Business Insider - Keith Schaefer, Oil and Gas Investments Bulletin | March 14, 2012 - In the debate over rising gas prices, one largely overlooked issue is the lack of US oil pipeline distribution to the East Coast, where refineries that must import higher priced Brent crude are being shut down. America has more than enough cheap domestic oil, thanks to the North Dakota Bakken and the Canadian oilsands. And it doesn’t face a refinery crisis in terms of capacity - after all, even though the US hasn’t built a new refinery since 1976, oil refining has actually increased by 2 million bopd to 17.7 million bopd since 1985 (and US refinery demand has been steady at 14.8 million bopd since 2005). Instead, the real problem is that coastal refineries can't source the cheaper North American crude. The Brent oil price fluctuates widely with geopolitical news. A stable, nationwide refinery system—well connected with pipelines—is one area where the US can help control price surges in local markets. Few things affect local gas prices like the shutting down of an oil refinery - and right now, the East Coast is at risk of losing three.....
Chris Martenson And Marc Faber: The Perils of Money Printing's Unintended Consequences - Zero Hedge - Chris Martneson - March 24, 2012 - Marc Faber does not mince words. He believes the money printing policies of the Federal Reserve and its sister central banks around the globe have put the world's currencies on an inexorable, accelerating inflationary down slope. The dangers of money printing are many in his eyes. But in particular, he worries about the unintended consequences it subjects the populace to. Beyond currency devaluation, it creates malinvestment that leads to asset bubbles that wreak havoc when they burst. And even more nefarious, money printing disproportionately punishes the lower classes, resulting in volatile social and political tensions. It's no surprise then that he's feeling particularly defensive these days. While he generally advises those looking to protect their purchasing power to invest capital in precious metals and the equity markets (the rationale being inflation should hurt equity prices less than bond prices), he warns that equities appear overbought at this time.
No Inflation? General Mills Begs to Differ - Zero hedge - Crown Thomas - 03/23/2012 - Repeatedly, all we hear is that Zero Hedge is just some wing nut website. Always stretching the truth about the economy's woes, and constantly claiming hyperinflation is just around the corner. Ya, about that... General Mills came out Wednesday with their Q3 earnings, and what do you suppose was one of the top points they wanted to make to their investors? Just that they were experiencing significantly higher input costs year-over-year. As a matter of fact, they say that YOY inflation input costs were actually higher by 2% 3% 5% 8% ... 10%-11% So is it deflationary for the consumer if the 3rd biggest food company in America is experiencing double digit inflation? But then again what do I know, I'm just a contributor to a blog. And I don't even have a Phd.
SILVER is The Achilles' Heel to the ENTIRE ECONOMIC SYSTEM
Silver Update 2/29/12 Bernanke Busted
Saudi Arabia And China Team Up To Build A Gigantic New Oil Refinery - Is This The Beginning Of The End For The Petrodollar? - The Economic Collapse Blog - The largest oil exporter in the Middle East has teamed up with the second largest consumer of oil in the world (China) to build a gigantic new oil refinery and the mainstream media in the United States has barely even noticed it. This mammoth new refinery is scheduled to be fully operational in the Red Sea port city of Yanbu by 2014. Over the past several years, China has sought to aggressively expand trade with Saudi Arabia, and China now actually imports more oil from Saudi Arabia than the United States does. In February, China imported 1.39 million barrels of oil per day from Saudi Arabia. That was 39 percent higher than last February. So why is this important? Well, back in 1973 the United States and Saudi Arabia agreed that all oil sold by Saudi Arabia would be denominated in U.S. dollars. This petrodollar system was adopted by almost the entire world and it has had great benefits for the U.S. economy. But if China becomes Saudi Arabia's most important trading partner, then why should Saudi Arabia continue to only sell oil in U.S. dollars? And if the petrodollar system collapses, what is that going to mean for the U.S. economy? Those are very important questions, and they will be addressed later on in this article. First of all, let's take a closer look at the agreement reached between Saudi Arabia and China recently. The following is how the deal was described in a recent China Daily article.... So what happens if the petrodollar system collapses? Well, for one thing the value of the U.S. dollar would plummet big time.
U.S. consumers would suddenly find that all of those "cheap imported goods" would rise in price dramatically as would the price of gasoline. If you think the price of gas is high now, you just wait until the petrodollar system collapses.
In addition, there would be much less of a demand for U.S. government debt since countries would not have so many excess U.S. dollars lying around. So needless to say, the U.S. government really needs the petrodollar system to continue. But in the end, it is Saudi Arabia that is holding the cards. If Saudi Arabia chooses to sell oil in a currency other than the U.S. dollar, most of the rest of the oil producing countries in the Middle East would surely do the same rather quickly. And we have already seen countries in other parts of the world start to move away from using the U.S. dollar in global trade. For example, Russia and China have agreed to now use their own national currencies when trading with each other rather than the U.S. dollar. That got virtually no attention in the U.S. media, but it really was a big deal when it was announced. A recent article by Graham Summers summarized some of the other moves away from the U.S. dollar in international trade that we have seen recently.... Yes, the days of the U.S. dollar being the primary reserve currency of the world are definitely numbered. It will not happen overnight, but as the U.S. economy continues to get weaker it is inevitable that the rest of the world will continue to question why the U.S. dollar should automatically have such a dominant position in international trade. Over the next few years, keep a close eye on Saudi Arabia. When Saudi Arabia announces a move away from the petrodollar system, that will be a major trigger event for the global financial system and it will be a really, really bad sign for the U.S. economy. The level of prosperity that we are enjoying today would not be possible without the petrodollar system. Once the petrodollar system collapses, a lot of our underlying economic vulnerabilities will be exposed and it will not be pretty. Tough times are on the horizon. It is imperative that we all get informed and that we all get prepared.
Forget Keystone, The US Desperately Needs An East-West Pipeline - The Business Insider - Keith Schaefer, Oil and Gas Investments Bulletin | March 14, 2012 - In the debate over rising gas prices, one largely overlooked issue is the lack of US oil pipeline distribution to the East Coast, where refineries that must import higher priced Brent crude are being shut down. America has more than enough cheap domestic oil, thanks to the North Dakota Bakken and the Canadian oilsands. And it doesn’t face a refinery crisis in terms of capacity - after all, even though the US hasn’t built a new refinery since 1976, oil refining has actually increased by 2 million bopd to 17.7 million bopd since 1985 (and US refinery demand has been steady at 14.8 million bopd since 2005). Instead, the real problem is that coastal refineries can't source the cheaper North American crude. The Brent oil price fluctuates widely with geopolitical news. A stable, nationwide refinery system—well connected with pipelines—is one area where the US can help control price surges in local markets. Few things affect local gas prices like the shutting down of an oil refinery - and right now, the East Coast is at risk of losing three.....
Chris Martenson And Marc Faber: The Perils of Money Printing's Unintended Consequences - Zero Hedge - Chris Martneson - March 24, 2012 - Marc Faber does not mince words. He believes the money printing policies of the Federal Reserve and its sister central banks around the globe have put the world's currencies on an inexorable, accelerating inflationary down slope. The dangers of money printing are many in his eyes. But in particular, he worries about the unintended consequences it subjects the populace to. Beyond currency devaluation, it creates malinvestment that leads to asset bubbles that wreak havoc when they burst. And even more nefarious, money printing disproportionately punishes the lower classes, resulting in volatile social and political tensions. It's no surprise then that he's feeling particularly defensive these days. While he generally advises those looking to protect their purchasing power to invest capital in precious metals and the equity markets (the rationale being inflation should hurt equity prices less than bond prices), he warns that equities appear overbought at this time.
On The Unintended Consequences of Money Printing - In the short term, it has been working to some extent in the sense that equity prices are up and interest rates are down. And, so companies can issue bonds at extremely low rates. But every money printing exercise in the world leads to unintended consequences at a later point. And, this is the important issue to remember. We don’t know yet for sure what the unintended consequences are.
We know one unintended consequence, and this is that the middle class and the lower classes of society, say 50% of the U.S. has rather been hurt by the increase in the quantity of money in the sense that commodity prices in particular food and energy have gone up very substantially. And, since below 50% of income recipients in the U.S. spend a lot, a much larger portion of their income on food and energy than to say the 10% richest people in America and highest income earners, they have been hurt by monetary policy. In addition, the lower income groups, if they have savings, traditionally they keep them in safe deposits and in cash because they don’t have much money to invest in the first place. So the increase in the value of the S&P hasn’t helped them, but it helped the 5% or 10% or 1% of the population that owns equities. So it's created a wider wealth inequality and that is a negative from a society point of view.
No Inflation? General Mills Begs to Differ - Zero hedge - Crown Thomas - 03/23/2012 - Repeatedly, all we hear is that Zero Hedge is just some wing nut website. Always stretching the truth about the economy's woes, and constantly claiming hyperinflation is just around the corner. Ya, about that... General Mills came out Wednesday with their Q3 earnings, and what do you suppose was one of the top points they wanted to make to their investors? Just that they were experiencing significantly higher input costs year-over-year. As a matter of fact, they say that YOY inflation input costs were actually higher by 2% 3% 5% 8% ... 10%-11% So is it deflationary for the consumer if the 3rd biggest food company in America is experiencing double digit inflation? But then again what do I know, I'm just a contributor to a blog. And I don't even have a Phd.
SILVER is The Achilles' Heel to the ENTIRE ECONOMIC SYSTEM
Silver Update 2/29/12 Bernanke Busted
Saturday, March 24, 2012
Problems and Solutions to the issues we face in Hickory area in 2012 - We Want Your Input!!!
We asked these questions before over 3 1/2 years ago in October 2008. Many times, we have seen interesting comments in the comment section of the posts or received e-mails that seem to come from people in the know. I know that many times people are fearful of leaving a correspondence for fear of being figured out and the assumed retaliation that would come along with such communications. Well, I feel like much of that fear is unfounded, especially when their is no way to expressly know who left the message. These communications leave you in a position of power and allow you to get your message out and if someone does start taking actions without a valid reason it is they who will feel the wrath not you. And besides I really do feel communication on the issues is an important way to solve our area's issues.
Let's talk about the problems people see with our city, county, and metro area. Talk about anything and everything that you feel effects the area. I doesn't matter who you are or your connection to the area, I would like input from local businessmen, government officials, and regular citizens about the issues they are facing on the local level and see if they have any ideas about how those issues might be addressed and resolved. Let's get it all out in the open.
Once again I am asking you to participate in this forum. When the forum started we had more participation in the comments section. I know many people want to leave comments, but they don't want any back and forth discussion and I do find that to be a shame. I don't really understand that, since you can see that I along with others stick our neck out and are committed to this forum. I truly think that getting all of this stuff out in the open will 1) Be therapeutic, 2)Let everyone know where everyone is coming from, 3)Give us all a better understanding of how this area operates both publicly and privately, and 4) Help us think of real solutions to addressing the needs of this great community -- you can talk about problems and solutions in the comments section below.
If there is any information you feel might compromise your anonymity, there are ways that these issues can be addressed without doing so. You can e-mail me and we can anonymously work together to address specific issues without compromising your anonymity.
I am going to archive "Problems and Solutions" at the right under the Blog Archives on this page. I truly believe that doing this will help our city mature, grow, and prosper; fulfilling the potential that we all know that we are capable of. And if you don't participate, you can't say we haven't tried. It is on you!
Thank You,
Let's Get Started
Let's talk about the problems people see with our city, county, and metro area. Talk about anything and everything that you feel effects the area. I doesn't matter who you are or your connection to the area, I would like input from local businessmen, government officials, and regular citizens about the issues they are facing on the local level and see if they have any ideas about how those issues might be addressed and resolved. Let's get it all out in the open.
Once again I am asking you to participate in this forum. When the forum started we had more participation in the comments section. I know many people want to leave comments, but they don't want any back and forth discussion and I do find that to be a shame. I don't really understand that, since you can see that I along with others stick our neck out and are committed to this forum. I truly think that getting all of this stuff out in the open will 1) Be therapeutic, 2)Let everyone know where everyone is coming from, 3)Give us all a better understanding of how this area operates both publicly and privately, and 4) Help us think of real solutions to addressing the needs of this great community -- you can talk about problems and solutions in the comments section below.
If there is any information you feel might compromise your anonymity, there are ways that these issues can be addressed without doing so. You can e-mail me and we can anonymously work together to address specific issues without compromising your anonymity.
I am going to archive "Problems and Solutions" at the right under the Blog Archives on this page. I truly believe that doing this will help our city mature, grow, and prosper; fulfilling the potential that we all know that we are capable of. And if you don't participate, you can't say we haven't tried. It is on you!
Thank You,
Let's Get Started
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