Global Economy Bursting?

[Austin]

In response to Randolph’s two above posts:
I was listening to an Obama official state recently in to response to the fact that Obama care was driving out the small insurers that if these small undercapitalized companies go out of business, so what. They are too small to matter. The fact is that these companies like the banks in trouble are the same way, so what, who cares? We had better care because when the smaller banks and companies go out of business prices will sky rocket because they are the ones that provide the competition. Get rid of them and the large companies that own the politicians will make a killing and set prices at any level they want to.
As to copper prices, the copper thieves can now come off the unemployed list. Just more copper stolen. If you own any rental property with copper pipes be ware.

 

[Randolph Kinney]

The cost of doing business in California

http://www.latimes.com/news/opinion/letters/la-le-1227-monday-20101227,0,839238.story

Anecdotal editorial by a business that said it has closed one facility in 2010 and will close a second by June 2011. The kiss of death is the cost of operating in California.

One other prediction: Soon, the Panama Canal will handle larger ships, and California's commerce will drop significantly. The obvious is when that happens, Pacific shipping will not use west coast ports to ship to/from central and eastern U.S. destinations. That will kill Los Angeles.


Panama Canal expansion to result in major port upgrades

http://www.portworld.com/news/i98843/Panama_Canal_expansion_to_result_in_major_port_upgrades

It is forecast that billions of dollars are expected be spent in the U.S., as ports rush to expand and upgrade facilities to receive the post-panamax ships passing through the canal when the expansion is completed in 2014.

One port that doesn't exist now is in the Gulf of California in Mexico that can service both countries, particularly the western U.S. states.

 

[Randolph Kinney]

Oil rises near $92 as OPEC signals no output hike


Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2010/12/26/financial/f203807S37.DTL#ixzz19MPnSgb1

What's the be deal with rising oil prices? Higher oil prices, which have jumped almost 30% since September, could fuel inflation and hurt global economic growth.

 

[Randolph Kinney]

Is China Worried About Inflation?

http://www.businessinsider.com/chart-of-the-day-shibor-china-inflation-2010-12

The squeeze on "hot money".


Indian Inflation Is Nasty, Nasty, Nasty

http://www.businessinsider.com/indian-inflation-is-nasty-nasty-nasty-2010-3

 

[Terrel L. Shields]

Just more copper stolen. If you own any rental property with copper pipes be ware.

Think abandoned poultry barns. Usually about 3000' of wire in a single house, mostly strung in long lines over or thru the trusses... $1000 for a nights work...and more if you steal the back up 100kva generator at the same time...see pix below.... before (2009) and now (last week)...gen is about a $28,000 item. gone

What's the be deal with rising oil prices? Higher oil prices, which have jumped almost 30% since September, could fuel inflation and hurt global economic growth.

The government has exorcised gas and food from "inflation" indexes... "inflation" is measured by how many gigs of memory your computer has per $1 spent....no inflation.

What you are seeing is the beginning of real shortage of fuel. Only a handful of shallow as well as NO deep drilling permits in the Gulf have been issued and that is the major source of new oil from domestic production. There will be no catching up...we only fall further behind. The die is cast and you can thank Ken Salazar and your President for it.

You cannot fly an airplane on solar panels. You cannot run a semi truck with a windmill, nor plow ground with an electric tractor. Transportation fuels are paralyzed by diesel fuel changes that consume far more fuel; federally subsidized ethanol that is a stopgap of limited utility and unwilling to allow Brazil to export ethanol to us; and, the failure to immediately launch the Pickens Plan and start converting cars to use Nat gas and give tax breaks for stations to install Nat gas refueling pumps. Time is wasting...and government won't do it until they are desperate and the cost is skyhigh...

 

[Randolph Kinney]

Investors Attempting to Dump Bonds Push Bid Index Near Record

http://www.bloomberg.com/news/2010-...s-push-bid-index-near-record-muni-credit.html

Rising U.S. Treasury yields, fear of defaults and inflation spook investors to dump their holdings.

 

[Randolph Kinney]

Why the economy won't grow

The Keynesian solution

The private sector includes individuals as well as businesses. Private sector spending is overtaken by government spending financed by debt. Plus, the kicker of quantitative easing.

More private sector savings is killing economic growth because it goes into non-productive investments. There is too much excess capacity to absorb investments. The only game in town is government debt. The super low interest rates are generating its own losses in that without a reasonable positive return, the value is wasted away by taxes and inflation. And the private economy shrinks while the public sector grows.

 

[Randolph Kinney]

US Gas Prices Top $3 a Gallon in Latest Week

http://www.cnbc.com/id/40825478?utm...Opening+Bell&utm_campaign=10Thing_NL_12282010

Gasoline is at its highest level since October 2008 at an average of $3.05 per gallon while crude oil settled down 51 cents at $91 a barrel.


The Military Is Preparing For Peak Oil, And Civilian Authorities Are Not

Read more: http://www.businessinsider.com/rick...m_campaign=10Thing_NL_12282010##ixzz19PpcSaiw

The future is a crisis and wars are fought over economic deprivations.

deprivations - plural of dep·ri·VA·tion (Noun)
1. The damaging lack of material benefits considered to be basic necessities in a society.
2. The lack or denial of something considered to be a necessity.

 

[Terrel L. Shields]

2. The lack or denial of something considered to be a necessity.

The "denial" is our President who apparently is in denial. I heard another talking head (liberal) on the TV this weekend arguing against investment in oil and gas claiming that ALL that money needs to be spent on the next generation fuel supply which he conveniently did not name because it doesn't exist yet.
Supplying a few Kva of wind energy or solar energy that is equivalent to a few hundred thousand GALLONS of fuel is no substitute for the loss of millions of BARRELS (42 gal.) of petroleum products.
And natural gas is the cheap alternative...on a BTU content basis it costs < 50% that of a barrel of oil and requires virtually no "refining" [preparation] before being used.

 

[Austin]

Oil rises near $92...

Ex-SHELL president sees $5 gas in year...