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|Industrial Culture: Economics and Financial writers know nothing about Economics and Finance|
Tuesday, March 24 @ 11:46:37 CDT by (929 reads)
|from Michael Bunker|
One of the problems if you follow the daily soap opera drama of the economy, is that almost nobody seems to know anything about economics. When the stock market drops dramatically, the news is filled with dire warnings and apocalypticism, but when the market shoots up for a few days because of some stupid new plan by the government, everything is sunshine and baby ducks.
Today, MSN ran a story that you really have to read:
Are Dirt Cheap Prices Here Forever?
There are a few hidden truths in the article, but the basic premise is just stupid and wrong. I couldn't believe that a financial writer could possibly be this ignorant and naive. I'm led to believe that either this writer is willfully ignorant, or he is purposely lying.
The basic premise is that prices are dropping because of the bad economy as people tighten their belts and cut way back on discretionary spending. Companies are cutting prices and profit margins in order to keep selling things, and this is resulting in shockingly low prices on many formerly expensive items. The writer's premise, though, is that since most of the buyers are "baby boomers" and most of them are at or near retirement, then the low price phenomena might be permanent. Prices will never go back up.
Well, most of you know I was talking about this phenomena long, long ago. A period of rapid price deflation is expected and common when you are in a depression.
Prices have dropped for two main reasons. Producers have found it hard to sell products to people who have less money and who are worried about their future. So they must dump inventories in order to "make their numbers". If they show repetitive losses on their books, their stock will continue to tumble, which means people will be disinvesting in the company, and their own portfolios will suffer. So they are dumping inventories in order to increase cash flow. This only works for awhile. Eventually, due to lower profits, they will be firing people and they will not be increasing production. The net amount of products available decreases radically, and is multiplied when companies begin to fail and go out of business. The second reason for low prices is that there is a limited amount of money chasing a whole lot of products. Business plans were made years ago based on a steady increase in demand, but that demand is drying up. Companies must compete on price and not on quality, and they must sell or perish. The companies know that a lot of people are taking their money out of the market and they are making purchases right now while prices are low. Some people would rather have a new laptop right now than have the same amount of money in a stock that is losing money every day. So that money is out there and every company knows it is competing for that money right now, because it will not be around in 12 months.
The result is rapid price deflation. It is expected and automatic in this kind of economy.
The next step is when enough companies have folded, and enough inventory has been sold - and simultaneously trillions of dollars in new bailout and tax incentive money is pumped into the economy. Trillions of dollars will be chasing fewer and fewer available goods. The new dollars will be worth less and less each day, so prices will have to multiply in order for companies with limited products to be able to make any kind of profit. Inflation then begins to run rampant, if you can find any necessary goods at all.
These people are in a fantasy land.
The things that are going to have value in the near future are land, animals, gardens, food, bullets, and useful stuff you already own.
|(Read More... | 3 comments | Score: 5)|
|Industrial Culture: Energy fears looming, new survivalists prepare|
Sunday, May 25 @ 08:55:42 CDT by (906 reads)
May 24, 2:12 PM (ET)|
By SAMANTHA GROSS
|(AP) Peter Laskowski stacks firewood at his remote home in Waitsfield, Vt., Friday, April 11, 2008....|
BUSKIRK, N.Y. (AP) - A few years ago, Kathleen Breault was just another
suburban grandma, driving countless hours every week, stopping for
lunch at McDonald's, buying clothes at the mall, watching TV in the
That was before Breault heard an author talk about the bleak future of
the world's oil supply. Now, she's preparing for the world as we know
it to disappear.
Breault cut her driving time in half. She switched to a diet of locally
grown foods near her upstate New York home and lost 70 pounds. She
sliced up her credit cards, banished her television and swore off plane
travel. She began relying on a wood-burning stove.
|(Read More... | 9817 bytes more | comments? | Score: 5)|
|Industrial Culture: Bottom Falling Out|
Monday, March 17 @ 09:15:42 CDT by (663 reads)
|Well, today very likely may be the "official" day that the world admits
that we are slipping (or is it free-falling?) into a depression. They
will use the words "severe, or deep recession", because the word
"depression" is forbidden, but you get the drift. The bailout of Bear
Stearns failed, and the company was forced to sell out at $2 a share,
when just a few months ago in January, the company was valued at around
$200 billion. Virtually every expert now admits that the u.s. economy
is in a free-fall, and you are hearing phrases like "uncharted
territory", and "massive collapse". The government mouthpieces this
weekend said, "we will do whatever it takes to stabilize chaotic
markets, which means "we don't know what to do, but we will do it
anyway". The government's usual band-aid is to keep flooding the world
with more dollars, which is why the dollar is plummeting against
foreign currencies. Every time you hear about the government "adding
liquidity", dropping interest rates, etc., you should know that the
dollar you have in your pocket just shrunk measurably.|
many of us have been saying that a total collapse has to happen
eventually, and it does - no matter what happens in this current
situation. However, it is very likely that we are now seeing TEOSAWKI
(the end of stuff as we know it), no matter how long the fed is able to
drag out the drop. The results of $4 and even $5 gas (to start) hasn't
even begun to trickle into the equation. Truck drivers and trucking
companies will likely feel the pinch first, and the prices of the
products people buy at the store will very quickly become too pricey
for anyone but the very rich. The two things the economy has not had
to deal with yet - hopelessness and absolute and massive devaluation of
the currency, are the things which will finally pull the rug out from
under things when it happens. Remember that amerika's enemies are
looking for a situation to put her back in her cage, and a depression
situation will not unfold like it did in the 1920's. It will likely be
much, much worse.
Now, I am not saying to panic and flee the
cities... (ok, yes I am, but I've been saying that for years, and for
other reasons) I am saying that the long lead time you may have given
yourself to prepare for the inevitable may have gotten much shorter.
Just so you know,
|(Read More... | 4 comments | Score: 5)|
|Industrial Culture: Gas Price Projection|
Thursday, December 27 @ 14:08:17 CST by (583 reads)
|Gas could be $3.75 a gallon by spring
By Ronald D. White
Los Angeles Times Staff Writer
8:23 AM EST, December 27, 2007
could average $3.75 a gallon across the U.S. in a few months, pushing
the price in California up and over the $4 mark, energy analysts said
|(Read More... | 4528 bytes more | comments? | Score: 5)|
|Industrial Culture: The Tyranny of OPC (other people's children)|
Wednesday, June 13 @ 15:37:31 CDT by (1286 reads)
Tyranny of OPC (other people's children)
by Michael Bunker
suppose that most people who know me know that I really don't like
going to “town”. I like it less and less every day. I suppose
that no one warned me (though I should have suspected it, logically)
when I embarked on this Agrarian/Separatist road, that every new
thing learned and believed is a slippery slope.
|(Read More... | 15691 bytes more | 2 comments | Score: 4)|
|Industrial Culture: Virginia Legislature Should Be Charged With Murder|
Tuesday, April 17 @ 10:59:34 CDT by (844 reads)
Virginia Legislature Should Be Charged With Murder
10:56:43 am, Categories: General
, 941 words
I see where more and more idiots (as is
expected) are using this shooting as a platform to call for more gun
restrictions. This despite the fact that the shooting happened in an
area where guns are banned (on campus). Although it is legal in Virginia
to carry a concealed handgun, the policy of Virginia Tech made it
against the rules for VT students to protect themselves. The result? 32
unarmed dead people. The fact that this is being called the biggest
mass killing in US history, is both WRONG and very telling.
|(Read More... | 7229 bytes more | 2 comments | Score: 5)|
|Industrial Culture: From the Bunker blogpost...|
Monday, April 16 @ 16:32:30 CDT by (1304 reads)
Va. Tech Shooting, and other thoughts...
04:21:34 pm, Categories: General
, 463 words
Leave a comment
A bunch of folks (31 plus the shooter at last
report) got shot at Virginia Tech by what "appeared to be" an Asian man
on a "rampage". I am sorry, but I liked the world better when the news
of these types of things used to trickle in over many hours or days.
Now every text-message moron with typing thumbs and a blackberry is a
newshound... "ohmigawd, it was like, there was like shooting, and
like people were running around and stuff, and the people were like
'hey, lock yourself in a room and stay away from the windows', and I
was like 'man', and there were cops and stuff, like running around and
like hiding behind the trees..." I don't even have a TV and I am already sick of listening to these people.
popping up on news sites (like ABC) are the little comments about how
easy it is to get "high capacity magazines". Hmmm.... I would think
what we really needed was more armed VT students with
high-cap mags, because somebody could have dropped this joker before he
did this much damage. I haven't heard yet whether anyone is demanding
the licensing of Asian men.
Bush was "shocked and saddened"
by the events. A few of his advisors wanted to go with "shocked", and a
few preferred "saddened"... one or two even suggested "flustered and
put out", but eventually they went with "shocked and saddened". Bush
said, that "our schools should be places of safety, for book learnin',
drinkin' and partyin' with strippers, and not places of 'mass
shooterings'". Bush's spokesman claimed that his "first thoughts" were
for the families... and the victims... and the students... and the
professors... and the people of Virginia... and their puppies... and
anyone who has ever been called "nappy headed", etc. Now, that is a lot
of first thoughts.
Here is a stupid article,
trying to make the point that there is a double standard and political
correctness surrounding the use of the word "nigger". The double
standard and political correctness are in the fact that the article,
which reports that a recent rap concert featured the word "nigger" over
100 times, didn't use the word "nigger", instead using the infantile
and moronic alternative "n-word".
An "n-word" raped, tortured
and terrorized a college student in New York for 19 hours before
setting her futon on fire and leaving her for dead. Bet that the horror
over this attack will last about 15 seconds... I mean, at least the guy
didn't call her a nappy-headed ho. Bet Sharpton doesn't get worked up
for one second about this case.
Why White Men don't matter... I think Eleanor Clift should be fired, and her futon should be set on fire.
But then, that is just what I think.
|(Read More... | 16 comments | Score: 5)|
|Industrial Culture: More States challenge Real ID|
Monday, February 05 @ 06:07:17 CST by (830 reads)
States Challenge Nat'l Driver's License|
Email this Story
Feb 4, 9:36 AM (ET)
By LESLIE MILLER
WASHINGTON (AP) - A revolt against a national driver's license, begun in Maine last month, is quickly spreading to other states.
The Maine Legislature on Jan. 26 overwhelmingly passed a resolution
objecting to the Real ID Act of 2005. The federal law sets a national
standard for driver's licenses and requires states to link their
record-keeping systems to national databases.
Within a week of Maine's action, lawmakers in Georgia, Wyoming,
Montana, New Mexico, Vermont and Washington state also balked at Real
ID. They are expected soon to pass laws or adopt resolutions declining
to participate in the federal identification network.
"It's the whole privacy thing," said Matt Sundeen, a transportation
analyst for the National Conference of State Legislatures. "A lot of
legislators are concerned about privacy issues and the cost. It's an
estimated $11 billion implementation cost."
The law's supporters say it is needed to prevent terrorists and illegal immigrants from getting fake identification cards.
States will have to comply by May 2008. If they do not, driver's
licenses that fall short of Real ID's standards cannot be used to board
an airplane or enter a federal building or open some bank accounts.
About a dozen states have active legislation against Real ID, including
Arizona, Georgia, Hawaii, Massachusetts, Missouri, New Hampshire,
Oklahoma, Utah and Wyoming.
Missouri state Rep. James Guest, a Republican, formed a coalition of
lawmakers from 34 states to file bills that oppose or protest Real ID.
Though most states oppose the law, some such as Indiana and Maryland are looking to comply with Real ID, Sundeen said.
The issue may be moot for states if Congress takes action.
|(Read More... | 3 comments | Score: 5)|
|Industrial Culture: Agitprop|
Tuesday, January 16 @ 23:54:36 CST by (1104 reads)
|Since people still don't seem to get it about Alex Jones and insist on linking to his materials from this site... Here is a lesson once again. You can find the term "Agitprop" in the BiblicalAgrarianism Encyclopedia:|
Agit-prop is a contraction of agitational propaganda. The term originated in Bolshevist Russia (future Soviet Union), where the term was a shortened form of отдел агитации и пропаганды (otdel agitatsii i propagandy), i.e., Department for Agitation and Propaganda, which was part of the Central and regional committees of the Communist Party of the Soviet Union. The department was later renamed Ideological Department.
The term propaganda in the Russian language
didn't bear any negative connotation at that time. It simply meant
"dissemination of ideas". In the case of Agit-prop, the ideas to be
disseminated were those of communism,
including explanations of the policy of the Communist Party and the
Soviet State. In other contexts, propaganda could mean dissemination of
any kind of beneficial knowledge, e.g., of new methods in agriculture.
"Agitation" meant urging people to do what Soviet leaders expected them
to do; again, at various levels. In other words, propaganda was
supposed to act on the mind, while agitation acted on emotions,
although both usually went together, thus giving rise to the cliché "propaganda and agitation".
In the western world, agit-prop has a negative connotation. In the United Kingdom during the 1980s, for example, socialist
elements of the political scene were often accused of using agit-prop
to convey an extreme left-wing message via television programmes,
theatre and even children's books. However, in a more general sense, a television cartoon might be described as 'agit-prop' if it could be interpreted as a marketing ploy to sell toys.
The term is frequently used in the modern Russian language to
describe information provided by mass-media, if it is considered to be
pro-government and biased.
More pertinent usage:Among those in the US who are (or who tend to be) "anti-government" there are agents provocateur
who are paid government assets tasked with use of agitation and
propaganda (in this case anti-government propaganda, some of it
very,very true) to accomplish several very important tasks. In this
case an Agitprop is used to:
1. Create a sense of
overwhelming fear or concern, but in a way that results in immobility
or which makes the target increasingly numb to his/her condition or
2. Create the sense that something is being done, or
that evil men are being exposed and brought to justice, when in fact
nothing of substance ever really happens. The Agitprop will always
repeat that something should be done, or some action is crucial to stop
whatever impending disaster is looming, when a) nothing will actually
be done at all, or b) the actions suggested (such as 'call your
congressman', 'tell your friends', or more often than not, 'buy our
video or our book') will only give the target a false sense of action
and responsibility, with no corresponding successful results.
Offer an outlet to moderate and concerned citizens that satisfies their
sense of duty and action, once again with no actual results.
Help government officials track and monitor the more extreme elements
of the Agitprop's audience - those who take the message seriously and
go beyond the "talk and walk" do-nothingism of 99% of the audience.
is a classic use of the Agent Provocateur in resistance movements, and
only in America today are the people in those movements too stupid and
ignorant of history to look at the prime and transparent examples.
|(Read More... | 4 comments | Score: 4.5)|
|Industrial Culture: Expert predicts major correction in economy...|
Tuesday, January 09 @ 09:51:03 CST by (658 reads)
|Global Markets Face `Severe Correction,' Faber Says (Update4)
By Ian C. Sayson and Pimm Fox
Jan. 8 (Bloomberg) -- Marc Faber, who predicted the U.S.
stock market crash in 1987, said global assets are poised for a
``severe correction'' and it's time to sell.
``In the next few months, we could get a severe correction
in all asset markets,'' Faber said in an interview with Bloomberg
Television in New York. ``In a selling panic you should buy, but
in the buying mania that we have now the wisest course of action
is to liquidate.''
|(Read More... | 7001 bytes more | comments? | Score: 4.5)|| |
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