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Thread: weekend commentary - Jobless Claims, Inflation, Trade Deficit Each Surge Higher

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    Banned Melonie's Avatar
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    Default weekend commentary - Jobless Claims, Inflation, Trade Deficit Each Surge Higher

    (snip)"New U.S. claims for jobless benefits rose last week, hardening the view the central bank will pump more money into the economy, and keeping pressure on Democrats poised to lose congressional seats in Nov. 2 polls.

    At the same time, record-high imports from China helped push the U.S. trade deficit wider in August, while rising food and energy prices pushed inflation at the wholesale level up twice as fast as expected last month.

    Initial claims for state unemployment benefits rose to a higher-than-expected 462,000 in the latest week, the Labor Department said Thursday.

    Economists polled by Reuters had expected initial claims at 445,000 in the latest week."(snip)

    (snip)"In a separate report, the Labor Department said U.S. producer prices rose 0.4 percent in September and the core index, which excludes volatile food and energy prices, rose 0.1 percent in the month.

    The U.S. trade deficit for August jumped 8.8 percent to a larger-than-expected $46.4 billion, pushed by record imports from China that helped the U.S. deficit with Beijing set a new record of $28.0 billion, the Commerce Department said.

    American voters unhappy at high unemployment are set to oust President Barack Obama's Democrats from control of the U.S. House of Representatives in Nov. 2 elections, a Reuters-Ipsos poll projected Wednesday.

    The U.S. growth outlook has darkened significantly and the Federal Reserve is unanimously expected to embark on a fresh round of asset purchases [ a.k.a. Q.E.2 = money printing out of thin air - sic ] to prop up the economy, a separate Reuters poll showed."(snip)

    from


    also from the same link ...

    (snip)"The number of unemployed workers continuing to collect insurance benefits fell 112,000 to 4.399 million in the week ended Oct. 2, the lowest level since November 2008."(snip)

    However, the above statistic only reflects that 100,000+ unemployed Americans have exhausted their 99th week of unemployment checks during the past week ... and are thus being dropped from the U1 gov't unemployment statistic even though they are probably still unemployed.

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    Banned Eric Stoner's Avatar
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    Default Re: weekend commentary - Jobless Claims, Inflation, Trade Deficit Each Surge Higher

    What Bernanke and Geithner are doing is disgraceful. The dollar is collapsing and we can all see it at the gas pump or when we order heating oil. I think Obama wants high energy prices and considers it a corollary benefit of a weak dollar.

    We will NOT get away with this. No country has ever profitted from debasing its own currency.
    Last edited by Eric Stoner; 10-18-2010 at 07:33 AM.

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    Banned Melonie's Avatar
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    Default Re: weekend commentary - Jobless Claims, Inflation, Trade Deficit Each Surge Higher

    ^^^ well, it would seem that after this morning's outrageous 'monetization' ( over 5 billion in Q.E.2 at the treasury auction ) that the Chinese are finally getting 'fed up' ...


    (snip)"China Takes Off It's Boxing Gloves And Why Gold Is Still WAY Undervalued

    "The first panacea for a mismanaged nation is inflation of the currency; the second is war. Both bring a temporary prosperity; both bring a permanent ruin. But both are the refuge of political and economic opportunists." … Ernest Hemingway

    Many of you have already seen this Reuters news report, but it's significant enough to warrant highlighting and some commentary. In fact, it can be argued that this is an over statement of direct confrontation between China and the Obama Administration: U.S. is currency war's "tomb maker" -China economist

    "The dollar's depreciation may appear to be market-driven. In reality, it is a depreciation coloured by very strong, deliberate actions," Li said in the paper, which serves as the chief mouthpiece of China's ruling Communist Party.

    Here's the link to the news report in case you have not seen it:

    Up to this point acknowledgement of the nascent global currency war, led by the United States, has been largely relegated to commentary and debate in the various internet forums, blogs and truth-seeking media outlets (King Word News, LemetropoleCafe.com etc).

    With this publicly overt, front-page statement issued to the world by the Chinese Government, China has elevated this global financial conflict into the dangerous realm of visible sovereign rhetoric and conflict. Not only has China thrust the issue of competitive currency debasement into full public view, but it has pointed out the obvious attempt by the United States to make - via aggressive, motivated dollar devaluation - its uncontrolled borrowing and spending problems the problem of the world:

    "If the global financial crisis was about nationalising private debt, then in the post-crisis period the urgent need of the United States is to internationalise its national debt," he said.

    Make no mistake about this. With this front-page statement by the Chinese Government via this Chinese economist, China is directly engaging in a war of rhetoric that could well polarize the global community into the emerging market "wants" and the Western developed countries who "had it and are losing it." See the above quote from Hemingway if you are curious about how this could eventually play out...

    Helicopter Ben Starts The Engines - On A Whole Fleet Of Money-Dropping Helos

    Bernanke Sees Case for `Further Action' With Too-Low Inflation Here's the article:

    Yesterday the primary dealers were the primary buyers of the long-bond auction. Wall Street took down a stunning 59% of the entire auction. This is not bidders going thru Wall Street. This is direct monetization of the Treasury auction. This is so-called Quantitative Easing - "sterilized" money printing - because the Fed, indirectly through the banks - has taken in an asset against the electronic issuance of currency. I also believe that the Fed - although I don't have time to run through the "forensic" work to prove it outright - is also outright increasing the money supply without taking "assets" onto its balance sheet (I use "assets" because most of the toxic garbage the Fed has assumed is worth 10 cents on the dollar at best).

    You guys can read the news release, but please understand that this statement implies that Bernanke is getting ready to monetize the mortgage crisis:

    He said the central bank could expand asset purchases or change the language in its statement, while saying “nonconventional policies have costs and limitations that must be taken into account in judging whether and how aggressively they should be used.”

    So there it is. The Fed will print money electronically, buy the fraudulent mortgage paper from Bank of America et, al. AND thanks to the deal Wheelin' Dealin Tax Cheatin' Tim Geithner cut with the Fed on behalf of the Taxpayer, ultimately the middle class taxpayers who still work and do not feed off the Government breast of food stamps and the interminable unemployment benefits will end up paying for this mess. My bet is we collapse before this all actually unfolds."(snip)

    from

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