Comments from Chris Temple
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We discuss, the Baltic Dry Index; the U.S. equity markets; and, the energy sector with the consideration of the recent comment from the Saudi’s.
Interesting point, Muscovite
With the Fed meeting today, do you think there is a derivative crisis near? Why is the Fed meeting?
Why do you argue, Chris, that by QE the depression has been ameleriorated. I.e. Is less worse than it would have been.
Let suggest that is pure Keynsianism and false.
It has resulted in mis-allocation of resources, time and effort. It has caused inefficient companies not to fail, when they should have. It has caused the 1% to focus not on improving and developing efficiency in companies, but on simply enriching themselves.
I didn’t argue that — I argued that asset price inflation was less bad than it might have been. As for manufacturing and some prices in the economy (oil most notable, as I have pointed out numerous times) Q.E. made things worse.
Chris, Sorry, my bad.
OOPS — I meant asset price deflation
Keynesianism……where is my stupid IPod correction today?
I was interested in Chris’s comment right at the very end – without some kind of massive money printing investment in infrastructure how can there be any recovery in the base commodities?
I keep looking at the various copper, iron, coal, etc, etc, miners and how far their share prices have crashed but, going in 2016, what is going to stop them falling perhaps another 50% to 100%?
The only thing that I can see giving them some kind of bounce is the Fed not raising rates in December and a falling USD causes the commodity stocks to rise. Otherwise, where is the demand for copper, iron, coal, etc. going to come from?
If the $ does fall afterward and all then, yes, that may help the commodities. But not a lock; it will confirm how badly off the global economy is.
And I did not advocate “money printing investment” in infrastructure. I advocated a fiscal move; still not great–and more federal debt in the long run– but less bad than pure Q.E. from the Fed.
And far more effective than QE from the Fed, BTW
As Milton Friedman has pointed out……Many times…..Government spending IS the problem.
It robs resources from industry.
Some socialism is good and necessary, but excessive socialism, which results in Government spending in excess of the ability to tax ALWAYS ultimately destroys an economy.
That’s a good point, I don’t think anyone has mentioned here before, “excessive socialism”.
Just finished watching Maloney part 6? Looks like, according to him, we need huge immigration.
Obama trying to keep house prices up?
Lets bring in more Syrians to save ourselves.
That makes no sense at all to me, bb. I don’t believe the refuges have that kind of money. Do you?
This obsession with the need for population growth seems crazy to me.
Yes, I understand the problems that low or no population growth present. But they are surmountable, through savings, automation, and intelligent policies. Whereas, there’s no nice solution for overpopulation.
I believe the real driver behind the drumbeat for population growth is that our debt-based monetary system and economy are based on the foolish premise of perpetual growth. Without it, the house of cards falls apart, and the oligarchs money-making machine no longer works.
Al, the theory is kinda simple, as the baby boomers retire/die off, a lot of homes come on the market, its young people that keep the house prices up, as our birth rate has dropped dramatically, we will need immigration to keep prices up.
As for immigrants having the coin to purchase a house, they probly have as much chance as people that went to school with their debt and their employment opportunities.
Interesting bb
Bob in UK,
I believe the US is rudderless at this time.
The Fed is an iniquitous, self-serving organization, run by bankers for the benefit of banks.
The executive is asleep or solely focussed on racist and ultra socialist beliefs.
The legislature is so polarized as to be useless.
Clearly the economy NEEDS fiscal measures.
With the economy in the doldrums and corporate tax at the highest level in the world, clearly a stimulation of a cut in corporate taxation is needed.
But no; such would go against the MARXIST philosophy of an economically-clueless President, and thus the U.S. will slowly lose corporations to domicile in friendlier jurisdictions and lose their tax payments completely.
Good point, Professor!
This is going to get real real ugly…..gov handouts R going the way of the DODO bird!!!
The real question is why oil was able to stay above $60 for so long. A possible answer was Obama’s clean energy programs were way to expensive relatively speaking with cheap oil. He needed a high prices to sell his initiatives to the public. …Just food for thought.
Another question is, according to Bush and his Axis of Idiots, when will the undeclared Iraq “Liberation” War would pay for itself (Iraq reimburse America) once Iraq started pumping oil again. …Still waiting for that one.
As are we all, bj!
Iraq reimburse America?!?! Ha ha ha. There’s so much wrong with that I don’t know where to start.
I know, I know!!! But that was part of the Bush Cheney sales pitch–along with the mushroom clouds. Also still waiting for them to ride in their victory parade down the streets of Baghdad where they will be greeting and haled as liberators! Ha, ha!!! …And to think it all started with a dispute over Kuwait stealing Iraq oil via slant drilling over 20 years ago, a miscue from Kirkpatrick giving the green light wink and a nod for Iraq to take out Kuwait, and then Papa Bush reneging. So it goes or went from local dispute, to a regional war, then across Turkey and into Europe to become intercontinental and now probably transatlantic very soon.
One thing follows another, and when Obama and his Ds gained total control they could’ve put the brakes on it–as promised. Instead, they ignored their promises and used their ill-gotten power to shove Obama Care down out throats.
How ironic that we gave ISIS the very weapons they’re using to fight us instead of the Syrian regime; and how cute is it that no one ever mentions that in the media along with the fact that the Communist Chinese are also propping up that regime along with the Russians and Iran.
Oh what a web we weave… The power elite have artfully fumbled us into a global war where winner will take all. I just hope God is on our side and he forgives us through the love of Christ for all the lies, damn lies and more damn lies that brought us to this.
Agree bj
So true
Ho2 about just writing it off as a ridiculous statement!
The neocons and the New World Odor hates Putin and Venezuela so I think we can be fairly sure they are trying to create trouble in these countries via the oil market.
Very true…but the coming blowback could well be a b*&%h!
OIL is ran by COUNTRIES………….PMs are ran by companies………