Quote of the week
“How often does the government have to be wrong, and how wrong do they have to be before people and the media stop taking them seriously?” – Gerald Celente
by Michael J. Panzner
“Before you dismiss my words as a rant, hear me out. Why, for example, is the power to commit substantial resources on taxpayers’ behalf, to influence many of the most important commitments and relationships of businesses, individuals, and governments, and to initiate economic and regulatory policies with far-reaching consequences, in the hands of unelected officials with unexceptional abilities and no real accountability?” more…
by Louis Woodhill
“‘Stimulus’ is based upon the superstition that government borrowing and spending creates ‘demand’. In reality, it does no such thing. ‘Stimulus’ is like trying to raise the level of the Hudson River by dipping out a bucket of water, walking five feet downstream, and pouring it back in. The only difference between the Bush and Obama plans is that Obama’s bucket is bigger (and will create more debt). Ironically, the July 2 jobs report prompted calls from leftist economists for Obama to go back to the river with an even bigger bucket.” more…
by Shawn Ritenour
“From an economic perspective, Obama’s stimulus plan is equivalent to a giant welfare scheme. Instead of the money going to lower income Americans, however, it is meant to go to municipal bureaucrats of various stripes. Instead of productive American citizens determining what to do with their own scarce resources, the state is stepping in and dictating how they will be used. Consequently, such spending is essentially government consumption, which is what vulgar Keynesians think we need now more than ever. Such economists are shocked — shocked! — to find out that Americans are now saving any increases in income instead of blowing it on even more consumer goods. Not to worry, however. If private citizens do not consume enough for official tastes, the government always can.” more…
by Thomas R. Eddlem
“Benedict described what a powerful world government with teeth would look like: ‘Such an authority would need to be universally recognized and to be vested with the effective power to ensure security for all.’ He added: ‘Obviously it would have to have the authority to ensure compliance with its decisions from all parties’ — that is, nations.” more…
- Wall Street (and others) trade California IOUs.
- California’s credit rating is cut close to junk.
- Major banks will not take California IOUs. Already have too many junk assets.
- Meanwhile revenues from property taxes are falling.
In the news…
- Comics are back!!!
- North Korea test fired seven missiles on Independence Day.
- Pope calls for global political authority to oversee world economy.
- The Michigan Campaign for Liberty was in the Ann Arbor News.
- Google announces new operating system.
- HR1207, S604
- China continues to chip at dollar.
- $18 million will be spent by Obama administration to redesign “recovery.gov“.
- The Fed explains why they don’t need to be accountable.
- Government Motors has emerged from bankruptcy.
And now the numbers…
DOW Jones Industrials – 8,146.52 (-134.22/-1.62%)
S&P 500 – 879.13 (-17.29/-1.93%)
VIX – 29.02 (+1.07/3.83%)
CSI 300 (China) – 3,398.31 (+71.175/2.14%)
BSE 500 (India) – 5,122.34 (-524.28/-9.28%)
MICEX (Russia) – 871.33 (-102.74/-10.55%)
BOVESPA (Brazil) – 49,220.781 (-1,713.91/-3.36%)
RICI – 2,682.77 (-175.97/-6.16%)
Gold/oz – 912.50 (-20.00/-2.14%)
Silver/oz – 12.66 (-0.765/-5.70%)
Copper/lb – 221.15 (-5.30/-2.34%)
Oil/bbl (Brent) – 60.52 (-5.09/-7.76%)
Wheat/bu (CBT) – 518.75 (-10.25/-1.94%)
Corn/bu – 338.00 (-20.00/-5.59%)
EUR-USD – 1.3936 (-0.0044/-0.31%)
USD-JPY – 92.545 (-3.495/-3.64%)
USD-BRL – 1.9958 (+0.0424/2.17%)
3 Month Treasury – 0.17 (+0.02/13.33%)
2 Year Treasury – 0.90 (-0.08/-8.16%)
10 Year Treasury – 3.30 (-0.20/-5.71%)
30 Year Treasury – 4.20 (-0.12/-2.78%)
U.S. Public Debt (official) – 11,526,304,058,825.50 (+36,743,059,514.80/0.32%)
U.S. Public Debt (actual est.) – 61,550,294,000,000.00 (-315,481,000,000.00/-0.51%)
Baltic Dry Index (BDIY:IND) – 2985.00 (-535.00/-15.20%)
I’ve got little to say and less time to say it. Going to Phoenix tomorrow for the weekend. Still have to pack and clean the house a bit. Have a great weekend!