Seeing It For Yourself

I have read so many articles on the economic situations in Europe and Asia.  I have commented on such issues without traveling to these countries.  I just spent the last 4 and 1/2 months visiting the Hot Spots in Europe and Asia to see for myself what the outcome will be.  France, Italy, Greece, Singapore, China and Japan look much different in person.  Instead of talking to the talking heads of each country I sat down and talked to the common folk.  Going there yourself truly changes your opinion.  I will share many of the stories as I talk about the issues facing our global economy.  I will start writing again that I now have a more informed base in which to share ideas and discourse with yours.

Opinion | The GOP's indefensible rhetoric on national security | Seattle Times Newspaper

Thank you George Will for pointing out outright lies by the Republicans on this issue.  These cuts will make us stronger because it will make our military more focused.  It also makes us economically stronger by cutting the largest detractor from our nations economic strength.  Study after study has shown that military spending actually detracts from economic growth.  The Soviets and the Roman empire fell because its military spending outgrew its economic growth.  This is our current path.   The sad part is the Republicans are just too myopic to understand this.

The GOP's indefensible rhetoric on national security

Republicans who think America is being endangered by "appeasement" and military parsimony have worked that pedal on their organ quite enough, writes George F. Will. The facts don't bear them out.

Opinion | The GOP's indefensible rhetoric on national security | Seattle Times Newspaper

David McWilliams » Punk Economics

Click on the link below to check out a video on the issues in Europe.  A must see!

Welcome to Punk Economics and new way looking at the economy based on the central idea that what is important is not complicated and what is complicated is never important. I hope you like it. More to come.

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David McWilliams » Punk Economics

Exporting is Good For Your Bottom Line?

Help me!  I just don’t get how QE is good for the US economy.  Below is a stat and link from the US Government trade site.  QE makes the dollar loose value thus making our products cheaper overseas.  This means our multinational corporations make more money.  Exports only make up 12.5% of our economy.  It has created a few jobs.  However, QE increases input costs for small businesses by making our imports of raw materials more expensive.  This makes US small businesses bottom line smaller.  Small business not large corporations drive the US economy.  Why are we taking this approach?  And even more baffling to me is why are liberals in favor of currency devaluation when it hurts the poor and middle class as it is essentially a tax on the poor to help the rich bankers and multi-nationals.  These are the people moving jobs overseas.  I am not saying that QE is all bad it just seems that a strong dollar will actually provide long-term growth (maybe some short-term pain).  US exports that are doing well like McDonalds, Coke, Apple, Starbucks, IBM, Oracle and other like them are not succeeding because of price but their powerful brands.  In the end, the US must be the exporter of the BMW and be it’s own producer (yes, I know the BMW is not an American car).  In the end it’s my 87 year old mom that was crying on the phone that her saving are producing near zero income for her.  Thanks, FED….  save the banks and crush my mom.  Just not sure how this is good for America.  Help me liberals on this one.  Please help me understand this…..

The Economic Impact of Exporting

• U.S. exports of goods and services totaled $1.83 trillion in 2010.  Exports are a growing and substantial part of the U.S. economy, accounting for 12.5 percent of our nation’s GDP.

Exporting is Good For Your Bottom Line

Apple, America and a Squeezed Middle Class - NYTimes.com

Why can’t that work come home? Mr. Obama asked.

Mr. Jobs’s reply was unambiguous. “Those jobs aren’t coming back,” he said, according to another dinner guest.

The president’s question touched upon a central conviction at Apple. It isn’t just that workers are cheaper abroad. Rather, Apple’s executives believe the vast scale of overseas factories as well as the flexibility, diligence and industrial skills of foreign workers have so outpaced their American counterparts that “Made in the U.S.A.” is no longer a viable option for most Apple products.

Over 700,000 workers oversees are working on Apple products.  My first thought is to blame Apple for being so greedy that it is willing to hurt the very country it got its start just to make an obscene amount of money (if their growth continues at this pace they will have over 1Trillion in cash).  At further look, Apple still has much to apologize for the fact is our country has created a high cost of living and regulation that makes these type of jobs just a dream.  There is no doubt that Apple must change but so must America.  A reset of our economy must occur.  Click on the link below to read the whole NY Times article.

Apple, America and a Squeezed Middle Class - NYTimes.com

Why QE3 Won't Help "Average Joe"

Looks like the Fed is ready for another failed attempt at money printing to spur the economy.  All QE has done is created inflation and higher stock prices for the rich.  It has created a few jobs but not enough to justify the tax it puts on the middle class family.  The sad part of this is that the Democrats actually think this is good for the middle class.  Below is a verse from a good article about QE.

For "Average Joe" This Is A Losing Game

Currently, it appears as if the market is "front running" a third round of QE coming by March with the current estimate being roughly between another $300 to $750 billion in purchases.   While the markets will likely get some boost from the program it is unlikely to spur any real resurgence in activity in the housing market.  While this might be welcome news for jittery investors clamoring for Fed intervention to help boost market confidence another round of quantitative easing wouldn't be a panacea for the ailing U.S. economy. 

Click below to keep reading…

Why QE3 Won't Help "Average Joe"

BBC News - Hardtalk - 'Only massive debt restructuring can save EU'

 

'Only massive debt restructuring can save EU'

“Kyle Bass is a hedge fund founder who saw the financial crisis coming and made a fortune from it - first from America's sub-prime mortgage crisis and then from betting that Greece would default.”

Check out this 2 minute interview that will explain both the global and EU crisis and solution in just two minutes.  He adds a little humor that makes this a must see.  Click below to go to the BBC interview.

BBC News - Hardtalk - 'Only massive debt restructuring can save EU'