Comments on: It IS the Economy [UPDATED x2] http://www.noquarterusa.net/blog/2008/02/19/it-is-the-economy/ Sat, 22 Nov 2008 09:29:52 +0000 http://wordpress.org/?v=2.6.3 By: CK http://www.noquarterusa.net/blog/2008/02/19/it-is-the-economy/#comment-141508 CK Wed, 20 Feb 2008 16:40:52 +0000 http://noquarterusa.net/blog/2008/02/19/it-is-the-economy/#comment-141508 SOme jolly jolly inflation news. Lifted and condensed from here http://www.dailykos.com/storyonly/2008/2/20/72818/8319/446/460273 Bonddad on Orange Satan Inc. First things first: Are price increases always inflation. No. Increases in the total amount of a good demanded, with no current increase in supply is not inflation. It feels like inflation if you are a buyer, but to an economist it isn't inflation. China and India both increasing their buying of oil is an increase in demand. Increases in prices without some significant increase in demand is inflation. The demand for milk in the USA has not gone up 120% in the last twelve months. The price of a bottle of milk has. Is deflation a bad thing? How much better is your computer now than it was 3 years ago? How much faster is FIOS than dial-up? Yet computers and access have gone down in per unit price while the demand is increasing for both. That is deflation and it is a damn fine thing. Until it happens to your wages. And even then it is not a bad thing unless your wages fall farther than your productivity increase. If the total of all your purchases were to drop 20% year to year, a 20% wage decrease means that you are effectively still ahead of the game after taxes. If your wages stand still in a deflationary economy you are getting richer. If your wages stand still in an inflationary economy you are getting poorer. When prices go up for goods and there is no increase in demand that is the causal agent, the only other causal agent is the printing of fiat currency. More money chasing the same demand for goods, prices of goods inflate. Cooking oil up 133% 2 years Coffee 170% in 6 Corn 150% in 2 cocoa ( chocolate ) 206% in 7 oats 160% in 3.5 wheat 200% in 2 heating oil 400% in 9 and on and on. Now you as a worker have a budget. That budget is fixed ... so much each paycheck comes in. Without a raise, the paycheck is fixed. Out of that you pay what you must and save what is left. So when the old Puffed Oats go up 50% in a year, and your wage doesn't, whatever amount of your budget that went for puffed oats had to be increased and something else had to be foregone. Or you substituted something else for oats, something of less value to you or you would have been using it instead of oats already. One politicial rule you will always observe about inflation data. The things that make up the largest parts of YOUR monthly or yearly budget will not be included in the marketbasket of goods that inflation is measured by. Food isn't included, gasoline isn't, credit card minimums aren't, local, state and property tax burdens aren't. ( Yes I enjoy economics, it is the study of peaceful Human Action ). SOme jolly jolly inflation news.
Lifted and condensed from here
http://www.dailykos.com/storyonly/2008/2/20/72818/8319/446/460273
Bonddad on Orange Satan Inc.
First things first: Are price increases always inflation. No. Increases in the total amount of a good demanded, with no current increase in supply is not inflation. It feels like inflation if you are a buyer, but to an economist it isn’t inflation. China and India both increasing their buying of oil is an increase in demand.
Increases in prices without some significant increase in demand is inflation. The demand for milk in the USA has not gone up 120% in the last twelve months. The price of a bottle of milk has.
Is deflation a bad thing? How much better is your computer now than it was 3 years ago? How much faster is FIOS than dial-up? Yet computers and access have gone down in per unit price while the demand is increasing for both. That is deflation and it is a damn fine thing. Until it happens to your wages. And even then it is not a bad thing unless your wages fall farther than your productivity increase. If the total of all your purchases were to drop 20% year to year, a 20% wage decrease means that you are effectively still ahead of the game after taxes. If your wages stand still in a deflationary economy you are getting richer.
If your wages stand still in an inflationary economy you are getting poorer. When prices go up for goods and there is no increase in demand that is the causal agent, the only other causal agent is the printing of fiat currency. More money chasing the same demand for goods, prices of goods inflate.
Cooking oil up 133% 2 years
Coffee 170% in 6
Corn 150% in 2
cocoa ( chocolate ) 206% in 7
oats 160% in 3.5
wheat 200% in 2
heating oil 400% in 9
and on and on.
Now you as a worker have a budget. That budget is fixed … so much each paycheck comes in. Without a raise, the paycheck is fixed. Out of that you pay what you must and save what is left. So when the old Puffed Oats go up 50% in a year, and your wage doesn’t, whatever amount of your budget that went for puffed oats had to be increased and something else had to be foregone. Or you substituted something else for oats, something of less value to you or you would have been using it instead of oats already.
One politicial rule you will always observe about inflation data. The things that make up the largest parts of YOUR monthly or yearly budget will not be included in the marketbasket of goods that inflation is measured by. Food isn’t included, gasoline isn’t, credit card minimums aren’t, local, state and property tax burdens aren’t.
( Yes I enjoy economics, it is the study of peaceful Human Action ).

]]> By: CK http://www.noquarterusa.net/blog/2008/02/19/it-is-the-economy/#comment-141357 CK Wed, 20 Feb 2008 12:50:06 +0000 http://noquarterusa.net/blog/2008/02/19/it-is-the-economy/#comment-141357 The IMF gold will move to China, India, and private buyers in South America, Israel and the USA. And then there will be no more multi-national holdings of gold to try to manipulate the market with. All the stolen gold from the 30's back into the hands of, I hope, smarter buyers. The US govt will attempt to confiscate gold held privately, all govts do that just before the lid blows off. The IMF gold will move to China, India, and private buyers in South America, Israel and the USA. And then there will be no more multi-national holdings of gold to try to manipulate the market with. All the stolen gold from the 30’s back into the hands of, I hope, smarter buyers. The US govt will attempt to confiscate gold held privately, all govts do that just before the lid blows off.

]]> By: CK http://www.noquarterusa.net/blog/2008/02/19/it-is-the-economy/#comment-141356 CK Wed, 20 Feb 2008 12:46:28 +0000 http://noquarterusa.net/blog/2008/02/19/it-is-the-economy/#comment-141356 Funny thing about oil, those of you who commute to work know damn well that you cannot cut back your gas consumption unless you either buy a more gas efficient car or find a way to carpool. ( Might explain why there is this new comedy show call Carpool, just a subliminal nudge ). Carpooling is great when it works, if you can find three others to pool with you, theoretically your gasoline bill for your commute drops 75%. And that is AFTER TAX money, flows right into your spendable budget. The trick is finding 3 other of the right sort or right class or the right level on the corporate totem pole to pool with. And that also assumes that the days the car is at home, no one else in the family is driving anywhere in the suddenly available car. Second big use for oil in the USA is the military. Do not expect their usage to drop. Electric Utilities ... maybe THe city of Vallejo california announced today that it expects it will be bankrupt in april of this year. The rebuilding of NOLA, not the brightest moment for either party or the politicians there. But it did allow the repubs to forceably migrate a large group of democrat voters to other already reliably democratic voting districts. Funny thing about oil, those of you who commute to work know damn well that you cannot cut back your gas consumption unless you either buy a more gas efficient car or find a way to carpool. ( Might explain why there is this new comedy show call Carpool, just a subliminal nudge ). Carpooling is great when it works, if you can find three others to pool with you, theoretically your gasoline bill for your commute drops 75%. And that is AFTER TAX money, flows right into your spendable budget. The trick is finding 3 other of the right sort or right class or the right level on the corporate totem pole to pool with.
And that also assumes that the days the car is at home, no one else in the family is driving anywhere in the suddenly available car.
Second big use for oil in the USA is the military. Do not expect their usage to drop.
Electric Utilities … maybe
THe city of Vallejo california announced today that it expects it will be bankrupt in april of this year.
The rebuilding of NOLA, not the brightest moment for either party or the politicians there. But it did allow the repubs to forceably migrate a large group of democrat voters to other already reliably democratic voting districts.

]]> By: CK http://www.noquarterusa.net/blog/2008/02/19/it-is-the-economy/#comment-141352 CK Wed, 20 Feb 2008 12:30:47 +0000 http://noquarterusa.net/blog/2008/02/19/it-is-the-economy/#comment-141352 As I often say when I look at the scars on my face in the mirror, well DUH. As I often say when I look at the scars on my face in the mirror, well DUH.

]]> By: Cee http://www.noquarterusa.net/blog/2008/02/19/it-is-the-economy/#comment-141170 Cee Wed, 20 Feb 2008 04:14:44 +0000 http://noquarterusa.net/blog/2008/02/19/it-is-the-economy/#comment-141170 And IMF to sell Gold Reserves By Jerome R. Corsi © 2008 WorldNetDaily The International Monetary Fund says it plans to sell gold from its reserves, and the announcement at the Group of Seven (G7) meeting in Tokyo confirmed those moves could come as early as April. The maneuver widely is understood to be aimed at an IMF goal of depressing the price of gold worldwide. On Friday, gold surged to a high of $923 an ounce on international exchanges. The IMF decision did not surprise financial analyst Michael Bolser, who has been predicting such a move for months in his subscription newsletter connected to his Interventional Analysis website. The IMF goal appears to be to shove the price of gold back down into the $500 per ounce range, Bolser told WND in an exclusive telephone interview. Bolser said a secondary goal is for the IMF to gain control of as much of the world's gold reserves as possible. "This grab of IMF sovereign gold held in central banks around the world matches what the Federal Reserve did in 1934 when the Treasury grabbed U.S. citizen's wealth after a long and debilitating depression created by the Fed through excessive lending," Bolser said. Technically, the gold held by the IMF is pledged by central banks when sovereign nations join the IMF. The IMF then becomes a repository for gold pledged by members of the IMF, with the bulk of the gold held by the IMF pledged by the United States. "The vast majority of gold analysts have been in denial that the IMF would make this move," Bolser said. "Now, I expect the gold experts to say the IMF gold sale will have no effect on the price of gold on world markets." And

IMF to sell Gold Reserves

By Jerome R. Corsi © 2008 WorldNetDaily

The International Monetary Fund says it plans to sell gold from its reserves, and the announcement at the Group of Seven (G7) meeting in Tokyo confirmed those moves could come as early as April.

The maneuver widely is understood to be aimed at an IMF goal of depressing the price of gold worldwide.

On Friday, gold surged to a high of $923 an ounce on international exchanges.

The IMF decision did not surprise financial analyst Michael Bolser, who has been predicting such a move for months in his subscription newsletter connected to his Interventional Analysis website.

The IMF goal appears to be to shove the price of gold back down into the $500 per ounce range, Bolser told WND in an exclusive telephone interview.

Bolser said a secondary goal is for the IMF to gain control of as much of the world’s gold reserves as possible.

“This grab of IMF sovereign gold held in central banks around the world matches what the Federal Reserve did in 1934 when the Treasury grabbed U.S. citizen’s wealth after a long and debilitating depression created by the Fed through excessive lending,” Bolser said.

Technically, the gold held by the IMF is pledged by central banks when sovereign nations join the IMF.

The IMF then becomes a repository for gold pledged by members of the IMF, with the bulk of the gold held by the IMF pledged by the United States.

“The vast majority of gold analysts have been in denial that the IMF would make this move,” Bolser said. “Now, I expect the gold experts to say the IMF gold sale will have no effect on the price of gold on world markets.”

]]> By: Patrick Henry http://www.noquarterusa.net/blog/2008/02/19/it-is-the-economy/#comment-141083 Patrick Henry Wed, 20 Feb 2008 02:23:12 +0000 http://noquarterusa.net/blog/2008/02/19/it-is-the-economy/#comment-141083 Susan...Can't help it..there is a stand right over there...up there and down there..I can Bid on my Mochas and Lattes.. I'll with put your Americano in the Mailbox on the Way by to the Coast.. Me too Cee...Me too.. Susan…Can’t help it..there is a stand right over there…up there and down there..I can Bid on my Mochas and Lattes..

I’ll with put your Americano in the Mailbox on the Way by to the Coast..

Me too Cee…Me too..

]]> By: Cee http://www.noquarterusa.net/blog/2008/02/19/it-is-the-economy/#comment-141035 Cee Wed, 20 Feb 2008 01:29:10 +0000 http://noquarterusa.net/blog/2008/02/19/it-is-the-economy/#comment-141035 Susan, I could never bring myself to pay several bucks for cold coffee. I'm not ashamed to admit that my left over coffee from the morning becomes iced latte in the afternoon in the summer. :D Susan,

I could never bring myself to pay several bucks for cold coffee.

I’m not ashamed to admit that my left over coffee from the morning becomes iced latte in the afternoon in the summer. :D

]]> By: TeakwoodKite http://www.noquarterusa.net/blog/2008/02/19/it-is-the-economy/#comment-141020 TeakwoodKite Wed, 20 Feb 2008 01:00:16 +0000 http://noquarterusa.net/blog/2008/02/19/it-is-the-economy/#comment-141020 Al those worthless dollars...they made the ten dollar bill look so nice.... Speaking of Oil @$ 100.00 Some thinks a slow downs acomin' The U.S. Energy Department, the International Energy Agency and OPEC have all cut demand forecasts for this year. I have had my Peugeot 10 speed for 20 years now...my sane half asked why I don't get rid of it...I said "No Way!" and went out and purchased her a bike...pedal power like the Flinstones... This housing deal reminds me of the recording of Nixon and Halderman(?) discussing how to market "healthcare"... (As if said by Chris Rock)... same ol' bait and switch...the banks win up or down; on the back of your homeless (insert derogatory)______signature......The ownership society..heh! more a kin to the company store days... New Orleans was the biggest eviction notice ever served in the history of this country. Al those worthless dollars…they made the ten dollar bill look so nice….

Speaking of Oil @$ 100.00
Some thinks a slow downs acomin’

The U.S. Energy Department, the International Energy Agency and OPEC have all cut demand forecasts for this year.

I have had my Peugeot 10 speed for 20 years now…my sane half asked why I don’t get rid of it…I said “No Way!” and went out and purchased her a bike…pedal power like the Flinstones…

This housing deal reminds me of the recording of Nixon and Halderman(?) discussing how to market “healthcare”…
(As if said by Chris Rock)…
same ol’ bait and switch…the banks win up or down; on the back of your homeless (insert derogatory)______signature……The ownership society..heh! more a kin to the company store days…

New Orleans was the biggest eviction notice ever served in the history of this country.

]]> By: SusanUnPC http://www.noquarterusa.net/blog/2008/02/19/it-is-the-economy/#comment-141011 SusanUnPC Wed, 20 Feb 2008 00:45:07 +0000 http://noquarterusa.net/blog/2008/02/19/it-is-the-economy/#comment-141011 No damn lattes here, Patrick! You latte liberal! (TEASING YOU!) I like Americanos. No. I really do. Iced. All times of the year. Wish I could have one right now. Bring me one. No damn lattes here, Patrick! You latte liberal! (TEASING YOU!)

I like Americanos.

No. I really do. Iced. All times of the year. Wish I could have one right now. Bring me one.

]]> By: SusanUnPC http://www.noquarterusa.net/blog/2008/02/19/it-is-the-economy/#comment-141010 SusanUnPC Wed, 20 Feb 2008 00:43:28 +0000 http://noquarterusa.net/blog/2008/02/19/it-is-the-economy/#comment-141010 I linked it. In the word HERE I linked it. In the word HERE

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