Day: July 1, 2009

Random Thoughts

More notes that did not make it into posts….but they deserve to be out there for discussion.

1–Farah had the misfortune of dying the same wekl as MJ; she basically got kicked to the rear of the bus, as far as news coverage went.

2–Sanford–I have found over the years that those that are the most vocal have the most to hide….he was a Clinton critic and demanded that he resign because of his “loose: morals.  He also need to shut the hell up, everytime he steps infront of a mic to apologize he puts his foot in another pile of manure that he needs to apologize for…..sit down and shut up!

3–New Swedish law will allow women to go topless in public swimming pools–i am sure that patronage will go up…..

4–Good ole Bernie Madoff gets 150 years–personally would have preferred a crucifixion, a physical one, not the lip service he is getting….or let his victims decide his punishment.

5–BTW—-Jacko is STILL Dead!  His will has been found, so that drama can be avoided.  But there is more……it seems that his kids are not biologically his kids nor his ex wife eithe..and oh yeah….they were never legally adapted.  This story is gonna be a huge media circus that will put the Ana Nicole thing to shame.

6–Al Franken has been awarded the senatorship of MN by the state’s supreme court….8 months after the election.

Dems Play With Fire

It started in 2006 when the Dems made real progress in the House at securing a majority….they went work and got absolutely nothing accomplished…..issue after issue was nullified…but at least they tried.

Then came the election of 2008…the country wanted change it had had enough of the Bush BS and all its people.  The Senate and the House both got a long awaited majority and now with a new president of the same party they could get things done.

The centrists and the independents are looking forward to some real chganges in the way the middle class is treated.  So far they have got nothing….Wall Street is trumping Main Street….would have been no different with a Repub winning the last election.

Some minor bones were thrown at the middle class…but the REAL money has been served up to Wall Street like a fine banquet and Wall Street has shown its appreciation by turning on the middle class and making their lives unbearable.

So yes the Dems are playing with fire….not only is the Congress a spineless bunch of millionaires but the prez is cowering to the business of Wall Street.  Those centrist and independents that saw such hope with Obama, will no doubt leave him high and dry and vote for the next worthless lump of crap that promises change.

The Dems have a majority in the Senate and the House and yet they still cannot get anything done….they have been impotent for the last decade and now they more so and spineless.  If  the energy bill, or health care or on and on….were as important as all Dems pretend it is…they would pass each and every measure and not worry about what the trash barge known as the GOP was accusing them of doing.

Unless something goes seriously right, then the Dems will start losing their advantage in 2010 and the next round of elections.  Spineless will lose every time in Washington.  Is it their concern for campaign funds or is it the concern for the people.

Unfortunately, the Dems are showing that they are the cowards they have always been, even when they have an unbeatable majority, they still cannot bring themselves to do the right thing.  For this reason the voter will look to someone else to make idle promises.  The Dems are pissing away a perfect opportunity to pass programs they have wanted for decades, but they just cannot do it.  Weaklings each and every one.

Inflation, Deflation……Pick One!

The boogey man is in the closet…….many economists are debating whether we will have inflation or deflation……who is right?

CNN Money is reporting that some fear inflation while others fear the opposite.  Which will it be?

Should the Federal Reserve be more worried about the threat of inflation on the long-term horizon, or deflation in the short-term?

Those who fear inflation argue that the recent rise in oil prices, the dollar’s loss of value and the recent rise in yields on U.S. Treasurys are all signs that consumers could soon be grappling with higher prices for lots of goods and services.

These economists say the seeds for inflation have been sown by the Fed’s extraordinary efforts to keep the economy afloat over the past year.

But others argue the economy is still so weak that deflation, or a drop in prices, is the more serious threat. The Consumer Price Index, the government’s key inflation measure, posted its largest 12-month drop since 1950 in May.

This year-over-year decline in prices, coupled with rising unemployment and low factory utilization, could be signs that prices are likely to keep falling. And while lower prices might sound like a positive to consumers with budgets stretched to the breaking point, economists are in general agreement that deflation is far more destructive to the economy than inflation.

Businesses unable to make a profit in an environment of declining prices will likely cut production and lay off more workers. That could cause a deflationary spiral. The Great Depression and Japan’s so-called Lost Decade of economic stagnation are both well-documented examples of the damage that deflation can cause.

When the Fed wraps up its two day policy meeting Wednesday, it is virtually certain that it will leave its key interest rate near zero. What will be watched more closely is whether its statement has language warning of greater risk from rising or falling prices in the future.

In its last statement, the Fed said it “expects that inflation will remain subdued.” It also rang a deflationary warning bell, indicating that “inflation could persist for a time below rates that best foster economic growth and price stability in the longer term.”

I know…I know……so what will it be , Professor?

Back in the “dark ages” of my investing there was a sure sign of approaching inflation, that was the price of gold…if it went up then inflation was expected and investors were trying to get ahead of it.  At last I saw gold was at $900+ per ounce.  Take that for what it is worth.