June 2011

PPI for May 2011

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The Producer Price Index for finished goods increased 0.2% in May 2011. The PPI measures prices obtained for U.S. goods. Intermediate goods prices increased 0.9% and crude or raw materials prices dropped -4.1%. PPI is often called wholesale inflation by the press. This worries Wall Street:

Greece Downgraded Again, Credit Default Swaps Soar

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Greece has been downgraded to CCC, a drop of three credit rating grades, by the almighty S&P credit ratings agency.

Greece had its credit rating cut three levels by Standard & Poor’s, which branded the nation with the world’s lowest debt grade and said a restructuring looks “increasingly likely.”

The move to CCC from B reflects “our view that there is a significantly higher likelihood of one or more defaults,” S&P said in a statement today. “Risks for the implementation of Greece’s EU/IMF borrowing program are rising, given Greece’s increased financing needs and ongoing internal political disagreements surrounding the policy conditions required.”

The problem now is soaring credit default swaps:

Credit-default swaps on Greece, Ireland and Portugal surged to records on concern European governments’ struggles to resolve the deficit crisis will threaten their ability to pay their debts.

Swaps on Greece jumped 47 basis points to an all-time high of 1,610 as of 5:30 p.m. in London after Standard & Poor’s downgraded the nation, according to CMA. Contracts on Ireland soared 27 basis points to 740, Portugal climbed 22 to 764 and the Markit iTraxx SovX Western Europe Index of swaps on 15 governments jumped 7 basis points to 218, approaching the record 221.75 set Jan. 10.

Remember those from the financial crisis? Credit default swaps are insurance policies, anyone can buy, which pay out when a nation defaults.

Greece loses, they win. The problem is those who issue CDSes will have to pay out. Remember AIG?

NYT: "Obama Seeks to Win Back Wall St. Cash" - When Did He Lose It?

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It's time for Plan B. The White House is about to be sold to the same people who bought it in 2008. The front page of today's New York Times says it all. President Obama is on the hunt for campaign cash and the Wall Street crowd represents his main target. After all, he and his "good friend Tim" (Geithner) delivered in the biggest way possible. Obama must be thinking that it's payback time! Pony up fellas.

This much is clear. There will be no federal prosecutions of Wall Street crooks for the 2008 financial collapse, no day of judgment for massive mortgage fraud before, during and after the housing bubble, and no representation for the people the in the White House, no matter who wins in 2012. Populist rhetoric will guarantee a place on the no-fly list for any who stray from the new party line.

The Times article resorts to irony right out of the gate:

"Mr. Obama, who enraged many financial industry executives a year and a half ago by labeling them “fat cats” and criticizing their bonuses, followed up the meeting with phone calls to those who could not attend." New York Times, June 13

Friday Movie Night - Made in America

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hot buttered popcorn It's Friday Night! Party Time!   Time to relax, put your feet up on the couch, lay back, and watch some detailed videos on economic policy!

 

Tonight's movie is more a series and an acknowledgment. ABC News has been reporting on Made in America.

They have an entire website devoted to Made in America and they are discovering some myths that only Chinese goods are cheap enough.

Here are the first two video reports in their series.

 

A Weiner in Hand

Michael Collins


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If you're in the retail business, it's all about packaging. If you're in wholesale, it's about volume. If you're Congressman Anthony Weiner, it's about the double game of liberal packaging without the throw weight to justify the image.

I managed to get through the last few days without much information on Weiner's Tweets. etc. As I exited the corporate media's fantasy land a few days ago, I saw a clip of Weiner with a shit eating grin on his face. He was trying to act like an “adult” (i.e., a pol like Cheney who lies without blinking).

Weiner asked that people not make more out if his situation than was actually there. I thought he's lying as I left the virtual world for some pressing business. Upon my return, I saw just enough to let me know that the congressman was the subject of the much discussed underwear shot heard round the world.

What difference does it make? None, really. It's just another distraction in the nonstop series of distractions fueled by corporate media in an attempt to keep us from the more vital issues. Why are there only four million more jobs today than there were in 2000? How are citizens supposed to stay healthy, even alive, when the cost of health care is through the roof? Is there any reason for those 80,000 United States troops in Afghanistan or the 700 overseas US military installations?

Trade Deficit for April 2011 - $43.7 Billion

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The April 2011 U.S. trade deficit decreased -$3.1 billion to $43.7 billion. This is a -6.7% monthly drop in the trade deficit and the largest since October 2010. Exports were the highest on record. Oil imports were the highest on record and the drop in imports from Japan also was the largest decrease on record. The tsunami hit Japan on March 11th.

 

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