This post is essentially a placeholder, since the bogus (like everything else this government does) shutdown is now in its sixth day.
According to published reports, Defense Secretary Chuck Hagel has found some loophole in the law that will allow for some 400,000 Pentagon employees to go back to work on Monday. Also, the House unanimously passed a bill saying that all furloughed workers would receive full pay for the days they were off.
So, essentially, since the Fed creates money out of thin air and the Treasury can issue bonds to fund anything they want because the Fed will buy them, the government can continue on indefinitely, with or without proper funding.
That is, until they can't. It won't be long. The collapse - a mathematical certainty - of the US economy is proceeding along the proper path. It may not end next week. It should have ended in 2008, but, be assured, end it will.
Au revoir.
Sunday, October 6, 2013
Saturday, October 5, 2013
Government Shutdown Day 5: No Progress, $1.5 Billion Gone from GDP
The markets are closed, as usual, but not so usual, the federal government is still a dysfunctional mess of political miscalculation on a massive scale.
Costing something on the order of $300 million a day, the five-day closure now amounts to $1.5 billion, and is beginning to infect the private sector, as expected.
As the Chicago Tribune reports, Lockheed Martin announced layoffs of 3000 employees and noted that there could be more to come if the government doesn't get up and running soon.
Not widely reported are defections from the military, with active service men and women refusing to show up for weekend assignments due to the government withholding pay. Republicans in the House offered a bill that would have funded the military, but the Senate would not even consider what some are calling "piecemeal efforts" to keep some of the plates spinning.
In Washington, there were no efforts to reach any kind of compromise or to even discuss getting the federal government back to being a functioning government (truth is, it hasn't been functioning very well for some time now).
The shutdown looks like it will easily extend through the middle of next week and probably into the weekend. With the debt ceiling looming and the government running out of cash, the politicians have done the unthinkable: take themselves out of their own cushy jobs, if only temporarily.
Americans have been polled, and, by a margin of roughly 3-to-1 want the government to get back to work.
Too bad so many don't see the upside.
This has been a special report from Money Daily on the government shutdown. Now, back to football.
Costing something on the order of $300 million a day, the five-day closure now amounts to $1.5 billion, and is beginning to infect the private sector, as expected.
As the Chicago Tribune reports, Lockheed Martin announced layoffs of 3000 employees and noted that there could be more to come if the government doesn't get up and running soon.
Not widely reported are defections from the military, with active service men and women refusing to show up for weekend assignments due to the government withholding pay. Republicans in the House offered a bill that would have funded the military, but the Senate would not even consider what some are calling "piecemeal efforts" to keep some of the plates spinning.
In Washington, there were no efforts to reach any kind of compromise or to even discuss getting the federal government back to being a functioning government (truth is, it hasn't been functioning very well for some time now).
The shutdown looks like it will easily extend through the middle of next week and probably into the weekend. With the debt ceiling looming and the government running out of cash, the politicians have done the unthinkable: take themselves out of their own cushy jobs, if only temporarily.
Americans have been polled, and, by a margin of roughly 3-to-1 want the government to get back to work.
Too bad so many don't see the upside.
This has been a special report from Money Daily on the government shutdown. Now, back to football.
Friday, October 4, 2013
Government Shutdown Day 4: Wal Street Puts on Happy Face
Why bother?
If Wall Street is going to bid up equities and sell off bonds, as it did today, when the government is at least partially shut down (and completely dysfunctional) then what is the point of even trying to explain all this nonsense.
Get your money (federal reserve notes: actually debt instruments) out of banks and into your own hands, buy some gold or silver if you haven't lately, gas up, buy lots of non-perishable food, get firewood ready, and hunker down.
The storm is coming and the elitists in finance and government don't want you to know about it.
After all, the CEOs of major banks were at the White House the other day and these banks are increasing the amount of cash in ATM machines, anticipating such a run, so you don't want to be shut out when the magic money machine runs out of cash, do you?
With the government intent upon remaining somewhat closed up, the debt ceiling approaching in a hurry and the morons on CNBC chanting, "this is a great buying opportunity," can a nationwide bank holiday be far behind?
One wonders whether PayPal will still work. In the meantime, we're taking the rest of the day off to polish our gold, silver and guns and, oh, yeah, withdraw all our money from the bank. Don't want to leave it all sitting there collecting dust over the weekend. Now, if it were collecting interest, maybe that would be different.
It's the American way, after all.
And, just in case you haven't been paying attention, today's trading volume was among the lowest of the year.
This just isn't good, folks.
Don't worry. Carry on.
Dow 15,072.58, +76.10 (0.51%)
Nasdaq 3,807.75, +33.41 (0.89%)
S&P 500 1,690.50, +11.84 (0.71%)
10-Yr Bond 2.65%, +0.05
NYSE Volume 2,793,792,500
Nasdaq Volume 1,518,519,250
Combined NYSE & NASDAQ Advance - Decline: 3738-1824
Combined NYSE & NASDAQ New highs - New lows: 273-51
WTI crude oil: 103.84, +0.53
Gold: 1,309.90, -7.70
Silver: 21.75, -0.034
If Wall Street is going to bid up equities and sell off bonds, as it did today, when the government is at least partially shut down (and completely dysfunctional) then what is the point of even trying to explain all this nonsense.
Get your money (federal reserve notes: actually debt instruments) out of banks and into your own hands, buy some gold or silver if you haven't lately, gas up, buy lots of non-perishable food, get firewood ready, and hunker down.
The storm is coming and the elitists in finance and government don't want you to know about it.
After all, the CEOs of major banks were at the White House the other day and these banks are increasing the amount of cash in ATM machines, anticipating such a run, so you don't want to be shut out when the magic money machine runs out of cash, do you?
With the government intent upon remaining somewhat closed up, the debt ceiling approaching in a hurry and the morons on CNBC chanting, "this is a great buying opportunity," can a nationwide bank holiday be far behind?
One wonders whether PayPal will still work. In the meantime, we're taking the rest of the day off to polish our gold, silver and guns and, oh, yeah, withdraw all our money from the bank. Don't want to leave it all sitting there collecting dust over the weekend. Now, if it were collecting interest, maybe that would be different.
It's the American way, after all.
And, just in case you haven't been paying attention, today's trading volume was among the lowest of the year.
This just isn't good, folks.
Don't worry. Carry on.
Dow 15,072.58, +76.10 (0.51%)
Nasdaq 3,807.75, +33.41 (0.89%)
S&P 500 1,690.50, +11.84 (0.71%)
10-Yr Bond 2.65%, +0.05
NYSE Volume 2,793,792,500
Nasdaq Volume 1,518,519,250
Combined NYSE & NASDAQ Advance - Decline: 3738-1824
Combined NYSE & NASDAQ New highs - New lows: 273-51
WTI crude oil: 103.84, +0.53
Gold: 1,309.90, -7.70
Silver: 21.75, -0.034
Thursday, October 3, 2013
Government Shutdown Day 3: Wall Street Still Doesn't Get It
As the federal government shutdown slid into its third day, evidence that people are beginning to get a little nervous over not only the continuing budget/continuing resolution/ObamaCare impasse, but also with the looming deadline on the debt ceiling, has begun to emerge.
Beginning with Warren Buffet's declaration this morning on CNBC, that the debt ceiling issue was nothing worrisome (meaning: he's really concerned and selling select shares of select companies), word around Wall Street and in Washington continued to forecast a longer and longer government shutdown, possibly extending through two weeks.
The problem is that the politicians have backed themselves into corners from which they cannot escape, especially the president, who steadfastly is sticking with his pledge that he won't negotiate over ObamaCare.
The Republicans and Democrats will not move from their well-staked-out positions, so America suffers.
Here's hoping that they forget how to start it back up again.
Consequently, stocks took a hit for the second straight session; bonds caught a bit of a bid.
Somewhat of a correction from yesterday's post, where Money Daily stated the government was losing $100 million a day for each day of the shutdown. Make that, more like $300,000. As for productivity, well, it's government work, so it's actually not productive at all.
Dow 14,996.48, -136.66 (0.90%)
Nasdaq 3,774.34, -40.68 (1.07%)
S&P 500 1,678.66, -15.21 (0.90%)
10-Yr Note 2.61%, -0.02
NYSE Volume 3,224,199,000
Nasdaq Volume 1,825,629,875
Combined NYSE & NASDAQ Advance - Decline: 1310-4257
Combined NYSE & NASDAQ New highs - New lows: 217-63
WTI crude oil: 103.31, -0.79
Gold: 1,317.60, -3.10
Silver: 21.79, -0.111
Beginning with Warren Buffet's declaration this morning on CNBC, that the debt ceiling issue was nothing worrisome (meaning: he's really concerned and selling select shares of select companies), word around Wall Street and in Washington continued to forecast a longer and longer government shutdown, possibly extending through two weeks.
The problem is that the politicians have backed themselves into corners from which they cannot escape, especially the president, who steadfastly is sticking with his pledge that he won't negotiate over ObamaCare.
The Republicans and Democrats will not move from their well-staked-out positions, so America suffers.
Here's hoping that they forget how to start it back up again.
Consequently, stocks took a hit for the second straight session; bonds caught a bit of a bid.
Somewhat of a correction from yesterday's post, where Money Daily stated the government was losing $100 million a day for each day of the shutdown. Make that, more like $300,000. As for productivity, well, it's government work, so it's actually not productive at all.
Dow 14,996.48, -136.66 (0.90%)
Nasdaq 3,774.34, -40.68 (1.07%)
S&P 500 1,678.66, -15.21 (0.90%)
10-Yr Note 2.61%, -0.02
NYSE Volume 3,224,199,000
Nasdaq Volume 1,825,629,875
Combined NYSE & NASDAQ Advance - Decline: 1310-4257
Combined NYSE & NASDAQ New highs - New lows: 217-63
WTI crude oil: 103.31, -0.79
Gold: 1,317.60, -3.10
Silver: 21.79, -0.111
Wednesday, October 2, 2013
Government Shutdown Day 2: A Little More of a Serious Mood
Yesterday, Money Daily closed its post with the thought that bad things happen when people are complacent.
Today, some of those bad things may have already begun and the complacency of yesterday has turned to concern, today.
Over the previous weekend and into Monday and Tuesday, conventional thinking (the kind that usually amounts to being dead, 100% incorrect) was that the shutdown would last a day or two. Today, there's a growing consensus that the US government shutdown will linger at least until the end of this week, probably through next week and quite possibly meld right into the debt ceiling deadline of October 17, as Treasury Secretary Jack Lew has pegged that date at which time the US will have to start picking and choosing which bills to pay, emergency measures exhausted.
It's estimated that the US economy is losing $100 million per day for each day the government shutdown - partial as it may be - continues. There's another school of thought that believes the number is higher and the cumulative effect will bring the total to much more damage than $100 million a day, as the prolonged furloughs of non-essential government employees drags on and uncertainty over the economy in general grows deeper, mistrust of the government extends and decision begin to be made with the thought of a govern-less world a possibility.
Businesses will become more and more reluctant to spend, individuals will be frightened (which is probably the intention of this entire charade, anyhow), systems will begin to break down and the fabric of society will unravel even further than it has over the last five years of crisis management.
It appears that the politicians are steadfast in their beliefs and unbudging, so this could get a bit more serious every day.
Hang on to cash, gold, silver, gasoline, extra stores of food, water and shelter.
Good luck. (There may be a bank holiday coming your way.)
Dow 15,133.14, -58.56 (0.39%)
Nasdaq 3,815.02, -2.96 (0.08%)
S&P 500 1,693.87, -1.13 (0.07%)
10-Yr Note 2.63%, -0.02
NYSE Volume 3,173,658,500
Nasdaq Volume 1,710,665,875
Combined NYSE & NASDAQ Advance - Decline: 2314-3232
Combined NYSE & NASDAQ New highs - New lows: 280-55
WTI crude oil: 104.10, +2.06
Gold: 1,320.70, +34.60
Silver: 21.90, +0.722
Today, some of those bad things may have already begun and the complacency of yesterday has turned to concern, today.
Over the previous weekend and into Monday and Tuesday, conventional thinking (the kind that usually amounts to being dead, 100% incorrect) was that the shutdown would last a day or two. Today, there's a growing consensus that the US government shutdown will linger at least until the end of this week, probably through next week and quite possibly meld right into the debt ceiling deadline of October 17, as Treasury Secretary Jack Lew has pegged that date at which time the US will have to start picking and choosing which bills to pay, emergency measures exhausted.
It's estimated that the US economy is losing $100 million per day for each day the government shutdown - partial as it may be - continues. There's another school of thought that believes the number is higher and the cumulative effect will bring the total to much more damage than $100 million a day, as the prolonged furloughs of non-essential government employees drags on and uncertainty over the economy in general grows deeper, mistrust of the government extends and decision begin to be made with the thought of a govern-less world a possibility.
Businesses will become more and more reluctant to spend, individuals will be frightened (which is probably the intention of this entire charade, anyhow), systems will begin to break down and the fabric of society will unravel even further than it has over the last five years of crisis management.
It appears that the politicians are steadfast in their beliefs and unbudging, so this could get a bit more serious every day.
Hang on to cash, gold, silver, gasoline, extra stores of food, water and shelter.
Good luck. (There may be a bank holiday coming your way.)
Dow 15,133.14, -58.56 (0.39%)
Nasdaq 3,815.02, -2.96 (0.08%)
S&P 500 1,693.87, -1.13 (0.07%)
10-Yr Note 2.63%, -0.02
NYSE Volume 3,173,658,500
Nasdaq Volume 1,710,665,875
Combined NYSE & NASDAQ Advance - Decline: 2314-3232
Combined NYSE & NASDAQ New highs - New lows: 280-55
WTI crude oil: 104.10, +2.06
Gold: 1,320.70, +34.60
Silver: 21.90, +0.722
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