BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Bill Gross Opines on 2011]]>http://www.bloggingstocks.com/2011/01/06/bill-gross-opines-on-2011/http://www.bloggingstocks.com/2011/01/06/bill-gross-opines-on-2011/http://www.bloggingstocks.com/2011/01/06/bill-gross-opines-on-2011/#commentsFiled under:

Bond money managers are usually glum. Then again, they need to be cautious since they are locking up money at fixed rate of returns. In a volatile world, this can certainly be a risky proposition.

So it should be no surprise that the biggest bond money manager, Bill Gross, is not enthusiastic about 2011. He leads the Pacific Investment Management Co., which has $1.2 trillion under management.

Continue reading Bill Gross Opines on 2011

Bill Gross Opines on 2011 originally appeared on BloggingStocks on Thu, 06 Jan 2011 13:20:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Bill GrossBrazilcommoditiesdeficitemerging marketsinflationinthenewsMexicoPIMCOstimulusThu, 06 Jan 2011 13:20:00 EST<![CDATA[U.S. Fiscal Deficit Just Below $1.3 Trillion]]>http://www.bloggingstocks.com/2010/10/08/u-s-fiscal-deficit-just-below-1-3-trillion/http://www.bloggingstocks.com/2010/10/08/u-s-fiscal-deficit-just-below-1-3-trillion/http://www.bloggingstocks.com/2010/10/08/u-s-fiscal-deficit-just-below-1-3-trillion/#commentsFiled under: , , ,

For the 2010 fiscal year ending September 30, the Congressional Budget Office reported that the deficit is just below $1.3 trillion, The Wall Street Journal reported. In 2009, the deficit was $1.4 trillion. The deficit in fiscal 2010 is 8.9% of GDP, well above the normal number of 3%.

With staggering deficits in 2009 and 2010, lawmakers will face a difficult task: how to rein in spending without derailing our fragile economy. Both parties must work together to find ways to keep spending in check.

Continue reading U.S. Fiscal Deficit Just Below $1.3 Trillion

U.S. Fiscal Deficit Just Below $1.3 Trillion originally appeared on BloggingStocks on Fri, 08 Oct 2010 10:30:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>deficiteconomyfederal reesrvefiscal deficitinthenewsstimulusFri, 08 Oct 2010 10:30:00 EST<![CDATA[Income Taxes Headed to 77%?]]>http://www.bloggingstocks.com/2010/04/12/income-taxes-headed-to-77/http://www.bloggingstocks.com/2010/04/12/income-taxes-headed-to-77/http://www.bloggingstocks.com/2010/04/12/income-taxes-headed-to-77/#commentsFiled under:

With surging budget deficits -- and upcoming obligations for the retirement of the Baby Boomers as well as increased medical coverage -- there is little doubt that taxes will go higher. Unfortunately, the levels may increase dramatically.

This is according to a report from the Wall Street Journal (subscription required), which has taken a look at the research from the Tax Policy Center. And yes, things look particularity grim.

Continue reading Income Taxes Headed to 77%?

Income Taxes Headed to 77%? originally appeared on BloggingStocks on Mon, 12 Apr 2010 14:15:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>deficittax rateTaxesMon, 12 Apr 2010 14:15:00 EST<![CDATA[$150 billion for 650,000 jobs: Is it worth it?]]>http://www.bloggingstocks.com/2009/10/30/150-billion-for-650-000-jobs-is-it-worth-it/http://www.bloggingstocks.com/2009/10/30/150-billion-for-650-000-jobs-is-it-worth-it/http://www.bloggingstocks.com/2009/10/30/150-billion-for-650-000-jobs-is-it-worth-it/#commentsFiled under: ,

CNNMoney reports that after $150 billion in stimulus spending, tens of thousands of states, cities, and private companies have saved or created 650,000 jobs. At $230,769 per job, is that worth it?

The answer depends on whose side you're on. Those who want the president to fail are not thrilled, those who want to work and/or want him to succeed can feel some satisfaction.

Continue reading $150 billion for 650,000 jobs: Is it worth it?

$150 billion for 650,000 jobs: Is it worth it? originally appeared on BloggingStocks on Fri, 30 Oct 2009 11:15:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>Brad DeLongBradDelongdeficiteconomic recoveryemploymentinthenewsstimulusFri, 30 Oct 2009 11:15:00 EST<![CDATA[Closing Bell: The bull takes a tiny break (KO, FSLR, FDX, BHI, PCS)]]>http://www.bloggingstocks.com/2009/09/11/closing-bell-the-bull-takes-a-tiny-break-ko-fslr-fdx-bhi-p/http://www.bloggingstocks.com/2009/09/11/closing-bell-the-bull-takes-a-tiny-break-ko-fslr-fdx-bhi-p/http://www.bloggingstocks.com/2009/09/11/closing-bell-the-bull-takes-a-tiny-break-ko-fslr-fdx-bhi-p/#commentsFiled under: ,

Another record deficit, a Geithner likely tax boost, and higher import prices failed to significantly spook the markets even after a five or day run-up. Based on the late day recovery, where this close was going to end up was an unknown until right at the closing bell. The day was a very light day for news, so here are the closing bell levels (unofficial close):

Dow 9,603.98 -23.50 (-0.24%)
S&P 500 1,042.73 -1.41 (-0.14%)
Nasdaq 2,080.90 -3.12 (-0.15%)

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Continue reading Closing Bell: The bull takes a tiny break (KO, FSLR, FDX, BHI, PCS)

Closing Bell: The bull takes a tiny break (KO, FSLR, FDX, BHI, PCS) originally appeared on BloggingStocks on Fri, 11 Sep 2009 16:00:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>baker hughesBakerHughescpideficitfeaturedfirst solarFirstSolargeithnermetro pcsMetroPcstaxesFri, 11 Sep 2009 16:00:00 EST<![CDATA[Closing Bell: Where's that beef? (DVAX, MON, SWHC, TXN, UNH)]]>http://www.bloggingstocks.com/2009/09/10/closing-bell-wheres-that-beef-dvax-mon-swhc-txn-unh/http://www.bloggingstocks.com/2009/09/10/closing-bell-wheres-that-beef-dvax-mon-swhc-txn-unh/http://www.bloggingstocks.com/2009/09/10/closing-bell-wheres-that-beef-dvax-mon-swhc-txn-unh/#commentsFiled under:

Today was a low volatility day considering what we have seen lately. The oil inventories and jobs data, combined with a wider deficit data, did not shake markets and traders. Here were today's unofficial closing bell levels:

Dow 9,627.48 +80.26 (0.84%)
S&P 500 1,044.14 +10.77 (1.04%)
Nasdaq 2,084.02 +23.63 (1.15%)

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Continue reading Closing Bell: Where's that beef? (DVAX, MON, SWHC, TXN, UNH)

Closing Bell: Where's that beef? (DVAX, MON, SWHC, TXN, UNH) originally appeared on BloggingStocks on Thu, 10 Sep 2009 16:01:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>deficitdynavaxhepatitismonsantooilsmithwessontexas instrumentsTexasInstrumentsunitedhealthThu, 10 Sep 2009 16:01:00 EST<![CDATA[Cramer on BloggingStocks: Deficit tally to make stocks more fragile]]>http://www.bloggingstocks.com/2009/08/26/cramer-on-bloggingstocks-deficit-tally-to-make-stocks-more-frag/http://www.bloggingstocks.com/2009/08/26/cramer-on-bloggingstocks-deficit-tally-to-make-stocks-more-frag/http://www.bloggingstocks.com/2009/08/26/cramer-on-bloggingstocks-deficit-tally-to-make-stocks-more-frag/#commentsFiled under: ,

TheStreet.com's Jim Cramer says that rather than selling and moving into cash, consider these reasons to hold firm.

Look, the deficit numbers are awful. They are totally daunting. We have to hope they don't come true because they are way too big to cope with no matter what we do with taxes. The dollar will get killed. Our kids will be stuck with some horrifying bills. The disaster that Matt Horween outlined in his multi-part op-ed series a couple of weeks ago will happen.

So, why don't I say you should go into cash because of it? Couple of reasons: First, I have to have some faith that the government will grow up, that they will get serious about spending, that President Obama will get serious about spending. Second, I hope we have much more growth than people realize and therefore we can grow our way out of this jam.

Continue reading Cramer on BloggingStocks: Deficit tally to make stocks more fragile

Cramer on BloggingStocks: Deficit tally to make stocks more fragile originally appeared on BloggingStocks on Wed, 26 Aug 2009 10:30:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>deficitfeaturedgovernment spendinginflationjobless recoveryWed, 26 Aug 2009 10:30:00 EST<![CDATA[U.S. budget deficit forecast is higher than previously estimated]]>http://www.bloggingstocks.com/2009/05/11/us-budget-deficit-forecast-is-higher-than-previously-estimated/http://www.bloggingstocks.com/2009/05/11/us-budget-deficit-forecast-is-higher-than-previously-estimated/http://www.bloggingstocks.com/2009/05/11/us-budget-deficit-forecast-is-higher-than-previously-estimated/#commentsFiled under: ,

Bad news again! The US budget deficit forecast is set to rise by $89 billion. The culprits are high unemployment claims and corporate bailouts. The new total is coming in at $1.84 trillion, up from a previous forecast of $1.75 trillion. This represents 12.9% of GDP.

With the recession in full press, federal receipts are falling, adding more pressure to the deficit targets. Going forward into 2010, the price tag is for a deficit of $3.59 trillion.

Continue reading U.S. budget deficit forecast is higher than previously estimated

U.S. budget deficit forecast is higher than previously estimated originally appeared on BloggingStocks on Mon, 11 May 2009 14:50:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>deficitinthenewsUS budget deficit soarsUsBudgetDeficitSoarsMon, 11 May 2009 14:50:00 EST<![CDATA[Congress approves $3.55 trillion budget for 2010]]>http://www.bloggingstocks.com/2009/04/03/congress-approves-3-55-trillion-dollar-budget-for-2010/http://www.bloggingstocks.com/2009/04/03/congress-approves-3-55-trillion-dollar-budget-for-2010/http://www.bloggingstocks.com/2009/04/03/congress-approves-3-55-trillion-dollar-budget-for-2010/#commentsFiled under:

Voting along party lines Congress approved its $3.55 trillion budget for the fiscal year 2010. The House of Representatives voted 233 to 199 in favor and the Senate voted 55-43 in favor with two Democrats, Senators Ben Nelson and Evan Bayh voting against.it.

It is expected that the deficit will run $1.8 trillion in 2009 and drop to $1.4 trillion in 2010. Obama has been criticized for raising the deficit to $9.3 trillion over 10 years. Lawmakers aware of this dropped a signature tax break and approved only vague language on health care reform.

Continue reading Congress approves $3.55 trillion budget for 2010

Congress approves $3.55 trillion budget for 2010 originally appeared on BloggingStocks on Fri, 03 Apr 2009 15:00:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>2010 Budget2010BudgetdeficitinthenewsObamaFri, 03 Apr 2009 15:00:00 EST<![CDATA[Why tax cuts ruin the economy]]>http://www.bloggingstocks.com/2008/06/07/why-tax-cuts-ruin-the-economy/http://www.bloggingstocks.com/2008/06/07/why-tax-cuts-ruin-the-economy/http://www.bloggingstocks.com/2008/06/07/why-tax-cuts-ruin-the-economy/#commentsFiled under: , , , ,

The New York Times reports that some in Washington are using the latest economic catastrophe to push Congress to make tax breaks permanent. What these folks don't recognize is that the tax cuts are a big reason why the economy is in such bad shape to begin with. With unemployment spiking to 5.5%, the worst since 1986, and oil prices up a record $11 yesterday to $138 a barrel, it won't be long before you're paying $5 a gallon for gasoline.

And since oil is traded in dollars, its 70% decline since January 2001 from 92 cents to the Euro to its current $1.56 -- has been accompanied by a 475% rise in the price of oil. The $1.3 trillion worth of tax cuts -- 36% of which went to the top 1% -- are contributing to record deficits. In 2008, we'll have a $410 billion deficit and the 2009 figure looks to top $500 billion. And thanks to $3 trillion worth of wars, the U.S. is borrowing $9.4 trillion -- almost double where we were in 2000.

Thanks to these deficits, the U.S. is borrowing 66% of its $14.2 trillion GDP -- and any country borrowing more than 60% is seen by international investors as a credit risk. You'll hear people trying to convince you that deficits don't matter. But deficits are at the core of all the economic problems we face. Republicans used to be seen as the party of fiscal conservatism. But what they've actually done would terrify a prudent banker.

Continue reading Why tax cuts ruin the economy

Why tax cuts ruin the economy originally appeared on BloggingStocks on Sat, 07 Jun 2008 08:20:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>borrowingdebtdeficitdeficitsoiloil pricesOilPricestax cutsTaxCutsunemploymentSat, 07 Jun 2008 08:20:00 EST<![CDATA[How the Fed costs you more at the pump]]>http://www.bloggingstocks.com/2008/04/30/how-the-fed-costs-you-more-at-the-pump/http://www.bloggingstocks.com/2008/04/30/how-the-fed-costs-you-more-at-the-pump/http://www.bloggingstocks.com/2008/04/30/how-the-fed-costs-you-more-at-the-pump/#commentsFiled under: , , , ,

The Fed's job is to control inflation. But is was established originally to keep financial panics from getting out of control. Since last August, it has reverted to its original role and failed miserably. Since it began cutting its Fed Funds rate 57% from 5.25% to 2.25% the price of a barrel of oil has risen 62% from $71 to $115. Simply put, the weaker the dollar, the higher the price of oil. Bloomberg News proves it -- noting that in the last year, there was a 0.96 correlation -- a correlation of 1.0 would be a completely safe bet -- between the Euro-dollar exchange rate and the price of oil.

If it bothers you to pay $3.66 for a gallon of gasoline you can thank the Fed along with cheerleader, Hank Paulson who brags that he's been talking about the U.S.'s strong dollar policy consistently. Of course saying and doing are two different things. Since January 2001, the dollar has lost 70% to the Euro. And since oil is traded in dollars, a drop in the dollar leads to a rise in price. And lower interest rates erode further the value of the dollar since it pays government bond holders a lower rate of return so they sell the U.S. currency and buy higher yielding ones.

But it's unfair to give the Fed all the blame. After all, we have been running the Federal budget at a deficit -- expected to hit $413 billion this year. Since the Fed has started cutting rates, other factors such as speculation by leveraged traders -- relying on the 0.96 correlation -- and political instability seem to have remained at the same level -- although the degree of speculation seems difficult to measure. And U.S. demand has declined due to the economic slowdown. So it looks like those dollar-weakening rate cuts are the one factor powerful enough to offset the demand slowdown to drive prices up.

Continue reading How the Fed costs you more at the pump

How the Fed costs you more at the pump originally appeared on BloggingStocks on Wed, 30 Apr 2008 10:12:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>deficiteconomyEurofeaturedfederal budgetFederal ReserveFederalBudgetFederalReserveinflationoil pricesOilPricesThe FedTheFedUS dollarUsDollarWed, 30 Apr 2008 10:12:00 EST<![CDATA[American debt and the Great Chinese Mind-Bender]]>http://www.bloggingstocks.com/2008/02/02/american-debt-and-the-great-chinese-mind-bender/http://www.bloggingstocks.com/2008/02/02/american-debt-and-the-great-chinese-mind-bender/http://www.bloggingstocks.com/2008/02/02/american-debt-and-the-great-chinese-mind-bender/#commentsFiled under: , , , , , ,

chess knightSomeone might want to explain this to me because it defies nearly all palatable logic that I can apply to it. I read earlier this week that China carries a large debt portfolio and that about 70% of it is American debt. Additionally, China is buying up American debt at break-neck speed, while possibly neglecting their own populace in order to do so.

As I was taught, there are two potentially profitable reasons to buy debt obligations. The first (and best) reason is because there is a reasonable expectation that the debt will be repaid, supported by documentation, collateral security, and research. The second reason is because there is an expectation that the debtor shall default, resulting in the expeditious seizure of pledged security assets that are desired.

I've become aware of an unsettling third scenario regarding the value of buying debt. You can easily use it to buy control of the debtor's assets through their weakness.

Continue reading American debt and the Great Chinese Mind-Bender

American debt and the Great Chinese Mind-Bender originally appeared on BloggingStocks on Sat, 02 Feb 2008 14:40:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>bondsChinadebtdeficitdollarexportfeaturedimportinflationJapanoilrecessionRussiaT-BillstreasuryVenezuelayuanSat, 02 Feb 2008 14:40:00 EST<![CDATA[Inflation threatening Chinese growth]]>http://www.bloggingstocks.com/2007/11/13/inflation-threatening-chinese-growth/http://www.bloggingstocks.com/2007/11/13/inflation-threatening-chinese-growth/http://www.bloggingstocks.com/2007/11/13/inflation-threatening-chinese-growth/#commentsFiled under: ,

Last week was an interesting week for Chinese stocks. While I wrote about PetroChina's debut and its subsequent record-setting $1 trillion market cap, my colleague and fellow-BloggingStocks blogger, Aaron Katsman, wrote about the potential bursting of the Chinese bubble.

With growth and excitement like this, we shouldn't be surprised to read today that China published inflation numbers that matched its own decade-long record high of 6.5%. This will put additional pressure on the Chinese Central Bank to raise interest rates, something it has already done 5 times this year alone.

The Bank blamed rising food prices in general for the inflation run-up and said that prices for pork, in particular, had skyrocketed 55%. October's record $27 billion trade surplus injected even more cash into the economy, stoking inflation that's twice the 3% pace that is the central bank target. Chinese trade surplus reached an all-time high this month -- in spite of the Central Bank's pledge to rein in export growth. BloggingStocks reported yesterday that Henry Paulson, Secretary of the US Treasury, is expected to continue lobbying the Chinese to relax restrictions on the Chinese yuan to allow for faster appreciation of the Chinese currency.

Continue reading Inflation threatening Chinese growth

Inflation threatening Chinese growth originally appeared on BloggingStocks on Tue, 13 Nov 2007 10:10:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>chinadeficitdollarinthenewspaulsonpetrochinasurplustradetreasuryyuanTue, 13 Nov 2007 10:10:00 EST<![CDATA[American railroads point to a slightly chilling economy]]>http://www.bloggingstocks.com/2007/06/23/american-railroads-point-to-a-slightly-chilling-economy/http://www.bloggingstocks.com/2007/06/23/american-railroads-point-to-a-slightly-chilling-economy/http://www.bloggingstocks.com/2007/06/23/american-railroads-point-to-a-slightly-chilling-economy/#commentsFiled under: , , , ,

Judging by the most recently available statistics from the American Association of Railroads, the trade and productivity numbers currently coming out of Washington appear to be a bunch of bunk. Will someone please tell Ben Bernanke that cold hard facts will supplant pipe dreams any day?

Rail freight numbers for the week ended June 9 continue to trend downward and are consistent with trending for the year so far. By now, industrial surpluses and inventories should have been reduced to the point that manufacturing would be demanding an increased influx of raw materials, but such is not the case. Plainly put, consumer demand and domestic manufacturing are down, and it shows plainly in reduced freight numbers. The breakdown for the week ending June 9 is as follows:

  • Intermodal freight (truck trailers or shipping containers): Down 3.2 percent from last year.
  • Carload freight (not including intermodal): Down 5.6 percent.
  • 4.0 percent fewer carloads originated from the West and 7.8 percent fewer originated from the East.
  • Total cumulative rail freight volume for the first 23 weeks of 2007 was an estimated 754.9 billion ton-miles, down 3.1 percent from last year.

Canadian and Mexican railroad reports show similar trending, though not as significantly as the American declines. The single remarkable exception is the Mexican railroad, Kansas City Southern de Mexico (KCSM), which has reported intermodal volume of 4,878 trailers or containers, up 18.4 percent from the 23rd week of 2006. That significant increase, my friends, is reflective of manufactured goods they're shipping up to us.

Bear these numbers in mind the next time you get your statistical hogwash from Washington. They can tell you that more people are working and they can tell you that companies are manufacturing more stuff, but the true facts come out when the train cars get loaded (or don't).

American railroads point to a slightly chilling economy originally appeared on BloggingStocks on Sat, 23 Jun 2007 08:40:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>AARAmerican Association of RailroadsAmericanAssociationOfRailroadsBen BernankeCanadian railroadsCanadianRailroadscarload freightconsumer demanddeficitdomestic manufacturingDomesticManufacturingexportfreightimportintermodal freightIntermodalFreightKansas City Southern de MexicoKansasCitySouthernDeMexicoKCSMmanufacturingMexican railroadsrail freightrail freight trendsrail freight volumeRailFreightVolumerailroadshippingtradeSat, 23 Jun 2007 08:40:00 EST<![CDATA[Why you might still think twice about voting Democrat]]>http://www.bloggingstocks.com/2007/05/30/why-you-might-still-think-twice-about-voting-democrat/http://www.bloggingstocks.com/2007/05/30/why-you-might-still-think-twice-about-voting-democrat/http://www.bloggingstocks.com/2007/05/30/why-you-might-still-think-twice-about-voting-democrat/#commentsFiled under: , , , , ,

Today's Democratic Party is not the Democratic Party as your grandfather knew it. If you think that the Democrats are all about working peoples' needs and how best to serve them, you may wish to think again. The days when the powerful labor unions were backed by legislation-wielding hot-dogs who were ready to step into the gap to protect the working class in wages, safety, and working conditions have faded away. In fact, I'm of the mind that the decline actually began way back with the disappearance of Jimmy Hoffa and the slow ugly death of that empire once known as the American steel industry.

Fast forward to NAFTA and GATT, and you'll find two of the most damaging pieces of paperwork that the American economy has ever endured. Do I need to mention the one name most closely associated with both of those documents from the American side? I'll give you a hint, his ex is now looking to plant her feisty butt in the oval office.

Take a look, if you dare, at the link I have provided. It's an article called "Dems Sell Out on Trade" and surprisingly enough it's written from a slightly Democratic perspective. Read it, digest it, and then look at the past three decades in light of it. No, today's Democratic Party is not the Democratic Party that your grandpa supported. The new breed means business . . . in a stinkingly non-American, global sense.

Why you might still think twice about voting Democrat originally appeared on BloggingStocks on Wed, 30 May 2007 21:04:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>deficitDemocratGATTglobalizationHillary ClintonHillaryClintonNAFTAtariffstaxestradeWorld Trade OrganizationWorldTradeOrganizationWTOWed, 30 May 2007 21:04:00 EST<![CDATA[Canadian dollars and American dollars: A peso for your thoughts.]]>http://www.bloggingstocks.com/2007/05/23/canadian-dollars-and-american-dollars-a-peso-for-your-thoughts/http://www.bloggingstocks.com/2007/05/23/canadian-dollars-and-american-dollars-a-peso-for-your-thoughts/http://www.bloggingstocks.com/2007/05/23/canadian-dollars-and-american-dollars-a-peso-for-your-thoughts/#commentsFiled under: , , , , ,

There is a bit of glee circulating on the frozen tundra amid news that the Canadian dollar has hit the equivalence of 92.34 American cents, its highest point in 30 years. TD Securities Inc. chief currency strategist Shaun Osborne states that it is possible that the Canadian dollar could reach a value of .96 cents by June. Analysts agree that if commodity prices continue to rise, there stands a good chance that the two currencies would equalize. I say if that point is reached the two currencies should be immediately put into lockstep and our fluctuating currency exchange on our northern border should end forever. Could it be done? Yes, it could. Will it ever happen? Probably it won't.

Personally, I think the benefits would far outweigh the temporary disadvantages. Granted, I expect there would be quite a tussle in the commodities exchange for a time but that's a self adjusting system anyway. NAFTA paved the way for the "free flow" of goods and materials across our borders. Currency equalization would take the teeth out of much of the damage that tilted document has inflicted upon the American economy. I suspect that Canadian manufacturers might get just a little testy about the idea, but I believe that in the long run it would level the playing field for them as well as us. I also think it would give North America a lot more leverage in the world markets.

Economic idealists and world view visionaries already have a name for a singular North American currency. Do a web search for the word "Amero" and you'll spend the rest of your week reading about it. You'll receive every point of view you could ever imagine. Some say it would be the next step to the "One World Government," some say it would be a protectionist move. I say it's the most logical step toward stabilizing two very powerful yet unsteady economies. I see it as a grand statement to the rest of the world that there's still a force to be reckoned with over here pinned between the Atlantic and Pacific oceans.

Then, if we could just annex Mexico...

Canadian dollars and American dollars: A peso for your thoughts. originally appeared on BloggingStocks on Wed, 23 May 2007 17:15:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>AmericanAmeroCanadaCanadiancurrencydeficitdollarequalizeexchangemarketsMexicanMexicopesotradeWed, 23 May 2007 17:15:00 EST<![CDATA[Is the U.S. trade deficit a sign of strength?]]>http://www.bloggingstocks.com/2006/12/28/is-the-u-s-trade-deficit-a-sign-of-strength/http://www.bloggingstocks.com/2006/12/28/is-the-u-s-trade-deficit-a-sign-of-strength/http://www.bloggingstocks.com/2006/12/28/is-the-u-s-trade-deficit-a-sign-of-strength/#commentsFiled under: , , ,

David Malpass of Bear Stearns wrote a great op-ed piece on how to interpret the trade deficit. The full article can be found on the Forbes Digital Rules blog.

Here are some some of his thoughts:
  • The imbalance, the trade deficit and related capital inflow all link the faster-growing U.S. with other aging, slower-growing economies. They are a reflection of growth in the U.S., not weakness.
  • Despite our trade deficit and other countries' trade surpluses, the U.S. economy has created 9.3 million new jobs since the 2001 recession, compared with 360,000 jobs in Japan and 1.1 million jobs in the European zone, excluding Spain.
  • Speaking of Spain -- like the U.S., Spain (3.6 million new jobs) and the U.K. (1.3 million new jobs) also ran trade deficits and created jobs rapidly during these last five years.
  • The recent upswing in the U.S. trade deficit partially reflects the shift in the demographics of the world's large economies. The under-60 population in the U.S. is expected to grow for at least 50 years, whereas the under-60 populations in Japan and Europe is already in a decline and China will also be in a decline within a decade.
We have blogged in the past on how the trade deficit has been misinterpreted by economic pundits for years. In my opinion, David Malpass is one economist who gets it right.

Is the U.S. trade deficit a sign of strength? originally appeared on BloggingStocks on Thu, 28 Dec 2006 10:52:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>bear stearnsBearStearnschinadavid malpassDavidMalpassdeficitdigital rulesDigitalRuleseconomiceconomyeuropeforbesimbalancejapanspaintradeu.k.ukThu, 28 Dec 2006 10:52:00 EST<![CDATA[Democrats changing tune on China?]]>http://www.bloggingstocks.com/2006/12/11/democrats-changing-tune-on-china/http://www.bloggingstocks.com/2006/12/11/democrats-changing-tune-on-china/http://www.bloggingstocks.com/2006/12/11/democrats-changing-tune-on-china/#commentsFiled under:

Having won the election, Democrats appear to be easing their political rhetoric as Treasury Secretary Henry Paulson & Company head off to China to begin trade talks.

In prior trips to China, Democrats have been quite vocal about China's trade deficit, suggesting negative implications for the U.S. economy. However, since winning the November election, Democrats seem to be more tight-lipped.

It appears the trip will focus more on increasing China's consumption than drastic currency changes or threats of retaliatory trade sanctions.

Power brings responsibility. Messing up the relationship between the U.S. and China could lead to ramifications that are impossible to quantify. It appears the Democrats are going to stay away from fighting this battle for now.

Democrats changing tune on China? originally appeared on BloggingStocks on Mon, 11 Dec 2006 13:20:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>deficitdemocrathenry paulsonHenryPaulsontradeMon, 11 Dec 2006 13:20:00 EST<![CDATA[In the dollar we trust?]]>http://www.bloggingstocks.com/2006/11/28/in-the-dollar-we-trust/http://www.bloggingstocks.com/2006/11/28/in-the-dollar-we-trust/http://www.bloggingstocks.com/2006/11/28/in-the-dollar-we-trust/#commentsFiled under: , , , ,

Yesterday I got a few comments on a piece I wrote about oil prices which suggested that some of our readers think that the main problem lies with the dollar. We also received comments on China and the possibility that the Chinese could create an economic collapse in America should it choose, so I am going to write a little about both of these topics today.

There is no question that the dollar has been declining pretty steadily. As you can see in the chart below the dollar has been in a free fall lately. Currently the dollar is trading near lows that it hasn't seen for nearly 20 months.



So the question becomes, do we still trust in the Almighty American Dollar? After all, since Nixon took the dollar off the gold standard back in 1971 the dollar has been a purely fiat currency. Even though the dollar can no longer be traded in for gold, the two are still considered to be based off of one another. The weaker the dollar the higher gold moves. Why? Because gold is the only form of real money in the world. Gold has always been currency and will be currency long after the dollar is gone and sitting in a museum for people to admire.

Currently the market has put a price on gold of around $645 an ounce. Let's take a look at gold:

Continue reading In the dollar we trust?

In the dollar we trust? originally appeared on BloggingStocks on Tue, 28 Nov 2006 15:20:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>ChinadeficitdollarTue, 28 Nov 2006 15:20:00 EST