Exploring Hydrocarbon Depletion
NEW! Members Only Forums!
Access more articles, news & discussion by becoming a PeakOil.com Member.
Plantagenet wrote:OilFinder2 wrote:The true strength of an economy lies within its productivity capabilities. In this context, there is no economy that exists today nor any economy that has ever existed on the face of this earth that is more productive, and therefore more powerful and healthy, than the U.S. economy of today. But even more importantly, our future productivity over the next couple of decades is poised to grow exponentially.
You live in a complete fantasy world, don't you?
Back here in the real world, millions of US jobs have disappeared over the last four years. US wages have been falling. Poverty is at record levels. US family wealth has diminished by 40%. AND US productively isn't rising exponentially----its been FALLING.
Lore wrote:And as recent commercials are reminding us here in the USA, we're falling down on the list of top math and science scores. How long can a nation excel when it continues to dumb itself down?
vision-master wrote:What does education budgets have to do with fat self-entitled pudding heads?
The ever-articulate John Mauldin is reiterating his bearish take on the global economy in a new interview with King World News. “What we’re seeing is the real end game” and “it is coming to an end,” he said. According to Mauldin, Europe isn't solving its problems, but rather making things worse. Greece's "fundamental problem is its trade imbalance." And "Spain has lost access to the bond market. They can’t fund themselves."
"What we’re seeing is the real end game," says Mauldin. "We’re coming to the end of government’s ability to borrow money to fund current spending that’s beyond the growth of their economy." ... "It’s going to end in the next 2 or 3 years, Europe first, then Japan, then the US. Hopefully we (the US) don’t end by becoming Spain and hitting the wall and losing access to the market, without the central bank massively funding ourselves and watching interest rates rise. ... That’s where Western governments are. They’ve run out of the ability to borrow money to finance their current consumption. This is a good thing that it’s coming to an end. I don’t see this as negative in the longer-term. It’s still going to be a bumpy ride for the markets. It’s certainly going to be (an interesting) ride for the business as usual crowd.”
Federal Reserve to buy more bonds
The Federal Reserve has decided to extend its programme of swapping short-term bonds for long-term ones.
The programme, known as Operation Twist, will be extended until the end of the year, allowing an extra $267bn (£170bn) of bonds to be bought.
The idea of the programme is to cut the long-term cost of borrowing for businesses and households.
The decision by the Federal Reserve's Monetary Policy Committee was not unanimous.
The impact of the worldwide financial collapse has been catastrophic to most of the households in the U.S. A 39% decline in median net worth over a three year time frame is almost incomprehensible.
Even worse, the decline has surely continued for the average American household through 2012 as home prices have continued to fall. Median family income plunged by 7.7% over a three year time frame and has not recovered since the collection of this data 18 months ago. Even more shocking is the fact that median household income was $48,900 in 2001. Families are making 6.3% less today than they were a decade ago. These figures are adjusted for inflation using the BLS massaged CPI figures. Anyone not under the influence of psychotic drugs or engaged as a paid shill for the financial oligarchy knows that inflation is purposely under reported in order to keep the masses sedated and pacified. The real decline in median household income is in excess of 20% since 2001. The destruction of the blue collar jobs has been underway since the early 1970s. And the relentless decline in real blue collar wages has followed a bumpy downward path for decades.
Capital Flight, Capital Controls, Capital FearEurope’s financial crisis is also supporting the value of the US dollar. A knee-jerk flight to safety into the reserve currency has been underway for some time already, and shortages of dollars are now increasing demand beyond supply. This dynamic has a lot further to go as dollar denominated debt, of which there is more than any other kind in the world, begins to deflate in earnest. Dollar liquidity will be in increasingly short supply.
Central banks rebuilding foreign- exchange reserves at the fastest pace since 2004 are crowding out private investors seeking U.S. dollars, boosting demand even as the Federal Reserve considers printing more currency. After falling to an all-time low of 60.5 percent in the second quarter of last year, the dollar’s share of global reserves rose 1.6 percentage points to 62.1 percent in December, the latest International Monetary Fund figures show. The buying has left the private sector with $2 trillion less than it needs, according to investment-flow data by Morgan Stanley, which sees the dollar gaining 8.2 percent in 2012, the most in seven years.
While the Fed has created more than $2 trillion under its stimulus programs since 2008, the flows signal that there may actually be a shortage of dollars to meet demand as Europe’s debt crisis deepens and the global economy slows. The dollar has risen 3.5 percent since the end of April against a basket of the most-widely traded currencies even amid speculation that the Fed, which meets this week, may undertake the type of stimulus measures that weakened it in the past.
"In an environment where we see a global slowdown, the dollar will be well supported."
TheAntiDoomer wrote:WHAT'S THIS, NO QE3 Today
Daniel_Plainview wrote:They LOVE when the Fed intervenes and launches massive QE/printing and monetization programs ... thus they are VERY frustrated that the Fed didn't launch QE3 today despite the recessionary economy.
Lore wrote:vision-master wrote:What does education budgets have to do with fat self-entitled pudding heads?
I believe Ritter was comparing our preference for the grotesque feeding of the body over that of the mind. We are becoming a nation of a singular exceptionalism, that of physical consumption.
OilFinder2 wrote:Daniel_Plainview wrote:They LOVE when the Fed intervenes and launches massive QE/printing and monetization programs ... thus they are VERY frustrated that the Fed didn't launch QE3 today despite the recessionary economy.
This is such utter and complete, ignorant bullshit it isn't funny! I don't know about AD, but personally I was just DYING that the Fed today would announce ABSOLUTELY NOTHING. No extension of Operation Twist, no new QE - NOTHING. When they announced an extension of Operation Twist I was actually quite disappointed, in part because I deem O.T. to be pretty much useless, and also in part because I don't think the economy needs any additional easing. On a more technical note, I'm not sure why they want to keep the yield curve flattened. If they were paying attention to the Federal Funds Rate, they'd be noticing it's been going up lately, and so by suppressing long-term yields via an extension of OT they're making it even flatter than when they announced OT last summer (since last summer the FFR had been going down since the start of the year).
You're so desperate to paint the Cornies as desperate, you're even accusing them of desiring something they have no desire for!
vision-master wrote:Why blame the teachers? Figure it out yourself. Quit being such 'another brick in the wall'......
Users browsing this forum: No registered users and 14 guests