The past week has been one of total confusion. I have tried to ponder the direction of the world economies. Yes, how can little Arnold actually put together a cohesive plan for the world economy with all of the competing factors? Yes, indeed. Well, the answer is that like with any other prognosticator, Arnold makes projections. But unlike other prognosticators, Arnold posts his previous calls and accepts responsibility for them.
The employment numbers issued Friday were lousy, awful, hideous. You pick the word you think fits best. The employment numbers are essentially confirming what I have been saying for months. Additionally on Friday, wholesale inventories were up 1.8 percent, and wholesale pricing was down 0.2 percent. But how is this possible, that wholesale prices were actually down? I just don’t get it!
The Democrats are now calling Republicans all kinds of good names in keeping with President Obama’s calls for civility: confederates, terrorists, Nazis, fascists, white supremacists. And those were the names I can print! I do not recall any instances where the Republicans have name-called against the progressives or Democrats, either.
On Friday, it was announced that Democrats in the Senate are going to filibuster any legislation that cuts spending (and blame the Republicans for lack of passage) and the Republicans will filibuster any bill that has tax increases. This appears to be a big difference in opinion. And neither side seems prepared to negotiate.
So, here we are, where the Democrats in Congress apparently will not vote for any spending cuts and the Republicans in Congress will not vote for any tax increases. The positions of both parties are ridiculous. Spending can clearly be reduced, and significantly, as several Arnold attempts have demonstrated. And certainly corporate and individual loopholes can be closed. When Arnold says tax loopholes, he is not referring to the mortgage deduction, but instead to tax deals that are offered to a specific company or individual or specific tax treatments to one particular industry. Those loopholes can all be closed, and that would generate hundreds of billions of dollars per year. But the only fair way (as the progressives say) is if all of those loopholes are closed.
- The DJIA looks lower, then much higher into late 2011.
- Gold continues to look higher, rising to all-time highs.
- Oil is still in a trading range, and should rise to maybe $125.
- The dollar looks to be holding up well.
- Interest rates went down again yesterday, and we should see a bottom on the 30-year treasuries soon.
- Real estate continues to look much lower.
- The economy clearly looks weak.
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