While we await the open, here are several public statements that for the life of me, I simply cannot string together. 1 ... a chinese sourced spade at Home Depot is $12.99 and a US assembled (local & imported parts) is $25.97. Outcome = buy chinese 2 ... the fed prints money that is used to pay for chinese imports, so in effect we (US) are exporting a chunk of our inflation. this is healthy. Outcome = never believe all that is told to you. 3 ... the chinese yuan is undervalued, maybe as much as 40% and this is hurting the US manufacturers. Outcome = revalue the yuan by up to 40% so that the spade now retails for $17.99 while the US assembled spade will also increase if components are of chinese origin. 2nd outcome = buy chinese. 4 ... the trade deficit with china does not effect the US economy. Outcome = thank goodness for that because the cost of chinese sourced goods has just risen 40% while still maintaining a significant edge against US goods. Outcome = buy chinese. 5 ... the housing market has bottomed yet new home builders are dumping at the highest rate in 40 years. Outcome= things must be worse than I have been lead to believe. 6 ... Iran will be bombed back to the stone age. Outcome= 5+ dollar gas. And I save the best until last ...... 7 ... the economy is planned to pick up in the 3rd quarter. Outcome = ? Please help me string these words of wisdom together ET.
#4, can you say i-n-f-l-a-t-i-o-n? can you also say, rate hike? people that supports #4 are like the people that supports ethanol for fuel. now everything that made out of corn went up.
Yes, I can see your point of view. Simply inflate your way to the 08 elections and dump the problem in someone elses palm. Point is that the piper is screaming to be paid right now, but I can see that another year or so can be milked. Ethanol... now there is a beauty. Because no one has the gumption or courage to tackle the hydo carbon issue, they are prepared to put a major food source(s) at grave risk right alongside that of potable water and clear air. Already the price of beer has risen in germany because the growers of barley are switching to gov subsidized fuel crops. In Mexico the price of corn is beyond the reach of the poor and the fed gov has stepped in with price controls. In argentina cattle land on the pampa is being diverted to soy. In brazil the amazonas is being clear felled for soy. It is like watching a bad movie, execpt we are all in the line up.
??........in (1) above, the Chinese-made spade is a piece of junk. Don't buy it at any price. It will snap in half after 10 minutes of use. Also, don't get too bogged down in fundamentals. They'll only leave you flustered.
Excellent advise nazzdack, it was merely idle curiosity on my part. You could almost say that we have created the perfect 'what ever' society.
Actually GS was the little ray of sunshine with their earnings expectations and price targets raised for refiners. Rbob is down, market is down, refiners are up, gotta love it. Bernanke should just step aside and let GS give the speeches.
"1 ... a chinese sourced spade at Home Depot is $12.99 and a US assembled (local & imported parts) is $25.97." $13.00 for liability insurance, trial lawyers.
Prolly it's not politically correct to refer to a shovel as a "Spade". Throw in an extra $5.00 for sensitivity training.