Global Economy Bursting?

[gojira]

Never Happen.

Most People Work For Wages--all Justice Dept Has To Do Is Attach All Their Funds. Wages, Bank Accounts, File Liens On Property And In 90 Days They Are Toast.

They Will Pick You Off One At A Time. (like The Poultry Companies Did-do)

And what do you propose they will do when there tens of millions of "us"? It's never ceases to amaze me how many people think that the modern day U.S. is somehow not subject to the same rules that every nation throughout history has been subject to. When a large enough percentage of the population becomes dissatisfied with the powers that be, the government comes toppling down.

Also, the more people that are without wages, the more likely there is to be massive civil unrest. Riots, protests, etc.. And what often happens when there is massive civil unrest? The government gets overthrown! It's happening all over the world as we sit here and type.

This reminds me of people I know IRL who say a financial collapse will never happen in America in our lifetimes (we're young). Oh really? Why not, because we're America? Because you've never seen it happen, so it can't happen? Well, it's happening in Iceland and all over Europe, it happened in Argentina, many think Japan will fail sooner rather than later, it happened here 80 years ago. So why can't it happen here again? I believe this is referred to as 'normalcy bias'.

 

[Randolph Kinney]

China over taking U.S. in trade

http://finance.yahoo.com/news/ap-impact-china-surpasses-us-013620339.html

In just five years, China has surpassed the United States as a trading partner for much of the world, including U.S. allies such as South Korea and Australia, according to an Associated Press analysis of trade data. As recently as 2006, the U.S. was the larger trading partner for 127 countries, versus just 70 for China. By last year the two had clearly traded places: 124 countries for China, 76 for the U.S.

 

[Randolph Kinney]

Treasury Scarcity to Grow as Fed Buys 90% of New Bonds

http://www.bloomberg.com/news/2012-12-03/treasury-scarcity-to-grow-as-fed-buys-90-of-new-bonds.html

With the Fed buying about $85 billion a month in Treasuries and mortgage bonds next year, the net supply to the private sector will be about zero as the central bank effectively soaks up about 90 percent of new issuance of those assets.

 

[rrwolfpack]

At some point the Fed is going to have to put the brakes on their shopping spree. They have made it known they are doing this since the government can't agree on anything besides disagreeing with one another.

Both the gov't and Fed are going to have be very careful when they slow down on buying bonds because it will rattle the markets but the people we elected have to do their civic duty and start fixing this mess.

 

[Restrain]

The Fed is buying the bonds so it can forgive the government bonds and eliminate a big portion of the national debt. Actual risk factor on bonds is much higher than rate being paid by the Fed, and the govt does not want to expose the bonds to market forces.

 

[Restrain]

Citibank announces 11,000 job cuts, or 4% of its work force. Bank regs, tax, health care costs coming on line, company taking action.

 

[nm505]

Citibank announces 11,000 job cuts, or 4% of its work force. Bank regs, tax, health care costs coming on line, company taking action.

"Citi said that it will sell or scale back consumer operations in Pakistan, Paraguay, Romania, Turkey and Uruguay and focus on 150 cities around the world “that have the highest growth potential in consumer banking.”
The bank, the third-largest in the country by assets, did not say how many jobs it will cut in the United States."


http://www.washingtonpost.com/busin...5c81ce-3ee6-11e2-8a5c-473797be602c_story.html

 

[rrwolfpack]

I saw something this morning that Citi is going to cut 60 branches, many of them in Mass and PA. My initial reaction is they are decreasing their global footprint.

 

[nm505]

Grow the economy by exporting LNG and raise nat gas prices here at home or...


"NERA Economic Consulting said it examined the impact of LNG exports in 63 scenarios and found exports to a net benefit for the economy under each of the conditions.
"Moreover, for every one of the market scenarios examined, net economic benefits increased as the level of LNG exports increased," said the study.
However it also warned that the benefits would not be shared evenly. Although owners of natural gas resources and many downstream investors will benefit from the export boom, regular wage-earners will be hit with higher home heating costs, the report said.


http://www.reuters.com/article/2012/12/06/us-usa-lng-exports-idUSBRE8B41B020121206

 

[Terrel L. Shields]

it also warned that the benefits would not be shared evenly. Although owners of natural gas resources and many downstream investors will benefit from the export boom, regular wage-earners will be hit with higher home heating costs, the report said.

Don't worry, the gov will make up for it by whacking them more taxes... NM is about the highest severance tax in America. I tried to sell a gas deal in S central NM for years... same issue. Cost of pipeline and they have to give NM 9% of it and the royalty owners 16.75%... 1 bbl of 4 goes away at the wellhead.

It is a very short sighted use of natural gas to export it cheap in the face of $11 nat gas overseas and $4 gas here. We sell it for $5 or so, then we buy it back 20 years from now for $11 PLUS inflation...or more. It, like oil, should be kept here.

The notion we will achieve "energy self-sufficiency" by 2022 is an idiot's pipe dream. I'd believe we reach 20% renewables by 2020 before I'd believe we ever become self-sufficient or even should attempt to. Once a glut starts (and since all crudes are different, we need different refineries for each grade) then prices crash. When they crash, drillers stop drilling until prices rise. There are 180 less rigs running in the U. S. than this time last year. 95% of those were laid down in the "shale gas" play. Oil is the hot commodity now. If the price of oil goes to $60, they'll lay down like mad. Another layer or two of EPA regs on refiners and drillers and then the break even price will be $80 and gas prices will stay above $3...pushing $5. And that's a sure economic drag. Look at last spring and summer...slowed the economy. Once prices started to level off mid summer the economic outlook has perked up. Watch next winter spring prices....we see $4 plus again and the economy will fall on its face.