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Thursday, September 19, 2013

Answers in 25 wds or less: The State of Things today..

Here at A&G we like to cut to the nitty gritty..

There are many questions about the current economy, the state of the Fed, the mood of the populace, etc that either are being asked, need to be asked or are too controversial to be publicly asked..

So we will.. and as always do so in our patented (not really) 25 words or less answers.

Let's begin...
Q: Why did Fed Chair Bernanke not enact any tapering especially after it has been discussed for 4 mths and everyone expected it?

A: Why should he-- he is a lame duck.  Let the new Chair take the heat.  Plus it would have weakened Christmas retail sales.

Q:  There's not been a greater disparity between wealthy and poor in many many decades.. Why do they keep taking it?

A: What's there to do?  Wealthy control system: politics, markets and media and the poor are leaderless.  Only issue they're united on is immigration.
Q: What about the middle class... Aren't they dying too?

A: Of course but its a slow death; As long as there's home equity for 2nd mortgages, people feel they possess wealth.  They really possess debt.

Q: Why do people react so calmly and peaceably to 5 years and counting of their quality of life being systematically stripped from them yet get so passionately up in arms over 'Trayvon'-like situations?

A: Its more personal like a gang member only caring about 6 blocks with is his 'turf' and not any bigger picture of life beyond oneself
Q:  Can you elaborate?

A: Blacks.. Whites..  We still can't stand each other so 'Trayvon' opens wounds.  But few to none know anything on economy and finance; too 'Distant'

Q:  Back to economics.. any improvements on the horizon?

A:  No.

Q:  None?  You did have 24 more words to express yourself..

A: OK.. um.. No, Nope, Nothing, Nada...
Q: Why take that position and so adamantly?

A:  No jobs being created; no legislation even discussed to do so.  Wall St isn't Main Street; everyone just getting by and hoping..

Q:  Do you see people ever seriously feeling affected by the economy in this continual rut?

A:  Yes: When credit card limits run out.  When home equity loans denied.  When $6 buys milk.. When debt collectors begin to call...
Q: And then?

A:  Then people will blame themselves or take on 2nd or 3rd jobs..  Too ill-informed to place blame on system they were taught to embrace.

Q:  Anything positive or inspiring to say on things as they are?

A:  Well.. less than 40 months left of Obama.  But then later, instead of 'Black Bush' we'd call it 'Female Bush' (Hillary)
Q:  Please explain that one..

A: Think of politics like football.  Eagles, Cowboys, Giants... Individual teams but part of shared 'system' (NFL).  Ultimately shared loyalty; fidelity.  Democrats.. Republicans..  No different.

Q: Anything else um.. positive?

A:  We expect holiday sales to be strong.  People believe everything is dandy so they will shop n' shop as such...
Q: Do you see an internet sales tax passed before the end of the year?

A:  Passed- maybe.  Implemented- no.  2014 yes.  These are 'poor' taxes because poor can't get out of paying unless they deprive themselves of nicer things.

Q: When will things get better, if ever?

A: When one of two things happens: We get a FDR-like hands-on President or a laissez-faire hands-off President
Q:  Please explain.. and for this question we'll put aside the 25 word limit...

A:  Right now in Obama, you have in office a spineless, chicken-hearted economic Coward.  To be fair Bush was too.  We don't say that to appear politically unbiased-- he was.

Bush capitulated all his conservative economic principles when he stood side by side with Pelosi and Reid and begged for passage of the $800B TARP bill.

He sacrificed all his free market economic principles because he was scared of seeing that evil stock market collapse upon itself.. He believed the lie that Lehman was going to destroy the economy.  All Lehman did was cause panic and the Big Boys took full advantage and raked in Trillions from it, and counting...
So the next President needs to be one of two things:

1)  FDR-like i.e extremely hands on while using the public sector to create millions of good paying jobs that have been taken away by the public sector while forcing them to increase the wages and benefits offered to keep up with government..

An FDR-like hands on President will also push legislation for projects like fixing our infrastructure-- roads, bridges, etc which mean jobs and seek to financially punish multinational companies that export jobs abroad then come back the the US to sell their junk..

And NAFTA either be ended or legislation passed to weaken it.

2)  A true laissez-faire President who grabs the Fed Chair by his/her neck and tells that person to stop QE immediately and divest themselves Fully and Completely from the stock market, let the market keep falling to a natural bottom and then let capitalism actually work...

In free market capitalism, buyers and sellers set the asking price for goods/services based on supply/demand and mutual need in an open marketplace.  

If it takes a stock once worth $40/share to drop to $15 to find a buyer, so be it.. That reflects the stock's true value and if it increases from there, it will be because other buyers find it a good bargain too, and then it will increase...   Naturally..
Companies and entities that are meant to fail are allowed to.. No more artificially propping up.  Then new innovators or business people step in and fill the void with new products and ideas.

So we need the next President to be one or the other..  And not what we have currently..  A man in a boat without a paddle, map or clue.

But the Big Boys like things as they are. so if the market keeps rising and the people aren't complaining, then expect Obama's successor to be more of the same no matter if he/she is Dem or Rep.