Economics Current Info - If you're not interested just pass it by!

I hope this doesn't violate any rules, but several people have been asking me about the info I have..... I go through this most days, so here is a digest of current news.




Economy
China Says U.S. Does Not Intend to Repay Debt

China ramped up its rhetoric against the United States on Tuesday, with a Chinese credit ratings agency accusing the United States of the intent not to repay its debt by deliberately weakening its currency.
The China and the United States have exchanged words in recent years about the strength of the Chinese currency against the U.S. dollar and the U.S. trade deficit with China. The United States relies heavily on capital inflows to finance its deficit.
The Dagong Global Credit Rating Co, Ltd, in an English language release from on its website, cut the United States' local and foreign currency long-term sovereign credit rating to A-plus from AA to reflect what it called the United States' "deteriorating debt repayment capability and drastic decline of the government's intention of debt repayment."


Greenlight Capital's Einhorn Says Fed's QE 'perverse'

Hedge-fund manager David Einhorn said he continues to hold gold as he lambasted the Federal Reserve's unconventional monetary easing as "perverse" and inflationary. In his latest investment letter to clients, obtained by Reuters on Tuesday, Einhorn reiterated his views from one year ago that the U.S. government's financial chiefs are adopting short-sighted policy decisions. "Quantitative Easing or QE is a euphemism for monetization of government debt or simply the electronic equivalent of 'printing money,'" Einhorn wrote. 


There Was A Fed Chairman Who Swallowed A Fly (Peter Schiff)

In the 16 months since Bernanke assured us that QE1 would not jeopardize price stability, oats prices are up 40%, concentrated orange juice up 45%, gold and rice up 50%, corn up 55%, coffee up 60%, copper up 70%, sugar up 90%, and cotton and silver up 100%! (The sluggish Dow Jones Industrials are “only” up 30%.) Last week, Kraft Foods reported a 26% rise in third quarter revenue; however, because of steeply rising material costs, profits actually dropped 8.5% over the same period. If Bernanke is correct in assuming that consumer prices will stay low, the only way Kraft shares could go up would be for the market to assign much higher multiples to lower earnings. You can hope that will happen, but it’s not a wise bet.


American Silver Eagles in Record Territory


Sales of the United States Mint’s American Silver Eagle bullion coins have recently moved into record territory. For the year to date, the Mint has sold 29,110,500 of the one ounce silver bullion coins, which exceeds last year’s record annual sales total. This will mark the third consecutive year that sales have set a new record. In 2008, the total of 19,583,500 nearly doubled the previous annual high set in 2002. In 2009, sales rose further to reach 28,766,500. For the current year, sales seem poised to break well above the 30 million ounce mark by year-end.


China Central Bank’s Ma Says Highly Alert for Inflation Risks


Ma Delun, a deputy governor of China’s central bank, said the nation is highly alert for inflation risks and won’t leave inflation unchecked. The nation should be on alert for inflation and asset bubbles fueled by the U.S.’s so-called quantitative easing, Ma said at a forum in Beijing today. 


Taiwan Dollar Surrenders Gain as Intervention Seen; Bonds Rise


Taiwan’s dollar surrendered most of the day’s gain in the last minutes of trading on speculation the central bank intervened to check appreciation that may hurt exports. Government bonds gained. The central bank bought the U.S. dollar, according to two traders who declined to be identified.

Commodities Rise to 25-Month High on Demand for Crops, Metals


Commodities extended a rally to a 25- month high as the global appetite for crops outpaced dwindling supplies, and precious metals surged on demand for a haven from slumping currencies. The Thomson Reuters/Jefferies CRB Index of 19 raw materials rose as much as 1.6 percent to 320.38, the highest level since Oct. 6, 2008. As of Nov. 5, the gauge climbed for 11 straight weeks, the longest rally since 1977. It has jumped 21 percent since Aug. 31, led by cotton, sugar and silver


South Floridians Confront Social Security Shortfall


Baby boomers nearing retirement are growing nervous for good reason about the future of Social Security for themselves and younger generations. A focus group of Floridians age 40 to 75 will discuss the program’s potential insolvency and future benefits on Monday, Nov. 15, at a forum in Doral sponsored by AARP and the Rockefeller Foundation.
Many Floridians were bitterly disappointed when low inflation brought word of no Social Security raise this year or next year, but potential insolvency and reduced cost-of-living adjustments down the road are far more serious concerns.
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Mantega Says Brazil May Take Additional Currency Measures, Estado Reports


Brazilian Finance Minister Guido Mantega said today that the government may take additional measures to protect the economy from U.S. efforts to weaken the dollar, O Estado de Sao Paulo reported, citing comments by the minister in Frankfurt. Mantega said the U.S. decision to inject $600 billion in the economy puts a spotlight on the currency war, the Sao Paulo- based newspaper reported. He said U.S. policies may generate speculative bubbles that can lead to the bankruptcy of economies, O Estado reported. According to O Estado, Mantega said the government will take the necessary steps to prevent U.S. policies from contaminating Brazil’s economy.

China Resisting Being Economic Lifeline for US: IMF


China is resisting pressure to become a locomotive to pull the floundering US economy out of its hole, notably by stubbornly pegging its yuan to the dollar, a senior IMF official said Tuesday.


China to Use 20% of Global Energy by 2035


In its annual World Energy Outlook report released on Tuesday, the global energy watchdog predicted that China’s demand would jump 75 per cent between 2008 and 2035

Energy Price Spike Looms, Agency Says


The International Energy Agency warned Tuesday that governments aren't doing enough to prepare for the next spike in energy prices. The Paris-based IEA said more must be done to increase energy efficiency and boost green technologies in order to meet what it predicts will be a 36 per cent jump in energy demand — increasingly driven by China — between 2008 and 2035....The IEA estimated China's demand will jump by 75 per cent, accounting for more than a third of the increase in demand.

US Declared Financial War to the World - Prof. Dr. Michael Hudson (Video)


There is no possibility of agreement at the upcoming G20 summit because the U.S. is declaring financial war on other countries, believes American economist and wall street analyst Prof. Dr. Michael Hudson. The U.S. has been pushing China to revalue its currency -- at a time when Washington has been pumping billions of dollars into its economy -- a move viewed by other countries as an attempt to deliberately weaken the greenback.



Illinois Wants Wisconsin's Rejected Stimulus Funds


Illinois transportation officials say they'll take the $810 million in federal high-speed rail funds that Wisconsin Gov.-elect Scott Walker has said he'll reject.... Illinois has received $1.2 billion in high-speed rail funding. Transportation Secretary Gary Hannig says the state could make improvements to the Chicago-St. Louis corridor with Wisconsin's money.

Kansas Schools Facing $50 Million Budget Shortfall


The immediate problem is a $50 million shortfall in the current school budget brought on by lower statewide property tax valuations, an increase in students receiving free lunch and a larger student population, the KASB reported. Unless the 2011 Legislature makes up the difference that could cause a $75 drop in the base state aid per student, which now stands at $4,012 per student. But bigger cuts could be on the way because schools currently are receiving $200 million in federal stimulus funds which expire this school year.


Florida Agency Issues Deadlines for Unemployment Benefits


The Florida Agency for Workforce Innovation on Tuesday told unemployment recipients the pending deadlines for ending extended benefits under the assumption Congress won't pass another extension during a lame-duck session next week. During the recession, the federal government had created several levels of additional benefits beyond the standard 26 weeks of state coverage. An emergency unemployment compensation, or EUC, program kicks in after the initial 26 weeks is exhausted; then several tiers of an extended benefit, or EB, program kick in. Barring congressional action, about 106,000 Floridians will run out of benefits as of Dec. 4 and another 41,000 will become ineligible every week. 


Gold, Silver Futures Drop as CME Group Boosts Margins on Comex Contracts


Silver fell from the highest price in 30 years after CME Group Inc.’s Comex unit raised margin requirements. Gold dropped from a record. The minimum amount of cash traders must deposit when borrowing from brokers to trade silver futures will rise to $6,500 per contract from $5,000 for exchange members, said Michael Shore, a spokesman for the exchange in Chicago. Silver surged as much as 7 percent to $29.34 an ounce in New York today, the highest price since March 1980, before retreating. “The exchange wants to rein in the volatility,” said Matt Zeman, a metals trader at LaSalle Futures Group in Chicago. “The threat of margins going up will cause people to liquidate. They may not want to tie up as much of their money.”

Most of the back up for this data can be found at either Chris Martenson's web site or Financial Times​

 

Objectivity is a myth. No one can be completely objective, the best we can do is to know our prejudices and correct as best we can for them. Information is the same. Generally speaking, if I get the same basic idea from more than one source ie from a left and right leaning news source. Or better yet, if I get the same basic info from source outside of this country I feel like I am getting a better handle on it.

I am not able to separate the wheat from the chaff. I simply try to get the best info I can and make my own decisions regarding its meaning. Q9 and I could read the exact same set of data and get completely different meanings from it. This is why I strenuously object to economics being considered a hard science. It is a social science. There are no proofs. There are no certainties. Certainly not at the macro level. The sooner the world's economic school start teaching more behavioral economics the better off we will be.

We are coming to a crisis point as a nation. We have been through them before. The question is: what does the resolution look like?
Do we address our issues within the framework of the political and economic structure we have?
Do we address major flaws in our economic structure within the political structure we have?
Do we attempt to change either one peacefully?
Or does the whole thing devolve?

The level of animus I keep hearing, the inability to come to terms with our problems, our overall ignorance and denial, do not give me hope for the first three options.