Closing Thought–21Sep18

An American institution is heading for a fall.  American agriculture is heading for a fall.

It is time for the harvest!

I have been watching this sector of our economy closely….one because the new tariffs could have a lasting effect on the farming in this country…..I have written a couple posts recently….

https://lobotero.com/2017/12/18/closing-thought-18dec17/

https://lobotero.com/2018/07/25/the-coming-farm-aid/

The Wall Street Journal is also watching this sector and their insights are not very good for the coming year…..

The Farm Belt is hurtling toward a milestone: Soon there will be fewer than two million farms in America for the first time since pioneers moved westward after the Louisiana Purchase.

Across the heartland, a multiyear slump in prices for corn, wheat and other farm commodities brought on by a glut of grain world-wide is pushing many farmers further into debt. Some are shutting down, raising concerns that the next few years could bring the biggest wave of farm closures since the 1980s.

The U.S. share of the global grain market is less than half what it was in the 1970s. American farmers’ incomes will drop 9% in 2017, the Agriculture Department estimates, extending the steepest slide since the Great Depression into a fourth year.

https://www.wsj.com/articles/the-next-american-farm-bust-is-upon-us-1486572488

How sad that a true American institution is slowly withering away….the government will step in but it may be too late for it to save this way of life.

Advertisements

STOP Whining!

Our Dear Leader has finally imposed the tariffs that he basically promised while a candidate…..the agriculture sector in the US is starting to hurt those people that voted for Trump……and soon it will extend into the auto industry……

The lobster fishermen in New England are whining….potato farmers in Idaho are whining……cranberry framers are whining……soybean farmers in Nebraska are whining….are you getting the picture?

Time for these whiners to face reality…..they voted for the person that is slowly strangling them……they voted for the person that said what he had in mind as a new trade policy.

So these people need to STOP whining!

Take responsibility for the the shitty vote they gave the person that is killing their future….the control of that future.

Ignorance has consequences.

And the whining continues……this time it is over the turn that the Kavanaugh nomination has taken…..it seems that he has been accused (notice I used “accused”) of a drunken grope and possible rape attempt…..and the GOP has been whining about the timing of the information release……and then of course the Fat Man in the Oval Office had to inject his feelings into the debate….

President Trump weighed in Monday on the allegation against his Supreme Court nominee, Politico reports. “We want to go through a full process” to air Christine Blasey Ford’s allegation that, when they were high school students, Brett Kavanaugh sexually assaulted her, Trump said. If that “takes a little delay, it’ll take a little delay. It shouldn’t certainly be very much,” he said, per Breitbart News. But the president, speaking during an event at the White House in what Fox News notes are his first public comments on the matter, added that he was certain everything would “work out very well” as Kavanaugh is “as high a quality individual as you’ll ever see.” He said Kavanaugh has “never had even a little blemish on his record. The FBI has, I think, gone through a process six times with him over the years where he went to higher and higher positions. He is somebody very special.”

Trump also said Blasey Ford’s accusation “should have been brought up long before.” “I wish the Democrats could have done this a lot sooner,” he said. “Because they had this information for many months, and they shouldn’t have waited until literally the last days. They should have done it a lot sooner. But with all of that being said, we want to go through the process. I’d like to see a complete process. I’d like everybody to be very happy. Most importantly, I want the American people to be happy. Because they’re getting somebody that is great. … We want to make sure everything is perfect, everything is just right.” Asked if Kavanaugh had offered to withdraw from consideration, Trump responded, per Daily Caller video, “Next question. What a ridiculous question.” He noted he has not spoken to Kavanaugh about the matter.

They are whining like the cowards they are……think back to when another guy was nominated for SCOTUS and the games played …..now does anyone think that there would not be a tit for tat?

Keep whining fools!  If the House goes Democratic then the paybacks have just begun……

Personally, I do not think these “paybacks” accomplish anything ……but I do understand why the Dems will be doing it…..and anyone with half a brain will understand it also.

Whining accomplishes nothing…..to avoid having to use the “whining gambit” then do the work of the nation and leave political games behind.

The voters are the worse whiners….I guess it is easier than learning the issues and voting for the benefit of the nation….not some party.

It’s The Economy Stupid! (Again)

Labor Day (that was yesterday) got off to a rousing start with a Tweet from Our Dear Leader…..Trump then touted the economy, tweeting, “Happy Labor Day! Our country is doing better than ever before with unemployment setting record lows.”

I have looked at the economy from several different political points of view……https://lobotero.com/2010/06/28/its-the-economy-stupid/

Dear Leader and the his enabling cowards, the GOP, keep thumping their chests like sex crazed primates over the economy and it is just silly…..maybe it works for a few individuals but nit so much for the country…..

Wages are falling, Wall Street tycoons are swimming in profits from stock buybacks, and the federal deficit is exploding. Every way you slice it, the Republican tax scam is failing spectacularly, falling far short of the blustering promises of Trump, Speaker Paul Ryan, and Senate Majority Leader Mitch McConnell.

When Republicans jammed through the tax scam on a party-line vote, Trump promised it would be “rocket fuel” for the economy, helping families across the nation. Ryan promised tax cuts for everyone. Treasury Secretary Steve Mnuchin vowed the bill would pay for itself.

All lies.

https://shareblue.com/republican-tax-scam-busted-doesnt-promised/

We can keep lying to the people and it will come back and bite someone in the ass….most times the working class are the ones that get bitten while the 1% enjoy the high life.

If It Is Monday It Must Be WTO!

First, this is not some post about some moronic wrestling federation extravaganza….no I am talking about the World Trade Organization (WTO)….or some of you old farts might remember it as GATT (General Agreement on Tariffs and Trade)…..but what the Hell is it?

The WTO was born out of negotiations, and everything the WTO does is the result of negotiations. The bulk of the WTO’s current work comes from the 1986–94 negotiations called the Uruguay Round and earlier negotiations under the General Agreement on Tariffs and Trade (GATT). The WTO is currently the host to new negotiations, under the ‘Doha Development Agenda’ launched in 2001.

Where countries have faced trade barriers and wanted them lowered, the negotiations have helped to open markets for trade. But the WTO is not just about opening markets, and in some circumstances its rules support maintaining trade barriers — for example, to protect consumers or prevent the spread of disease.

https://www.wto.org/english/thewto_e/whatis_e/who_we_are_e.htm

I know you are probably thinking that this has nothing to do with you…well you would be wrong for Our Dear Leader if successful could make your living a lot more expensive than today……

He, Dear Leader, has declared a possible war on the WTO……

Shape up or we’ll ship out. That was essentially the message President Trump had for the World Trade Organization in an interview with Bloomberg on Thursday. Trump described the 1994 agreement that formed the WTO as “the single worst trade deal ever made” and issued his threat: “If they don’t shape up, I would withdraw from the WTO.” The body sets rules for global trade and serves as a forum for handling trade disputes, and Trump complained about the historical outcome of those complaints. He had this to say: “We rarely won a lawsuit except for last year. In the last year, we’re starting to win a lot. You know why? Because they know if we don’t, I’m out of there.”

The BBC cites a study that shows the reality is more like 90/90: We win about 90% of the cases we bring, and lose just shy of 90% of those filed against us. As for the cases filed against us, ones from China have made recent headlines. The AP reports Beijing on Monday formally sought “dispute consultations” over the latest round of tariffs—$16 billion of them—imposed last week on Chinese goods. China is a thorn, per US Trade Representative Robert Lighthizer, who views China’s 2001 entry into the body as a mistake. Bloomberg’s take: “A US withdrawal from the WTO potentially would be far more significant for the global economy than even Trump’s growing trade war with China.” In the meantime, the US has been blocking the appointment of new judges, which could ultimately put the WTO’s ability to issue judgments on ice. Click for more on Trump’s wide-ranging interview.

As this policy expands items will becoming more expensive and in some cases more difficult to obtain and that could influence the production in this country…and for what?

Some minor machismo for the news cycle…….for he must be the talk of the town whether good or bad…..

Economic News Round-up

Economics is one of those subjects that when it is mentioned most people glaze over….they could care less about the term as long as they are making money they are happy…..that is until someone mentions socialism then they have an opinion…..usually it is not well informed but it is an opinion.

I try to help my readers understand a wide array of subjects and I try to keep them as simple as possible so they can be understood.

In his attempt to “Make America Great Again” our Dear Leader has started with imposing tariffs on our biggest competitors…..and these tariffs are starting to effect our farmers…..

New trade data provides tangible evidence that some elements of President Trump’s trade wars are backfiring.

Prices for agricultural exports fell 5.3% in July, the biggest drop since 2011. The price of soybeans fell 14.1%, accounting for most of the overall drop. There were also small declines in the price of corn, wheat, fruit and nut exports. Overall export prices fell 0.5%, the biggest drop in more than a year, with agriculture causing most of the decline.

Beginning July 6, China imposed 25% tariffs on a variety of American agricultural products, including soybeans, corn, poultry and pork. Tariffs are a tax that instantly raise the cost of the targeted product, so $100 of soybeans would cost $125 with China’s 25% tariff. The tariffs have led some purchasers in China to cancel orders for U.S. agricultural products and seek cheaper commodities from other nations not subject to the new tariffs. Diminished demand pushes down prices and lowers farmers’ incomes.

https://finance.yahoo.com/news/trumps-trade-war-starting-hurt-us-farmers-184608387.html

How long will his tariffs plug away at our farmers?

Almost daily reports are to the people that the markets are setting new highs and corporate earnings are up and unemployment is hitting new lows and…….

But does that mean everything is alright?

The Lamestream Fake News Lyin’ Media is often accused of never reporting the good news when it comes to Donald Trump, American president. So here are some fair tidings: the stock market is mostly up! So are corporate earnings! GDP growth is strong! Unemployment is near historic lows! That includes black unemployment, although the president mostly uses the stat as a cudgel against accurate assessments of his rhetoric on race!

Now, it’s important to keep in mind that these findings are actually continuations of longstanding trends that began a few years into the Obama administration. Take the S&P 500:

https://www.esquire.com/news-politics/a22716745/donald-trump-economy-real-wages-stock-market-unemployment/

Wages is the big problem……while CEOs are raking in historically high bonuses and incomes the normal worker is not making the same ….their wages are stagnant and have been for decades…..

Some say the US is overdue for another “market correction”……

Economists debate, inconclusively, this question: Do economic expansions die of old age (the current one began in June 2009) or are they slain by big events or bad policies? What is known is that all expansions end. God, a wit has warned, is going to come down and pull civilization over for speeding. When He, or something, decides that today’s expansion, currently in its 111th month (approaching twice the 58-month average length of post-1945 expansions), has gone on long enough, the contraction probably will begin with the annual budget deficit exceeding $1 trillion.

The president’s Office of Management and Budget – not that there really is a meaningful budget getting actual management – projects that the deficit for fiscal year 2019, which begins in six weeks, will be $1.085 trillion. This is while the economy is, according to the economic historian in the Oval Office, “as good as it’s ever been, ever.”

https://www.zerohedge.com/news/2018-08-21/america-overdue-another-economic-disaster

Capitalism is always just one “correction” away from disaster…….

What Happened After 2008?

A decade on…..and counting.

Remember those days….the economic crash caused by banks playing loose and fast with accounts and trickery…..it all came back to bite them in the ass and we all then decided that banks need to be watched and regulated for the protection of our cash held by them.

For awhile it look good…it looked like we would do what needed doing to make goddamn sure that this could never happen again……and then the big banks started their assault on the people that would control their thievery and then we elected a tool of big capital and most of the regs are being pushed back….and history will be repeated…but while we wait for the next “market correction”…….

A few years ago, one of Karen Petrou’s banking clients gave her an unusual assignment: It wanted her to write a paper laying out “the unintended consequences of the post-financial-crisis capital framework.” Petrou is the co-founder of Federal Financial Analytics Inc., a financial services consulting firm in Washington that focuses on public policy and regulatory issues. She is also, as the American Banker once described her, “the sharpest mind analyzing banking policy today — maybe ever.” Whenever I’m writing about banking issues, she’s the first person I call.

Writing that paper caused Petrou to ask a question she’d never really considered before: Did the bank regulations enacted after the 2008 crisis — along with the Federal Reserve’s post-crisis monetary policy — exacerbate income inequality? Her answer, which she laid out in a series of blog posts, as well as a lecture at the New York Federal Reserve in March, was yes. “Post-crisis monetary and regulatory policy had an unintended but nonetheless dramatic impact on the income and wealth divides,” she wrote recently.

https://www.bloomberg.com/view/articles/2018-08-06/inequality-why-bank-rules-and-fed-rates-hurt-middle-class

While the nation is focused on Russia and whether they are bad players on the world stage….the inequality in this country grows with every economic report and NO ONE cares….instead they will slobber over slogans and BS and a promise of better days and yet those days are getting further and further away for most in the middle class.

This recovery has not been great for workers. They have seen modest real wage gains over the last five years, but these gains have not come close to making up the ground lost in the recession and the first years of the recovery.

Nonetheless, real wages have been growing for most of the last five years. The last month has been an exception to this pattern, not because nominal wages have grown less, but because we had a large jump in energy prices, which has depressed real wage growth. Here’s picture for the last five years.

https://www.counterpunch.org/2018/08/07/the-story-of-stagnant-wage-growth/

Closing Thought–14Aug18

Recently the Congress and Our Dear Leader passed and signed into law the large tax cuts for the rich……and now they are talking about another round of tax cuts for those same rich people……

And what if the “Blue Wave” is successful……will the tale told by Dear Leader about the raising of taxes come true?

Whatever happened to the notion that rich people should pay their fair share of the cost for their country’s public programs?

Progressive income taxes―designed to fund government services and facilities—go back centuries, and are based on the idea that taxes should be levied most heavily on people with the ability to pay them.  In the United States, the federal government introduced its first income tax in 1861, to cover the costs of the Civil War. Although new federal income tax legislation in the 1890s was ruled unconstitutional by the U.S. Supreme Court, the resulting public controversy led, in 1913, to passage of the sixteenth amendment to the Constitution, firmly establishing the legality of an income tax.

https://www.counterpunch.org/2018/08/01/lets-tax-the-rich/

Personally I have NO problem with everyone paying the same amount of taxes or the elimination of some of the beneficial deductions of the wealthy…..not to worry these people will pay the taxes and still find a way to turn a profit……then let us do the right thing and we all pay the same amount of taxes….so yeah…tax the goddamn rich!

I have given my solutions for true tax reform and not just a few tax cuts….unlike most bloggers I do not just bitch about something I also offer what I think is a better plan…..(please check out my solutions and see if they are not a better way to tax the people)

https://gulfsouthfreepress.wordpress.com/2017/09/01/tax-reform-2017-edition/

After all there is still “Taxation Without Representation”…….and I have written about this situation as well……https://lobotero.com/2011/05/12/no-taxation-without-representation/

So I Have Written!

Turn The Page!