Sunday, November 30, 2008

Read the last paragraph carefully....

Just where are we going to increase industrial production? China? We gave our industry away, remember? Heh heh

Of course we can always take over a small oil producing country. I'm ready.
A Depression Coming? Not Likely -

America's national output plunged for four straight years, 1930-1933, with a total drop in dollar value of some 50%, because of a combination of lower volume and falling prices (deflation).

The massive federal spending of Franklin D. Roosevelt's New Deal caused the gross domestic product (GDP) to rise from 1934 through 1937. Then the nation was shocked by a severe relapse (the "Roosevelt Recession") that saw national production fall in 1938. The Great Depression was finally ended not by the New Deal, but by rising U.S. industrial output in 1940-1941 to aid our allies in Europe, under assault by Adolf Hitler.

Saturday, November 29, 2008

Why all the financial crisis going on?.....

Oil exploded in price in the 70's under Carter. Destroying the economy and his presidency. He hired Paul Volker(yes that him in the news on Ob's team) who raised interest rates to 16 % or so and cleaned out the bankrupt assets from the American economic system. Giving us the "great orator" Reagan presidency with it.

Oil exploded in price this year and is taking the economy with it. Same medicine will be necessary to save our sorry asses. Now or later. The damage has to be limited. No one can duck the consequences of unsupported credit expansion. Eventually you run out of suckers to buy your debt.

Guess what Obama has to do?

As Ive  been saying for years  we need to take over a small oil producing country to stave off the Depression. Not much else a broken poorly run  empire can do. This was planned years ago and executed in Iraq. Probably time to do it again after OB plays Jimmy Carter and inspires everybody with his soaring rhetoric. And hires the Clinton gang to institute "change."

By the way, all you have to do is pay attention to what the elite are telling each other. Not that anyone pays attention to these people talking to each other. Only their speeches for the masses are covered by the Corporate media.

 Anyways Cheney ran Haliburton the oil service company. Read what he was saying right after gaining office as VP:
Peak Oil: Life After the Oil Crash

A report commissioned by Cheney and released in April 2001 was no less disturbing:
The most significant difference between now and a decade ago is the extraordinarily rapid erosion of spare capacities at critical segments of energy chains. Today, shortfalls appear to be endemic. Among the most extraordinary of these losses of spare capacity is in the oil arena. Source
In light of this information, Cheney knew the only way for Western oil majors to stay oil majors was to use force to grab what's left in the Middle East and then give the contracts to pump that oil to the oil majors. Four years after the invasion of Iraq, this is exactly what is happening. U.K. Independent journalist Geoffrey Lean explains:
"So where is this oil going to come from?" Cheney asked His answer: the Middle East was "where the prize ultimately lies".

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Friday, November 28, 2008

We need combat pay.....

Just wait until the food runs out.
Wal-Mart clerk dies as crowd rushes in - Life-

Wal-Mart worker dies after crowd rushes store
Shoppers knocked him over, 'physically broke down doors,' police say

Wal-Mart employee dies
Nov. 28: A worker at a Wal-Mart on Long Island died after being trampled by a crowd. MSNBC's Contessa Brewer reports.


Video: Life

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Gut Check America

What should be atop Barack Obama's "to do" list when he takes office in January? Click here to share your opinion.
NBC Field Notes

NBC News correspondents and producers across the U.S. shed light on the news of the day.
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Image: A security guard stands in front of columns of containers

The Week in Pictures
From a community effort to put out a fire to snow-covered vineyards, a look at some of the week’s most compelling images.
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View and discuss the pictures and issues that caught our eyes.
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What’s this?
Wal-Mart unveils a new look for its stores
Ahead of the Bell: Wal-Mart Stores
At a Glance: Wal-Mart Stores vs. Target
Sales index shows weak November retail sales
DC area shoppers hit stores with smaller budgets staff and news service reports
updated 1 hour, 10 minutes ago

NEW YORK - A worker was killed in the crush Friday after a throng of shoppers eager for post-Thanksgiving bargains burst through the doors at a suburban Wal-Mart, authorities said.

Nassau County police said the 34-year-old man was taken to a hospital where he was pronounced dead at about 6 a.m. ET, an hour after the store in Valley Stream on Long Island opened.

A police statement said a throng of shoppers "physically broke down the doors, knocking him to the ground." The exact cause of death "will be determined by the medical examiner's office," the police stated.

About time....

Now  we can all buy a new house with our unemployment checks.

No wait. That's what these giant new stimulus checks are for.  Good thing we changed Presidents. Wouldn't no what to do with out an experienced hand at the helm. Opps I forgot Mac lost.
Mortgage rates plummet after $800 billion credit infusion - Nov. 26, 2008

NEW YORK ( -- Mortgage rates fell sharply yesterday after the administration announced that it will pump another $800 billion into credit markets to free up frozen consumer and mortgage lending.

That number dwarfed previous government actions aimed at bolstering the mortgage lending market.

"The feds agreed to spend a half a trillion dollars to buy up mortgage backed securities and another $100 billion to fund lending for Fannie and Freddie; we're not talking chump change anymore," said Keith Gumbinger of HSH Associates, a publisher of mortgage information.

Rates averaged 5.77% for the day on a 30-year, fixed rate loan, down from 6.06% Monday, according to Gumbinger. They fell as far as 0.75 percentage points during the day, according to Orawin Velz, Associate Vice President for Economic Forecasting at the Mortgage Bankers Association.

Thursday, November 27, 2008

Lord Obama.... Change you can believe in....

Ha ha ha ha ha ha. These lefty voters are stupider than right wing voters. At least we got the Supreme court for the next couple of years. Should be that long to finish off the working stiff. Who needs them when you have Lord Obama's magic wand.
Gates to stay on as Pentagon chief, aides say - International Herald Tribune

WASHINGTON: In a show of bipartisanship and continuity, President-elect Barack Obama has decided to keep Defense Secretary Robert Gates in his post, Democrats close to the transition said, and on Wednesday named Paul Volcker, a former chairman of the Federal Reserve under Democratic and Republican presidents, to lead a new White House economic advisory committee.

It will be the first time a Pentagon chief has been carried over from a president of a different party. Obama's advisers were nearing a formal agreement with Gates to stay on for perhaps a year, the Democrats said Tuesday, and they expected to announce the decision as early as next week, along with other choices for the national security team. The two sides have been working out details on how Gates would wield authority in a new administration.

The move will give the new president a defense secretary with support on both sides of the aisle in Congress, as well as experience with foreign leaders around the world and respect among the senior military officer corps. But two years after President George W. Bush picked him to lead the armed forces, Gates will now have to pivot from serving the commander in chief who started the Iraq war to serving one who has promised to end it.

Wednesday, November 26, 2008

What's science got to do with it?.......

Jesus walked on water. Al Gore lost the election. Santa Clause is a shopaholic. America can afford to buy all the World's problems. Obama will wave his magic wand and cure socialism's disasters.

And global warming is worth destroying millions of lives because it is the new sacrament of Environmentalism. Nothing will be more important than saving mankind from the evils of Capitalism.  You descent you get punished.

Pass the Holy water.

The price of dissent on global warming | The Australian

David Bellamy | November 25, 2008
Article from: The Australian

WHEN I first stuck my head above the parapet to say I didn't believe what we were being told about global warming, I had no idea what the consequences would be. I am a scientist and I have to follow the directions of science, but when I see that the truth is being covered up I have to voice my opinions.

According to official data, in every year since 1998, world temperatures have been getting colder, and in 2002 Arctic ice actually increased. Why, then, do we not hear about that? The sad fact is that since I said I didn't believe human beings caused global warming, I've not been allowed to make a television program.

My absence has been noticed, because wherever I go I meet people who say: "I grew up with you on the television, where are you now?"

It was in 1996 that I criticised wind farms while appearing on children's program Blue Peter, and I also had an article published in which I described global warming as poppycock. The truth is, I didn't think wind farms were an effective means of alternative energy, so I said so. Back then, at the BBC you had to toe the line, and I wasn't doing that.

At that point, I was still making loads of TV programs and I was enjoying it greatly. Then I suddenly found I was sending in ideas for TV shows and they weren't getting taken up. I've asked around about why I've been ignored, but I found that people didn't get back to me. At the beginning of this year there was a BBC show with four experts saying: "This is going to be the end of all the ice in the Arctic," and hypothesising that it was going to be the hottest summer ever. Was it hell! It was very cold and very wet and now we've seen evidence that the glaciers in Alaska have started growing rapidly, and they have not grown for a long time.

I've seen evidence, which I believe, that says there has not been a rise in global temperature since 1998, despite the increase in carbon dioxide being pumped into the atmosphere. This makes me think the global warmers are telling lies: CO2 is not the driver. The idiot fringe has accused me of being like a Holocaust denier, which is ludicrous. Climate change is all about cycles. It's a natural thing and has always happened. When the Romans lived in Britain they were growing very good red grapes and making wine on the borders of Scotland. It was evidently a lot warmer Read more here

Tuesday, November 25, 2008

Makes sense to me.......

Still believe in global warming? The new religion. let's see what some real scientist have to say. You know the ones who refuse to be bought or cowed by government sponsored thugs.

I find it refreshing that this faith-based "we all gonna die by Monday if we don't give a way the farm to the bureaucrats right now"  off the news radar. Depression talk seems more apropos, I guess. We can't even afford to fart now let alone give these Al Gore nuts more money. but wait. This is the government we are talking about. The best money can buy.
Quote of the Day:

"Sometimes I wonder whether the world is being run by smart people who are putting us on... or by imbeciles who really mean it." - Mark Twain

Global Warming - Doomsday Called Off (2/5)

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Monday, November 24, 2008

Typical in America.....

How Obama Got Elected

On November 4th, 2008 millions of Americans were shocked that a man of Barack Obama's limited experience, extreme liberal positions and radical political alliances could be elected President of the United States. For many of these Americans, the explanation was rather simple... the news media, completely enamored with Obama, simply refused to do their job.

On Election day twelve Obama voters were interviewed extensively right after they voted to learn how the news media impacted their knowledge of what occurred during the campaign. These voters were chosen for their apparent intelligence/verbal abilities and willingness to express their opinions to a large audience. The rather shocking video below seeks to provide some insight into which information broke through the news media clutter and which did not.

Saturday, November 22, 2008

I guess we'll have to ban water........

No money in it for the lefties. No carbon credit trading. No Gore commercials, I mean documentaries. Damn!
The Warmer, the Merrier by James P. Hogan

Earth warmed a little during the last century as part of the natural climate cycles that have always been happening and always will. The principal agent by far – to the tune of 95% of the total in maintaining an atmosphere that keeps the Earth from freezing at this distance from the Sun – is water vapour, which doesn't even figure in the computer models that the current hysteria is based on, because you can't control it, tax it, or blame it on your favorite villains. At 0.03% of the Earth's atmosphere, carbon dioxide is a minor player, and the proportion of it due to human activities, minuscule – 2% of the 0.03%, which is six millionths of the 5% warming which was due to CO2 to begin with. Put another way, the human contribution works out at three cents in a hundred thousand dollars.

Friday, November 21, 2008

Geithner for treasury.......

Another Wall Street insider.  Hooray for OBnomics. We're saved. problem solved. Yippee. Snore
Timothy F. Geithner, President of the New York Fed - Organization - About the Fed - Federal Reserve Bank of New York

Timothy F. Geithner

Timothy F. GeithnerTimothy F. Geithner became the ninth president and chief executive officer of the Federal Reserve Bank of New York on November 17, 2003. In that capacity, he serves as the vice chairman and a permanent member of the Federal Open Market Committee, the group responsible for formulating the nation's monetary policy.

Mr. Geithner joined the Department of Treasury in 1988 and worked in three administrations for five Secretaries of the Treasury in a variety of positions. He served as Under Secretary of the Treasury for International Affairs from 1999 to 2001 under Secretaries Robert Rubin and Lawrence Summers.

He was director of the Policy Development and Review Department at the International Monetary Fund from 2001 until 2003. Before joining the Treasury, Mr. Geithner worked for Kissinger Associates, Inc.

Mr. Geithner graduated from Dartmouth College with a bachelor’s degree in government and Asian studies in 1983 and from the Johns Hopkins School of Advanced International Studies with a master’s in International Economics and East Asian Studies in 1985. He has studied Japanese and Chinese and has lived in East Africa, India, Thailand, China, and Japan.

Mr. Geithner serves as chairman of the G-10’s Committee on Payment and Settlement Systems of the Bank for International Settlements. He is a member of the Council on Foreign Relations and the Group of Thirty.

He and his wife, Carole Sonnenfeld Geithner, have two children.

July 2007

Thursday, November 20, 2008

Hillary for Secretary of State?.....

Of course. Keep your friends close...your enemies closer.

Wednesday, November 19, 2008

I love Xm Radio......

Can't sell cars, can't sell radios. trickle down economics. We ain't seen nothing yet. We need to shake out the incompetents, crooks and nitwits out of the economy before a new cycle can begin. Of course the fed's have to bail out all their screw ups.

By the way, why  do we need bank financing for no money down no down payment 0 interest loans? Am I missing something? Other than a reluctance to assuming risk maybe these dealers will have to be like the used car guys. Sign here and drive it home. Screw up and they hire Jose to steal it back.

I used to buy cars by simply signing my name and leaving the keys to the piece of shit they sold me last time. Of course you could get a new car for 3 or 4 thousand dollars back in those days. However, when my wages couldn't keep up financing became the only way that  this wage slave could drive to work. To pay his debts to put a roof over his head. Pay all those taxes. eat. Hell,come to think about it  now days we can't even afford to die.

We have to go back in time to the "good old days" to understand what happened. The simple fact is that wages haven't kept up with inflation. When I bought and sold Real Estate back in the Stone Age it was always a simple formula we used to qualify prospects. (Today it's formulated as the affordability index.)  20 % down, 25% of monthly gross for the monthly payment and no  outstanding debts payable or in arrears over a year or more. (Buy the car and furniture later.)

This worked for "prudent lenders". It was the the Fed who  financed 95% of the loan amounts for what we call today, "sub prime borrowers".  (About the only qualification was that they had a social security number and could show an income of some kind) In other words "socializing" the risk for political reasons.

Because of the growth in credit caused by the Government lowering the Fed rate everyone and their brother got in to the lending business. Inflation in housing, cars and business financing took off. Since Government guarantees most of these loans we have "socialized" all this risk. As soon as wages fall behind we have people pulling in and not borrowing. Causing a collapse in credit creation. A vicious cycle starts and ends up destroying innocent companies like Sirius XM. This is the fall out from economic boom and bust. Innocents get it in the ass.

Read the whole article and see what these guys did to get smacked around like this  .
Sirius XM at 17 cents - look out below - Nov. 19, 20

NEW YORK ( -- "Brother, can you spare a dime?" During the Great Depression, ten cents could buy a little something for those really hard up.

During this financial crisis, ask for two dimes, and you can get a share of Sirius XM. That's right, the stock of the much-ballyhooed satellite-radio merger has plunged more than 90% this year and was trading recently at just 17 cents.

And now, several analysts wonder if Sirius XM (SIRI) will even be able to last for much longer without a major restructuring.

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Tuesday, November 18, 2008

What's the big debate about "saving GM?"

Give them the  money and get on with some thing else.
Anyone seriously
believe that the Dems are going to abandon the UAW? With out them and a
few left-wing nut job groups the Dems would disappear from serious
contention against the  the corporate machine controlled by the Repubs.
Democrats Plot Detroit Rescue -

Democratic leaders in Congress said Tuesday they will push legislation next week to use the $700 billion Wall Street rescue fund to bail out Detroit auto makers, and President-elect Barack Obama ordered his transition team to look at ways to aid the car industry even before his inauguration.

The moves come as General Motors Corp. has warned that it could face a debilitating cash shortage by year's end. On Tuesday, GM stock fell an additional 13%. The Bush administration has balked at expanding the bailout to the stricken auto makers, saying it doesn't have specific authority from Congress to do that.

Monday, November 17, 2008


No nation ever succeeded by giving it's manufacturing base away and depended on"free trade" partners like China to sell them everything for paper promises and debt obligations. Eventually the creditors have to collect or go out of business themselves.

This form of paternalism has become pervasive in America, that everyone owes us every thing we need because our consumers will buy anything if told to. We've been sold a load of horse shit that the world is full of well intentioned and prosperous trading partners if only we would give them control of a large part of our economy.

This came about I believe, because  the Clinton gang made a deal with the Red's in China for special trade rights for "campaign contributions". They weren't the only ones of course selling us out as it started with the Bush gang the administration before. They just made it "bi-partisan".

However, the current crisis is only the beginning of the bust. Over the next 10 years or so borrowed money from foreigners will be calling the shots. Do what your told or we sell our treasuries and buy gold. You nitwits starve in the dark. And since my generation will be all on government checks the gang in Washington will have little option. We vote. No politician can cut my check directly. You touch my check you have to get a real job. Not much they can do except war on someone.

Fucked rings a bell. Changes in Washington are a coming. And I don't mean OMygodBama  and his Clinton gang retreads  We can only hope for public hangings in our life times. Make great TV.

Read this guy's take and see what you think:

The G-20 leaders in Washington last week made a lot of noise about ramping up domestic spending. In the decades to come, this will not happen without import replacement -- which is just what it sounds like: instead of importing things you need, you make them at home, and people get paid a living wage to do it. Import replacement, by the way, is exactly how the United States rose in the 19th century to become the world's preeminent manufacturing nation. It doesn't foreclose trade with other countries, but it self-evidently changes the terms of that trade, and it would spell the end of the kind of predatory "globalism" that has led to the current state of gross imbalance and reckless destruction.

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Pat Buchanan still spot on after all these years....

You export your manufacturing base and end up dancing to your creditors tune. You have' no leverage or muscle in any negotiations other than praying for "understanding" or begging them not todon't pull the plug on their investments. Never mind that  everyone in America borrowed themselves into the poor house and destroyed much of the underlying assets that foreigners need to rely on to buy our federal debt.

Now that we have slowed, it's China's turn to feel the pinch. They must sell less to us because we are going broke. Their factories are going to close. No income for all that newly created Treasuries that Paulson has drummed up.

China has over 100 million unemployed people as it is. Taking to the streets and smashing things is not unheard of. try doubling that number and get a whiff of the fear from that little number. Think of a pissed off ant hill loosed on the world. 

Taki’s Magazine, edited by Taki Theodoracopulos

With her immense trade surpluses, China’s reserves have surged from $200 billion in 2002 to $2 trillion. Awash in dollars, Beijing now waits patiently, writes McMillion, to cherry-pick the crown jewels of America’s industrial empire—“patents, talents, natural resources, brands”—at fire-sale prices in the global crash.

As America plunges into recession and our industry hollows out, while China is still growing at 9 percent, as the 20th century’s greatest creditor nation now borrows from Beijing to pay for booster shots for its sick economy, may we hear once again the Bush-Clinton refrain about how the terrible danger we all face is from “protectionism.”

Sunday, November 16, 2008

been quiet on the war on global warming.....

Very few rational people consider this much more than a scam. Carbon credits anyone? that's what it's all about. Too bad the economy is in the toilet for the foreseeable future or we'd get stuck with this loser.

Very hard to bail out the AUW union by destroying the oil industry. Dem's have to rethink some of their religious beliefs to push this job killer on us. Wait aren't we talking Liberals here. Wonder what the Pope of the environmental movement, Al Gore, has to say now.

Hmm. Kill the unions or piss off Editorials, Political Cartoons, and Polls from Investor's Business Daily -- Alarmists Still Heated Even As World Cools

The latest warming trend, which appears to have ended in 1998, is the result of the end of the Little Ice Age, which extended from roughly the 16th century to the 19th. During that period, Muir Glacier in Alaska filled Glacier Bay. In fact, when the first Russian explorers arrived in Alaska in the 1740s, there was no Glacier Bay — just a wall of ice where the entrance would be.

As the Earth warmed, long before SUVs roamed the globe, Alaska's glaciers also warmed and began to recede, starting in the 1800s. All that may be changing. During the winter and summer of 2007-2008, unusually large amounts of winter snow were followed by unusually cold temperatures in June, July and August.

"In June, I was surprised to see snow still at sea level in Prince William Sound," says U.S. Geological Survey glaciologist Bruce Molnia. "On the Juneau Icefield, there was still 20 feet of new snow on the surface of the Taku Glacier in late July."

It was the worst summer he'd seen in two decades.

As the Anchorage Daily News reports, "Never before in the history of a research project dating back to 1946 had the Juneau Icefield witnessed the kind if snow buildup that came this year. It was similar on a lot of other glaciers too."

Saturday, November 15, 2008

This is a no=brainer

The union, I mean the auto companies, must be saved. This failure would seriously disrupt the Dem's racket. Who wants that? Next thing you know they would have to get money from voters. Get real!
Full-Throttle Push for Auto Bailout | Page 1 of 2 | Automakers | Financial Articles & Investments News |

WASHINGTON (AP) -- The auto industry and business groups have mounted a lobbying onslaught to thwart GOP opposition to a Senate vote next week on Democrats' plan for a $25 billion emergency loan plan for U.S. carmakers.

Senior Democrats are drafting legislation that would carve out part of the $700 billion Wall Street bailout for loans to the three major U.S. auto companies in exchange for a government ownership stake in the companies.

They hope to push the measure through during a postelection session of Congress that begins Monday. General Motors(GM Quote - Cramer on GM - Stock Picks), Ford(F Quote - Cramer on F - Stock Picks), and Chrysler are lobbying feverishly for Congress to approve the aid, citing an economic downturn that has choked off sales and frozen credit.

Friday, November 14, 2008

This is a no=brainer

The union, I mean the auto companies, must be saved. This failure would seriously disrupt the Dem's racket. Who wants that? Next thing you know they would have to get money from voters. get real!
Full-Throttle Push for Auto Bailout | Page 1 of 2 | Automakers | Financial Articles & Investments News |

WASHINGTON (AP) -- The auto industry and business groups have mounted a lobbying onslaught to thwart GOP opposition to a Senate vote next week on Democrats' plan for a $25 billion emergency loan plan for U.S. carmakers.

Senior Democrats are drafting legislation that would carve out part of the $700 billion Wall Street bailout for loans to the three major U.S. auto companies in exchange for a government ownership stake in the companies.

They hope to push the measure through during a postelection session of Congress that begins Monday. General Motors(GM Quote - Cramer on GM - Stock Picks), Ford(F Quote - Cramer on F - Stock Picks), and Chrysler are lobbying feverishly for Congress to approve the aid, citing an economic downturn that has choked off sales and frozen credit.

Thursday, November 13, 2008

Definitlily give these guys a bail out....

Who needs unions anyways. Dems get all that union money then ship their jobs to Russia! Only in America!
Mish's Global Economic Trend Analysis

New Way Of Doing Business

In keeping with Pelosi's spirit of a "New Way Of Doing Business", GM Opens $300 Million Russian Plant to Boost Sales.

General Motors Corp., the world's biggest carmaker, opened a $300 million factory in Russia as it looks to compensate for slumping sales in western Europe and North America.

The plant in the Shushary district on the outskirts of St. Petersburg will produce 70,000 Chevrolet Captiva sport-utility vehicles and the Opel Astra, with plans to manufacture the Chevrolet Cruze compact car next year.

"Our strategy is to become the leading manufacturer in Russia," Carl-Peter Forster, GM's chief for Europe, told reporters during the plant opening today. "For us Russia is not an emerging market. Russia emerged long ago."

So instead of losing jobs to Mexico, China, and India, GM's "New Way Of Doing Business" will be to lose jobs to Russia. I am quite sure the Treasury and House Speaker Pelosi will be excited by this development.

Wednesday, November 12, 2008

Who's next?...

I expect a huge increase in consolidation as the Empire implodes upon itself. I believe the only retailer left will be Walmart for all practical purposes. Very few grocery stores with union contracts will survive. Right now our store is only hiring part time. Kids quit and they aren't being replaced on my crew. Expect a small bonus this year for Xmas then that comes to a screeching halt as sales drop off a cliff.

Only advantage we have is that Walmart can give food a way at cost to bring in sales. Multiply this across the country and you can see what i mean about the demise of union companies.

I'm glad I left California because it ain't going to be pretty in those "hoods" and what's left of the middle class has to watch their houses being repossessed.

My sister and her husband down there have moved in  with their daughter to survive. Expect a lot more of that.

Patty and I will be out of debt, with no house or car payment in about 20 months. We could make it with out the car but that shouldn't be a problem. Trying to help someone else will not be fun. You never know about recessions (or depressions) we could all be in the poor house.
Anheuser-Busch shareholders bless InBev deal - MarketWatch

Anheuser-Busch shareholders bless InBev deal
By Matt Andrejczak, MarketWatch
Last update: 1:21 p.m. EST Nov. 12, 2008
Comments: 9
SAN FRANCISCO (MarketWatch) -- Anheuser-Busch Cos. said Wednesday a majority of its shareholders voted to approve its proposed combination with rival beer giant InBev NV.
When the deal closes, Anheuser-Busch shareholders will get $70 in cash for each share of Anheuser-Busch stock they own.
The deal, which creates the world's largest beer company, is valued at $52 billion. The new company will be called Anheuser-Busch InBev.
A closing date has not been set, but the companies expect the merger to be done before the end of the year. InBev shareholders had approved the merger on Sept. 29

Could Greenspan destroy our system on purpose....

Ayn Rand was a nut. One of her right hand men was Alan Greenspan. Makes you wonder though.
The Daily Reckoning

Ron Paul: In the 1960s, I was studying and reading Austrian economics and I received the Objectivist newsletter that Ayn Rand put out. Alan Greenspan had a piece in the newsletter and it was a delightful article - it said all the things I believed in. One day, we had a personal meeting with Greenspan just to get our pictures taken and chat for a few minutes, and we knew that was coming up. So I dug out my original copy, and I took that with me, so when we were getting ready to get our picture, I flipped it open to his article and said, "Do you remember this?" and he said he did. Then I asked him to autograph it, so he got out his pen and he was signing it, and I said, "Do you want to write a disclaimer on this article?" He said, "No, I wouldn't do that. I just read this recently and I fully support everything I wrote." Which is interesting because you don't know exactly what he means. If he fully supports what he wrote, why was he managing a monetary system that was exactly opposite of what he wrote in 1966?

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Tuesday, November 11, 2008

This guy is nuts......

Only these left.wing nut jobs can get the Nobel prize, right? Paul Krugman, Jimmy Carter, Bill Clinton, etc. Read the whole piece and let your mind boggle over the most ridiculous piece ever written on economics. Of course, Lord Obama will make it all better. Right.
Op-Ed Columnist - When Consumers Capitulate -

For the fact is that we are in a liquidity trap right now: Fed policy has lost most of its traction. It’s true that Ben Bernanke hasn’t yet reduced interest rates all the way to zero, as the Japanese did in the 1990s. But it’s hard to believe that cutting the federal funds rate from 1 percent to nothing would have much positive effect on the economy. In particular, the financial crisis has made Fed policy largely irrelevant for much of the private sector: The Fed has been steadily cutting away, yet mortgage rates and the interest rates many businesses pay are higher than they were early this year.

The capitulation of the American consumer, then, is coming at a particularly bad time. But it’s no use whining. What we need is a policy response.

The ongoing efforts to bail out the financial system, even if they work, won’t do more than slightly mitigate the problem. Maybe some consumers will be able to keep their credit cards, but as we’ve seen, Americans were overextended even before banks started cutting them off.

No, what the economy needs now is something to take the place of retrenching consumers. That means a major fiscal stimulus. And this time the stimulus should take the form of actual government spending rather than rebate checks that consumers probably wouldn’t spend.

Let’s hope, then, that Congress gets to work on a package to rescue the economy as soon as the election is behind us. And let’s also hope that the lame-duck Bush administration doesn’t get in the way.

Maybe Jesus is coming after all......

Where do they invent these polls at? Wait a year and make a redo.
CBS News Poll: Americans Optimistic About Next Four Years - Horserace

CBS News Poll: Americans Optimistic About Next Four Years
Posted by Vaughn Ververs| Comments12

Whether they voted for him or not, Americans are optimistic about the next four years with Barack Obama as president, according to a new CBS News poll. Seventy-one percent of all Americans say they are optimistic about the next four years, including nearly half (48 percent) of all those who voted for John McCain. Just 17 percent of all Americans are pessimistic, including 40 percent of McCain voters.

Monday, November 10, 2008

Kind of convenient don't you think......

Every few years we run out of oil, then we find more. All we need is a price increase or tax cut. This time the economy collapsed when it happened. No really.
Oil prices are set to spike again | Well prepared | The Economist

The cost of production is no more static than the price of oil. Falling prices for important raw materials, such as steel and natural gas, should help to bring down development costs. By the same token, the cost of hiring some kinds of drilling rigs is falling. The strengthening dollar also helps, points out Paul Sankey of Deutsche Bank, since that tends to increase oil firms’ dollar-denominated revenue relative to expenses in other currencies.

But according to Francisco Blanch of Merrill Lynch, the rising cost of capital is likely to outweigh all these benefits. Tar-sands schemes, like most oil projects, are very capital-intensive and so very sensitive to changes in financing costs. He believes that higher borrowing charges could push the cost of new tar-sands developments as high as $150 a barrel by 2010. So if demand for oil has started growing again by then, and if tar sands remain the source of marginal production, then the oil price will have to rise back to this summer’s levels to stimulate increased supply. “The age of easy oil”, warns the Emirati minister, “is gone forever.”

Sunday, November 09, 2008

Definitlily give these guys a bail out....

Who needs unions anyways. Dems get all that union money then ship their jobs to Russia! Only in America!
Mish's Global Economic Trend Analysis

New Way Of Doing Business

In keeping with Pelosi's spirit of a "New Way Of Doing Business", GM Opens $300 Million Russian Plant to Boost Sales.

General Motors Corp., the world's biggest carmaker, opened a $300 million factory in Russia as it looks to compensate for slumping sales in western Europe and North America.

The plant in the Shushary district on the outskirts of St. Petersburg will produce 70,000 Chevrolet Captiva sport-utility vehicles and the Opel Astra, with plans to manufacture the Chevrolet Cruze compact car next year.

"Our strategy is to become the leading manufacturer in Russia," Carl-Peter Forster, GM's chief for Europe, told reporters during the plant opening today. "For us Russia is not an emerging market. Russia emerged long ago."

So instead of losing jobs to Mexico, China, and India, GM's "New Way Of Doing Business" will be to lose jobs to Russia. I am quite sure the Treasury and House Speaker Pelosi will be excited by this development.

Saturday, November 08, 2008

Most of what we are hearing is Bull....

Plenty of money out there but why should the big banks lend any when they can get billions by not doing so. The fed just ladles tons of cash to them and they buy each other up.

Until the governments around the world stop this will continue. "Corrections" are normal when fraud and greed are punished by spending cuts. Like any pyramid scheme eventually you run out of suckers to pay 25% interest on credit cards and half or more of your income on house payments. Living on credit doesn't work for very long.Price correction is what's going on.
Government panics to save their contributors only make it worse.

Check out the Daily Reckoning blog:
Deflation Now…Inflation Later

Yes, dear reader, everything is going according to plan. But whose plan? It's not the plan of consumers - who counted on having more and more money to spend. It's not the plan of investors; they're getting hammered by the markets. It's not the plan of Bernanke or Paulson either; they're desperately trying to stop it.

No, it's Nature's Own Plan…in which bubbles always pop…what goes up eventually comes down…and people always get, neither what they expect nor what they hope for, but what they deserve.

"Nature in her wisdom, and God in His grace," we wrote in Financial Reckoning Day, "make sure people get what they've got coming…"

Remember, a correction is equal and opposite to the deception that precedes it. A few years ago, we predicted that based on the level of mass hallucination in the markets in '05-'06, the coming correction "ought to be a doozy."

Now we find out what a doozy looks like.

Friday, November 07, 2008

I'm now a Ron Paul republican.......

Government has usurped the power granted to us by the Constitution. Wait til the Shit hits the fan over the next decade and there is blood in the streets. All this power will be directed at the citizens and our liberty will be crushed.

We should not forget that we got Mac as our candidate because of Dems,  "independents"and airhead "moderates" voted that way in the primaries. we fiscal conservatives didn't have a voice. This guy was dead meat until this happened. Everyone who voted for Mac in the primary campaigns raise your right hand.

Thought so.

Ron Paul has been warning us about this for years. Nothing matters to the criminal gang in Washington except winning to maintain power. Just look at the treatment of Sarah Palin by the Media.

Be ready: Save, cut spending on foolishness, line up credit sources, especially credit union credit cards.  It helps if you got a government check to fall back on. Because jobs are the first things to go.

In a few short years everything will be on sale. After the coming bust (you ain't seen nothing yet) we can go nuts and buy everything we want at half price or less. Happens every time in history as an Empire implodes. Rome did it. England especially gave it's wealth away through "free trade" borrowing itself into the poor house and now rapidly becoming a third world hangout for Moslem fascist.

Check this guy out for further info.
The Daily Reckoning

Today, if we had to pay for fighting this war and financing our welfare state, there would be a tax revolt in this country because it would cost so much. But they can delay this by borrowing, by inflating. That is literally just creating money out of thin air to pay the bills and delaying the payment. So the whole idea of these deficits we run up and the fact that we have a financial monetary system that helps encourage politicians to do exactly the wrong thing instead of working to limit the size of government and maximize individual liberty and maximize the marketplace… Politicians end up doing the opposite because they get rewarded. Most incumbents win by being errand boys, coming to Washington and delivering the goods. But my point over the years has been that eventually that system breaks down, and it's very, very dangerous and very harmful to everybody concerned.


Protestors Explode Over Prop 8; Riots Turns Ugly ~ Griffs Scrapyard

Protestors Explode Over Prop 8; Riots Turns Ugly

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Thursday, November 6th, 2008
by Griff

Thousands of protesters have flocked to the streets in California in a raging fury, and it’s all thanks to Proposition 8, which aimed to ban all gay marriages, and discard any that had previously existed in California.

In a show of complete intolerance and disregard to civil rights, Proposition 8 won a majority vote and is currently on it’s way to modify California’s very Constitution. While the ACLU (American Civil Liberties Union) has opened a number of lawsuits against the Proposition, calling it unconstitutional, a number of people have decided that they simply can’t wait, and instead have taken to the streets for their voices to be heard.

Constitution... We don't need no stinkin Constitution....

Deleveraging the World Economy

If there ever was an event where our elected representatives showed their complete and utter disdain for the numbskulls who elected them, this was it.

By the way, some of you may have wondered how a spending bill could originate in the U.S. Senate. Doesn't the Constitution require that all appropriation bills begin in the House of Representatives? (Not that anyone in Washington, on either side of the aisle, pays any attention to the Constitution anymore.)

Here's how that particular trick was done. The Senate took a bill that had been passed in the House some time ago - in this case, the Paul Wellstone Mental Health and Addiction Equity Act of 2007 - and voted to replace all of the text with their spanking-new measure. Presto-chango, a new (but unconstitutional) spending bill was transformed into an appropriations bill that originated in the House.

Did I already mention how this measure, more than any other I've seen, shows the total and complete disdain our representatives have for us? I guess it doesn't really matter if its origins were strictly Constitutional, since the measure itself will finance the biggest government takeover of business we've ever seen in this country. Would someone please show me where the Constitution says that the Treasury can take taxpayers' money to buy stock in a bank, an insurance company, or another financial institution?

But I keep forgetting; we don't operate under the Constitution any more. Haven't for decades.

Thursday, November 06, 2008

Who the Hell's idea was it ....

I couldn't have found an easier candidate for Ob to beat. How did this guy win the primaries. Answer: Dems infiltrated the primaries as "independents". Besides what Coulter points out the basic difference between OB and Mac is that one was white.
Ann Coulter : The Reign of Lame Falls Mainly on McCain -

After showing nearly superhuman restraint throughout this campaign, which was lost the night McCain won the California primary, I am now liberated to announce that all I care about is hunting down and punishing every Republican who voted for McCain in the primaries. I have a list and am prepared to produce the names of every person who told me he was voting for McCain to the proper authorities.


Birds of feather flock together....

Obie is a good snake oil salesman. Why are we surprised? Nealz Nuze Today's Nuze


Less than 24 hours after his acceptance speech, Barack Obama is working on creating his White House staff. To be expected. But the rumors and whispers came to fruition ... his first act as president-elect was to ask Democrat Illinois Rep. Rahm Emanuel to be his chief of staff. And you elected this guy to be the beacon of change? Rahm Emanuel is the epitome of old-school, established Washington partisan politics. He was a top dog washer for Bill Clinton from 1993 to 1998. In 2006, you can thank Rahm Emanuel for the Democrat take-over of the Congress ... he was the Chairman of the Democrat Congressional Campaign committee. This He recognized the fact that they Republicans had blown it. And he capitalized. Big time.

Watch money......

The government will tell you when, where, and how to spend. Might as well.
No Savings Allowed

we have "total catastrophe" to look forward to! And sure enough… Look!

Or perhaps it is as Ayn Rand said, circa 1959 - according to a clip sent by Ed Steer of - who also nailed it when she said, "Watch money. Money is the barometer of a society's virtue. When you see that trading is done, not by consent, but by compulsion - when you see that in order to produce, you need to obtain permission from men who produce nothing - when you see that money is flowing to those who deal, not in goods, but in favors - when you see that men get richer by graft and by pull than by work, and your laws don't protect you against them, but protect them against you - when you see corruption being rewarded and honesty becoming a self-sacrifice - you may know that your society is doomed."

And although society is doomed by the execrable actions of the morons at the Fed and Congress for these last few decades, that does not necessarily mean that we are all doomed, as gold, silver and oil will always do very well in times like these, which I say with such powerful authority that you can see the sincerity shooting out of my eyes like incandescent sparks because for the last 4,500 years when an idiot government did this kind of crap, gold and silver protected their owners, while nothing else really did! Nothing!

Wednesday, November 05, 2008

Give the Dem's the Depression.....

The next few years are going to be traumatic. No conservative is going to be happy. Borrow and spend will be the call. State governments will be in line for bailouts. For that matter, everyone and their brother will be in line. Any way you cut it, finding new entities to tax will will become unavoidable from this point on.

Anyways, expect a debt moratorium of some kind, raising "sin taxes" and more kickbacks to taxpayers to save the Washington elite's asses. Either way avoiding the pain is impossible. They can only make the situation worse by temporarily staving off the collapse by re inflating big time.

A deflationary collapse after boom and bust policies go awry is no fun. Expect radical changes in our military usage world wide as the Empire retrenches and continues moving to China. Only they have the consumer base to create and sustain a new inflationary bubble that the system needs to support capitalism's  underlying constituencies. (every one wants something for nothing, hand it over.)

It must be understood that the West has temporarily exhausted itself. That's why China will have it's day in the sun. We may expect the Moslems to take over most of Europe and convert these economies to permanent depressed areas like the Middle East without oil.

As far as the Middle East is concerned  oil begins to disappear from the scene  as a viable economic engine for progress in all these countries under a Democrat regime. Think renewable. This guarantees conservative religion in power becoming the norm.
Expect turmoil to become endemic as the wealth dries up and fundamentalism takes over . Unfortunately,In order for Israel to survive the nuke may come in to play.

Talk radio gets it in the chin with the "fairness doctrine". Wall street will get cleaned out of people who formally supported the Republicans. Government takes over most of the the banking system and gives out large handouts to the Dems constituencies. The ''rich" are already lining up with Obie staying under the class warfare radar (The rich always buys a seat at the table).Historically banks are in bed with the Dems and Wall Street owns the Repubs.

Let's not forget though, that the Boomers are still in full power and can change most of this by saving and investing for the future if we stay employed. I've argued for years that free trade, i.e giving our economic base away to foreign entities therefore destroying the working class is nuts. We, the working class (blue collar) who fought all the wars, paid all the taxes and made the world safe for democracy, have been sold down the river by con artists, quick buck guys and Ivy league grads without a lick of sense or shame. We are broke.

As far as the current election cycle is , you would think Republicans have learned by now that it takes more than opposition to abortion  to keep us at the polls. Time will tell if they have learned not to lie about their agenda. Small government is not wishful thinking but a winning time tested winner. However,  since when is bailing out their buddies on Wall Street, politically the kiss of death, part of controlling spending. Hello!

Our way of life is disappearing before our eyes and we ain't happy. The next couple of election cycles will prove it. The establishment is in deep shit. Repeat, constantly lying to win elections doesn't cut it for long. Bring back Reagan's campaign promises for God's sake and run on it.

What has become obvious for the immediate future is that it's the  affordability index which counts the consumer's ability to buy big ticket items that counts. At this point in time, people's wages haven't caught up with inflation. Also, it should be no surprise to anyone that bankrupt people can't pay more for  houses, stocks or credit cards even if you give it to them without a down, without credit checks or by using interest rate gimmicks. Any time you accede the consumer's carrying capacity for debt, you get a stop in buying. Nobody buys, nobody sells, nobody works, everybody screwed.

We'll have a mess for awhile until the system is cleared of all the junk bonds, sleazy loans and incompetent criminals in Washington. Expect unemployment to sky rocket and emergency measures to be taken until then.
Until this situation improves the government is simply wasting it's time. No one ever consumed themselves out of a bust. Period!

Sorry all you dreamers but only when we spend less and save more than we consume is there a surplus to invest for the future. No matter what the criminal class in Washington does! Remember: save and invest is the mantra.

Works everywhere it's tried.

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Tuesday, November 04, 2008

Run this guy for president......

Epoch Times - The Financial Crisis Symptom of Unsound Economy

Where is the voice for rebuilding the American economy through re-industrialization?

America's fundamental problem is that the economy is fundamentally unsound. it is hollowed out--a consumer economy that depends on persuading people to buy stuff they don't need with money they don't have.

That's a cruel scam, not an economy.

In other words, stabilizing the markets and solving the unprecedented liquidity crisis is only the first step. Long-term, what is needed is a plan to seriously incentivise American companies to manufacture, mine, and drill in America.

Poor Babies......

Maybe Lord Obie will kiss it and make it all better
China Confidential

Oil Price Plunge Shakes Iran
AP reports from Tehran:

Three weeks ago, a hard-line cleric close to Iran's president gloated publicly that the world financial crisis was God's punishment on the United States. The laughter, however, was short-lived.

Iran plunged this week into a bitter storm of political recrimination, largely directed at President Mahmoud Ahmadinejad, as officials and ordinary Iranians realized with shock that the Islamic republic faces a severe economic crisis of its own.

The reason: As oil prices plunge because of the global slowdown, Iran is caught in a classic crunch. Ahmadinejad's government failed to save enough of the billions in oil windfall it earned during the good years to now cushion the bad.

The same crunch afflicts Venezuela and to a lesser extent, Russia, as all three struggle with falling oil prices.

But in Iran, the economic crisis has quickly turned political. Economic woes are the key issue as Ahmadinejad — already deeply unpopular and suffering from exhaustion, he said this week — seeks re-election next summer in a tough vote. And they are shaping up as his weakness.


I got mine.......

I have two guns as a matter of fact. Come and get 'em.
China Confidential

Dateline USA....

As election day nears, gun stores around the country are reporting booming sales. Buyers are concerned that The Candidate of (Communist-backed) Change will (a) win, and (b) eventually empower states to outlaw both guns and self-defense. A.W. R. Hawkins, writing in Human Events, illuminates the issue:

With the 2008 presidential election upon us, the National Rifle Association is making their case against Barack Obama. They unflinchingly describe him as “the most anti-gun presidential candidate in American history” and have dedicated large sums of money to exposing his anti-gun agenda.

An in-depth look at his record justifies their position. Not only is Obama the economic socialist Rush Limbaugh has said he is, he is also a gun-banning associate of 1960s radicals who cannot wait to take away one of America’s greatest freedoms - - the right to keep and bear arms.

The NRA points out the fact that Obama supports handgun bans while Obama frequently excuses himself by saying he supports the Second Amendment but believes states, cities, and municipalities should be able to regulate types of handguns and implement local restrictions. (This convolution is an example of the type of reasoning he uses to explain how he can both find handgun bans and the Heller case, which banned handgun bans, to be “reasonable.”)

I got my stock.....You better get yours.....

One of the few stocks going up over the last year. About 30%. The Empire rules!! / Companies / Retail - Wal-Mart sees opportunities amid the crisis

Wal-Mart sees opportunities amid the crisis

By Jonathan Birchall in New York

Published: November 2 2008 17:51 | Last updated: November 2 2008 17:51

Wal-Mart, the largest US retailer, has said it believes it could see “extraordinary opportunities” in the global retail landscape created by the disruption of financial markets.

Lee Scott, chief executive, told investors and analysts this week that “there are probably things that the government might allow you to do that they would not have allowed you to do in the past”, while saying that the retailer would take a “thoughtfully aggressive” approach to any opportunities.

Monday, November 03, 2008

Rising tide under Bush years.....

Hard to dispute these facts. Every "stable" household in America is better off. Stable means "steadily employed".

Problems coming to light are printing press money. Lowering interest rates to avoid losing elections generates huge deficits  which robs savings. Borrowed money then leads to speculation on credit spreads and currencies. Money always flows to highest immediate return. This has been happening steadily now for last 10 years or so. Once the Republicans abandoned "Reaganomics" and inflated . The deficits exploded taking them our of power. Maybe for a generation.

The reason? Not allowing political constituencies to lose in the short term leads to everyone losing through inflation and eventually bankruptcy. This gives your enemies a chance to humiliate you for lying to your voters. Causing cynicism and dispare.

Politically it is imperative that the Dems win this cycle of elections to bring the bust to it's head. There is no painless answer ever found in history to this dilemma. Other than to bankrupt the treasury. Last time this happened in the 30's the Republicans lost all claim to power for a whole generation .

The housing bubble  created by deficit spending lead to gambling that we would be richer in the future. Borrowing money leads to this feeling of getting something for nothing. Anything goes wrong and this house of cards fallin crushes everything in it's path.
US Census Press Releases

Household Income Rises, Poverty Rate Unchanged,
Number of Uninsured Down

Real median household income in the United States climbed 1.3 percent between 2006 and 2007, reaching $50,233, according to a report released today by the U.S. Census Bureau. This is the third annual increase in real median household income.

Meanwhile, the nation’s official poverty rate in 2007 was 12.5 percent, not statistically different from 2006. There were 37.3 million people in poverty in 2007, up from 36.5 million in 2006. The number of people without health insurance coverage declined from 47 million (15.8 percent) in 2006 to 45.7 million (15.3 percent) in 2007.

These findings are contained in the report Income, Poverty, and Health Insurance Coverage in the United States: 2007 [PDF]. The data were compiled from information collected in the 2008 Current Population Survey (CPS) Annual Social and Economic Supplement (ASEC).

Also released today were income, poverty and earnings data from the 2007 American Community Survey (ACS) for all states and congressional districts, as well as for metropolitan areas, counties, cities and American Indian/Alaska Native areas of 65,000 population or more.

Current Population Survey
(Primarily the source of national-level statistics)

The 2008 Current Population Survey Annual Social and Economic Supplement (CPS ASEC) reveals the following results for the nation:


Race and Hispanic Origin (Race data refer to people reporting a single race only. Hispanics can be of any race.)

* Real median income (adjusted for inflation) for black and non-Hispanic white households rose between 2006 and 2007, representing the first measured real increase in annual household income for each group since 1999.
* Real median household income remained statistically unchanged for Asians and Hispanics.
* Among the race groups and Hispanics, black households had the lowest median income in 2007 ($33,916). This compares to the median of $54,920 for non-Hispanic white households. Asian households had the highest median income ($66,103). The median income for Hispanic households was $38,679.

Don't worry Obie will fix it....

As soon as the Lord gets elected happy times will be back, yea right.
California Cities Cut Police Budgets -

VALLEJO, Calif. -- When the economic crisis deepened this fall, this city already was losing scores of police and firefighters because it could no longer afford the rich salaries and benefits it offered after the Sept. 11, 2001, attacks. Now, with crime on the rise and tax revenue sinking, this San Francisco Bay area city faces more cuts in police and fire department budgets.

Sunday, November 02, 2008

Why are we not surprised?....

Don McNay: Credit Cards In The World of Taxpayer-Owned Banks

The American people ponied up $700 billion to supposedly bail out some big banks on Wall Street. So far, we have not seen the banks what banks are supposed to do, lend people money. Instead they are doing the thing that Wall Street raiders do, take over other companies. PNC and Fifth Third were the first banks to make deals, backed by taxpayer dollars.

Bush and Paulsen encouraged bad behavior in their bailout bill. They gave big banks money and tax incentives to gobble up small banks. They made sure that their buddies on Wall Street were taken care of.

Most big banks didn't need bad behavior encouragement. They've been able to do harmful things long before the government started subsiding them.

Read it and weep........

Bear Warning

Warning to Outdoorsmen

Saturday, November 01, 2008

Only the Empire works for all......

Planned Chaos: Introduction (Part 1 of 11) by Ludwig Von Mises -- Capitalism Magazine

Planned Chaos: Introduction (Part 1 of 11)
by Ludwig Von Mises (November 1, 2008)

The characteristic mark of this age of dictators, wars and revolutions is its anticapitalistic bias. Most governments and political parties are eager to restrict the sphere of private initiative and free enterprise. It is an almost unchallenged dogma that capitalism is done for and that the coming of all-round regimentation of economic activities is both inescapable and highly desirable.

Nonetheless capitalism is still very vigorous in the Western Hemisphere . Capitalist production has made very remarkable progress even in these last years. Methods of production were greatly improved. Consumers have been supplied with better and cheaper goods and with many new articles unheard of a short time ago. Many countries have expanded the size and improved the quality of their manufacturing. In spite of the anticapitalistic policies of all governments and of almost all political parties, the capitalist mode of production is still fulfilling its social function in supplying the consumers with more, better and cheaper goods.


No we will call this a Depression....

Short lived until the boomers retire over the next 10 years and cash out their stocks. Currently it's the law. By the age of 70 401 k's have to be liquidated. Doesn't matter if they change the law, we are broke and don't have enough new taxpayers. So, we need to import Mexicans to pay for our Social Security. Better bone up on your Spanish, amigo.

Up here in Idaho we have guns to eat with. What have you got. Obanomics? Worldwide

Oct. 31 (Bloomberg) -- U.S. consumer spending tumbled in September and a purchasing managers' survey showed the biggest deterioration since 1968, foreshadowing a deepening economic slump.

``Consumers have thrown in the towel,'' said Nariman Behravesh, chief economist at IHS Global Insight in Lexington, Massachusetts, who correctly forecast the drop in purchases. ``They have no choice but to cut back on spending in a very big way. This is going to be a fairly deep, long recession.''

The 0.3 percent drop in purchases matched the biggest slide in four years and followed no change in August and July, the Commerce Department said today in Washington. The Institute for Supply Management-Chicago said its business index fell to 37.8 this month, below all 58 estimates in a Bloomberg News survey.

Job losses, increases in food and fuel costs and falling property values brought an end to the longest expansion in spending on record and made the economy the most important issue in next week's presidential election. The collapse in lending and sentiment this month indicate Americans will keep retrenching.

Today's Commerce Department report also showed that the Federal Reserve's preferred measure of inflation cooled last month. Receding price pressures mean the Fed has ``more room to maneuver'' with interest rates, Behravesh said. San Francisco Fed President Janet Yellen said yesterday policy makers may cut the key rate close to zero percent should the economy remain weak.

Employment Costs

Labor Department figures showed separately that employment costs rose 0.7 percent in July to September, the same pace as the previous two quarters. That's a sign that rising unemployment is stifling gains in wages and benefits.

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