http://www.nytimes.com/2010/01/31/business/energy-environment/31renew.html
Not good for us.
Sunday, January 31, 2010
Jeff Rubin on Peak Oil
http://www.youtube.com/watch?v=wYuLjGQQ-jg
Excellent Video about Peak Oil. This isn't a discussion of Climate Change. I personally feel that Man is incapable of actually taking sufficient steps to actually control Global Warming. I do however think that Peak Oil is real and it will become a problem for all of us. Furthermore, I believe that it will be PEak Oil that will force us to reign in our energy consumption, and that reduction will be what reduces man's impact on the Globe.
One of the best videos I have seen on the subject.
Excellent Video about Peak Oil. This isn't a discussion of Climate Change. I personally feel that Man is incapable of actually taking sufficient steps to actually control Global Warming. I do however think that Peak Oil is real and it will become a problem for all of us. Furthermore, I believe that it will be PEak Oil that will force us to reign in our energy consumption, and that reduction will be what reduces man's impact on the Globe.
One of the best videos I have seen on the subject.
Denninger on Bernanke Confirmation
Consider also that the $3.8 Trillion Dollar Budget will only get about a Trillion or so in Tax receipts. The US Dollar is going to be hit by this spending. Sooner or later we will have to face the music and stop out of control spending by Washington.
http://market-ticker.org/archives/1918-Bernanke-Now-The-Administration-Owns-The-Mess.html
Sunday, January 31. 2010
Posted by Karl Denninger in Politics at 14:54
Bernanke: Now The Administration Owns The Mess
"Perhaps this is his (and President Obama's) intent. After all, our dear President intends to send a nearly $4 trillion Federal Budget to Congress in the coming days, while we are running a deficit of nearly half that. With China increasingly unwilling (or unable) to continue to recycle hundreds of billions annually back to US Debt (a losing strategy for them in the longer term as they'll never be paid off) and both Japan and England drowning under their own debt issuance one has to wonder exactly where Obama and Bernanke think they can source the over $1.5 trillion in net issuance they need to continue the charade.
Perhaps the answer is nothing more complex than intentionally cranking the stock market one more time, then crashing it again, scaring everyone into Treasuries. Recent changes in money-market fund rules to permit them to throw up gates without prior approval of the SEC may be part of this, as may the rumblings about "annuitizing" people's retirement accounts. Anyone care to take a bet on there being some sort of "conversion to something safe" option being thrown about if and when the stock market dives once more?
In any event the key items here are that we now have a "hit list" of Senators that must go from their seats come November, and a reminder that President Obama can no longer blame what I believe is an upcoming collapse of the stock market - a multi-year affair that will be much worse than what we suffered in 2008 and early 2009 - on President Bush. He had the opportunity to name either Volcker or John Taylor (to name two) to the position that Bernanke has, and decided instead to go with the guy who has been a chief architect of the "Brigand-and-Loot-Em" society - for better or worse, it's all his now."
http://market-ticker.org/archives/1918-Bernanke-Now-The-Administration-Owns-The-Mess.html
Sunday, January 31. 2010
Posted by Karl Denninger in Politics at 14:54
Bernanke: Now The Administration Owns The Mess
"Perhaps this is his (and President Obama's) intent. After all, our dear President intends to send a nearly $4 trillion Federal Budget to Congress in the coming days, while we are running a deficit of nearly half that. With China increasingly unwilling (or unable) to continue to recycle hundreds of billions annually back to US Debt (a losing strategy for them in the longer term as they'll never be paid off) and both Japan and England drowning under their own debt issuance one has to wonder exactly where Obama and Bernanke think they can source the over $1.5 trillion in net issuance they need to continue the charade.
Perhaps the answer is nothing more complex than intentionally cranking the stock market one more time, then crashing it again, scaring everyone into Treasuries. Recent changes in money-market fund rules to permit them to throw up gates without prior approval of the SEC may be part of this, as may the rumblings about "annuitizing" people's retirement accounts. Anyone care to take a bet on there being some sort of "conversion to something safe" option being thrown about if and when the stock market dives once more?
In any event the key items here are that we now have a "hit list" of Senators that must go from their seats come November, and a reminder that President Obama can no longer blame what I believe is an upcoming collapse of the stock market - a multi-year affair that will be much worse than what we suffered in 2008 and early 2009 - on President Bush. He had the opportunity to name either Volcker or John Taylor (to name two) to the position that Bernanke has, and decided instead to go with the guy who has been a chief architect of the "Brigand-and-Loot-Em" society - for better or worse, it's all his now."
End of Era, Why?
I see the changes occurring in the USA as being caused by several key factors. In the past Era everything was financed by debt and credit expansion. The environment allowed fraud and corruption to creep into the system and made transactional profits become the key money making strategy for many of those that got rich. As we now see debt and credit collapsing the amount of transactions is collapsing with it. So goes all of the transactional money making opportunities. As a result people will have to do things and make things to make money.
Secondly, All of this debt has undermined the US Dollar, as tons of dollars were created in the credit and debt expansion. Furthermore, as we have seen our jobs outsourced and undermined by illegal workers, we have undercut the ability of the average American to earn income in a productive manner. We became a 'Service' economy, instead of a productive economy. As a result, our trade balance moved towards the very unbalanced state it is now in, where most things are made overseas. Chinamart (Walmart) is the premier example of this situation. Now, that we have seen the debt expansion ending, because we can't borrow any more, as a nation we are faced with a problem. We cannot increase national income by increasing debt, because our credit is tapped out. Everyone has run out of money to consume. Hence our service and consumption based economy is collapsing. The only path available is to become productive again. The only way to correct our trade balance and raise national income is to produce things that people around the world will want to buy from us. If we produce things they want, they will need US $ to purchase these goods. If we do not sell things overseas, then why would they need Dollars? If we fail to become more productive the US Dollar will fall, and all of us will see our incomes continue to fall. We have no choice as a country to become a producer again.
Some people say that in a globalized economy that we will have to allow our wages to become competitive with the Chinese and the Indians in order to become competitive again. I assert that we committed a critical error in the last 20-30 years as we allowed unfettered free trade access to countries such as China, India, and Japan to our markets. We allowed them to buy influence in our government and actually undermine the American worker. We gave them the access, we can take it back. We will have to become protective of our economy again to help us return to production of goods. Notice that Obama even talked about the importance of doubling our exports over the next 5 years in his State of the Union Speech. He recognizes the importance of Production in creating and growing National Income.
How can we help in this regard as citizens in our everyday life. Stop buying Chinese junk! Look for American products and buy them when able. It is time that we stop supporting our own demise. If you can't buy an American product, try not to buy at all. We need to start realizing that everything we buy from overseas helps keep some fellow American stuck in unemployment or some no-where service job. We need to start becoming Americans first, and consumers second. More to follow....
Secondly, All of this debt has undermined the US Dollar, as tons of dollars were created in the credit and debt expansion. Furthermore, as we have seen our jobs outsourced and undermined by illegal workers, we have undercut the ability of the average American to earn income in a productive manner. We became a 'Service' economy, instead of a productive economy. As a result, our trade balance moved towards the very unbalanced state it is now in, where most things are made overseas. Chinamart (Walmart) is the premier example of this situation. Now, that we have seen the debt expansion ending, because we can't borrow any more, as a nation we are faced with a problem. We cannot increase national income by increasing debt, because our credit is tapped out. Everyone has run out of money to consume. Hence our service and consumption based economy is collapsing. The only path available is to become productive again. The only way to correct our trade balance and raise national income is to produce things that people around the world will want to buy from us. If we produce things they want, they will need US $ to purchase these goods. If we do not sell things overseas, then why would they need Dollars? If we fail to become more productive the US Dollar will fall, and all of us will see our incomes continue to fall. We have no choice as a country to become a producer again.
Some people say that in a globalized economy that we will have to allow our wages to become competitive with the Chinese and the Indians in order to become competitive again. I assert that we committed a critical error in the last 20-30 years as we allowed unfettered free trade access to countries such as China, India, and Japan to our markets. We allowed them to buy influence in our government and actually undermine the American worker. We gave them the access, we can take it back. We will have to become protective of our economy again to help us return to production of goods. Notice that Obama even talked about the importance of doubling our exports over the next 5 years in his State of the Union Speech. He recognizes the importance of Production in creating and growing National Income.
How can we help in this regard as citizens in our everyday life. Stop buying Chinese junk! Look for American products and buy them when able. It is time that we stop supporting our own demise. If you can't buy an American product, try not to buy at all. We need to start realizing that everything we buy from overseas helps keep some fellow American stuck in unemployment or some no-where service job. We need to start becoming Americans first, and consumers second. More to follow....
Saturday, January 30, 2010
End of an Era
I feel that the past year or so has been the end of an era where greed, corruption, and fraud ruled the roost. In the future in America it is going to be real hard work that makes things happen once again. The people that get ahead are going to be all of the people that got behind in the past 20 years or so. The little people that can run a farm, make things, produce things and do things. The losers going forwards will be those that sought to outsource America, employed illegals, made something for nothing profits. In the future it will be real tangible things that bring success. I see this occurring due to changes that have already occurred in the world of finance, the coming evolving paradigm shift in energy availability, and a growing awareness of reality among Americans. I see the election of Scott Brown in Massachusetts as an example of this growing awareness. Obama had a chance ot bring about real change, but he appears to be wasting the opportunity. We will see how the 2010 elections go for everyone. It is my hope that we will either see a viable third party emerge that focuses on the needs of Americans, or we will see one of the parties, probably the Republicans adapt at lot of independent policies in order to win.
Welcome to Indy American
Given the events in the past couple years in the economic and political arenas, it is becoming clear to me that a new paradigm of being an American is emerging. This new American is part archtype American personality of rugged individualism, self-reliance, and independence, combined with honest awareness of the world both at home and abroad. This new American personality is one that rejects out of control globalization and the perpetual outsourcing of American jobs overseas, rejects the loss of control of the borders of the USA, rejects the perpetual undercutting of the American Middle Class, rejects political correctness, rejects the disaster that our financial system has become, and rejects the politics of special interests that has taken over our Government.
The Independent American re-asserts the importance of doing things right, with honesty and integrity. The Indy American stands for the founding documents of the USA in the Declaration of Independence and the Constitution of the United States of America. We assert that we will serve Americans first, and not the rest of the world. We are aware of the world and its complexities but we reject the idea that it is the responsibility of America to right all the wrongs in the world. We feel that it is time for America to start focusing on getting her house in order and preparing America for the future.
The new Indy American is a person who could be at home in the wilderness hunting Elk, while at the same time aware of the latest world financial events. They might be running a farm while trading Forex options during their lunch break. Or running a website from a hotel room between flights as an airline pilot. They might be starting a business while they work as a clerk in a computer store. The new American embraces old American values while learning new ones. The new American makes things, does things, and doesn't take things at face value. The new American seeks to rebuild the America of old and renew it with modern technology, renewable energy, an independent manufacturing base, improved infrastructure, and independence and liberation from the politics of special interests and division. We are America and we are taking it back!
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