Response and News

I have received some feedback over my previous Post, mainly asking what I have against the American-style Capitalist system. The current system in America was suited for the time of the Robber Barons. Material Resources are in tight supply, with an ever-increasing Consumer Demand from all parts of the Globe. Multiple Competition environments lead to rapid Turnover of Consumers Products, early scrapping of Capital equipment, and underproduction of what Capital equipment is actually producing. It also generates a rapid and early scrapping of Consumer Products which still have much life left to them (I would be in the business of shipping Used Cars overseas at the current moment, if I was concerned with making more money for my heirs to inherit). We are in a time where We need higher quality, better Consumer Products of long-life. Read my previous Post as to the likely origin of much of the Inflationary pressures We endure.
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Jad Mouawad in a NYTimes article is very quotable:

After years of low prices, producers have gotten used to today’s higher prices. They need the higher revenue to finance their booming economies, their huge investments in energy projects and in real estate. Arab gulf countries, led by Saudi Arabia, will spend an estimated $700 billion by 2010, according to the latest report on the region by the International Monetary Fund.

Some countries — including Algeria, Libya and Qatar — are producing way above their nominal quotas and will resist calls to return to the old allocations and give up some of their market share.

OPEC again will fall apart in the details, as all Oil Producers are pushed by overambitious Investment schedules generated by the previous rain of Cash. They cannot afford to endure Price reduction and Oil export curtailments at the same time.

Menzie Chinn presents a sharp picture defining the BLS benchmark revision on the number of Jobs added. The less-graphically gifted among Us, like myself, can take a guess and think the revision simply blends in well with the Household Survey. The real threat comes in next month’s New Job numbers; a lack of rebound from the previous numbers means that the Gringch stole Christmas.

PGL at Angry Bear on Defense spending clarifies that Budgeting on Defense is total confusion. Different Government accounting agencies all start to add up the bills, and no one can come up with the same numbers. It would not be so sad, but these numbers come from the People who are supposed to manage (use of the word 'rule' stands as ridiculous) Defense Budgeting. An independent Accounting firm would obviously come up with an Estimate which is higher than all the Government estimates. lgl