On Vacation
2 days ago
Saturday, December 31, 2011
Happy New Year 2012
Happy New Year to all my readers, friends, and colleagues from around the world -- best wishes for 2012!
Thursday, December 29, 2011
US Economic Prospects for 2012...
Europe will blowup once everyone realizes that the degree of "restructuring" required in Portugal, Italy, Ireland, Greece, and Spain (PIIGS) is politically infeasible. Consequentially, public spending cuts and tax increases are imminent across the PIIGS, be they instituted by public policy or national defaults. Either way, economic depression is descending upon Southern Europe.
Protestors wearing "Guy Fawkes" masks in London
The US is also facing a blowup given that banks made a "seasonal" decision to hold off on new foreclosures until after the New Year. In 2012, the US will be confronted with the largest increase in new foreclosures since 2008.
Likewise, a budget blowup in California has been on tacit hold until after the holidays. Nevertheless, California revenues are trailing budget requirments by a significant margin. Moreover, Gov Jerry Brown appears determined to conduct "business as usual" in order to amplify the California budget crisis into a voter mandate for tax increases. Whatever happens, it's bad news for California where major cuts in government employment and/or tax increases will eventually force California into economic depression on a scale not seen on the West Coast since the Great Depression.
The combination of sharp increases in mortgage foreclosures and budget remedies in California means catastrophe along the US West Coast on a scale similar to what is about to unfold along the southern flank of Europe. Deflation and depression are already evident across America in home values, real wages, and the employment to population ratio.
The economic prospects for 2012 in the US and much of Europe are grim at best. Accredited investors are certainly in a "buy" window of opportunity at this point. However, much of America is in for hard times this coming year...
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The US is also facing a blowup given that banks made a "seasonal" decision to hold off on new foreclosures until after the New Year. In 2012, the US will be confronted with the largest increase in new foreclosures since 2008.
Likewise, a budget blowup in California has been on tacit hold until after the holidays. Nevertheless, California revenues are trailing budget requirments by a significant margin. Moreover, Gov Jerry Brown appears determined to conduct "business as usual" in order to amplify the California budget crisis into a voter mandate for tax increases. Whatever happens, it's bad news for California where major cuts in government employment and/or tax increases will eventually force California into economic depression on a scale not seen on the West Coast since the Great Depression.
The combination of sharp increases in mortgage foreclosures and budget remedies in California means catastrophe along the US West Coast on a scale similar to what is about to unfold along the southern flank of Europe. Deflation and depression are already evident across America in home values, real wages, and the employment to population ratio.
The economic prospects for 2012 in the US and much of Europe are grim at best. Accredited investors are certainly in a "buy" window of opportunity at this point. However, much of America is in for hard times this coming year...
Related Posts
Wednesday, December 28, 2011
Saturday, December 24, 2011
Merry Christmas 2011
Merry Christmas to all my readers, colleagues, and friends around the world -- may peace and happiness find their way into each of your lives and our world -- always.
The Bugler of the Guard standing attentively outside my front door for the holidays...
Thursday, December 22, 2011
Well Said...
"Every man's work, whether it be literature or music or picture or architecture or anything else, is always a portrait of himself."
~ Samuel Butler
Samuel Butler (1835-1902)
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~ Samuel Butler
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The New Lords of America
The still expanding Main Street depression is creating buy opportunities all across America. My guess is that high quality rent-earning real estate and dividend-paying stocks will be snapped up quickly by those with cash, including investors from overseas. America is "on sale" and cash buyers are now eagerly sought by sellers (i.e., too many goods chasing too little cash, which is the macroeconomic formula for deflation and depression).
Those with world-class skills to sell (e.g., physicians, engineers, and entertainers) or significant rent and dividend income are the new lords of America. Everyone else (e.g., those who live on fixed incomes, government salaries and entitlements, or earn wages for other than world-class skills) are in for hard times...
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Those with world-class skills to sell (e.g., physicians, engineers, and entertainers) or significant rent and dividend income are the new lords of America. Everyone else (e.g., those who live on fixed incomes, government salaries and entitlements, or earn wages for other than world-class skills) are in for hard times...
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Tuesday, December 20, 2011
Sunday, December 18, 2011
The Shape of My Heart
He deals the cards as a meditation
And those he plays never suspect
He doesn't play for the money he wins
He don't play for respect
He deals the cards to find the answer
The sacred geometry of chance
The hidden law of probable outcome
The numbers lead a dance
I know that the spades are the swords of a soldier
I know that the clubs are weapons of war
I know that diamonds mean money for this art
But that's not the shape of my heart
He may play the jack of diamonds
He may lay the queen of spades
He may conceal a king in his hand
While the memory of it fades
I know that the spades are the swords of a soldier
I know that the clubs are weapons of war
I know that diamonds mean money for this art
But that's not the shape of my heart
That's not the shape, the shape of my heart
And if I told you that I loved you
You'd maybe think there's something wrong
I'm not a man of too many faces
The mask I wear is one
Those who speak know nothing
And find out to their cost
Like those who curse their luck in too many places
And those who fear are lost
I know that the spades are the swords of a soldier
I know that the clubs are weapons of war
I know that diamonds mean money for this art
But that's not the shape of my heart
That's not the shape of my heart
~ Sting (born Gordon Matthew Thomas Sumner) and Dominic Miller
Wednesday, December 14, 2011
US Enduring Economic Depression
According to Nobel Laureate Prof Paul Krugman (2011, December 11), "it’s time to start calling the current situation what it is: a depression." In July 2010, I reported that a Main Street depression was imploding America. Since then, the depression along Main Street has continued to expand and envelop the US national economy through today, when many in America are increasingly anxious or even afraid for the future. Evidence of economic depression in America includes the persistently low employment-to-population ratio, the devastating declines in home values, and the extended decline in real working class wages over the past decade -- this evidence is indisputable.
"Time Saving Truth from Falsehood and Envy" by François Le Moine (1688-1737)
I agree with Prof Krugman -- it's time for Americans to accept that our nation is mired in an economic depression that is deeply scarring our national political fabric -- it's the truth.
Source: Krugman, P (2011, December 11), Democracy and Depression, NY Times Online.
Related Posts
Main Street Depression Imploding America
US Employment to Population Ratio for November 2011
US Home Values Caught in Rut
I agree with Prof Krugman -- it's time for Americans to accept that our nation is mired in an economic depression that is deeply scarring our national political fabric -- it's the truth.
Source: Krugman, P (2011, December 11), Democracy and Depression, NY Times Online.
Related Posts
Main Street Depression Imploding America
US Employment to Population Ratio for November 2011
US Home Values Caught in Rut
Thursday, December 08, 2011
Prospects for Europe (and the US)
I just finished listening to today's press conference by European Central Bank (ECB) Pres Dr Mario Draghi. According to Pres Draghi, the ECB will not be monetizing sovereign debt in the Eurozone regardless of the consequences. Moreover, Pres Draghi made clear that channeling external funds (e.g., US Federal funds) through the International Monetary Fund (IMF) would violate the "spirit" of the EU treaty, and so the ECB would block any such efforts. Pres Draghi stated that the ECB would not stand in the way of the European Financial Stability Facility (EFSF) dispersing emergency funding, though the current capacity of the EFSF is known to be limited. Also, Pres Draghi predicted that the ECB's current contractory monetary policies will result in economic contraction in the Eurozone as a consequence.
Dr Mario Draghi (1947- )
In summary, a) the ECB will not be monetizing sovereign debt in Europe; b) the ECB will block efforts to monetize the debt by the IMF; c) the ECB will use the EFSF as its sole emergency funding facility; and d) the ECB is prepared to accept economic contraction across the Eurozone as a consequence of its efforts toward monetary contraction in the Eurozone.
My tentative conclusion is that severe austerities are coming to Europe, and especially southern Europe, regardless of whether challenged countries such as Greece, Italy, Ireland, Spain, and Portugal agree to sovereign concessions under an amended EU treaty.
My best advice for the US -- take cover...
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In summary, a) the ECB will not be monetizing sovereign debt in Europe; b) the ECB will block efforts to monetize the debt by the IMF; c) the ECB will use the EFSF as its sole emergency funding facility; and d) the ECB is prepared to accept economic contraction across the Eurozone as a consequence of its efforts toward monetary contraction in the Eurozone.
My tentative conclusion is that severe austerities are coming to Europe, and especially southern Europe, regardless of whether challenged countries such as Greece, Italy, Ireland, Spain, and Portugal agree to sovereign concessions under an amended EU treaty.
My best advice for the US -- take cover...
Related Posts
What is a Prodigy?
prodigy
n pl -gies
1. a person, esp a child, of unusual or marvellous talents
2. anything that is a cause of wonder and amazement
3. something monstrous or abnormal
4. an archaic word for omen
[from Latin prōdigium an unnatural happening, from pro- + -igium, probably from āio I say]
Source: The Free Dictionary
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n pl -gies
1. a person, esp a child, of unusual or marvellous talents
2. anything that is a cause of wonder and amazement
3. something monstrous or abnormal
4. an archaic word for omen
[from Latin prōdigium an unnatural happening, from pro- + -igium, probably from āio I say]
Source: The Free Dictionary
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Wednesday, December 07, 2011
What is Apostasy?
apostasy
n pl a·pos·ta·sies
Abandonment of one's religious faith, a political party, one's principles, or a cause.
Source: The Free Dictionary
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n pl a·pos·ta·sies
Abandonment of one's religious faith, a political party, one's principles, or a cause.
Source: The Free Dictionary
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Sunday, December 04, 2011
Well Said...
"It isn't that they can't see the solution. It's that they can't see the problem."
~ C K Chesterton
Gilbert Keith Chesterton (1874-1936)
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~ C K Chesterton
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