a pliable page

Is it a vote for Obama?

2012-02-09T12:35:00.001-08:00

The head of a Private Equity Firm is saying today, that everyone should now go 100% into stocks. It would fill the stock markets all the way thru the next election.., maybe hit a new higher high, than back in 2007 under Bush. It would again give any leveraged buyouts a large lift up, even if you count the delusion of stocks from the added shares used in the purchase. Good news for any Private Equity Firms chance to get behind re-launching a acquired firm. …The other picture you can get from the good economic business news is that the GOP guy is not going to get there and business wants to get back to business with the Administration we have now. ..No coming gifts so lets work with what is going to be there. It’s a vote for Obama being here for the next four years..,. Good news, let get back to work!

We need to move to a new balance

2012-01-23T14:01:00.000-08:00

It has been on my mind, that excess capital formation, even if there is ample liquidity in the markets, still ends with suppressed demand if it is causing excess redistribution of wealth. You remove lift from consumers not only by debt incurred, but because the limited control of wealth distribution also removes demand. A pile of wealth in limited hands is a restrictive imbalance. We need to rebalance. I’d say a purposeful distinctive turn towards getting a lot more money in consumers hands, is the best way to gain demand from here on out.

I wish and you need to ask

2012-01-20T17:51:00.000-08:00

Percentage of Tax paid: after the traditional middle class pay 20.8% and 21.0%. Then there's this slight turn down.. for those passed $352,900, 20.7%. And then those at the last top 400 at 16.6%. Remember all of us up to that $352,900..., we really are only 30% of the personal taxes paid. The whole other 60% paying personal taxes.., really come from those beyond that $352,900 income. ..I’m still for putting a lot more money back in the hands of those under that $352,900. Its most of the population.. and even if we don’t own most of it.. we are the ones that end, hard pressed by whatever goes wrong in the economy. ..The traditional middle class and below/we, need the help. Our money stays spent here inside our domestic economy. If your one of us, and your old home was a foreign nation.., you may send some remittances to family. But we.., those under that $352,900, keep most of it inside this Nations economy. It may be paid to an importer by the retail store, but most of it moves this economy. I want us to have more money in our hands to create demand for more goods, so more people can gain employment, here. ..Now… my point is.. that those above traditional middle class.., those with incomes passed $352,900. I say can pay more.., ..because they have a extra outside income. ..They take home a fair share of their incomes, from foreign investments. ..Even from direct foreign investments they decided would benefit there businesses. Hey that money that gets to our traditional middle class and below.., stays for the most part here. ..And that money we put, or leave in the hands of those rich not invested here, goes out into the world and looks for its greatest return on investment. Not all money they hold stays here making jobs in this economy. ..So.. asking.., are we getting the best deal, gifting them? Or, should we get a lot more for the traditional middle class and below, those who support this Nation? Not class warfare just asking what are we doing now. Does it work?

The parable of the Great American River

2011-12-22T17:45:00.000-08:00

The parable goes: Like so many of the Nations rivers, those who remember the old American River, remember a large powerful majestic river. It was once truly great, and its power was admired by all who looked on it. Then in the later 40’s some powerful interests began to divert the tributaries that feed directly into the great American River. It’s days, of being always full to its far banks, failed when not in full run. Remember this because its the center of everything, but it is not everything. Then the Rivers greatness began like the Nations other greater rivers, to only be occasional and seasonal events. People now saw a much reduced river for half the year. And with every passing decade, only a strong but controlled flow within its lesser banks. The loss of greater flow from other rivers gave less sand into the bottoms of the river. The now exposed rocks, caused the old sand to flow out from the bottom. People began to name the rocks, and the slower stretches of the river. The rocks found there new roll as there one calling. They came decade after decade, to reduce the rivers greatness as there only calling. People did not fully see the churn into bottom the rocks caused on the bottom sand. Not in the day, and not in the dark night. they voted with there acts to remove that sand and make the River slow. If the first part of this parable is the robbing of the River, then the second part of slowing, comes from the work the rocks gladly have done. Decades of acts to bring down the River unseen. OK, the Great American River was once set in the works it did up to 1950. And then with acts of lobbyists for big oil, big pharma and major industry. They all removed the Nations wealth for even greater profits. And the obstruction against a functioning capable government does comes from the rocks. Those Republicans who never wanted a Government to get in the way of those same ever greater profits. For the rocks, the GOP, making the Nation into a for profit zone with no controls, is there reason to live. Removing any good the Government does for its own people is there calling. An enemy has done this. Remember who is not supporting a great Nations works. Never.

Government service is not Socialism if_

2011-12-18T11:14:00.001-08:00

The return of troops is welcomed by all. House Rep. Paul Ryan said today, that in this Nation the military is the only justified reason for governments existence. And just yesterday I heard that the new payroll tax bill passed in the Senate, provides an increased 1% for the DOD budget but has a cut of 5% for Homeland Security. That just seems like the wrong backward step if we are now stepping away from the center of unrest over there, to be cutting back on the defense inside this Nation. What part of that 5% is not justified as tomorrows defense. They will get the DOD a new $1.8 trillion up front to replace the cuts that are projected because of the budget committee fail. Where is it going to go? HISTORY: The US has kept the DOD hardware budget fully totally funded, and personnel at arms, from way back in 1946 as a part of our Nations industrial complex. Its not as we see it socialism its for our defense. But it still is government picking winners decade after decade. Right! But the return of those troops after their long tours of duty is really welcomed by all.

Republican Myth Hard Money and the “Cross of Paper“

2011-12-16T11:03:00.000-08:00

World derivatives expanded from $100 trillion at the end of Clinton’s term to $750 trillions in 2007 under Bush. Republican Myth makers/keepers like Ron Paul never touch on that expansion of countering assets, and not ever on the ones that are total pretend. They still support the leverages put up in the private markets. Hard money is forever undone in insuring private debt. It’s a ridiculous distraction anyone thinking you can put it back into bars of gold. The Feds $3.5 trillion balance sheet can’t even control there fluctuating market valuations. I say [as fiction] if it comes to it, they will just print up ’just pretend bonds’ bigger that a financial truck you can buy into and sell later at plus 1% of inflation. But real money is never again going back into those bars of gold.

Your Concern is only Your Self Interest

2011-12-08T16:39:00.001-08:00

Wage fellows, you working class and middle class and those of you that see themselves as having a right to professional status. Wake up to this now. You’re now left on a near downward slope in your realized gains going forward aren’t you. Your wage only will not be enough for the burdens being set onto you and your family going forward. Your wage is not going to grow at the level equal to the shift being politically maneuvered into your income. This is not a now sustainable future, you and you only having to pay out full cost with to every service needed by you and your family. A vote, for your interests is simple. And you need to capture a full clear majority in both houses of the Nations legislatures. Understanding you have to now push your agenda into the discussion over the powerful lobby’s of self-interest. Democracy is now a majority well above 60% to be considered, and even a greater share to be held really accountable. Your goal is to have your interests first and foremost in the Nations consideration. It’s the only objective you can build your future on.

The Conservative Right’s America

2011-12-04T10:04:00.001-08:00

history’s perspective - The Conservative Right’s America is centered with the Founding Fathers works. They really are attacking the outcome after the Civil War. One United Nation, one which embraces its fought for universal protection to every citizen regardless of economic class or ethnic origin. The Conservative Right search for targets of opportunity to find a way back to the day when States have the right to define ones limits of citizenship for all not within there local majority. If you look to there defense of our Nation’s Constitution, the 10th Amendment becomes the driver of local political selection. And then they turn to restricting or removing all later sections that extend universal protection to all. People forget that in this Nation, equal rights for women, [Women's Suffrage] only came after 1900. Conservatives now are actively seeking that clear step back to strict political and cultural revival of old style local control. Again moving States from continuing restrictive control over women has been a continuing legal struggle. Forget the moral struggles of the last four decades, women in some Southern States into the 1950’s could not control their own wealth. A wife had no chance to seek bank loans except where her husband allowed it, and even a widow could not apply if her dead husband’s brother objected to the requested loan. Those ownership and financial laws for men’s were not extended to there married partner. Republican Rick Santorum running for President this year has said Lincoln high jacked the Constitution, bringing the whole Nation under Federal control. the reason I bring up this historic perspective - The Conservative Right also wants to take business control back to a time before the Civil War. Conservatives now are actively seeking that clear step back to control of business practices by old style local control. Governor Rick Perry in Texas, get bigger bones from Conservatives because he totally see stealing businesses from other States by offering the largest tax breaks to businesses he can give, as his job in that State. Every break you can give to business is nothing to helping keep employees pay lower in your State that competing States. He sees that a the Governors job in his State. history’s future perspective is - If you want to keep decent wages and hold business in check from driving us all into the ground. You have to support we the people, over the rights of Conservative elites that want to high jack this Nation. This is a economics blog remenber.

Breaking up your Euro?

2011-11-29T07:16:00.001-08:00

What is a Euro worth today? I’m going to take my fig’s and sell them in my own currency. And He’s going to sell his grapes in his own currency. And She’s going to go sell her Mercedes Benz's, in her own currency. If it’s the value of there figs and grapes and autos holding up there individual currency. What is anything in Europe going to be worth tomorrow? Who has what and at what real value over there? What is a Euro worth on its way to dismemberment?

This is fiction. Go into it

2011-11-19T16:20:00.001-08:00

This is fiction. Oh getting off politics. So who is holding the future debt returns that will sustain your future income? Who has the debt? A federal governments debt? The US, Britain, Japan, Germany or Spain, Italy or Greece. A state governments. Say California or Texas. Or the good municipalities that are not suffering massive failing revenue. How about corporate debt obligations - bonds or other long term debts. All that cash they’ve held, few use that to retire major debts. Instead [ they are ] continually [ going ] for returning [, still ] more and more [ for there ] investor satisfactions. Are all of those basic and exotic hedged investments going to return continuing insurances for those corporate risks. That last pile is the largest playground for our own institutional investors. Your sustaining debt gets it in and from this pile. Most of it. What would restart the economy, if normal banking comes to a halt? Insurants Equity Returns - are never going to equal the fifteen times future earnings at one place at one time - if paying it is a real last requirement to hold the economy upright. No one is going to ask it. But.. When GM and Chrysler went to the light. The standard holders of debt and equities were scrambled to fix the issues that had no solution. The answer how you restart passed to big to fail can be found there. Stock investor were simply gone as a fact. Suppliers and Bond Holders were both placed in lesser grades and in there place employee health funds and pensions were upgraded. Its major but its also so simple which economic need got serviced. Having a crash with millions of dependent employees added was never a fix in the equation. [ I can think of multi-billion dollar computer corporations that will have base products become vapor when desktops vanish as a basic. Going straight to bankruptcy is not beyond any corporation. Not product creator or service provider survives when its reason to be is removed. Even creative financial vehicles now in full force as profit generators, may become illegal risk and be unwound. What fills that void in forward profit returns that pay your future income. ] If banking stops, look for the corporate economy to be returned to the holders of last resort and need. Governments will issue money [ as needed ] and [ supporting but ] equal massive micro forward return bonds that can be purchased into and out of over there life. The value will always be a plus to the economic inflation occurring in the economy.Its change the rules. When one of the to big to fail institutions goes down, watch who gets to pretend there new debts will have returns. All the capitalists will hold there nose one more time but take positions within the news economy. This is fiction. (It is an edited version of the first post)

Picture This in Deciding Your Vote

2011-11-13T21:41:00.001-08:00

This last decade, for Bush’s entire Presidency, it was all everywhere about expanding the supply of capital to world markets. All that was accomplished, was our transfer of domestic wealth into the hands of the super rich, and our real hard assets into foreign hands. Within the process, everyone knew the rules, and then (the1%) rearranged the rules so the money became a greater gift on top of greater gifts in profits. They inflated asset values 40x times, and then extracted larger shares from multiple levels of return. The transfer of real production and manufacture assets into foreign hands where they then expanded those markets, gave one level of profit return. Those lower cost foreign products were then returned and gave greater profits here. Another level. There gift in tax relief is defended to the death. And the promises of returned foreign returns as tax free returns, are just another demanded re-gifting to that super rich (1%). Unless tax relief re-gifts the domestic population (the 99%), nothing else remains to lift demand naturally. Its return wealth (from the1% into the economy) or it will stay deflated from here on out. And we will need backhoes for an adjustment in this disproportioned wealth. Housing became a trap after being inflated 300% and many long set markets. All that the (1% reinvesting) does is re-inflate the stock market without a real investment. The Dow being returned to near all time highs multiple times again is not making products is it. For the last 3 yrs we’ve had financial manipulation as a large percentage of GDP increase driven by hoped for foreign returns and stock markets filled with non-sustainable silo investments put forward as the real thing. That has failed to create any lasting employment, all the (1% super rich) really do is gift themselves. That is not a sustainable economy for the rest of the nation. So give them $900 billion from the $1.5 trillion in foreign profits held off shore. Held only waiting tax relief for the rich. The idea that this money will be channeled this time into production, is a sad joke. It will do what it did before, be placed to gain the highest return on the investment. In this country businesses are not feeding anything that creates demand and makes employment. Look for this pile to get behind M&A or any of other creative financial scheme that does not touch the real economy. Or go back into a new foreign investment in new safer markets. Its not the tax policy holding those funds. A tax holiday before Bush tax cut expires in 2012, could gift those 400 super rich the biggest share of this load? Working hard to get them there full $900 billion the entire Republican Party. Held passed this year until the deal is done next year. Nothing will be changed but the rules.

OWS? or Vote? um! VOTE ONE WAY ONLY, Vote!

2011-11-05T19:15:00.000-07:00

We need an absolute majority to get something done, pick one Party, and then support only its Candidates. What we are now needs fixing.

An Up and a Down Market Day After Day

2011-11-04T15:01:00.001-07:00

All that volatile trading every day should reward the firms that take the trades, and also the same for firms that can trade inside those dark pool programs ahead of the rest of the market. Not everyone takes the same burn in an up and down rollercoaster stock market. You can look for some very healthy bonuses inside some market makers bankbook next year.

OWS needs questions to define its answers

2011-10-31T13:47:00.000-07:00

Occupy Wall Street - where has the Creative Class that Richard Florida pushed gone inside the 99%. They were once 30% of the employed that made 60% of the nations income. Does the shift in wealth into that 1% supper rich, really have most or almost all of them outside that 1%. Even the best staying above the crashing economy are inside the game everyone now plays. In the Bay Area in San Francisco or San Jose, we are always next to the real Creative Class. But the economy has so many underwater from prior heights these days. Many not hurting still can’t just relocate without gaining corporate help. If its needed and you do, it will come as an extra expense that may also come with a downgrade in income. Where is the Creative Class in teaching? It was a part of the class. Not lower level teaching now cut into half size by State revenue fails, but at the upper university level. State revenue has nothing that will support it on the next round of cuts. The questions are as important as the fix.

OWS - The question is how you fix it

2011-10-30T15:40:00.000-07:00

Treasury Sec Tim Geithner the other day, said that retail banks were really just utilities in the economy. So lets turn them into nonprofit companies and let private equity firms and hedge funds do there creative financial market making functions, without all of our money in there pockets. All you capitalists keep your pension tied up in there Stock Market and you can hope the rich leave you something for later.

OWS .edu

2011-10-16T14:33:00.001-07:00

Media sympathetic to OWS are all offering to define what groups don’t get the movement. The churn from good employment to unemployment has more to do with management process, than a workers attitude towards work. BofA’s plan to layoff 30,000 over the next few years has nothing to do with work ethic. Oracles buying out People Soft, for its client list and letting go the work force, is a management decision. Not workers laziness. The dot-com bust was major, but moving our processing production into Asia was managements work. Wall Street has gifted there own with bonuses throughout the fail in demand in all the rest of the economy. No matter what they get theirs. OWS can be a teaching moment to redefine these not as worker denial capitalism but as the result of managers denial of the demand economies need for investments.

Everything is not working for you - why it matters

2011-10-15T13:13:00.000-07:00

A Bit More About Cain - October 15, 2011 NYT - Paul Krugman My Comment: The political bent is for a strain on wages across the board, as if it was the natural order. This is just one more wage pressure on working people being built into all our tomorrows. Your own income fitting the bill directly for your own benefits totally outside a firms responsibility, is what the Republicans think is a future we will all enjoy. If 53% buy into it, we get a TeaParty/GOP/Rick Santelli nation. If you can’t pay for it you don’t need to get it Nation.

Leveraging anything or returning foreign profits

2011-10-10T16:34:00.000-07:00

Hank Paulson at one point selling it on a TV show, said the tarp could be leveraged out 40x. So I’m asking these days, how a 3.94% thirty year fixed rate mortgage and a 3.26% fifteen year mortgage are not another risky investment for banks. What future expectation lets this be a good risk? Its so close to being a flat to negative investment over 30 years.

Unrecognized Recovery

2011-10-09T13:54:00.000-07:00

OWS: CNN last week lacking any media perspective did are you better off now than 4 yrs ago. The same people covering the march on Baghdad. The week they featured was right before the equities markets started down to 2009. CNN only quoted the level of economic activity then and never really saw into the depths of the failing economy from there to the start point for the Administration.. The oppositions open political agendas and there lack of action on anything supporting the Administration. Is never by CNN seen as relevant to the conditions now. Nothing says not seeing it all like the fact businesses are holding cash in Fed accounts other than investing into the economy. That’s counted as uncertainty.

Keep making debt its our only future

2011-10-08T11:43:00.001-07:00

On their birthday. Affluent 9 year olds have a clear certainty. Western businesses are all seeking that same certainty. Granted gifted profits without any required regulation or obligation. Simple! It’s the same childish demand that all there wishes will be delivered in the economy. That has got to be it, needing a certainty going forward. And without that nothing will be entered into in the West or gain real investment. Simple right!But with $700 trillions in derivatives in the world of derivatives. And we now have, a 3.94% thirty year fixed mortgage and a 3.26% fifteen year mortgage in place. That is not going to hold up the market to market value of matching assets they now have in there portfolios. How will that gain returns going forward? Not from housing.. I don’t see how they can have Governments stop creating debt. The federal debts of the whole world are slim compared to the full market in derivatives. Inflation cuts an assets real value. I don’t know but if we all slow the creation of debt, then we will deflate there derivatives returns. Those piles of debt are where the real money is generated these days, and they are not taking these piles apart soon. I don’t know.

One more time again

2011-10-03T09:20:00.000-07:00

Back a month ago anchors on CNBC and Bloomberg were saying the world was filled with liquidity. But this month its bailing out Europe’s banks working its way into the media discussion. Today on Bloomberg before the Markets opened, they were saying that coming earnings for this Quarter looked really strong. But we know they are still lining up purchase of long term European debt. Nothing is really wrong here, but we still need to fix it for the major banks one more time. That is the message and its sick! What is occupy Wall Streets message?

A myth in private markets efficiencies

2011-09-29T15:39:00.000-07:00

In the weeks before Obama’s inauguration. BusinessWeek, CNBC, Forbes and other media, had people saying the US economy was going to under perform foreign invested returns. Going over there was a better bet for investors. And last years business earning were in large part from foreign returns generated from deeply invested multinationals. And we have a push this year by the GOP in Congress to clear away any tax from stopping those repatriated foreign returns. It has been full bore on the GOP agenda. This was a win-win-win for everyone who could benefit by not investing in our domestic economy. Multinationals who transferred there production, our own Rich Investors seeking the greatest returns, and the GOP who have not wanted investing now inside this Nation. The other half of profits for investors and corporation have come over the last 2 years from market making creative financial gimmicks and not from basic investment into our domestic economy. If you think there are always greater efficiencies from private markets in this Nation. Take some time and think again about this direction some people have taken for greater profits. It has not supported domestic investment.

Sign on to class warfare

2011-09-22T15:05:00.001-07:00

When Republicans get power again. They can fill out what ever brings liquidity back into the markets. Any trick will work. And it will make certainty suddenly fixed in the calculations. Something like the States requesting matching funds for infrastructure. Because it is not generated from the WH, it will suddenly have a clean mandate. Always remember, hypocrisy is the tool of politicians. And if capitalists agree, then there is no moral hazard to a new direction. Its only visibility of guaranteed profits that count in the market. Everything, all done by President Obama, will be cleared away to make it happen. But half of what he supported will in the end, be used to restart the economy. Hypocrisy is the tool of politicians.

Underlying this moment

2011-09-20T15:43:00.001-07:00

I see this economy is in transition again. We’ve passed our agriculture, industrial, and very recent service and retail economies to this financial last decade with its gravitational pull of wealth into fewer economic positions considered a natural order for a capitalist society. These financial silos don’t need to engage with the full economy to gain profits. It’s not even the question should citizens share more or less of the economy. Business is committed to freeing itself from all restraints and pushing the burden of support back onto employees. Because we are all dependent on employment by some firm, we can’t see opposition in the old industrial model. Clerks know there place in the order. We don’t know they do not need us any longer.

Work on this, this weekend

2011-09-16T18:40:00.001-07:00

Raise the boats with fresh water. Give permanent tax relief to working people below a set level of income. Its how they can repay past obligations. And how you get things purchased in this economy. Think about that this weekend.

Disliking Republicanism

2011-09-05T15:36:00.001-07:00

great Republican point: No matter how much social impact, never give any service that can’t not be paid from an individuals own income. And only for profits private business contractors should give GOV services. That is what they think is best.. Second Republican point: That no matter how much social impact, institutions have a right to default and disavow any past contract obligations. Businesses get Bankruptcy, and now from this year, Republican Governors have made it the way for State government to shed union employees. And now with the USPS ready to fail. A gridlocked semi federal agency may get to totally fail, leaving the US only 2 high-end for profit shippers left in the market. And next years Federal budget will get all of the expense caused by this failed agency‘s defaulting on employment and retirement costs. Just one more GOP working government project. Not a good way to run government, but its the coming GOP way. This is what they think is best..

MESA+Online+University:++A+STEM+Learning+Collaborative

2011-08-19T18:40:00.000-07:00

MESA+Online+University:++A+STEM+Learning+Collaborative

Infrastructure maybe his could help

2011-08-11T14:25:00.000-07:00

The Feds free money for the next 2 yrs. should support long term urban redevelopment, not just bridges.

Housing debt is falling with every one given back. The deflated housing values will remove future returns to investors. Lower housing prices over this next decade are not going to put that back. That lost ROI is an issue for annuity and pension holders. The infrastructure that gets Federal cash or tax breaks, should be urban commercial property that can still gain a continuing market value for investors.

A Next Bubble (economic fiction)

2011-08-07T21:30:00.000-07:00

(economic fiction) If you look at a corporations stock value over the last two decades, speak the names Jack Welch or Steve Jobs and a dozen other gifted managers and you are talking about human capital with a monetary value you can qualify. We’ve seen an extra value added to every endeavor where these names were present in the equation. There management can be talked about as human capital, as a real human asset in the marketplace. (economic fiction) Your smartest human capital is an asset and hedging expected future earnings potential as a value product must be seen as an accepted practice, it lets the market create a huge profitable asset bubble within derivative markets. Young students just graduating have exponential value to the nation and within this market. There earnings are a now looked for gift product in this market. And the best are still taken into our markets to prove themselves. All of our major cities have school districts, with one or two better schools, where students are guaranteed 80% college admission. Those same districts are guaranteed other schools, where 30% of the students will fail to even graduate. This has become a national economic fact in the market place. The top academic 20% of any school are the base for all future human capital. This has become a national economic fact in the market place, and that 20% is where the derivative markets will create products to quality that value as a future investment vehicle in that market. (economic fiction) Another economic fact is, the top 1% of the wealthy now gain 21% of the nations income and our banks management, shares all of the banks profits every quarter almost equally dollar for dollar with there investors. The rich see themselves as the asset gaining wealth in the economy and there employees are only a lesser value in there equation. This has clearly lead the best and the brightest to qualify there value, way above market value for labor. American domestic labor, has fallen far below management in real value for all of the last decade. These numbers are proven by every single measure you can sight. And it looks now that our domestic labor at every lower level, will remain under pressure for at least the next ten years. The value will only grow in and from, the brightest 20%. They need to be followed as a future asset that can be a market investment product. (economic fiction) They don’t need our aide, they define there own value place by getting above the rest. But if you want a bubble you can inflate, take that long look at the value the best students will produce. Follow them as a derivative product in the derivatives markets, and imagine if the whole world also entered the best into the derivatives markets. it’s the best value in the markets, investing not in them but there efforts. The products come without any needed support, they personally want to gain success of there own will in the markets. And they can be our next bubble. (economic fiction) With the lack of growth in the US economy, caused by businesses withholding their Trillions in cash they are holding from the US market and there no longer AAA extra Trillions that they have parked in US Treasuries. Its only a new greater bubble in the derivatives markets out from the $650 trillion now there that can glut the world with fresh liquidity. We can‘t afford growth otherwise. Update: Bloomberg Kirsten Salyer Aug 19, 2011 Student debt soars past mortgages, and credit card debt cut pell grants and we get deeper into debt Update 8/24/11: Steve Jobs moving on from Apple will revalue Apples stock price for the next few days. We get to see his value in real time

The Debt Parable

2011-07-26T09:41:00.000-07:00

A parable: In 1978 a French Socialist walked through the Brandenburg Gate into East Germany, and He saw first hand a failed Socialist Reality. Then He turned back and returned to France and resigned membership in the Socialist Party.

And now in 2011 a Republican House member can vote to allow the Federal Debt to fail and then on August 3rd he can stand in a failed Capitalist Reality. What will he do on that day?

Update: 08/05 US Rating downgraded today by S&P from AAA to AA+. With a 2 yr. watch to take it down to AA.

It now clear that we have a problem

2011-07-23T17:09:00.000-07:00

The GOP House has in mind cutting $6 trillion from the Federal Budget over the next 10 years.. As they see it if not this year then they will be back for that as an election goal. The GOP job bill is all about you waiting for business to take that $6 trillion to create a job for you.. They don’t see it coming so they will go all the way. They are going to crash the economy now. Monday and over the next week should see some pain in the markets. If not then what is going to break this deadlock. Nothing!

With what?

2011-07-22T17:32:00.001-07:00

What do you use to solve unemployment? The GOP House has cutting $6 trillion from the Federal Budget.. What will we use to solve our problems..?

The Wrong Use of Resources

2011-07-19T12:58:00.001-07:00

The creative financial markets over this last decade, have all produced greater and greater profits over any real production in the domestic economy. If they cut $4 trillion, 80% of those cuts will stay in their hands and never become productive in this economy.

Structurally in this economy any stimulus that only goes into a bankers hands is lost in its redirection for profits. I see the GOP supporting those creative financial profits over real productivity and employment.

I say they miss there most productive use because they don’t support domestic employment. They don’t care, those profits go into their hands. 10 yrs cutting the Federal Budget $4 trillion that would be targeted into the economy.

I don’t think the GOP cares that profits put back into the same bubble finances don’t employ people here.

For the last 2 yrs business media have told investors that more profits could be had investing overseas or investing in companies who have returns from overseas investments. And a broken smaller dollar, will only gain greater returns from those investments. Here investments have most of there returns without ever putting money into the economy but only from trading there own book. What are we going to get leaving $4 trillion in the hands of bankers and investors over 10 yrs? Nothing!

Today’s rant

2011-07-09T10:59:00.000-07:00

We have the Fiscal Stimulus failing because it can’t lift the whole economy alone. But we also had the stimulus and greater debt of the Federal deficit at $3.9 trillion.

And, the Federal Reserves monetary injections to the Major Banks. And there profits over the last 2 yrs never got to be a business stimulus.

The Federal Reserves balance sheet is up $2 trillion and the Federal deficit is another $2 trillion extra non-stimulus. And add 2 wars.

9.2% unemployed.

How much money can they misdirect from getting to businesses that employ people in the real economy?

What do we get in Federal default

2011-07-07T10:31:00.001-07:00

Greece has 16% interest rates, anyone going as high as 7% to 9% to 12%, for the US in default. Does anyone think the Federal Reserve is giving money away here at 0.25% and then paying 9% to hold up the GOV. Look at the US doing business under internationally imposed interest rates and imagine the lost profits here. This is not going to end with businesses getting a break they are going to be stopped cold.

Now on July 4

2011-07-04T11:06:00.000-07:00

NYT - Paul Krugman

My view: Corporate money parked in the Fed at low rates can be used as leverage just like the home loans backed by Fannie and Freddie. That triple-a money will be leveraged 6x its face value for the magic finance he points at.

We need to tax out of existence the silo filling creative financial bubbles corporations are still going for.

Get taxes that do gain investment and employ people and stop the banking game.

Here and Now

2011-07-03T15:42:00.001-07:00

Who generates your income? You by your own efforts? Or do you work in a business that gains revenue.

If you are the only one selling pies at the counter, but you work for someone, well your employed and your income is only a part of that businesses revenue?

Its standard for workers to be a part of a company. And it is also a standard for workers incomes, to be an expense of that business.

You may make $7.50 an hour, even if you are the only one selling pies. Or if you are a part of bank management you may have a salary and then share 48% of the profits with all the investors.

Most people are in the employed category and their whole income is an expense to their company. And the company sees you as exactly that an expense.

There are other expenses and incomes within almost every business, capital improvements and levels of debt service and the costs of supplies to actually create the products. There may be tax breaks the business gets even from your expense status. But your income, all of your income, is still a business expense. Your income in the company, its always an expense.

All of that goes with your working to generate revenue. It’s the firm that makes the money and your work is a contribution to that revenue and there profit. And profits come with sales and contracts generating revenue. If you are an employee, your contribution is never the final cost or the full determinate of profits.

Competition is about lower cost and better services.

The business pays you what you get… there tax and even your income tax, come as and expense added to there products or services cost.

The US business tax is set at 35%, but the real tax after adjustments is closer to 17%.

The tax cuts under Bush and forced on Obama in 2011 by the GOP, have wiped out $6.3 trillion in anticipated Federal revenue over the last 12 years. A tax gift to the rich. That helped in the transfer of wealth over the whole world.

Globalization is only the product of that transfer of wealth in fact. Here in the US, domestic wealth transfer to richer individuals and institutions has left the nations economy on a unsustainable path.

Its simply time to readjust that transfer of wealth into fewer hands and institutions, back into the hands of the greater population to make the economy more productive.

What I’ve said here over the last 2 years show how that must be done. Read back and see what must be done.

Why does it matter

2011-06-14T19:50:00.000-07:00

NYT - David Brooks

By me Brooks crime is his not admitting the deeds his Party has done to the economy. Ask public school teachers and State and local workers who can now expect there numbers will be cut by a third when this next recession takes down more revenue. Under GOP obstruction all social services are under attack.

Look for charter schools to be fixed in place by the GOP later to gain a profit. Look for the same State services to find contracts under the GOP.

Its there work there deeds done that Brooks never admits to that is his fault as a writer.

Supporting Papers

2011-06-06T15:48:00.000-07:00

Supporting papers.

NYT - Paul Krugman

The Rentier Regime

Link

WashPost - Ezra Klein

Christina Romer looks back — and forwardfrom

Link

Our Forward Debt Returns

2011-06-04T11:01:00.000-07:00

Housing is lowering the base by a trillion on forward returns. It is still setting a new, new, newer bottom prices. You expect demand is what is going to drive anything in housing for the next four years, no. Down by a trillion we could leverage on forward returns.

But housing is not just housing, its all wrapped up in the whole of creative finance and the derivative markets commercial paper they still are gaining returns outside the rest of the economy.

We are talking $650 trillion making forward returns, that is the real debt amount you have in place to give returns. So how great a return can we now get from home owners.

Housing, it was a big part of the total liquidity world market that did transfer real production and wealth on top of the housing bubble.

The whole thing was a bubble that is only half deflated, that’s the US housing market. The price of housing is still going lower. It now will only deliver a third of the returns it did in 2007.

The world corporate paper bubble still has legs in the markets. On what forward returns can you expect from austere western world economies. Cut the budget and see what drives your economy. Only the returns from a deflated corporate paper structure. We all have it coming down.

2012 is going to be about what you lost over these last 4 yrs and who you blame for it. I say the GOP dragged us all down.

And 2016 is going to be about what we can’t gain from our forward returns on our debt. What hold up insurance payments, what hold up pension payments. What is the coming forward return on our debt.

Again to big to fail?

2011-05-25T18:49:00.000-07:00

Forgetting gifting the Rich as last time, but..

If we had another Bank Crisis and got investment in middle class employment is that so bad..?

The crisis may be back and it should not be another waist. Ask yourself if the shift of wealth to employed workers can be done by another Bank Crisis.

Added May 26, If we have a default on the GOV’s Debt Ceiling.

The extra interest the Treasury will have to pay after a default will go through-out the whole economy.

You can default and we all pay for it for years. The slowing economy means no demand, and you can get ready for another bank crisis.

Its adding a anchor to any employment costs for decades and will cut the incomes of the Rich. DUMB!

Again don’t gift the Rich, but..

Get the banks to investment in middle class employment..

The Should be for Taxes

2011-05-20T20:00:00.000-07:00

Should be America’s National Tax Objective: 1) put money into the hands of the middle-class. 2) keep the middle-class employed.

Think of the Wage and Wealth shift over the last 12 yrs

2011-05-18T15:43:00.000-07:00

In this time of “we’re broke” legislation, just think of the Wage and Wealth shift over the last 12 yrs. We’re Broke and the Rich have it.

When 15 yrs ago Richard Florida came up with the Creative Classes, he had all professional people and higher management mixed in with teachers, computer workers, and artists. It was that 30% of the working population that produced 60% of the income.

That has moved with the shift in wealth the higher middle class, teacher, computer workers, and service workers are falling downward while being harmed with every new legislative turn. It’s now 15 yrs later 20% and a wealth class, not a skill class, that have gained control and greater wealth.

They are now saying it’s a 20% high end wealth capture of 70% of the income. The Rich have a greater grip and the middle class and everyone else only share 30% of the income.

Both 12 yrs of tax cuts and inflated financial markets, all gifted and gave the Rich greater control. Middle and lower incomes are now shared by 80% of the working population.

So thinking out the Social Security workers equation. They now have less to share on top of numbers of workers trying to fill greater need from more retiring workers. It’s another restriction that has come on top of all the demographics.

But its not counted in the discussion.

Even greater is the shift in control of asset wealth. Here its 10% who control of 80% of the asset wealth.

Hey! Just 400 people gain the 10% of Capital Gains in this Nation. It the extra rich who have something to gain in reducing Capital Gains taxes to 5%. Really?

We’re Broke and the Rich now so much more. Just think it over with this vision.

All I've been saying here

2011-05-13T12:48:00.000-07:00

In this coming GOP Nation, if you do not have an income of $250,000 to $317,000, you can not secure your own future without that level of income. Its going to be the fact we will have to live with, and if you have less of an income its going to eat every hope you ever had. Sorry!

We will need to defend our own needs with votes to block this coming about.

What is wrong?

2011-05-05T10:58:00.000-07:00

Does the fiscal contraction we are getting at all levels of Government (National, State, and Local), force the Federal Reserve to a continued policy of QE and continued lower interest rates to support employment in the markets? And does that mean the dollar is going to be lower against other currencies?

our Financial Transaction Economy: holds firmly the hearts and the minds of those it rewards

2011-04-26T16:48:00.000-07:00

Gov and Business players who can not be moved. No test can really be put in place they will accept as the real facts. Its not in their interest to be honest in intent or in factual discussions. Its a blank wall your offering the truth to, and its not going to be heard.

Its all spin for public consumption. And the public discussion is now as far from facts as it goes, captured by other issues with no voice but from those players.

We need a tax discussion on keeping money in the Nations economy at the level of everyday people as the way to raise the economy for all citizens. Avoid the rewarding of the rich except where they invest in the real economy.

Our Financial Transaction Economy: holds firmly the hearts and the minds of those it rewards. Your choice must be to move there reward back to the real economy.

Its again the reward from within the Financial Transaction Economy

2011-04-25T09:01:00.000-07:00

The Financial Transaction Economy: Its again the reward from 760 billion speculative transactions within the Financial Transaction Economy.

News Media have Oil Company profits set for new highs.

Not from 2006-2008 levels and with no pushing demand and operating under capacity with excess supply, we still see all time high profits from gas. Its without end from any market forces.

Its who you tax, that give power back to the citizens of a Nation.

Its revenue that pays for the Nations needs. The Rich have it, they took it and we need to get it back.

our recent Financial Transaction Economy

2011-04-24T18:04:00.000-07:00

our recent Financial Transaction Economy: saw unlimited advance to Housing prices, and then underwater markets with decades long negative values. And 760 billion transactions giving selective profits in process.

More on our Financial Transaction Economy

2011-04-23T09:11:00.000-07:00

from our Financial Transaction Economy: What is the value of forward intent? See gas prices and discount supply and demand.

the Financial Transaction Economy

2011-04-21T17:24:00.000-07:00

From the War economy, the Fifties to the Seventies are America’s Industrial Consumers decades.

Heartland America was the center of production and the home of vision America. ..

After that last decade, a balance of payments shift was embraced, and World liquidity began to re-enforce globalization.

Then that change came to be a Retail and Service Consumer Economy in the Eighties and Nineties. ..

And then Two Thousand and massive World liquidity starts the Financial Transaction Economy into force internationally.

America is the center foil for profits generated from trillions of financial transactions having more value than the assets generating the leveraged trades. ..

This is now still the condition in America’s GDP. Where trillions of trades can generate profits that are really outside the whole rest of the economy.

Profits to Giant Banks and M&A from Private Equity Firms, are the big hand in a short list of the trillions of transactions.

Transactions that feed the silo of finance generating its profits that never need to be shared with the rest of the Nation. ..

From 2011, we need a new direction to support the rest of the economy. The citizen consumer needs to find and force change.

Clue: Its who you tax, that gives power back to the citizens of a Nation. Its revenue that pays for the Nations needs. The Rich have it, they took it and we need to get it back. Or you’ll have no support for your future, just from your income.

More later… ok! ON the Financial Transaction Economy

Today's look at Ryan's supporters

2011-04-14T17:38:00.001-07:00

The lack of candor by GOP think tanks on the real transfer of wealth and wage inflation gifted to the affluent and superrich over these last ten years, that the Bush tax cuts only intensified. Is never fully defined in public discussion by the GOP think tanks or by the Democrats.

Financial firms can trade there own book and service there own symbiotic trading partnerships, and still never impact the real economy. Even economists can’t define this separation from the Nations GDP, because they fail to see or define its full reinvestment back only into shifting financial silos. It’s a construction that has not been defined clearly in the public discussion.

Its now, never to the heart of the matter of revenue enhancement from the only people gaining from the last decade. Shared sacrifice is obscene, when 90% of the population has undergone wage deflation while the wealth was being transferred from there hands.

Six months ago, the first time I saw Ryan’s solutions, I knew, if you do not have a constant income above $250,000 to $317,000 you can’t secure your future in Ryan’s world. Its only the affluent who can absorb these constant health premium increases and not have it eat your families future. His and the GOP’s total plan, will have every civil service being paid by the recipient at use. We can’t afford his solution and your children will have a true bill to pay if they can.

Talk to the hand.. its a shutdown.. no!

2011-04-08T06:22:00.000-07:00

Republicans are the picture of a Party standing behind every social injustice they think will give the economy over to contractors and transactions that they can bank on for their own business interests. In strictly economic terms this is about transferring work from all public agencies to for profit corporate contractors who will offer a replacement service. At a profit.

A GOP State created future lack of union teachers in public schools, will be met by accepted corporate charter school systems that will replace a once public space. It’s the for profit crowd moving against the public service ideas of the last century.

The GOP version of Soc Sec is now projecting set caps on payments 30 yrs. out that will never be honored. The financial firms involved can go into bankruptcy and leave any obligation back in another Federal deficit budget 30 yrs from now. Give the lowest employees there reward and don’t forget but rethink it all from the massive transfer of wealth over the last 10 yrs into Major Banks and the hands of a few ultra-rich firms and individuals.

Look for the needed revenue where the money has gone and is now and don‘t expand there control over everything the GOV funds.

Ryan's budget

2011-04-06T18:02:00.000-07:00

Ryan set in place the end of the GOP's days. Projecting a set cap on payments 30 years out that will never be honored. What do you think, people will not take half care as good enough when they see who gained the rewards.

Republicans are the picture of a Party standing behind every social injustices they think will give the economy over to contractors and transactions, so that they can bank on it for their own business interests.

It’s a picture now becoming clear in everyone vision that will crash the GOP in another few years.

This is not a win or the other thing issue

2011-03-24T16:32:00.001-07:00

NYT - Economix

The World Economy Shifts Eastward

CATHERINE RAMPELL

March 24, 2011

Link

my comment:

I would think as an alternative to dominance by our 300 million people. We would be better off trying to establish a self contained and sustainable economy that used the most effective technology to distribute a fair share of wealth and labor within our borders. Forget utopian perfection and look for a true balance inside our own borders.

Those nations that fall short of a sustainable economy will have most of difficulty reflected inward. These last few days media transparency leaves the ruler without a true care for the population, facing a judgment day. Its staying clear of the need to battle against there own populaton, that kept China from a more expansionary foreign policy with its neighbors. They must give work to there people to keep stable.

And your value is

2011-03-23T14:00:00.000-07:00

The most scary thing is: If you are working at a wage with benefits you are now an expense against finale cost of a product or service. Forget your talent being the most important value to the firm.

You’re only an expense against final cost of a product or service, and things like you paying a fair share into your Social Security account, or 401k are also equally, only an expense as they see it.

Taxation and the Transfer of Wealth

2011-03-10T07:21:00.000-08:00

Tax policy moves money.. So on that note;

Taxation and the transfer of wealth back to the Nations working people.

If the job you do produces products or services that: place products or services on the streets, in your house, in your office, or in your garage. Then it should be able to gain a real tax advantage.

If it only trades from within its own financial book, it should pay its fair share.

The simple rules for a tax policy that gives work to people.

A history of the Financial Crisis

2011-03-08T07:07:00.000-08:00

When the first Clinton left Office in 1999 the world derivatives were a $100 trillion dollar market. At the time the second Bush’s policy’s lost control of the economy 2008 the world derivatives were at $730 trillion dollars.

In the US now, the Federal Reserve’s balance sheet above $3 trillion is dwarfed by the movements that leverage of the $730 trillion dollar derivatives market can achieve.

Within portions of its multi-dimensional assets, firms and Nations can form liquidity in any on Nation, and then transfer those assets into another.

The intent of the Federal Reserve are a center of the worlds actions and investments. Within portions of its assets, derivatives traders can act in black box transfers of wealth. What international business does in public gains its support from these markets. National wealth can be put to support actions that transform the whole economy, from black box players who have no National responsibility.

Capitalism runs on the agreement of all concerned. Because advantage is allowed evenly, you do not need to release or reverse an error if it gives you a economic advantage. Middle Class to Super Rich found an advantages in the trades of those years. And when the failure of a few self inflating silos of finance failed the test of real sustainable assets in the markets, those errors were seen by player in the markets as exposing the over inflated and even unreal derivatives that had grown beyond anyone control. Market liquidity stopped orderly banking to avoid that contamination of there real assets. Also they knew to hide there next moves from a now alerted market.

Continue...

My Google Site

The Rise of Work as a Civil Right

2011-03-04T03:30:00.001-08:00

Federal Budget cuts are removing targeted demand from the economy. The Democrats economic gifts to supporters are being removed by the GOP congress.

This takes that targeted money directly from those local State economies.

For the poor or for social services they go to people with set needs that will suffer without that aid. There shortfall will become local issues that show that failing support. Something will pop some place in the local economies as anti-social behavior or as out and out protests.

State revenue gets the impact of Federal support being removed from social programs.

Next year the failing revenue will remove more local support from the States. Wisconsin’s Gov. Walker will have a new step down for the States support for every social service next year. A new cut and less support for workers cut by this years unfolding Federal cuts.

Every States revenue is going to get the word next year and the reaction then will be “what can we do” but fail farther at the local level.

Get ready for work as a civil right to gain the elections ear. Get ready for the local failings to be political platforms for the next generation of the angry poor and the failed student protesters.

Its what is needed here, High Value Services

2011-03-01T16:40:00.000-08:00

You need people working to be America. Find a place to grow services that sustain work and invest. We can’t compete in production, remember the iPhones, and iPod's all come from China, and the iTunes music and applications greater profits, all go to Apple Headquarters in Cupertino, CA. High Value Services and the money stays here, that’s what we need to build on. Medical costs are going to be a larger piece of GDP know matter what they do, so its getting better high end services to people that make sustainable employment here. They make it we use it remember. Its sustainable high value use, that we need to build on. They build it we use it to make employment is what we have from here out

Is being Fully Employed a Civil Right in America

2011-02-26T08:24:00.000-08:00

Twenty three percent (23%) of America’s workers now don’t have Full Employment. Will being Fully Employed be the Nations next Civil Rights struggle for the young?

There revolution has begun hasn’t it

2011-02-22T09:56:00.000-08:00

A revolution has begun hasn’t it… conservative and regressive forces in the GOP are gaining power. But this revolution is a fake until they gaining power again. Then its more of what they did in there past as Bushies, going on to inflate other segments to retain power. Small conservative and not really sincere. really..

Restriction and Transfer of Wealth History-B

2011-02-13T17:47:00.000-08:00

From History 2001 out to 2011: History-A is all about the push to greater leverage of all manner of Creative Financial vehicles were everything swells out beyond control. When the Credit Crisis hits we see the effects on US markets to recover those swollen financial products is very much beyond what was sold as the stable new economics from those supply side pushers using unrestrained uncontrolled markets.

Also with that.. we got the massive transfer of wealth and production into Asia out from Western manufacture and production.

And we also got a large transfer of wealth within the Nation. The Banks and Hedge investors trading creative secularized derivative that only held half content inside what is said to be a Triple-a rating.

So large and inflated at the end that nothing could resolve a fail. The Fed and Treasury expanded balance sheets were in fact promised to cover any fail in some from to restore orderly banking.

Crisis is until a floor is put under a situation, and Banks knew what was inside those and held trade without a guarantee.

So.. Out to 2011 History-B: The Fed and Treasury put up what the markets withheld and did not offer as support.

Its all Political in the interest of those who in fact created and captured the major share of the nations wealth from 2001 out to 2009.

It’s a picture of squeeze to force acceptance of that flatter less supportive form of GOV that the GOP and Businesses are willing to support.

If you look anywhere, you are going to pay more and get less because they have now gained that greater share. Its only more ways for you to pay into larger bank and business returns for their greater profits.

If 2011 starts as flat and unsupportive, look again because the GOP is lining up even greater cuts into any program that offers you support. There is still a step down for States services, and your Health and Pension. Its going to fall to you.

History from 2011

Not the Fed's QEII alone that pushes the Retail Markets

2011-02-07T17:17:00.000-08:00

With speculation you get faux interested parties with extreme pull accepted in the commodities markets. Like Enron and the deregulation of all of those markets, it gave forces that had no legitimate claim to the force they held in the market. I can see the Banks having that same silo effect in the returns they demand from there total profits.

That extra half given a non-player that the market will accept, can drive a fact way beyond its a so far beyond its reach that it can force near collapse. As California with electricity deregulation and the local PG&E’s bankruptcy, you can see as an example. Simply pushing food beyond factual prices is not beyond those interested parties. So real world prices can be greater than any fact.

A look into History

2011-02-03T12:11:00.000-08:00

A look into A - The total size of world liquidity, Corporate Debt service, Commercial Paper, and Housing are only small percentages of the leveraged assets that were created from 2001 out to 2008 that was the active agent of transfer of wealth.

It needs to be expressed as hundreds of trillions of US Dollars moving US and European Manufacture and then having those same transfers resold as greater market profits.

Simply, in 2001 World GDP was about equal to US GDP. GDP of the US by 2008 had grows by 30% and World GDP expands to twice the US GDP.

The transfer of production and wealth from modern states out to the developing nations gave an increase to non-US GDP out to 220% of starting 2001 levels to the developing nations.

At the same time there was the reinvest back to the modern states. Liquidity in the years was like water.

Favoring balance of payments from trade and the direct purchase of US Treasuries, commodity and derivatives investments by developing nations all gave back again a reinvestment back to modern nations.

All gave liquidity a mobius strip of transfer and reinvestment and return. All the bubbles came from a need to find a place to use the money in the air of this transfer and repurchase and reinvestment.

No one could hold or insure the totals of derivatives that where then leveraged higher and again higher.

But this was a created gift to the Bush Administration and the GOP for those eight years. The War in Iraq was there downfall not an economy of pushed volatility and greater returns. Finance at every turn gave more real wealth to the centers of finance and to the investors. This was a created gift to the Bush Administration and the GOP for those eight years.

That mobius strip of liquidity is still in place in the developing nations looking for a place to push money into new projects. Its the Banks that redirect the money back into finance at every turn.

a pliable page - History

A History 2001 - 2011

History

2011-01-31T09:04:00.000-08:00

History as a Reflection of Reality

This reflects the liquidity that was freely open and moving in World Markets. Before and After.

A = World Markets Liquidity before the Credit Crash.

B = Restriction of American Markets Liquidity after the Credit Crash.

The Rich do not pay there fair taxes

2011-01-28T17:43:00.000-08:00

Those moments that you and everyone see something is wrong. The national realization this is not what we do as Americas in this Nation. So! Why can the Rich be given a pass on taxes? Why can anyone not see this is the hole in the budget. Media types are defend them. The Rich invest and that makes work… NOT! They take profits without employing people here and reinvest for greater profits.

We can get back to full employment by what? 2018?

Why can the Rich or Businesses be given a pass on taxes? You don’t see something is wrong. Well look again!

They the Rich went from owning half of everything out to owning over eighty-percent. Tax that growth in ownership and pay for the National Debt.

David Brooks Talent Hub

2011-01-25T11:04:00.000-08:00

Brooks greatest number one nation is only a slogan because you need people working to be number one in America. Find a place to grow services that sustain work and invest. We can’t compete in production, remember the iPhones, and iPod's all come from China, and the iTunes music and applications greater profits, all go to Apple Headquarters in Cupertino, CA. High Value Services and the money stays here, that’s what we need to build on. Medical costs are going to be a larger piece of GDP know matter what they do, so its getting better high end services to people that make sustainable employment here. They make it we use it remember. Its sustainable high value use, that we need to build on. They build it we use it to make employment is what we have from here out.

NYT - The Talent Magnet

DAVID BROOKS January 24, 2011

Link

Class Warfare the GOP and Employees Pensions

2011-01-24T09:41:00.000-08:00

Class Warfare there is a GOP move to allow States to declare bankruptcy expressly, so they can shed there Employees Pension obligation and restructure that obligation lower.

Supplier and Bondholders I guess would somehow escape that bankruptcy and restructure. That on its face is directed solely at the Union Pensions.

Talk about Class Warfare this is an attack against employees years of Contract obligations to harm Unions. Only the State Workers who have given years of labor to the State get burned.

Safe for the Rich

2011-01-22T10:52:00.000-08:00

2:00 am on a CNN talk show Spitzer I think... They were saying under Reagan the tax rate for the riches American’s was 40%, and today the tax rate for the riches American’s its down to 35%. I’ll add they have gotten more of the wealth these days. So why not have them put up a fairer share.

The response was “well they earned it and who is to say what there fair share is“. They should not have to add to the spending of the GOV, its their’s and we can’t go there just to let Congress spend more.

The Riches with about 5 different kinds of wealth and income can be seen as less than 300,000 individuals. Who have 80% of all wealth.

Then we have 306 million, the rest of the Nation, with 135 million workers, soldiers and unemployed.

Now being fair to the rich seems stupid if your life was disrupted over the last two years and you lost your home or its still underwater, or you can’t find work and have been home with the kids in the park for months, because everything else cost something to do.

Being fair to the rich seems stupid if your the city who employees are being let go from local Cities who have lost revenue and are starting only now into the next deeper cuts and looking to flush your former employees pensions.

The 135 million who are losing services in their City and see local GOV forcing more even teacher this year onto the unemployment roles and closing out more understaffed schools to close the staffing gap.

You are going to end paying in a hundred way’s for the disruption that saves that 35% for the Rich.

Its not in your interest to pay for the same services they cut back, but you will going forward. None of saving money fore the rich is in your interest.

But.. its going to end as your bill and your cost.

Again.. No matter what your income, if you do not have an income of $250,000 to $317,000, you can not secure your own future without that level of income in this Nation.

Its going to end as your bill and your cost.

Its like letting States declare bankruptcy so they can shed past liabilities, like State Employees Pensions. Its not in your interests. But its coming at you

Its not in your interest.

Not advices comment

2011-01-12T14:52:00.001-08:00

Today Jamie Dimon, was looking to gain release from Fed/Treasury restrictions on forward investment of the $30 billion in cash the firm was now holding. He was looking it seemed only for a financial dump for the Cash. Stock buyback, dividend to investor, or a support for a acquisition or trading.

Another other choice, like supporting local banking in a healthy development vehicle or underwriting a States research universities. Never came to mind as having the same results. Its that not crossing that real line is the whole problem. He will work over at that immaculate financial side because it does not now have a downside. Except it does not grow the real economies employment.

Krugman’s column fits with not reaching a reality by matching equal sums that don’t reach each other. Same with the economy and employment and banking finance.

Paul Krugman NYT - Column January 12, 2011, The Doctrine of Immaculate Transfer

Link

The new year inside 2011

2011-01-06T11:35:00.000-08:00

Well the Gifted Rich seem to be happy with this week and they got their markets to bubble highs off this week.

But they will be trading it all next week, up and down again to gain even more profit. And real domestic demand and employment is not even going make a difference in how much profit they take.

Employment does not have a champion with the rich. They will and do get their gifts all without domestic labor.

So if you work or want to work know this..

From now on, its how much you as a citizens have to pay to keep up with a living wage. Its how much you can afford going forward, because its all going to end as your personal bill. Whatever your income… that bill you have to pay will be yours.

Your Pension, your Health Care, City Local Services, State Services, all will fall on you to find the way to pay that bill or deal with the loss of those services.

I say going forward is going to be an education for a lot of people.

The cost of being a US citizen from 2011

2010-12-19T11:37:00.001-08:00

1) Coming at us, the total cost the US GOV will pay for life-time citizen support will be capped and any and all greater costs will become the citizens.

2) With future Businesses the cost that will be paid for employees benefit will be capped and all greater costs will become the employees alone.

And remember with US businesses. All Contract obligations with employees will, in all likelihood not be met, leaving the employee the single contributor to there own future.

So.. If you do not have an income of $250,000 to $317,000.

You can not secure your own future without that level of income in this Nation.*

*This is in constant real dollars to to meet your needs.

Future business values and US politics and are now totally supporting this from here out.

And.. I can see greater wage pressure becoming a real issue as this becomes manifest throughout the economy.

On the competitive forces being put into place

2010-12-03T13:28:00.000-08:00

If we look at what is probably going into place in the US.

The cost of a employee is being set at a fixed contract cost to businesses. They/Business are going to get a cap on pension costs and health care costs. The employee will, need to fill any greater increases in these costs. A set employees cost can be figured going forward.

If you make: $56,000 over a decade it may increase out to $62,000 with a cost of living agreement. If your business productivity innovation removes or redefines your activity. That: $56,000 over a decade may decrease to $52,000 under contract agreement.

But Pension and Health Care increases will not be the responsibility of the business.

Its being put into your hands.

This fixed employee cost makes US business more competitive.

For the Employee.. this impacts you wage. And it falls on you to pick a health insurer or pension plan that will meet your needs. Good luck.

This fixed employee cost does makes US business more competitive against the world.

I want to say, I see a coming wage issue in this plus for US businesses. That is the employees needs.

Look in the deal at what you get

2010-11-29T11:46:00.000-08:00

In the US over this last decade the expression ‘wages pressure’ has truly been an oxymoron.

Labors wage, even with the wealth effect was all ways losing to various business processes that undercut the real cost of employment.

The effect of two-tier wages are set into the economy now. And starting off now we have businesses capped restricted benefits coming to every contract. These moves are being met with GOV caps on health and social services going forward.

Look for intense wage pressure in future contract negotiations. The wage earners must in the end pay directly from their income, and their wage still must meet needs.

Every move now we have both business and GOV letting them force more into your wage and onto your income.

Then when this does not fill demand enough to meet your needs. The economy gets wage inflation built into labors now frantic demand.

Labor movements grow from economic injustice, and violence and labor worldwide are not new when they see surviving at a decent wage the goal. Remember in passed battles in labor negotiations they ultimate fell into the hands of true gangland characters. A hard commitment by labor to gain a decent wage.

What is being forced now onto 136 million workers, is a barging that will become crystal clear, to work to always lesser reward. To have all support come from your paycheck only.

My view and its political

2010-10-22T12:06:00.000-07:00

The last five years Media/Gov/Political/Academia all.. ever one has pushed the must haves that this Nation needs. There Goals for America,

include a rebuild of our education system to match and surpass the World’s best innovation challenge,

reindustrialize the Nation,

and the return to export of high-end products out to foreign markets.

Now with the 2008-2009 crash of all most all, of the States Revenues, and restrictions on Federal stimulus and structure investments, the base for this support of these Goals for America is failing already.

Every State is living with deflated State Revenue forcing massive budget cuts. 2010-2011 on out for maybe another five years employment will remain challenged, and revenue will stay weak. Long-term the fall of housing prices impact all States income from property assessments. There Goals for America, are not going to happen.

From here only token efforts to save higher education, will not build out a massive commitment to deliver a number of four or six times the engineers and scientists in those Goals.

My political view on this.

Basic school functions out to higher education are now the direct target of Republican politicians as not sustainable in there present public form.

None will gain and sustains funding over the next five years.

Not at the Federal or State level. Its both the real lost money in failing State Budgets.

And an ideological attack on public educations cost of union control and union benefits programs, that has made the Republican position firmly centered about Charter Contract systems taking over the direction of all State schools.

The Goals will only get as high as private investment wants to take the economy. And the Republicans will only accept contract Gov State services.

Charter Schools are the first to lead the introduction of private contracts to replace public union labor.

This coming private rebuild that will last for several decades. The Goals for America is going to go under the support that private capital brings to table.

If the Charter contract Schools fail to gain profits they can restructure under bankruptcy. Don’t expect local district will be able to reestablish new public schools. Only renegotiate a new Charter School.

The Goals for America are not going to happen because education is in a new flux of restructure.

Rant on the lack of a employment timeline

2010-10-13T18:49:00.000-07:00

The economy is divided into silo structures where bank finance and stock traders can reach all time new highs with equal high bonuses while employment in the rest of the economy stays flat out for a decade.

There whole profits in these financial silo structures can be made by trading between firms inside that same building on different floors.

The Fed’s Quantitative Easing will again feed new profits for them without gaining any real investment bringing labor into the market.

And you can forget large projects pushing Capital Investment stimulus that only feeds into there profit returns. All eight areas: smart grid, solar electricity, carbon capture and storage, extreme materials, batteries and energy storage, energy efficient buildings, nuclear energy, and fuels from sunlight, have had massive private funding and substantial federally supported funding to this point.

Most have already captured billions in funding they are in this case only missing the grants going to the right National Laboratory.

There is world class development, way ahead of what we are doing now, going into place now. Its not here because we are divided by political stalemate as to which player gets the spoils.

Also a real world investment, fiber optic cable was a lesson to big business, one system needs National support into place, all the way to a real lasting profit.

That not going to be resolved in a political decade like this one. Its only one more silo connected to the stock returns without gaining lasting employment.

The America silo that employs people is a service economy that delivers personal services within local communities. Support tax credits that gain more services employment.

Even feel free to pay employers staff up to the full wage to get the money circulating in the economy, or go to tax advantages for business that does the same thing.

Keep money in our service silo supporting advanced technical services that help service employees. Will make employment quicker than giving rich people greater tax cuts. Make employment support jobs we can do without a $46 billion price tag.
One more point: The GOP plan to cut State Employees and remove there income of those local economies and cut State Employees Retirement and Health Insurance and remove that from the local economies. Is coming into place now.

Well from here out State Employees and there families and Retired State Employees and there families can still live in there cars with in the local communities, or they can move on. They are not going to have employment under the GOP plans.

What do we do here

2010-10-08T10:33:00.000-07:00

When I first saw globalizations transfer of production, I could see the intent beyond the effects on labor, it was to the enhanced profit that lower cost products gave to business. The lowering of labors position here was only one more advantage for business.

It was a fact of business and I felt there was a counter that would be developed to keep profits strong here. It was stupid to think they would not have a hedge that would hold up the transfer of production.

Here in the Bay Area advanced electronics were said to be safe and firmly in place, and in 1996 that was exactly how it would say. The transfer only sent the lowest cost commodity parts and units in the transfer mix.

That we would control advanced development and advanced production and services, was being preached as a fixture of American wealth into the future. So long after its death as a reality.

I was commenting about the hubris and delusional self delusion of industry manager and pundits still parroting theses ideas. We are talking now after 2003.

Simply by 2008 full transfer of every level of service and manufacture and ever level of development and innovation were now up for grabs in the globalization mix. By 2008 some Defense Industry secrets had still to be stolen to complete the transfer of our work but everything else was delivered express for the greater profits it could give to our corporations.

If it is employment any employment in a high cost nation, it is subject to the same pressures and cost structure that production employment.

From here out our manufacture is falling to levels of labor that agriculture has accepted. Those jobs are not coming back. Eighty percent of our economy now is service employment and we hold only a tenuous first in line for everything not a personal service.

This started for me as a surprise. That these service jobs would be in line for foreign labor to reach into this economy. But what I’ve seen efforts of our own businesses have pushed this attack on labor with only the most weak defense.

Foreign services have been much more aggressive about working into the office. They just have avoided any real response or counter from domestic business. It was excepted as a better way from the start by businesses.

Still I say we must support our domestic service economy because production except for limited products has been transferred by now and it is not going to be returned.

From here, we can only gain greater domestic returns from value added services that are delivered directly to citizens in person, or advanced technical services that greatly enhance labors effectiveness. We have nothing else to generate employment here.

What do we do now

2010-10-02T18:43:00.000-07:00

For our businessmen and there corporations it is in the interest of profits to have a lower value product to push into the markets.

A National import/export imbalance or two can stay firmly in place and business does not really care.

An imbalance will stay in it place for as long as the inflated profits remain. Its that we and they know what is wrong, but they don’t really care…

We can rebuild manufacturing on limited products, but common manufacturing of the lowest value products are not returning.

No one in business is going to bring back production employment.. on products they sent out to foreign labor in the first place to gain greater returns.

Our gaining employment, means we as a Nation must lean even harder on services.

Health costs and all human services and advanced business services are going to claim ever increasing portions of the Nations GDP. That is now built into the economies future base, and its not going to be made to go away.

No politician is going to put a third of the voters into poverty and under street overpasses, if it can be traced directly back to their hands…

If housing does that same thing as long as the blame goes onto the banks, politicians can play stupid and not see a fact..

But if you have the act on your watch or on your hands, it will come and get you.

Until stability can be established we need to embrace movement in the economy. That is back any activity by business and workers that leads to employment.

We need this so workers can be taken off public rolls.
We need to find and support any movement of cash that labor and business investment can effect in the economy.

That’s simple and it always goes on to the debate on best value return.

But the production end is not holding up any hope of really being a true other side in this debate. Forget it effects on this economy.

We need all services that will help the economy find stability.

Services that add value to what gets done, what can be done, now need to be put behind and underneath those built in un-natural growing costs for health and education.

We already pay at the State level for in home care for the disabled and infirmed elderly. The whole demographic is going to lift cost and needed services.

So more services that add extra value to life can’t hurt relieving some medical issues. And add workers into the economy. Go ahead and contract everything you can as services, I don‘t care if you have to make it one more for profit pit. Just add labor with it for now.

State and local levels, we pay tons and its been a down hill decade after a bad rally decade for school systems that only have growing losses of committed students.

I use to say students top 40%, had a firm grasp on the material and that another 20%, would work into it later.

The bottom 40% was always was going to be just that. Employed below any standard or just fallen away.

CA some schools, math has only 8% on level. This year its looking like that last mid 20% now need help or are claiming part once held by the top 40% they may work into it.

Or we may end with only 30% real students. The lost of a majority of capable next generation citizens can’t be allowed. We need to add much greater services into the schools.

We need to bring all students up even with individual tutoring. Adding services under the economy is now a labor friendly way to stabilize the economy. Making those public services into real profit services that add value is the whole trick to gaining sustainable services that enhance business activities.

That’s what we now need to gain a return within our economy this decade.

Seeing silos in the economy

2010-09-25T13:48:00.000-07:00

The Fed, Treasury and private leverage these days all can create money. With no limits on the amounts private leverage can create, the Fed and Treasury are now only second actors in the economy.

Over the last decade control of private leverage has been allowed to pass beyond control of any one agency or regulator. Black box derivatives of both corporate debt and securitized paper and the Fed ends small in its full financial shadow.

Its what is now the extra center in financial markets and in transfer of wealth between nations. Primer for the worlds finance, along with sovereign wealth and for this last decade direct reinvestment back into other nations.

With my post: The high end US economy now

Imagine the multiple markets within finance as all separate islands. That trade for its own profit, off both real and (artificially gifting Federal Reserve) exchanges.

Money can be both borrowed and then reinvested with greater returns all within the same institution. Losses of others or the gains of others, all enhance the financial institutions profits while not forcing any investment.

Its another silo operation where no one really needs to support outside investment to gain profits. Its not a bubble because continuing resolution is quick and losses can be traded for tax advantages.

This is the high end US economy now.

I’ve tried to show the independence of a single silo market that can generate profits. Even with the failing National market stalling out.

These silos have continued profits equal to the years of financial heights, even thru these years of crash.

The fact they don’t put money into the full National market but only extract more monies, is the issue.

The National Stock Markets all trade stocks within pits that pay profits for or against an issue. Nothing is really enhancing economic growth in stocks that are run thru this pit a few hundred times a year.

They only suck traders into another trade without give anything but profit. Its not a investment in the real world it’s a bet in a trading pit.

The hold a share for 20 years motto, will these days get you 40% of the time a guarantee of bankruptcy taking your holdings. That new fact is never figured into the historic gains these markets once gained.

Just to be clear the economy did extract gains throughout this decade. But looking into the Stock Markets corporations decade to 0% return.

There using these trading pits as transaction capital for purchases of companies show over this last a 0% as there proof of sustainability going forward. That the fact for now in all stock exchanges as long as the formation of wealth can be destroyed simply by negative impulse, cyclical rotation and mood trading and not real returns on business.

The difference between the Profits gained from Fiscal GOV spending, and these self contained centers needs to be seen in the economy.

The military budget may now have no real world support in mission. The truth is you can segment out whole unreal commitments no longer with a factual home that still consume billions. Troop support way outside the active mission forces, could be seen as food stamps to holding defenders.

Why have a European mission firmly in place against your trading partners. Save the trillions an let Europe defend its self.

But the budgeting of defense monies in fact keep contractors throughout the economy healthy. And spread money into the economy. That relocation of tax money has its first mission in forming profits for investor and in supporting local economies. A fiscal plus that is spread to all who gain its proximity. And that gifting remains political way before mission.

But it goes as all investments should into the whole economy. But it in fact robs the true mission these day it’s a drain of resources, and its doing its job at the same time.

You could bring home the Army in Europe and have them walk dogs and do good works and they could be of the same value in the economy. Just add $60 billion to the local economy and it’s the same.

Seeing the silos in the economy and shifting to real investment near home is the way to employment.

The high end US economy now

2010-09-22T14:18:00.000-07:00

Imagine the multiple markets within finance as all separate islands. That trade for its own profit, off both real and (artificially gifting Federal Reserve) exchanges.

Money can be both borrowed and then reinvested with greater returns all within the same institution. Losses of others or the gains of others, all enhance the financial institutions profits while not forcing any investment.

Its another silo operation where no one really needs to support outside investment to gain profits. Its not a bubble because continuing resolution is quick and losses can be traded for tax advantages.

This is the high end US economy now.

Long post on world economic systems

2010-09-05T11:20:00.000-07:00

Any criticism of world economic systems has to start with private capitals massive abuse of leveraged debt.

And in truth those excesses in transaction economic activity were agreed upon or allowed by all national economic systems.

The agreement of all is all that is required. The gains and exchanges may have been dramatically different, but the last decade was all about using private and fiscal debt for the purposes of those equally involved.

Derivatives: buildings of unsustainable asset debt were crafted not in fact to support unsustainable future obligation. But only to appear to hold true values.

Forty times a real assets value was in fact what Hank Paulson said the TARP money could be inflated when in the hands of the banks. The argument on fiscal stimulus only generating a 1 to 1 return, never held reality when banks got hold of the money.

Now more than half that decades debt may never gain its full expected return. It sits waiting to be fully unlocked by a inflationary device or to be forgiven as a loss that can be a deduction against a over flowing profit.

Nothing to big to fail, means bad debt can be set into false corporate boxes and forgiven in bankruptcy and reorganization that never touches the main body that created and profited from the debt.

Don’t expect a full accounting of any debt that will not gain a tax advantage.

Don’t expect a full accounting of any debt that should support promised obligations.

Expect the transfer of private corporations failed obligations, to be continually shifted by bankruptcy and reorganization to a government entity that will finally default your full contract reward.

The criticism of modern economic systems, has to be with private capitals massive abuse of leveraged debt.

Because there is a balance of total private corporate asset debt several magnitudes larger than the total of all nations federal fiscal debt. That inflated private debt would not be resolved with real confiscation of assets.

Its not likely it would ever be made public, but its just another agreement within the central banks by all concerned. Only new master taking what you earn in continuing transaction economic activity. And as long as the economic activity generates consistent profits there can be no criticism within business.

Not a nice economy

2010-08-30T13:19:00.000-07:00

As long as trading is the center of profit and foreign investment can draw away our domestic investment. We will have problems.

As long as the phrase - lending is still constrained for investment - by our own Banks. We will have problems gaining employment.

We have to pry investments into the economy. That’s not beg for hoped for nuts shared by favored rich investors. Its pry it from their hands.

Add a tax and gain a fair share from them, let it be set in cold stone.

They go to other means, then claw back those gains.

Or you can take your family into a car to live.

Profits nearing a old peak

2010-08-27T16:20:00.000-07:00

today, Corporate Profits Near Pre-Recession Peak, NYT - Economix CATHERINE RAMPELL

just below Q3-2006 high $1.66 trillion Q3-2010 $1.639 trillion.

What are they all talking about, this can't find the money to employ people is trash.

Ok. Business is eating its lunch off a 15 inch oblong plate. It gets as much as before, more than enough to reach record profits.

No diet its just how they play this.. Those 3 inches on plate that don’t have food on it.. They can keep clean and still get returns as good as before. From Jackson Hole, Wyo. they say this is good enough for now.

Consensus in the halls the Fed downgrades 2011 and we go on from there. Sick!

Employment has nothing pushing it..

If the GOP gets control of Congress and keeps the tax cuts in place and money for employment come out of the walls. Remember today..

Gov backed loans are 97% of the market

2010-08-25T13:35:00.000-07:00

The problem is no private lifting anywhere, and you wonder who messed it up.

Someone on CNBC said “we locked in the lowest interests in years today.”

No, more are now going to be locked out of any re-finance, and even more people will end underwater on the mortgage.

"Inventories of unsold homes rose 2.5% to 3.98 million, representing a 12.5-month supply" prices can't rise with this lack of demand and even tighter bank restrictions make purchase impossible for more-and-more people.

Get ready for a 2.4|1 house price.

2010-08-18T09:40:00.000-07:00

Pushing home values to a new bottom

A commentator on CNBC today, said now 90% of all home loans, are Fannie and Freddie loans. We can all get from his, commentator on CNBC meaning, that only 10% are real loans underwritten with private funds. He said they simple are priced out of the market. F&F totally hold up artificial prices in the market. We get F&F totally out of the market, and then private funds will come into the market. And as interest rates rise, housing prices fall to real levels.

And the Anchors on CNBC also are saying.

F&F out, housing prices fall to the real world levels, and we get private lending. At higher levels of interest.

And I say, everyone goes underwater then.

CNBC should just stop talking housing to a gutter prices. Do you want your investment, to end below 100k? All, because of CNBC and the GOP saying, Fannie and Freddie loans need to die, so we can see a new harder lower bottom?

That 10%, is that the real base for market activity? And only 10%, can afford a house at 7.45% on a 10 year mortgage. Got to feed the Banker remember.

So is $94000 the California base price for a house? Is that the new tax base for State property tax? We get a deeper-deeper miss on State revenue something out like $80 billion, instead of the $20 billion we have now?

Let Meg get the governor job, she will be burned as a witch for that fail. Its just like Grey Davis and Enron. CNBC was talking Enron to the moon. Before their crash, which was another GOP win. Deregulation of energy. It is such hypocrisy from the GOP, Blue Dog Dem Senators and both Independents who helped all of it get there.

tax Business a fair share

2010-08-18T06:49:00.001-07:00

No one talks of services received in the tax debate.

Over the last decade, the business lobbyists have hand written really hundreds of pieces of legislation at the desk of Congressmen, gifts to there bosses.

Now they say, simply extend all those tax cuts, don’t touch the working contraption we put in place its so fragile.

It is such hypocrisy from the GOP, Blue Dog Dem Senators and both Independents who helped all of it get there.

Business still says, don’t ask us to pay any fair share. Don’t ask us to lift our share for services we gave ourselves.

The Magma Chart - Economix Blog - NYTimes.com

2010-08-10T17:37:00.000-07:00

The Magma Chart - Economix Blog - NYTimes.com

Disjoined economic rants

2010-08-10T12:45:00.000-07:00

Step-by-step do we keep stepping down in State revenue as long as we have elevated unemployment and as-long-as the major banks restrictive policy’s cut local investments to the bone? Yes.

If State goes on to furloughing State employees? Do we count all state workers as underemployed workers? Does it have to become part of the jobs description for all State employees? Furloughing you anytime your salary goes above $56k for the year.

Hiring is going to stay the same into next year, businesses and are still gaining all time profits. Business does not need workers to gain profits. No one is pushing employing labor this year.

That has now become the real pushing a string, to get 14 million workers jobs. So underemployment now means we need more really good jobs than the 14 million.

Say we need really 26 million great new jobs to get us going again. What 2 years to get 26 million great new jobs? With what? Congress is a flat no push organ.

Disjoined and still separated activity. So again today’s cable economic news gave out with what we have had all along for the last two quarters and more.

Profits are fat and some businesses hit new all time highs and no one is hiring. Its now more of a concerns with who?

Out to next year 56% of CEO’s are saying hiring is going to stay exactly the same into next year.

GOV efforts, the Federal GOV efforts at stimulus inputs are countered by massive failing State revenue. Unemployment is confirming a same level of support must be found out to maybe five years to restart of the economy. NO the thing has no push forward or outward. Private investment is staying out of it, and still getting the Dow in a range above 10,000 with profits still strong. And no hiring.

Forget what people having tons of cash in there pockets say about uncertainty and sureness of the economy. They have a clear tax agenda and they are the ones sitting firmly on restricting demand. And there agents in Congress are only paid stooges. They lie for there pay that is what they do.

What is real is what is holding back investments. And after 2011 starts if they are still American’s they have to move to sheltered accounts. Lets hope they all need tax breaks for investments to gain lower tax margins. That would save the Nation and gain investments, if the rich needed us.

I think real assets have a real floor of demand. But returns from long term investments made in the Silo Bubble years 2005-2007 are never going to pay that at those inflated levels. We are facing real prices at a bottom, and missing returns from finance. We are going step-by-step stepping down to tomorrow. Maybe.

I suspect…

2010-08-06T20:10:00.001-07:00

I suspect at the highest levels of private debt, in general commercial paper derivatives, there are a fair share of vacant valuations. I suspect that was the reason for the credit crisis. And the real reason bank stopped trading.

Again not housing alone in itself, but in obscure opaque paper contracts that would not stand any test of real value.

The ever inflating assets were unsustainable, even real ones.

But.. really empty paper lost any real weight. No one in banking wanted to trade with these vacant empty values. Their own real assets. And we got the crisis.

I see…

Private corporate debt, even those much larger than public fiscal debt, is set on real values of real assets. Corporate debt was made and inflated to gain crazy returns.

But.. it’s now the recent step down in value of real things, that becomes today’s problem, and more so becomes tomorrow’s real problem. Those steps down, mean that promises will not be fulfilled. Both GOV and private obligations are subject to future under funding. I think…

They want to kill Old Fannie Mae and Freddie Mac

2010-07-25T17:47:00.000-07:00

F&F are under fire and in the sights of the right. They want to kill Old Fannie Mae and Freddie Mac. When they take away that back stop in lendind you and I will end at the mercy of banks.

And, they will not even consider a loan without you paying for full risk insurance. No walking away you will have later obligations and the present foreclosure process will pass to full liability at the mercy of banks. Go ahead imprison your children in never ending liabilities.

One more thing, and it a big one. Killing off F&F will lead to the use of the new improved bankruptcy resolution. The debt will be the US’s and the assets will be sold to waiting parties at greatly reduced prices, that will reflect its massive “risk“. Say 09c on the dollar. With resolution greatly favoring the receivers, those $3.5 trillion in assets could be sold way below $100 billion.

We got here without looking so..

2010-07-20T07:53:00.000-07:00

If you look in about 2007 to the high of leverage and liquidity over the last decade, you can hit an enormous $700 trillion in secondary paper and other derivatives world wide.

That plus all the other economic activity. It was, taken in all, not just a bubble. No.. the whole thing was really a geodesic dome, swelling out beyond its size. Really think financial air and the structure and shell around it not containing the excesses.

And now.. when asset prices fall and markets world wide contract the expected forward returns are not there. And in that dome once so big… there is not going to be full return on those inflated future returns. Air..

I can’t give a number but its removing stimulus greater than everything the world Governments can create. Expected full returns are not coming to those investors out over the next 30 years. A fall in that expected activity, is a fact not built into any fiscal budget. There’s not going to be full return on that inflated financial stuff.

We hope it only falls so far, that geodesic dome being the shell, its that shells showing true value in what is left. Long term debt is being cut to a lower return. Over heated air deflated and real assets true worth corrected.

All that will be left is that domes real shell. And real value.

We have to hope, that dome structure will fall back into supports and that value you can now re-inflate late.

Real value assets are what is important. What you can get to blow up to 5 times. Putting money up to make it move.. is the game.

But the massive 40 times is a inflation we can’t expect. Its how much can’t be supported from the air that is escaping.

That over hot liquidity and leverage is cooling now. Money all after the same product real asset values for property and commodities and products should inflate, except that cooling liquidity is still removing demand.

Private Funds, Institutions, Corporations have tons of Triple-A Fed debt that has leverage and expansion built in. That is as good as bundles of houses in setting leverage. As good as needed commodities meeting new demand. But this is not an economy where everything can go up, not until we clear to real assets, and begin again. Air still needs to be removed from the economy.

But one more thing.. there is not enough stuff to keep the economy feeding everyone. You can support about a third of everyone on real demand. Printed money from Fed is going to be a larger part on the economy from now on out. More printed money is a forever phenomenon just to be stable.

Part 2

With the Bush years and that massive liquidity. The rule in that market was, always capture control of always inflating assets. But..

We have a changing market and now.. if demand for a asset falls to certain levels. You must lower your cost to sell into the market.

It’s the other side of supply and demand. Its not recognize in GOP capitalism.. But its not always an upward dynamic. Lower demand and you must lower your cost to sell into the market.

The biggest Oil Company that had had ever increasing profits always above 9.5% return to investors year after year under Bush capitalism.. at the lowest point in the World credit crisis had a only a 6.3% return. Demand had truly plummeted beyond manipulation.

GOP Candidates always intone, Oil Companies will just pass the tax on to you the consumer. Well add a real $2.00 tax and driving demand will fail. And if they want to sell any gas, Oil Companies will need to eat some of there inflated price to get you into a car and make a sale.

Demand fail lowers price and not good will or a reaction to some mythical fear factor.

Demand and the correcting value of real wealth, is not going to be enough to make the economy move on its own. Artificial Federal lifting is all that can gain economic stabilization. That is going to be a permanent fixture out into the next four generations. Look for Federal redirection of real wealth’s return to stay above 40% of GDP from here out.

The end of the world - Economic Fiction

2010-07-16T18:23:00.000-07:00

The end of the world - Economic Fiction

In an interview yesterday on one of the major business cable channels, one of the Big Boys, the interviewee, said that…

After everything is fully shaken out, Europe’s fears are really an equal fail with the US economy going forward. And he said, you can now get so much more by investing overseas, into Asia and SA.

He did not like the chances for the dollar after this year at all when everyone get that firmly in there mind. Currency values are going to run against the forward dollar and we will pay more for less. And He did not see US consumer having much traction going forward either.

Consumer will be under pressure for some time and not in any real way lifting much of the economy. There old debt still hanging and real lasting unemployment now built into the economy out for the next five years or more.

-Today they say full employment may take 150 month, that’s12 years.

That does not sounds likely but they are saying not soon, not 2 years until a come back but way past 5 years.

Those three, better returns on there overseas investments, a much much weaker dollar and a weak consumer are bad.

But he also pointed at more regulation coming, and most of all the repeal of Bush tax breaks for the rich going directly against the Stock Markets into 2011 and beyond.

His final nail. The Big Boys, will take profits and sell out of the markets this year, before the Bush tax gifts end for the rich in 2011 and they have to pay at those levels.

That is, talking the stock market down to bottom levels, but as you think about it, it sounds like a real vision of what the last few months of this year may look like.

Trade until its time.. then sell out of it and avoid next years coming taxes. Get money off the table. Put the money in your pocket and see what the final deep bottom looks like.

The end of the world - Economic Fiction

That last is direct talking it down. They can take there money and not invest in America at all. Save Bush tax gifts or we walk to overseas investments and take all our money out the door.

If you believe they all will take there money and there investments away, we have a problem. No one will go back against the tape if $2 trillion is being taken off the table supporting equities. Confidence is going to be tested if this talk become the talking point of the mainstream media.

The question “will we see business money go, if taxes don’t stay as set by BUSH in 2003”. The stock market could go back to 5000 down from the bubble high of 14700 back in 2007.

They are saying 150 month until full employment returns. If $5 trillion moves from here to other investments, that number 150 months will become an exponential number on how long until any recover.

Ok.. This is the end of the world and it gets deeper.

The end of the world - Economic Fiction

US wages have fallen for all of the last decade. Globalization and massively leveraged world finance gave businesses ever larger massive profits for the last half of that decade.

But direct competition against the developing world labor markets and ever increasing foreign labor legal or illegal imported by corporation. Push developed Western nations wages lower. US business did not need to share a fair share with its labor.

This is now the end of the world… what do you think 15 years of failing labor demand and deflating market prices and services are going to do to wage demands.

Next year is a push down and its 15 years or more to get up.

The end of the world - Economic Fiction

Advice to you all, talk up our economy and not down. Because our getting it to expand is the only way. Its not political football.

Economic Fiction ONLY.

GOV Revenue and Debt

2010-07-13T07:05:00.000-07:00

GOV Revenue and Debt has been around 30% of GDP for 50 years.

Even with including its smaller social use of people on welfare, it is in large part a market mechanism for redistribution into targeted contracts to firms.

Defense, Agriculture, State Construction contracts, State aid, it’s a pork barrel device that has worked for private business support. A contractor gets paid at the hind end of all GOV Revenue and Debt.

Lesson: Marxism requires a dominant industrial worker class.
And without one there is no real Marxist dynamic for a revolutionary communist movement within a Nation.

A Service economies can’t be Communist. Its too wussy, its totally un-revolutionary.

Lesson: To be a true Socialist State there needs to be a dominant socialist economic direction within the whole economy.

The USA is not Socialist because a Democrat is in power.

Dumb Business

2010-07-12T06:23:00.000-07:00

Businesses are now today holding $2 trillion in cash, its that lack of confidence thing. Dumb Businesses. In 2011 profits will be taxed a higher rate.

Businesses holding $2 trillion in cash, because of there lack of confidence. Should do what is good for the Nation right now. That’s give half of the cash to investors, and like they always want to do, give the other half to their own management.

Now that would stimulate the economy, and.. it would let investor know where they stand.

Remember in 2011 taxed will be at a higher rate. Just dumb Businesses.

Reflections

2010-07-10T17:19:00.001-07:00

Supply-side Trickledown Economics fails every single time its tried. The rich gain a larger share of the economy and all the rest, lose or stay squat with what share they‘ve held before.

This last time the whole thing ended in silo investments into assets that only filled that bubble economy. And all manner of leveraged finance only produced a higher crust of liquidity and debt above that bubble.

The rich in the end, still left with much more from the total exchange.

GOV stimulus and the credit crisis are all totally one in the same, only so much more went into propping the banks up.

In that same week that Congress first balked at approving the TARP. The FED put up $650 billion to European Central Banks to help them insure the capital requirement, and that next week as Congress was going back to the TARP another time, the Treasury gave a $250 billion preliminary backing to underwrite insurances of secondary paper accounts. Not done by Congress but as independent acts they could carry out themselves.

I counted a out to over $5 trillion that was promised or stood up to give confidence to the International Markets. Richard A Posner on the US Court of Appeals for the Seventh Circuit claimed its total in all was $13 trillion, and a Congresswoman in early 2009 questioning Treasury officials asked if it came to $53 trillion.

This was all done inside Bush’s term, before Obama got there and it worked to hold it in place. This amount $53 trillion is not covered within any Federal balance or even within the Fed’s accounts. Now paying that promise, that amount of money would be a trick for Bush, that would have required seizing major private assets to settle. Forget Socialism it would have been financial serfdom. The TARP at that $767 billion is penults.

Oh! add all the money from Nov 2008 that has been loaned at no percentage by the Fed that then hid in Treasuries to be repaid with interest to the bank by the Treasury. They the banks have held tones of money.

Now home equity now hopelessly underwater could have had support from those banks as a condition of tem using these moneys.

Every dollar that went into Banks should have been used to offset this problem. They should have required refinance of deflating property at a artificial level by the banks. That required offset would have held home prices at substantially better prices, and held the Stock markets prices firmer for 2009. That undercut consumer and under funded business demand is the reason employment fell so low. Japan had production fall in three consecutive quarters, 14%, 15% and again 15%. That lack of demand was the impact that played out on failing demand from US and Europe.

Budget austerity only cuts an established market mechanism from doing what holds the bonds of social stability in place. Needed Social services and needed GOV contracts both redistribute a set portion of the economy’s wealth. It has remained around a set 30% of GDP for the last two decades. It is now nearer 35% and will need to hold there to keep balance going forward. Go down with FED and State budget austerity to 25% of GDP and see who does not get any pork in there pan. Someone is going to be put out. Truly, I mean put out of someplace. And it gets done at a cost by private concerns, or it disappears.

Fiction OK! CEO’s see the growth of GDP in Asia

2010-07-08T22:55:00.000-07:00

Economic Fiction - US CEO’s see the growth of GDP in Asia and directly China’s continuing business expansion. And there $1.6 trillion in Corporate Cash needs to find a investment platform. And we also now see the $3.6 trillion in CD’s head by Hedge Funds and other non-financial institutions see China investments as the best place to invest US Capital. To avoid the fear of Obama those $5.2 trillion US assets will be directly invested in China to gain there best returns. - Economic Fiction OK! Fiction OK!

No one but GOV is spending

2010-07-06T20:07:00.000-07:00

NYT - economix blog By EDWARD L. GLAESER

To Spend or Not to Spend

The last decade and a half, generated numerous expositions of liquidity massing from different points of the globalizing world. That, that transfer did happen is the nexus of problems now.

Don’t forget or set aside that rush of monies transformed the world from1995 to today. Turning it next to off because valuations were made up out of next to air, is the problem.

Its not we can’t afford it. Its that the waves of money are not jetting into new investments. And the financial air is being let out. Banks are not chasing air any longer.

If businesses do not employ people there will be no recover.

Updated 7/7/10

Forbes.com The Curse Of Economic Uncertainty

Thomas F. Cooley, Fiscal austerity is not the problem-- lack of clarity is.

The Curse Of Economic Uncertainty

NYT - Paul Krugman Truly, we live in a time of mass delusion — or maybe make that elite delusion

Why Isn’t Investment Higher?

Can’t make them do it

2010-07-06T17:10:00.000-07:00

From 1969 both State and Government spending has been 30% to 35% of GDP. Hey take it down to 25%, and see which States do not get Pork in there pan. Go austerity if you like, but.. If I was a business owner in a Gulf State on the Coast and only BP was making it right, while al the people who worked for me were all now on unemployment. I would not like only BP as my friend. But we can cut if you like.. If you have knowledge that a feel good feeling by business is going to lift up the States revenue.

If businesses do not employ people there will be no recover. Because we may have complete gridlock in Congress after Nov. It may be out in 2012 we see a good feeling.. Unemployment benefits for the unemployed on the Gulf Coast are going to pass away.. BP and business are all we will have… until 2012.. or 2016..

I’ve heard this a few places now..

2010-07-03T23:28:00.000-07:00

Businesses not making money by investing is a choice they chose. I’ve heard that major businesses are sitting on $1.5 trillion in cash and Hedge Funds $2 trillion more in Treasury Bills. World wide austerity insures Big Business can buy there competitions cheap stocks. And those acquisitions will give the Banks huge profit and those business efficiencies will remove excess employments. We have the same people who pushed houses into bogus securitized investment trusts, now promise that World wide austerity is our best bet. NOT!

And Tomorrow. Enjoy your 4th!

Its OK

2010-06-29T05:27:00.000-07:00

Everything is fine, Business has cash up the yang. No problem here. They just don’t want to employ people during the Obama Administration.