job creation

Blinder Understates Cost of Carbon Tax

Filed in AMAG, BP, deflation, economy, job creation, lead, Lear, New Gold, o, Spot Gold by on February 4, 2011 0 Comments

In a recent article in the Wall Street Journal , Alan Blinder listed numerous alleged benefits of a phased-in carbon tax. Out of his entire column, he devoted a single sentence to the possible downside of his plan when he wrote, “No one likes to pay higher taxes.” A more balanced assessment shows that a carbon tax presents very real dangers, even if we rely on the same economic analysis that so enthralled Blinder. Spurring Innovation through Higher Taxes? Here’s Blinder explaining the economic benefits of a carbon tax that starts out low, but will eventually become quite steep: “Once America’s entrepreneurs and corporate executives see lucrative opportunities from carbon-saving devices and technologies, they will start investing right away — and in ways that make the most economic sense. I don’t know whether all this innovation will lead to 80% of our electricity being generated by clean energy sources in 2035, which is the president’s goal. But I can hardly wait to witness the outpouring of ideas it would unleash. The next Steve Jobs, Bill Gates and Mark Zuckerberg are waiting in the wings to make themselves rich by helping the environment.” We should also be clear that Blinder’s argument for job creation does not rely on the “negative externalities” of carbon emissions. Earlier in the piece, he made a list of the “few nice side effects” that would result from a carbon tax: “reducing our trade deficit, making our economy more efficient, ameliorating global warming …” Because he puts global warming at third in the list, we see that there is nothing peculiar to greenhouse gases behind his main argument for job creation. No, Blinder is making the simple observation that if the government imposes artificial costs on the…

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Meaningful Base for Treasuries

Filed in barclays, Gold, Gold Bullion prices, job creation, lead, o, shares, silver by on January 7, 2011 0 Comments
Meaningful Base for Treasuries

Let’s take an updated look at the bond market via the iShares Barclays 20+ Year Treas Bond ETF (NYSE: TLT). After all of the fireworks from Wed’s ADP forecast for additions to payrolls of nearly 300,000 into this morning’s disappointing payrolls data reported by the Governement, we find the TLT’s over $1.00 off of its recent low of 91.03 in what looks like the makings of a secondary low within a base-like pattern the started at the Dec 15 low of 90.47. Based on my pattern work, barring another plunge that violates 91.03, the TLTs look like they are carving out a meaningful base from which a potent recovery rally should emerge– that propels prices back to the 94.00/50 resistance plateau, and perhaps higher thereafter. For such a move to happen, perceptions about a strong recovery in employment will have to be tempored, while the Fed Heads will have to hit the airwares to reaffirm their commttemt to QE2 to continue to create more fertile (profitable) business conditions that will eventually lead to job creation too. Within such an environment, the TLT’s should mount a meaningful recovery rally.

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11-5-10 Daily Small Cap Market News and Stock Highlights from SmallCapVoice.com

Filed in job creation, silver by on November 5, 2010 0 Comments

Seth Sutel, AP Business Writer Stocks trade flat despite big jump in job creation Investors shrug off best jobs report in 5 months; 5-day stock rally loses steam NEW YORK (AP) — The best jobs report in five months wasn’t enough to energize the stock market early Friday. The Dow Jones industrial average barely budged

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Slow Growth or Contraction

Filed in Debt, deflation, economy, Gold, job creation, lead, silver, Spot Gold by on October 27, 2010 0 Comments

The economy is either growing slowly, or contracting. Housing is probably going down. Remember, Mr. Market has to destroy the idea that “housing always goes up.” When he’s finished people will think that “housing never goes up.” Unemployment? People are gradually beginning to realize that the last ten years were the worst for creating new jobs in America’s history. If they keep thinking about it they will realize that it is not just the bust that is destroying jobs; there was something very wrong with the boom too. Meanwhile, the markets are still calculating, figuring, deciding what things are worth. In the last couple of days, they’ve been thinking that maybe stocks and gold got a little too uppity. From all we can tell, the Great Correction continues. And here’s a report from The New York Times that tells us where it leads: OSAKA, Japan – Like many members of Japan’s middle class, Masato Y. enjoyed a level of affluence two decades ago that was the envy of the world. Masato, a small-business owner, bought a $500,000 condominium, vacationed in Hawaii and drove a late-model Mercedes. But his living standards slowly crumbled along with Japan’s overall economy. First, he was forced to reduce trips abroad and then eliminate them. Then he traded the Mercedes for a cheaper domestic model. Last year, he sold his condo – for a third of what he paid for it, and for less than what he still owed on the mortgage he took out 17 years ago. “Japan used to be so flashy and upbeat, but now everyone must live in a dark and subdued way,” said Masato, 49, who asked that his full name not be used because he still cannot repay the $110,000 that he owes on the mortgage. …For nearly a generation now, [Japan] has been trapped in low growth and a corrosive downward spiral of prices, known as deflation, in the process shriveling from an economic Godzilla to little more than an afterthought in the global economy. “The US, the UK, Spain, Ireland, they all are going through what Japan went through a decade or so ago,” said Richard Koo, chief economist at Nomura Securities who recently

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Asiatic Adventurism, Part II

To follow up on the conversation we began the other day… Mr. Obama needs a short, victorious war before the election, but those are thin on the ground unless your name was Moshe Dyan or Golda Meir. Looking at the quotes I have to work with today, I think Barack’s found his war. Unfortunately, the Chinese are going to win it and the figures will come cascading down rapidly, perhaps in time to stampede whatever portion of the electorate isn’t already on the prod. China isn’t taking kindly to making its products less competitive by adding large tariffs (any more than it does to demands that it revalue its currency), and the very rapid reply to Mr. Obama’s U.N. meeting and the new house bill was to strike swiftly at major US manufacturers. We have to admire their style, none of that tough talk stuff, a simple, polite, “the Chinese government announced Sunday ( Ed. Note: a week ago) that it is launching a probe into (the) possibility of the U.S. dumping auto parts and chickens on the Chinese market.” Those in the know had no difficulty reading that as “We have Tyson Foods, Pilgrim, Goodyear, and Cooper Tire & Rubber in our crosshairs, and that’s just for starters.” Somewhere here I had a dignified retort that adjusting the exchange rate by 20% would drive many Chinese firms out of business, which certainly makes sense on the margins they’re working on. The Smoot-Hawley Tariff Act of 1930 raised import duties to record highs and was a large contributing factor in the length and depth of the Great Depression. Protectionism never works out the way proponents think it will. There are those saying “there, there, now.” “Michael Strauss, chief economist with Commonfund, a money management firm based in Wilton, Conn. said there is not going to be a repeat of the mistakes of Smoot-Hawley. Strauss said both the U.S. and Chinese are smart enough students of economic history to know that the last thing the world needs now is for arguably the two most important economic powers to turn a spat over tires and chickens into something that could derail a global rebound. ‘This is not that big of …

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Asiatic Adventuring, Part II

To follow up on the conversation we began the other day… Mr. Obama needs a short, victorious war before the election, but those are thin on the ground unless your name was Moshe Dyan or Golda Meir. Looking at the quotes I have to work with today, I think Barack’s found his war. Unfortunately, the Chinese are going to win it and the figures will come cascading down rapidly, perhaps in time to stampede whatever portion of the electorate isn’t already on the prod. China isn’t taking kindly to making its products less competitive by adding large tariffs (any more than it does to demands that it revalue its currency), and the very rapid reply to Mr. Obama’s U.N. meeting and the new house bill was to strike swiftly at major US manufacturers. We have to admire their style, none of that tough talk stuff, a simple, polite, “the Chinese government announced Sunday ( Ed. Note: a week ago) that it is launching a probe into (the) possibility of the U.S. dumping auto parts and chickens on the Chinese market.” Those in the know had no difficulty reading that as “We have Tyson Foods, Pilgrim, Goodyear, and Cooper Tire & Rubber in our crosshairs, and that’s just for starters.” Somewhere here I had a dignified retort that adjusting the exchange rate by 20% would drive many Chinese firms out of business, which certainly makes sense on the margins they’re working on. The Smoot-Hawley Tariff Act of 1930 raised import duties to record highs and was a large contributing factor in the length and depth of the Great Depression. Protectionism never works out the way proponents think it will. There are those saying “there, there, now.” “Michael Strauss, chief economist with Commonfund, a money management firm based in Wilton, Conn. said there is not going to be a repeat of the mistakes of Smoot-Hawley. Strauss said both the U.S. and Chinese are smart enough students of economic history to know that the last thing the world needs now is for arguably the two most important economic powers to turn a spat over tires and chickens into something that could derail a global rebound. ‘This is not that big of a deal. You get these battles once in a while and they pass. This is not reminiscent of what happened 80 years ago. Deep down, the U.S. and China know that they need one another. There’s going to be more negotiation than retaliation.’” Right. Now, about the chicken parts and the auto parts… CNN caroled cheerfully, “But at least one economist thinks cooler heads will eventually prevail and that the brouhaha over tires won’t lead to the China and U.S. levying more tariffs on other goods.” Kurt Karl, the Chief U.S. economist with Swiss Re weighed in with this opinion: “One would hope we can avoid more of this. There is no positive side to raising tariffs.” “Mr. Karl isn’t too concerned that China would dump Treasurys. He argues that would be the equivalent of China shooting itself in the foot since it would further erode the value of its holdings. Nonetheless, Karl does worry that China could retaliate against the tire tariff with tariffs of its own and even more government subsidies of Chinese manufacturers. That could make the trade deficit worse. And that’s especially …

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$12.2 Trillion Was Not Enough Stimulus

$12.2 Trillion Was Not Enough Stimulus

Filed under: Federal Reserve , Recession , Financial Crisis Developed countries are scrambling to put in place more rounds of stimulus to prop up their faltering economies. The U.S. Federal Reserve has already pledged or spent an unbelievable $12.2 trillion to bail out a handful of bankers. The Fed slashed interest rates to zero and it is now purchasing more treasuries with proceeds from existing purchases. Finally, at its recent meeting the Fed stated that it stands ready to inject more stimulus in the economy . Continue reading $12.2 Trillion Was Not Enough Stimulus $12.2 Trillion Was Not Enough Stimulus originally appeared on BloggingStocks on Thu, 23 Sep 2010 10:50:00 EST. Please see our terms for use of feeds . Permalink | Email this | Comments

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Bulls on the Endangered Species List (SPY, DIA)

Filed in economy, Gold Investing, Gold Prices, job creation, silver by on September 12, 2010 0 Comments

Weekly stock market outlook from Wall Street Sector Selector It should have been a boffo week for bulls as the news was relatively good, or at least “less bad” and President Obama had his guns blazing in efforts to jumpstart job creation and the economy.  Still, the stock market remained mostly flat, as it has all year

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Job Creation, Obama Style

Filed in deflation, economy, job creation, lead, silver, Spot Gold, stimulus by on September 7, 2010 0 Comments

To give Mr. Obama his due, that is one stubborn man. He doesn’t care what anyone thinks, it’s his way and the highways, the railways, and the runways. Pretend politics don’t matter (they do), and let’s examine his latest idea on “job creation,” which is to spend “over $50 Billion” (which will be pork-bellied up to at least $70 Bn by the time it gets through Congress, if it does) on “…rebuilding 150,000 miles of roads; building and maintaining 4,000 miles of rail lines and 150 miles of airport runways, and installing a new air navigation system to reduce travel times and delays.” What kind of jobs might those projects create, who could benefit, are any of the ideas themselves laudable, and what effect will they have on the economy and stock market if implemented? Is there anything in there which suggests going long anything other than concrete, asphalt, and steel — if those? Let’s not be pessimistic and partisan, here, let’s at least look at the man’s ideas before we bury our faces in our hands and whimper for our mothers and Lee Iacocca. Railways. What railways, where, serving what purpose? Another Amtrak, perchance? If there be a bigger waste of transportation dollars than passenger rail, I don’t know what it is, particularly what is known as “light passenger rail” which is detested by all except those who have no intention of using it and those who think there should be rail transportation from Las Vegas to Los Angeles. New commercial rail? From where to where to carry what cargo? It isn’t as though we are building a lot of new factories. 4000 miles of rail would cross the continent and go pretty much from New York to Florida as well. What do I know about trains? Quite a bit. I’m not 20 miles from Hearne, “the cross roads of Texas,” where all the moguls lived a hundred years ago because the rail lines East to West and North to South intersect there. We move lots of freight by train in Texas. Restoring American railroads for the transportation of freight would be a fine idea, since it is faster, cheaper, and more energy-efficient. It saves wear and tear on the roads. I’ve ridden one from San Francisco to Texas (miserably uncomfortable) and from Rome to Frankfurt (ditto) but choo-choos haul cars, oil, and grain just fine. Besides, I’ve read Atlas Shrugged at least two dozen times. Rebuilding 150,000 miles of roads? He’s joking, right? Again, from where to where, serving what purpose? As of 2002 there were 42,793 miles of Interstate in America. At the current price of building roads most of the entire sum would be required to replace just those and the project would snarl traffic beyond redemption for years, adding to transit time, gasoline consumption, and road rage. If we figure a million a mile (read the road…

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It’s Delightful, It’s Delirious, It’s Deflation

In the usual bombardment of suspect statistics subject to revision next month there are a couple with considerable prospects for amusement, only partially because Messires Obama, Geithner, and Bernanke did not enjoy them if they even bothered to look. We here in the Bar seldom believe official numbers these days, partially because we all know that whatever the jobs report is it will be “revised” downwards at least a hundred thousand during the next reporting cycle while jobs lost will increase hefty numbers mysteriously. Reports are that economic “growth” slowed from 3.5% to 1.9%. Just off hand can any of you think of anything that is growing other than the deficit, regulations, politicians salaries, and voter outrage? If we take those numbers as representative of the full faith and credit of the United States you may choose to view that as a modest 1.6% decrease which shouldn’t bother anyone. Not so for those of us who turn numbers into percentages automatically. That is a drop of over 40%! (40% would be 1.4, 50% is 1.75%, and anyone who really cares can work out what to do with the remaining .2, which is 1/7th of 40%…Contrition; not everyone shares a passion for arithmetic, which is a pity because that subject is a great deal simpler than Boolean Algebra and far more useful.) That certainly sounds like an additional painful pothole in “just another bump in the road.” Now to the report which should cause rejoicing in the streets for those not part of management of big corporations, Bankstas, and government. As a prank perhaps we should send Turbo Timmy and Helicopter Ben recipes from Gilroy, California, the Garlic Capitol of the world, because the vampires of stimulus, taxation, and “quantitative easing” are surely recoiling in horror over learning that 12% of manufacturers/corporations/retailers are raising prices, encouraging the Inflation Monster. Far, far worse from their viewpoint, however, twice as many, 24%, are lowering prices. “Why?” should be obvious to anyone other than a Keynesian: because their goods are competing for ever-scarcer dollars (Timmy’s fine product being locked away in banks and what I can only describe as money-laundering schemes, and the…

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Why Is a Rise in Corporate Profits Not Creating More Jobs?

Filed in Debt, earnings, job creation, New Gold by on August 3, 2010 0 Comments
Why Is a Rise in Corporate Profits Not Creating More Jobs?

Filed under: Ford Motor (F) , China , Employees , Financial Crisis This is earnings season. By most accounts, corporations are reporting higher profits this year than last. If this is the case, you would assume that more jobs are being created. This is not happening. Robert Reich, a Columbia University professor, offers his reasons why higher corporate profits are not creating more jobs. He cites GM as an example. GM sells more cars in China than it does in the U.S. GM has 32,000 hourly workers in China, as compared to 52,000 hourly workers in the U.S. This is down from 468,000 in 1970. GM insists that no American taxpayer money is being used to expand in China. But GM can use the money it makes in China to pay American workers and pay down debt. Continue reading Why Is a Rise in Corporate Profits Not Creating More Jobs? Why Is a Rise in Corporate Profits Not Creating More Jobs? originally appeared on BloggingStocks on Tue, 03 Aug 2010 10:20:00 EST. Please see our terms for use of feeds . Read | Permalink | Email this | Comments

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Gold Rises on Weak Housing Report

Although it’ll take a little time to sort out because of conflicting economic reports which attempt to mask the extremely weak U.S. and global economy, the weak housing report again reminds us of the importance of holding gold in the face of major risk associated with the economy. The appearance that there is uncertainty as to which direction the economy is going is exasperated by news reports

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