Happy Sequester Day!

[nitro]

The FT is making the same mistake that everyone else makes.

For the last time, the USGOV/FED is not interested in just US economy anymore, but the entire world. Seen from that perspective, "equality" has skyrocketed, in fact at the expense of the US.


Will it work? I have no idea. If it does work, it may be a "1 step backwards to take two steps forward" strategy, and there will be a lag, which may be what we are seeing. It it works, DOW 100,000. If it doesn't, WWIII.

Quote from jem:

When the Fed supports the govt in its deficit spending via QE not only do stocks go up but the price of food and oil go up.

For instance every 10 dollar increase in the price of oil - takes .3 percent out of gdp. (I believe the increase in the price of food and the increase in taxes also soaks up a lot of gpd. )

Then as the economy starts to get choked off the price of oil comes down.

Overall trying to increase the GDP via deficit spending seems very difficult. I realize the fed is trying to increase commercial real estate values so its member banks can become solvent... but do we really need to debase the dollar to this?

The private sector has to grow and become more efficient... like the rest of the world we have to manufacture things the world wants... the dollar has to get stronger not weaker.
We need to encourage investment in new techonology via lower taxes... We need to allow our investors to keep more of their profits so they can channel it back into to new technologies.

By the way


This article also points out what I have been saying for years.
This crazy spending in washington is what is causing the wealth inequality in america.

http://www.ft.com/cms/s/0/4fdcd560-fb32-11e1-a983-00144feabdc0.html#axzz2MVu8w9d0

 

[Tsing Tao]

Down 100,000 is $28 per gallon gas. We'll all be dead long before that, as our society will come to a screeching halt.

 

[nitro]

Quote from Tsing Tao:

Down 100,000 is $28 per gallon gas. We'll all be dead long before that, as our society will come to a screeching halt.

That would be true, except that is not how technology works. Solar and Wind and Hydrogen and Nuclear would long have replaced oil by then in many critical areas.

 

[nutmeg]

Quote from nitro:

That would be true, except that is not how technology works. Solar and Wind and Hydrogen and Nuclear would long have replaced oil by then in many critical areas.

Although Tsing puts out the number $28 dollars for a gallon of gas, lets take a look over the years I've been driving.

Gas was about 39 cents back in 1973, now we are at $3.90. gas has increased 10x. In another 40 years gas should be $40 bucks a gallon.

Where's the technology in the last 40 years to counter the 10x price increase?

We had fuel effecient cars back in the 70's. We haven't made much progress.

Even if we have Solar and Wind and Hydrogen and Nuclear auto's. I doubt the cost per driving mile will come down. There'll be mileage tax, insurance, mantenance cost to offset using less gasoline.

There' no hope...actually there is hope....get a 100k student loan and graduate college and earn big money.

 

[nutmeg]

Quote from nutmeg:


There' no hope...actually there is hope....get a 100k student loan and graduate college and earn big money.

actually there is hope...... borrow 100k, skip college, go long Goog, cramer says "It's not that expensive of a stock."

 

[pspr]

Quote from nutmeg:

Although Tsing puts out the number $28 dollars for a gallon of gas, lets take a look over the years I've been driving.

Gas was about 39 cents back in 1973, now we are at $3.90. gas has increased 10x. In another 40 years gas should be $40 bucks a gallon.

Where's the technology in the last 40 years to counter the 10x price increase?

We had fuel effecient cars back in the 70's. We haven't made much progress.

Even if we have Solar and Wind and Hydrogen and Nuclear auto's. I doubt the cost per driving mile will come down. There'll be mileage tax, insurance, mantenance cost to offset using less gasoline.

There' no hope...actually there is hope....get a 100k student loan and graduate college and earn big money.

In 1972 I remember buying gas for 16 cents in Colorado. The non-price-war price was at 19 cents for quite a long time through out the central states. So, it's actually up about 20x. Make that price in about 40 years around $80 a gallon just from normal price inflation.

 

[Ricter]

Quote from nitro:

...
I have no idea why oil is not $125 a barrel, with FV way above that.

Because one of your premises is wrong.

 

[nutmeg]

Quote from pspr:

In 1972 I remember buying gas for 16 cents in Colorado. The non-price-war price was at 19 cents for quite a long time through out the central states.

Back in 73, there was a time I working in a restaurant (part time). I would take the days tips, buy a six pack, 3 gallons of gas and drink and drive.

(A quarter was a big tip) but then so was Secretariat to win.

 

[jem]

that is the fist time I have seen you say that.
while I am not sure you are correct about the FEDS goals.

I will not argue with you that our USGOV politicans, I have argued that they have been so compromised by campaign bribes / money it sure does look that way.

Quote from nitro:

The FT is making the same mistake that everyone else makes.

For the last time, the USGOV/FED is not interested in just US economy anymore, but the entire world. Seen from that perspective, "equality" has skyrocketed, in fact at the expense of the US.


Will it work? I have no idea. If it does work, it may be a "1 step backwards to take two steps forward" strategy, and there will be a lag, which may be what we are seeing. It it works, DOW 100,000. If it doesn't, WWIII.