Global Economy Bursting?

[Austin]

I have been waiting to see what would trip the economic trap and start the house of cards to start tumbling down. Looks like the oil situation with Iran and pending war will make this an interesting year. I keep watching California as the fuse that will set it all off nationally.

 

[Randolph Kinney]

Greece sets date for €200bn debt swap

http://www.ft.com/intl/cms/s/0/edade934-5a77-11e1-a52b-00144feabdc0.html#axzz1mcSHWsA8


Greece plans to launch a debt swap next month for private bondholders as part of a second €130bn bail-out expected to be approved on Monday by eurozone finance ministers, a government official said on Saturday.

The official said the swap, which would cover €200bn of Greek sovereign debt, would take place between March 8 and March 11, only days before Athens is due to repay a €14.4bn bond maturing on March 20.

As a first step towards completing the deal, the Greek parliament is set to pass legislation next week on so-called collective action clauses, with the aim of forcing a minority of “holdout” investors to take losses of around 70 per cent on their holdings.

 

[Randolph Kinney]

Obama seeks to cut municipal bond tax breaks

http://www.reuters.com/article/2012/02/13/us-usa-budget-municipals-idUSTRE81C1AZ20120213

President Barack Obama on Monday proposed limiting tax breaks given to high-income earners on the interest paid by municipal bonds, a change that could rock the $3.7 trillion market if approved.

 

[DTB]

Obama seeks to cut municipal bond tax breaks

http://www.reuters.com/article/2012/02/13/us-usa-budget-municipals-idUSTRE81C1AZ20120213

President Barack Obama on Monday proposed limiting tax breaks given to high-income earners on the interest paid by municipal bonds, a change that could rock the $3.7 trillion market if approved.

Has there ever been a dumber President?

 

[Roy Courtney]

Has there ever been a dumber President?

There was Carter.

 

[DTB]

There was Carter.

More damage has been done this term IMO.

 

[Randolph Kinney]

The Real Truth of Economic Activity

The U.S. government can pretend there is positive GDP growth. They can pretend there is positive jobs growth. But they cannot pretend to consume energy.

 

[Terrel L. Shields]

they cannot pretend to consume energy.

Oh, Randolph...you can spin anything in D. C. ... That means the government policies in energy conservation are working even better than expected.

 

[Randolph Kinney]

Yes, the green energy policy is to consume less. And the natural result of recessions is a decline in the consumption of all things. The recovery from an economic downturn is growth in consumption. Since 70% of GDP is made up of consumption, ... connect the dots. Factories, homes and electric cars should be consuming more electricity. But with the new EPA regulations on carbon dioxide emissions, there will be a shortage of electricity coming that will be less than the pitiful demand.

And with gasoline prices exploding (over $4.10/gal locally), consumption will continue to fall.

GDP has now become the measure of money in the system, not the goods and services consumed. Any growth in GDP will be the result of the federal reserve action of credit expansion and quantitative easing.

 

[Terrel L. Shields]

I wonder how soon Obama will be forced to backtrack on Keystone or how he is going to sidestep that issue....You know it is going to be fodder for debate if prices go sky high.

Iran is the big crazy and has been for 30 years. Israel may blast them and should but if they do, then the Arabs will go nuts...oil will be used as a weapon once again. I suspect the results will be posturing for a while, then Iran will agree to talks and the talks will lead no where ...largely due to the Persian mindset that they were, should be, and will be again, the center of all political power in the world...and we either muddle along or again, the Jews blast their facility back into the stone age...and then Russia and China goes into orbit. Whackamole geopolitical risk for oil.