Global Economy Bursting?

[Terrel L. Shields]

Pennsylvania is introducing similar legislation in hopes of keeping the Marcellus shale gas in state thus improving their own economy. PA is ideally suited for manufacturing such systems and with their interstate system, conversion of public bus fleets etc. could result in substantial savings for mass transit systems, etc.

Yes, I see no real reason why a NG conversion system could not be in the $2000 range and there already is a federal tax credit for same.

 

[Randolph Kinney]

10-year Greek bond yields have surged to 13%, reaching a record high. The country may now have to restructure its debt, a move that could cause bondholders to take a 50% - 70% haircut, according to S&P estimates. Once that becomes reality, the other troubled countries will follow and bondholders worldwide will demand higher yields.

 

[Terrel L. Shields]

Once that becomes reality, the other troubled countries will follow and bondholders worldwide will demand higher yields.

which begs the question....the huge debt in America. Isn't it a Damaclean sword hanging over the throne? When will it fall?

 

[Randolph Kinney]

which begs the question....the huge debt in America. Isn't it a Damaclean sword hanging over the throne? When will it fall?

I predict once European sovereign debt holders take a haircut on restructuring European sovereign debt at $0.50 on the $1.00, that will ripple into the U.S. Treasury bond market. At first, all the EU investors will run to U.S. Treasury debt and then after the carnage of EU sovereign debt happens, gold and silver will take off to new highs as investors realize that no nation with the policies of Europe and the U.S. can pay back debt. The interest rates in the U.S. will skyrocket to compete with default hedges and inflation hedges.

Once the rogue nations see that Europe and the U.S. have run out of money, there will be a new surge in violence and instability. There will be a clarion call for peace and security.

http://www.un.org/en/peace/

 

[Riick]

........Once the rogue nations see that Europe and the U.S. have run out of money, there will be a new surge in violence and instability. There will be a clarion call for peace and security.
http://www.un.org/en/peace/

..and to finish the thought
-based only on what I've been musing about all week-
The US, and the rest of the World, will, (they hope) pull out of this depression - a la World War II

History Lesson c.2075:
Q: What ended the Great Malaise of '07-'12?
A: The Great Crusades MkII

/

 

[Terrel L. Shields]

What about the impact of the BRICKS - Brazil, Russia, India, China, Korea, and S. Africa who are meeting and some suggest the topic of discussion is establishing a new reserve currency to replace the dollar....and that is whose money?

 

[Randolph Kinney]

What about the impact of the BRICKS - Brazil, Russia, India, China, Korea, and S. Africa who are meeting and some suggest the topic of discussion is establishing a new reserve currency to replace the dollar....and that is whose money?

The problem with currencies is that governments print them in quantities they need to make their political economies and policies work together to achieve the goals that favor them. It is like cheating at Monopoly. Currency manipulation to maintain a trade advantage is part of the problem.

In the end, if something like gold were the monetary exchange standard and trade accounts were settled in gold, China could not have a cheap Yuan and the U.S. would be broke, which it is. Consumption driven economies and export driven economies would not and could not exist.

 

[Randolph Kinney]

When Unions Get Desperate

http://online.wsj.com/article/SB10001424052748704495004576264970461255258.html

In case people outside of California don't know what is happening to close the $26 billion budget deficit, the teachers have declared "State of Emergency Week." The goal is to pressure Democratic Governor Jerry Brown and the state legislature to raise taxes rather than cut education spending. The tactics to be used were posted on an internal web site, which leaked to the outside world.

Here's part of it:


* Target the businesses of legislators in their home districts.
* Circle the offices of “problem legislators.” Target them with various actions.
* Picket/rally in front of legislators’ offices/homes.
* Follow targeted legislators for the entire day.
* Have students and parents do informational picketing for one hour outside their school site.
* Have parents and students camp in front of schools all night.
* Have teachers being laid off contact parents and other CTA members.
* Make phone calls on Parents’ Day. Call parents to tell them how their child is doing and then talk about the budget cuts and invite them to attend the rallies.
* Refrain from Shopping Day. Show the value of educators and other public employees and the economic contribution they make to local communities by refraining from shopping one day.
* Throw monopoly money in the toilet to show that all our money is going down the drain
* Publish a list of companies that are not paying their fair share of taxes. Send letters to these companies and the media and picket their offices. Withdraw funds from banks that are not paying their fair share. (Editor’s note: CTA is a tax-exempt organization.)
* One-day boycott of Microsoft and other corporations that are pushing failed education reform efforts.
* Turn fire/earthquake drill into crisis response drill to the budget cuts (involve students and the community)
* Attempt to close a major artery into town/cities
* Have celebrities involved in the demonstrations
* Dye hair red or wear red wigs
* Homeless encampments of students and teachers as they can afford a place to live
* Have people participate in a run across the state with a torch (like the Olympics)
* Statewide “A Day with No Teachers”
* Pay for everything with $2 bills to show true impact of teachers
* “Lights Out Day” during the week where educators teach in the dark
* Protest at an MLB game. Everyone wears a matching shirt and sits in one section. Have scoreboard acknowledge their presence (i.e., “pink-slipped teachers seated in section ___”)

http://www.theblaze.com/stories/cal...gislators-shut-down-roads-co-opt-fire-drills/

 

[Randolph Kinney]

California's average Friday was $4.191 a gallon

http://www.latimes.com/business/la-fi-gas-empty-20110416,0,2277495.story

Strange behavior ensues with rising gas prices; more people run out of gas as they push it to delay refilling the tank.

 

[Terrel L. Shields]

more people run out of gas as they push it to delay refilling the tank.

is that stupid or what? A car runs off the top of the tank as easy as the bottom. Buy $5 worth every day if you don't have money and walk to the corner grocery. You have no choice but to cut back when poor. Sorry. I wish gas was a buck a gallon, too. But that wouldn't cover all the taxes in CA. I have a final inspection to do and need to go to the office supply place and there is a gun show I want to go to.... easy way for me is to do all 3 at once rather than go to one, then come home, go to the other, come home, and finally go to the third. I will expend about 20% more miles by going from one to the other in the same afternoon...go figure.