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The Black Hole Of Deflation
TMO ^ | 6-26-2012 | Julian DW Phillips

Posted on 06/26/2012 4:24:14 PM PDT by blam

The Black Hole Of Deflation

Economics / Deflation
Jun 26, 2012 - 11:42 AM
By: Julian DW Phillips

The Global Picture and Where We Are Now

For the last few years we've watched as the Credit Crunch morphed into the Sovereign Debt crisis in Europe, which may re-cross the Atlantic to hit the U.S. Treasury market. During that time, we have watched a series of patch-up jobs on the crisis that have only succeeded in prolonging the crisis without any real structural remedies. We've also watched how central bankers have seen the 'buck' passed to them, when their role is strictly in support of government action that should have led the way. Central bankers are running out of tools to tackle the task they should never have been asked to tackle alone.

Political leaders (who usually act only in concern of the consequences to their political careers) have only been willing to provide hormone-free measures that have yet to see any convincing success. Much as people look for someone to blame or an interest to protect, the fault lies with the underlying structure of national affairs. Not only do we find banks bound by the interests of their shareholders to achieve profits, but politicians working in a democratic set of national systems guarding their voting base with future elections in mind. These diverse objectives are not consistent with the needed objectives of targeting global growth at all levels to the point that national debt levels can be reduced while national cash flows are boosted to provide the needed funds to achieve these goals.

Almost five years after central banks took the first actions to buoy the world economy, political leaders are being forced to react to a third successive annual fading of recovery hopes as Europe's debt crisis threatens to engulf Spain and Italy, hiring in the U.S. stalls and China slows. Estimate for growth worldwide this year have fallen to 3.2% from the May forecast of 3.4% and it continues to slow.

Developed economies are running into the limits of monetary policy, the Bank for International Settlements said in its annual report last week. Central bank balance sheets now contain $18 trillion of assets, about 30% of global gross domestic product, double the ratio of a decade ago, and interest rates are as low as they can go, the B.I.S. said.

Governments have "cornered" central banks into prolonging stimulus, and have dragged their feet on restoring fiscal order, said the B.I.S., which holds currency reserves on behalf of global central banks. Monetary policy only "buys time" in the short run for leaders to act, and leaving an easy stance for a prolonged period poses economic risks, it said.

The failure of politicians -or should we say in fairness the political system?-- to apply vigorous, focused measure to achieve these goals over such a long period of time is causing a fundamental loss of confidence in the financial and monetary systems of the developed world. The emerging world is patterning their newer systems on those of the developed world and ultimately reinforcing that failure.

Amazingly we are now hearing talk that the emerging world should be becoming the driving force in the global economy, when the entire pattern of Asian development has been to replace the manufacturing industries of the West. In addition, China's targeting the internationalization of the Chinese Yuan, an objective which inevitably will have the same impact on the dollar as Chinese manufacturing is having on the West. The net result is inexorably, the continuation of the shift of power and wealth to the East that undermines the power and future of the developed world.

Christine Legarde of the I.M.F. and other realistic financial leaders are warning that there is less than 3 months to save the euro. If they fail to do so, we move to the next catastrophic phase of deflation, the Black Hole. We have seen this in the past, and it's the greatest fear a central banker can have.

Gold as an Alternative Day-to-Day Currency

Many gold supporters believe that gold can replace fiat currency as money. We're not one of those believers. We realize that it's not a matter of being right, but in the current powers that be, it is a matter of accepting its use in the system. At this moment, they're showing no inclination or support for the idea of gold as money. But they do see it being used in a critical way. (Which we will discuss in the next part of this series.)

Fed, Central Bank Fears

For several years now, observers have reported the great 'black beast' feared by the financial world has been inflation. Central bankers fear deflation far more and have done for the entire five years. Inflation has remained extremely subdued during this time.

Indeed, their present stance still appears to be focused on keeping deflation at bay. But that policy is one that keeps central bankers -particularly the Fed-- right up on their toes...Why you may well ask?

Deflation's a Process

What really is deflation? In practical terms, it's a process. In this last five years, we saw it start with a puncture of the housing market in the States, spread to mortgage backed securities, to bank balance sheets then onto their borrowing abilities. In Europe, the same happened but hit the banks hardest, then sovereign debt. As securities lost their value we saw a Domino Effect of asset shrinkage leading right through to the collapse of the institutions holding that toxic paper as asset collapses undermined their solvency.

As this started, fear kicked in as lending dried up, with banks fearful of lending even to other banks, where they might be unpleasantly surprised by defaults. Short-term fear morphed into loss of confidence in the future, prudence stepping in to replace overspending and the velocity of money's circulation slowed, as values fell. As confidence was eroded so was growth and endeavor. In turn, this produced more deflation.

Central Banks attempted to defeat this process by adding liquidity to the system in the hope that lending and borrowing might be resuscitated, but because government was caught in political gridlock in the States and failed to act decisively and quickly in Europe, doing nothing to support central banks quantitative easing, these new funds ended up back in government bonds as banks feared creating more toxic assets that would come back to haunt them.

Meanwhile the economies of the developed world barely grew, causing more loss of confidence. With interest rates at new lows and becoming a medium term phenomenon, here we are at the brink of another stalling of the developed world's economies. This time though, the emerging world is starting to slow its frantic pace of growth, telling us just how far the developed world is slowing. Because the emerging world needs to export to keep its growth high and are now seeing these slow down, they're being forced to turn inwards.

The horrible feature of deflation is that it can't be measured accurately because of its subjective, or emotional, content. It doesn't move at a strictly defined pace and it must be killed early, before it turns an economic summer into winter, where stimulation just won't work. It is truly a "black beast".

This economic direction we now find ourselves in is what the central banks fear the most.


TOPICS: News/Current Events
KEYWORDS: deflation; depression; economy; recession
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Are we already in or are we headed for a deflationary depression?
1 posted on 06/26/2012 4:24:23 PM PDT by blam
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To: blam

It’s extremely bad out there with oil prices crashing and other commondies following suit. The oil industry will be devestated and we have no idea how far the price of oil will drop.


2 posted on 06/26/2012 4:29:18 PM PDT by Uncle Slayton
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To: blam

It is darkest before dawn, when all of the Chicken Littles are convinced that the end is near. Then the Sun rises.

Private Investment is up 10%.
Web 3.0 is revolutionizing the online world.
Fracking is increasing U.S. oil and natural gas production that is driving down gasoline and electricity costs.

In other words, the Recovery has begun with investment and major tech revolutions.


3 posted on 06/26/2012 4:35:58 PM PDT by Southack (Media Bias means that Castro won't be punished for Cuban war crimes against Black Angolans in Africa)
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To: blam

no


4 posted on 06/26/2012 4:35:58 PM PDT by palmer (Jim, please bill me 50 cents for this completely useless post)
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To: Southack
In other words, the Recovery has begun with investment and major tech revolutions.

I do a lot of travel, domestically and internationally, as a consultant to manufacturing and investment firms. While there may some positives that can be found, they are growing fewer and fewer. There is a significant slow-down occurring, and it is gaining speed. The question before any real recovery happens, is how hard the stop will be before we reverse direction, and what type of damage will be left in the wake.

5 posted on 06/26/2012 4:54:10 PM PDT by voicereason (The RNC is the "One-night stand" you wish you could forget.)
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To: voicereason

I appreciate your anecdotal insight.


6 posted on 06/26/2012 5:02:54 PM PDT by Obadiah (2008: Hope & Change -- 2012: Fear & Destruction)
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To: blam

All those toxic and non-performing real estate loans out there, which have still not been foreclosed or written down, continue to deflate much of the wealth, because their presence continues to depress overall real estate values. Once these toxic mortgages are drained out of the system, the real price of real estate may then be re-established, and we shall have a “new normal”. This allows a slower but more orderly growth of new construction, or rehabilitation of existing housing, both major drivers of any employment recovery, leading back to a healthier overall employment picture. But first, enormous numbers of restrictive government actions will also have to be reversed, both as regulations and as taxation, and imposed mandates that have no rational basis in fact. In fact, there are a LOT of toxic factors that are paralyzing recovery right now, much like what fed the Great Depression from 1933 through the Second World War. The New Deal kept trying to “fix” things, and only made the mess worse and more tangled, until the demands of wartime mobilization made much of the regulations either dead letter, or modified so much as to remove most of their former restrictiveness. After the war was over, a lot (though by no means all) of the New Deal was repealed, often over the objection of then-President Harry Truman. The effects of that boom were felt through most of the Eisenhower years (which had a couple of slowdowns of its own, but only for a year or two at a time).

In retrospect, that was kind of a “Golden Age”, though not recognized at the time.

Then we got Kennedy-Johnson and the “Great Society” the effects of which STILL drag on the economy, through a vast expansion of the welfare state. For example, the “War on Poverty” contributed almost the entire cost of our national debt (yes, the $16 trillion or so), essentially, we have done it all on borrowed money, and what do we have to show for it. The money is still borrowed, and hanging over our heads like the Sword of Damocles.


7 posted on 06/26/2012 5:07:29 PM PDT by alloysteel (Fear and intimidation work. At least on the short term.)
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To: blam

The writer of this piece surely doesn’t go to the grocery store, buy auto and health insurance and most definitely isn’t putting any children thru university.


8 posted on 06/26/2012 5:09:03 PM PDT by central_va ( I won't be reconstructed and I do not give a damn.)
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To: blam
Deflation is the death knell of debt issuers. Who is the largest debt issuer in the world? Your friends at the US treasury. Deflation implies a more valuable dollar, which means you pay back what you owe with more expensive money.

If there is one thing you can count on, it is that they will do ANYTHING to inflate/devalue the currency.

What we really have is a form of late 1970s stagflation. Prices of what you need (oil, food) are on the rise (although WTI is now under $80) while prices for your biggest asset (your house typically) is shrinking and looks to do so for a while. Add that it looks like taxes will go up and the middle class is getting squeezed big time.

schu

9 posted on 06/26/2012 5:21:47 PM PDT by schu
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To: central_va

“The writer of this piece surely doesn’t go to the grocery store, buy auto and health insurance and most definitely isn’t putting any children thru university.”

Yep. Spot on.

We have inflation on what people have to spend money on. (Food, Medical, etc).

Were having Asset deflation right now however.

Someday when the Economy truly does pick up is when were going to have lots of inflation across the board. (Velocity of Money).


10 posted on 06/26/2012 5:28:03 PM PDT by desertfreedom765
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To: blam
as banks feared creating more toxic assets that would come back to haunt them.

That is only half the story -- the demand for loans was minimal, because business was contracting because of the lack of consumer demand for their products.

11 posted on 06/26/2012 5:38:29 PM PDT by expat2
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To: central_va

There is both deflation (in housing and other assets, in employment and average income, etc.) and inflation (food, energy) going on at the same time.


12 posted on 06/26/2012 5:41:35 PM PDT by expat2
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To: central_va

None of those are related to the amount of money in circulation. “Inflation/deflation are always and everywhere a monetary phenomenon.” ~ Milton Friedman


13 posted on 06/26/2012 5:42:06 PM PDT by Wyatt's Torch (I can explain it to you. I can't understand it for you.)
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To: schu
What we really have is a form of late 1970s stagflation. Prices of what you need (oil, food) are on the rise (although WTI is now under $80) while prices for your biggest asset (your house typically) is shrinking and looks to do so for a while.

Not completely true. While businesses and commercial real estate are still struggling to add value, home values have increased in almost every state in the union, especially my great state of Arizona.
14 posted on 06/26/2012 6:06:06 PM PDT by pianomikey (Raucous cannoneer for tepid Romney support!)
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To: voicereason

There is a lot of cash waiting for 0bama to be gone before it is spent/invested.


15 posted on 06/26/2012 6:34:33 PM PDT by Paladin2
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To: blam

I’d rather see runaway deflation than runaway inflation. In deflation, there is a bottom. In inflation, there’s always more inflation. Plus, if you are a saver, deflation makes your savings worth more.


16 posted on 06/26/2012 6:46:28 PM PDT by OrangeHoof (Our economy won't heal until one particular black man is unemployed.)
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To: OrangeHoof
Plus, if you are a saver, deflation makes your savings worth more.

You'll be turned upside down and your last change will be shaken out of your pockets before the psychos who run the financial system let you have a penny. The politicians haven't put all that 401K money in a "lockbox" yet. Whatever it takes to screw the Muppets will be done. Deflation may make somebody's savings worth more but your probably not on the right family tree.

17 posted on 06/26/2012 7:02:00 PM PDT by Stentor ("All cults of personality start out as high drama and end up as low comedy.")
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To: blam
Liberal/Keynesian "economists" have a deathly fear of deflation because they are zero sum thinkers. They believe no wealth can be created. It can all only be divvied up and "distributed." There can be no expansion without inflation because expansion IS inflation. Conversely, deflation IS collapse. We actually went through a mild deflation from Reagan's economic correction until the end of the century. There was labor peace, few major strikes. There was little clamor for higher wages even though the nominal wage rate was not increasing all that much. But as time passed things just got easier even if one's paycheck didn't see much change. People felt less and less squeezed. Prices of things people bought were coming down as productivity went up, slowly but steadily. Wealth was being created. It was truly good times. We had a recession in the 90s that folks knew about because they read about it in the paper. It all came to an end early in the Bush presidency when Bush announced and implemented steady "devaluation" i.e. conscious monetary inflation.

Liberal beliefs about wealth guides their thinking about Americans being resource and energy pirates, stealing from the rest of the world, especially the Third World. We could not have all that expansion/inflation unless we stole it from other countries.Liberals/Keynesians do know that inflation effectively sucks in to the government the value from holders of the money.

Keynesians/Liberals have split minds. On the one hand they are frantic to have inflation and on the other hand they are appalled at the expanding/inflating USA stealing resources from poor third worlders. Thus they are frantically trying at the same time to expand the American economy by inflation and raging about America starving the less developed countries.

18 posted on 06/26/2012 7:08:17 PM PDT by arthurus (Read Hazlitt's Economics In One Lesson)
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To: Southack

Your facts are true, however all of the pluses you detail are under assault by this administration. We need a good November outcome to lift the national mood and our credibility in the world.


19 posted on 06/26/2012 7:09:00 PM PDT by Bshaw (A nefarious deceit is upon us all!)
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To: blam
All the trillions that have been papering the world over since 2008 were intended to stave off a deflationary depression, actually have done so and will continue to do so, until either the ability to provide quantitative easing ceases or quantitative easing overshoots the mark into outright inflation breaking out into the broader economy.

What we've seen for the past going on four years has been liquidity finding its way into those areas with reliable demand. There has been speculative excess, driving up commodities and creating a situation with food, oil, precious and industrial metals that is for all intents and purposes inseparable from actual inflation as far as the general public is concerned, as the difference is purely academic. The consequence is the same.

Those areas without reliable demand have suffered. Housing, non-necessary consumer goods, etc. have fallen in value, ie deflated. Stocks are widely suspected of being propped up via government intervention.

Absent the bizarre, almost unfathomable spending spree we've witnessed, we'd be experiencing a deflationary depression far worse than the Great Depression. Technology has enabled the appearance of normalcy, no soup lines, very few people literally forced out into the streets.

As we see with Greece, however, that possibility does still loom. It hasn't been eradicated. Government spending does have a practical limit, even if that limit is imposed from outside.

How all this will ultimately pan out is unknown but there aren't many potential good outcomes. It looks a lot like penury in store for all but the very wealthiest few no matter which way this shakes out, sad to say.

20 posted on 06/26/2012 7:33:13 PM PDT by RegulatorCountry
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To: blam

BFL


21 posted on 06/26/2012 7:59:00 PM PDT by editor-surveyor (Freepers: Not as smart as I'd hoped they were.)
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To: Southack

Wow, you’re a genuine keynesian kook.


22 posted on 06/26/2012 8:01:03 PM PDT by editor-surveyor (Freepers: Not as smart as I'd hoped they were.)
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To: editor-surveyor

You don’t know what “Keynesian” economics look like well-enough to argue one way or the other.

Sad.


23 posted on 06/26/2012 8:14:07 PM PDT by Southack (Media Bias means that Castro won't be punished for Cuban war crimes against Black Angolans in Africa)
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To: editor-surveyor

Just because we don’t support our nation’s current leader doesn’t mean no good can ever happen. I’ve had my best years in 2010, 2011 and 2012... years under a president I despise, who has sought to make me the enemy for running a profitable business.

I must be a Keynesian kook for noting that the housing market has taken a clear turn for the better, too?


24 posted on 06/26/2012 8:49:52 PM PDT by pianomikey (Raucous cannoneer for tepid Romney support!)
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To: palmer

ping for later read


25 posted on 06/26/2012 9:23:17 PM PDT by mick (Central Banker Capitalism is NOT Free Enterprise)
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To: Paladin2
There is a lot of cash waiting for 0bama to be gone before it is spent/invested.

Absolutely. Somewhere in excess of $400 billion in the Private Equity world. Some corporations are just sitting on cash. But they aren't just going to throw money at deals the for sake of sparking an economy. The deals need to be there, and they need to be there at the right price.

What no one seems to be considering though is that the dynamics of consumption may have changed as some people have learned some hard lessons the past few years. I know that the spending habits of my family and many friends are not what they were five or six years ago.

26 posted on 06/26/2012 9:23:28 PM PDT by voicereason (The RNC is the "One-night stand" you wish you could forget.)
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To: alloysteel

“Once these toxic mortgages are drained out of the system,...”

How long is that going to take? I’ve read in some places that housing prices may not recover for another 10 or 15 years.


27 posted on 06/26/2012 10:50:02 PM PDT by Jack Hydrazine (It's the end of the world as we know it and I feel fine!)
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To: alloysteel
The effects of that boom were felt through most of the Eisenhower years (which had a couple of slowdowns of its own, but only for a year or two at a time).
In retrospect, that was kind of a “Golden Age”, though not recognized at the time.

You're not kidding. I grew up and entered the workforce then and now, in reminiscence, realize how fortunate I was.

28 posted on 06/27/2012 6:46:07 AM PDT by Oatka (This is America. Assimilate or evaporate.)
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To: Southack

Political control through debt structuring at its basic level.

Sad.


29 posted on 06/27/2012 11:08:30 AM PDT by editor-surveyor (Freepers: Not as smart as I'd hoped they were.)
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To: pianomikey

>> “I must be a Keynesian kook for noting that the housing market has taken a clear turn for the better, too?” <<

.
It has taken a turn for the ‘better’ if you are a broker, and need not worry about being able to sustain your income sufficiently to make the payments on the debt you’ve just incurred, through the coming crash.

But then, that kind of thinking is a big part of what got us into this trouble.


30 posted on 06/27/2012 11:42:56 AM PDT by editor-surveyor (Freepers: Not as smart as I'd hoped they were.)
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To: editor-surveyor

You are almost too stupid for words.


31 posted on 06/27/2012 12:32:07 PM PDT by Southack (Media Bias means that Castro won't be punished for Cuban war crimes against Black Angolans in Africa)
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To: editor-surveyor
"Political control through debt structuring at its basic level." -- editor-surveyor

Yet here is what I wrote that got you spouting Keyenisian nonsense:
Private Investment is up 10%. Web 3.0 is revolutionizing the online world. Fracking is increasing U.S. oil and natural gas production that is driving down gasoline and electricity costs.

Private investment. Not debt. Not government spending. None of what I wrote has *anything* to do with "Political control through debt structuring at its basic level."

You are completely batty. Insane and ignorant simultaneously.

Take your meds and go to sleep. You need large doses of both.

32 posted on 06/27/2012 12:35:15 PM PDT by Southack (Media Bias means that Castro won't be punished for Cuban war crimes against Black Angolans in Africa)
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To: Southack

Yes Einstein, belief in sound economic policies is utterly stupid. You and you gal Moochelle should know.


33 posted on 06/27/2012 12:35:48 PM PDT by editor-surveyor (Freepers: Not as smart as I'd hoped they were.)
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To: editor-surveyor

You haven’t demonstrated an IQ that could grasp sound economics. Certainly not in this thread.


34 posted on 06/27/2012 12:36:55 PM PDT by Southack (Media Bias means that Castro won't be punished for Cuban war crimes against Black Angolans in Africa)
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To: Southack

You make Tim Geithner look brilliant.

Keep on Mr. Wikipedophile, go look it up now.


35 posted on 06/27/2012 1:48:59 PM PDT by editor-surveyor (Freepers: Not as smart as I'd hoped they were.)
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To: Southack

You really are too stupid to understand that all current “investment” is coming from monopoly money that is nothing but mass printed debt, to the level that our total tax revenue can’t even cover the service on the debt without running the presses?

Shut up idiot. All you do is read a few articles that you don’t even understand and post the propaganda here.


36 posted on 06/27/2012 1:54:18 PM PDT by editor-surveyor (Freepers: Not as smart as I'd hoped they were.)
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To: editor-surveyor
"all current “investment” is coming from monopoly money" -- editor-surveyor

Now there you go again, making things up. Come on, no one really believes that you have a data source to support your wild-eyed claim of monopoly money for every penny of private investment money such as the FPI, Web 3.0, and oilfield fracking that I mentioned above.

You are just making things up. This happens when you take the wrong doses of your meds, I suspect.

37 posted on 06/27/2012 4:59:32 PM PDT by Southack (Media Bias means that Castro won't be punished for Cuban war crimes against Black Angolans in Africa)
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To: Paladin2

I also think there is a lot of money on the sideline watching and waitng to see what the Fed tax policy is going to be. If Odumbo get the increases in taxes he wants, the other shoe is going to drop.


38 posted on 06/27/2012 5:06:50 PM PDT by catfish1957 (My dream for hope and change is to see the punk POTUS in prison for treason)
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To: Southack
I am not going to insult you, but your polyanna thinking around the economic future in conterintiutive to everything economic indicator out there. I did see your comment on housing. Anyone can cherry pick one bit of good economic news on any given day.

Why didn't you cite Germany's drop in credit rating instead? That has 100,000 times more impact on our future than your little shiny bit of joy

39 posted on 06/27/2012 5:13:45 PM PDT by catfish1957 (My dream for hope and change is to see the punk POTUS in prison for treason)
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To: catfish1957

Germany is trivial to the U.S. economy.

In the U.S., Fixed Private Investment (FPI) is now up 10%.

Web 3.0 is revolutionizing the online world.

Fracking is increasing U.S. oil and natural gas production that is driving down gasoline and electricity costs.

Demand for U.S. manufactured goods, in pre-paid orders, is up...demand for Chinese imports is finally slacking off.

And home-buying is now at a 2-year high.

In other words, the Recovery has begun with investment and major tech revolutions.


40 posted on 06/27/2012 5:19:42 PM PDT by Southack (Media Bias means that Castro won't be punished for Cuban war crimes against Black Angolans in Africa)
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To: Southack
I have worked for the oil industry over 30 years, and your comments about it having a bright future is bogus. Sales and production projections indicate that demand will drop hurting the group. This will then trigger a reduction in investment of infrastructure, creating a double whammy on local economies where they opeate. I am not talking early 80's armagaddendon, but the outlook is bleak. Margins will be in the toilet.

You really need to research better before making polyanna comments.

41 posted on 06/27/2012 5:22:10 PM PDT by catfish1957 (My dream for hope and change is to see the punk POTUS in prison for treason)
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To: catfish1957

You need to visit North Dakota today before spouting that somehow the oil industry is in bad shape.

Quite the contrary.

The oil industry is booming! Hello Houston, Texas!


42 posted on 06/27/2012 5:24:45 PM PDT by Southack (Media Bias means that Castro won't be punished for Cuban war crimes against Black Angolans in Africa)
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To: Southack
Germany is trivial to the U.S. economy.

Are you that naive.? All the major industrial economies are interwined. Just watch the impact on the Dow, everytime someone sneezes in Greece or Spain. You're less competent than I thought if you think a collapsed Euro is not going to have a domino effect here.

Comment 2, the FPI? That is a lagging indicator which is pretty much responding the little faux recovery we had earlier in the year. Nothing more, nothing less.

Web 3.0? (Snicker, that's a real barn burner, if this is a indication of what you think is harbringer of good news, you've really stretched it) .

43 posted on 06/27/2012 5:30:23 PM PDT by catfish1957 (My dream for hope and change is to see the punk POTUS in prison for treason)
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To: Southack

Yes, I have seen ND, and you know nothing of mini-booms and short term trends. By the way Einstein what was the WTI today?????? And that versus 2 months ago. You know absolutely nothing about my industry.


44 posted on 06/27/2012 5:35:25 PM PDT by catfish1957 (My dream for hope and change is to see the punk POTUS in prison for treason)
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To: Southack
And another point ot your silly comments about North Dakota. Land based E & P operations are low cost, endeavors that can be capped with minimal manpower and equipment. Watch oil go down another $20/bbl and see. These ND sites will then become ghost towns until the price of oil has shown a sustained recovery.

Geez.....I feel like I am talking to a 5 year old about "grown-up" stuff.

45 posted on 06/27/2012 5:45:25 PM PDT by catfish1957 (My dream for hope and change is to see the punk POTUS in prison for treason)
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To: catfish1957

Fracking is NOT a short term trend as you would pretend. Fracking is saving the U.S. Economy.


46 posted on 06/27/2012 5:45:42 PM PDT by Southack (Media Bias means that Castro won't be punished for Cuban war crimes against Black Angolans in Africa)
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To: Southack
Fracking is NOT a short term trend as you would pretend. Fracking is saving the U.S. Economy.

I give up. There is no use in arguing about things that you know absolutley nothing about.

Fracking is saving the US economy???? LMAO Hey bud.... start a thread with that as the heading..... I dare you!!!!!

47 posted on 06/27/2012 5:49:50 PM PDT by catfish1957 (My dream for hope and change is to see the punk POTUS in prison for treason)
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To: blam

Bump for later...


48 posted on 06/27/2012 6:08:46 PM PDT by Marie Antoinette (:)
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To: Southack

I’ve made nothing up.

The almost two trillion of “stimulus” and printing of funny money is all that there is in “liquidity” out there.

We cannot recover from the debt this insane ploy has created.

You can be forgiven for your ignorance; you’re in a large crowd.


49 posted on 06/27/2012 6:36:25 PM PDT by editor-surveyor (Freepers: Not as smart as I'd hoped they were.)
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To: catfish1957; Southack

Southcrack knows nothing about economics, nor petroleum. He just likes to post on things he knows nothing about.


50 posted on 06/27/2012 6:38:42 PM PDT by editor-surveyor (Freepers: Not as smart as I'd hoped they were.)
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