"The pat-down story was the equivalent of vaporware — it seemed as if something huge was about to happen, but it turned out that it was a story about a story, the noisy, fervent sound of a news system feeding on itself."
"But the big question for Verizon's LTE network isn't whether it will support smartphones in the first half of 2011 but whether it will finally land an LTE-capable version of Apple's popular iPhone. Although rumors of a Verizon iPhone have swirled for years now, Hays thinks that Verizon's LTE launch would be the perfect setting for Apple to debut a new iPhone model.
'It's quite likely that Apple will seek to take advantage of Verizon's 4G network,' he says. 'Having an LTE-enabled iPhone and adopting new technology early would fit squarely with Apple's overall strategy.'"
"None of this should be cause for celebration, because a world without American leadership is a more dangerous place. The U.S. is still the world's largest economy, the issuer of its reserve currency, and its lone military superpower. No other nation has the will or capacity to lead the way the U.S. has for 70 years, so faltering American influence will produce a vacuum in which every nation can seek narrow advantage.
If Mr. Obama wants to restore his economic leadership, both at home and abroad, he needs an urgent shift in priorities. [emphasis added] Strike a deal with Republicans to extend the current tax rates across the board, pursue the spending cuts proposed by his own deficit commission, end the regulatory binge that has constrained America's animal spirits, stop trying to direct capital toward political mirages like 'green jobs,' and press Congress to pass the Korean and other trade pacts.
The world will follow American leadership again only when it sees policies that restore robust U.S. economic growth."
"Both Google and Facebook are run like absolute monarchies in which hundreds of millions of users (digital serfs, some might say) have created identities. Rather like mercantilist countries in the offline realm, both companies operate policies to protect this asset. Google stoked the trade war because it wants to add what it calls a “social layer” to existing products such as picture-sharing and e-mail, making it look more like Facebook. It would help Google if users could bring their contacts to its services from other sites. But Facebook, the world’s biggest social network, wants to keep control of its serfs’ data and therefore stops them exporting contacts easily."
"...Sen. Gregg said that overall, federal spending takes a bigger hit in the plan than taxpayers do. The plan's goal is to reduce federal spending and federal revenues to 21% of gross domestic product. Federal revenues currently are projected to be about 19% of GDP in 2015, and outlays about 23%.
It would seek to achieve the pullbacks through a mix of spending cuts and increasing tax revenues—about 75% in spending reductions and about 25% from the tax side.
If the plan was adopted in its entirety, it would reduce the deficit to 2.2% of gross domestic product by 2015, exceeding the target set for the panel by the White House of lowering the deficit to 3% of GDP...."
"...I was trying to grasp the beneficiaries of this QE2, and could only think of the USA equities market and forex / commodity traders. The belief by many is that the dollar will weaken, and companies with a global footprint will have significantly higher international profit growth (as expressed in USA dollars).Of course, this line of thinking requires the fundamental belief that other currencies and governments will stand stand idly by while their currency strengthens and their perceived competitive advantage is whittled away. It is much more likely a currency / economic war will follow than foreign countries remaining passive to USA's quantitative easing.It is fairly easy to identify who will suffer with the current Fed policy:
- the old who lived on social security, bond yields and the income from their CD's (CD yields are now so low they will barely purchase a six pack of beer); and,
- the underfunded pension funds who are now denied any low risk fixed income opportunities.
So the burden of this low interest rate policy is being carried by the old (retired) and the boomers (near retired). Our old fashioned retirement income schemes are in the toilet. In theory, it is beneficial to the alphabet soup of generations which follow as they have access to cheap money. If this were only true......."
"A trade war is imminent, James Burnell of the Colorado Geological Survey explained in the Geosociety report:
“China is preparing to build 330 giga-watts worth of wind generators. That will require about 59,000 tons of neodymium to make high-strength magnets — more than that country’s annual output of neodymium. China supplies the world with a lot of those rare earth elements, like neodymium, and will have little or none to export if it moves ahead with its wind power plans…So the source for the West is problematical. [sic]”"
"There’s another important day next week and it rather coincidentally occurs on Wednesday – the day after Election Day – when either the Donkeys or the Elephants will be celebrating a return to power and the continuation of partisan bickering no matter who is in charge. Wednesday is the day when the Fed will announce a renewed commitment to Quantitative Easing – a polite form disguise for “writing checks.” The market will be interested in the amount (perhaps as much as an initial $500 billion) as well as the targeted objective (perhaps a muddied version of “2% inflation or bust!”). The announcement, however, has been well telegraphed and the market’s reaction is likely to be subdued. More important will be the answer to the long-term question of “will it work?” and perhaps its associated twin “will it create a bond market bubble?”
Whatever the conclusion, not only investors, but the American people should recognize that Wednesday, even more than Tuesday, represents a critical inflection point in determining our future prosperity. Of course we’ve tried it before, most recently in the aftermath of the Lehman crisis, during which the Fed wrote $1.5 trillion or so in “checks” to purchase Agency mortgages and a smattering of Treasuries. It might seem a tad dramatic then, to label QEII as “critical,” sort of like those airport hucksters, I suppose, that sold whale blubber for a living. But two years ago, there was the implicit assumption that the U.S. and its associated G-7 economies needed just an espresso or perhaps an Adderall or two to get back to normal. Normal just hasn’t happened yet, and economic historians such as Kenneth Rogoff and Carmen Reinhart have since alerted us that countries in the throes of deleverging can take many, not several, years to return to a steady state."
