Eric Cantor Betting Against T-Bonds?

Eric Cantor Betting Against T-Bonds? — Old friend Tom Flocco of Upper Providence has noted that Congressman Eric Cantor (R-Va7) who led the walkout in negotiations regarding the raising of the debt ceiling has money invested in a fund that will rise if Treasury Bonds drop as would happen if the debt ceiling is not raised.

It’s a subject being discussed with suspicion at numerous small harbors on the great sea of the world wide web.

The fund is ProShares Trust Ultrashort 20+ Year Treasury ETF. Cantor has $15,000 invested in it as part of a diversified portfolio — which also includes Treasury Bonds.

If one has a halfway-decent money manager one very well might have similar amount of money in that fund or a similar one.

It has been said — by the left-leaning Daily Kos no less — that Cantor sabotaging U.S. Treasury Bonds to benefit his ProShares fund would be like burning down a “million dollar mansion to collect 100 grand in fire insurance.”


Eric Cantor Betting Against T-Bonds?

Looming Disaster Explained

Looming Disaster Explained — Stansberry & Associates Investment Research, an investment firm,  is getting some notice and causing some controversy on the World Wide Web with a video warning of an impending collapse of the dollar which it claims will usher in 1,000 percent inflation and months of domestic turmoil.

If you get to  the very end of it you’ll find it to be a sales pitch. Still, Porter Stansberry makes some points worth considering:

–If all Americans paid 100 percent of their income in taxes it would still not pay off the national debt.

–That our government owes more money to more people than anyone else in the world — and that was before the financial crisis.

–That we are repaying this debt by printing trillions of dollars and that our creditors will either stop accepting dollars in repayment or greatly discount their value.

–That Mexican banks are no longer accepting dollars for deposits and that there are 150 legal alternatives to U.S. currency being circulated in the United States, such as BerkShares.

One free bit of advice he gives that is probably worth taking as best as one can is that one should have at least a six-month supply of food, water and medicine on hand.

Here’s the latest link.

Here’s a more user friendly one on youtube.

 

Looming Disaster Explained

Productivity Booms In Obama Years

Productivity Booms In Obama Years — The U.S. economy produced a record $13.38 trillion worth of real gross domestic product, based on 2005 dollars, in the last quarter of 2010.

Just 139 million employees were used to achieve this feat which is 7 million fewer than in the last record quarter — fall 2007 — when $13.36 trillion in real GDP was produced.

The motivation for this achievement, which has good and bad sides, can be laid at the feet of President Obama. Businesses are bending over backwards not to hire people fearing they may be stuck paying for them forever via unemployment compensation insurance and various other mandates — new, proposed and unforeseen.

The bad side is many businesses are making the employees they didn’t lay off work far harder than they used to to make up for the smaller workforce, and these employees are stuck since they fear there is nothing else out there and if one quits without a good reason one is likely not to get unemployment compensation.

And truthfully, most Americans would rather work than be a useless drone.

The good side is many business are also making productivity gains by cutting red tape, removing communication bottlenecks and increasing the skills and flexibility of its workforce.

And, of course, by adopting new technology.

One example that has gotten quite a bit of publicity is Marlin Steel Wire Products of Baltimore. Marlin has replaced $6-an-hour workers, who did 300 bends an hour, with robots and a $22 an hour technician that do 20,000 bends per hour.

One can say that a whole lot of $6 an hour people got put out of work. Or one can say that $6-an-hour workers can now afford a product that had not been able to.

Back during the dot.com boom, a prediction was made of  era of 0 percent employment. The idea wasn’t that all would be in soup lines depending of government handouts but the world would become the Merry Old Land of Oz, where we would all sleep till noon, start work at one, an hour for lunch and at two we’re done.

We wouldn’t be drones but be free living under our own vines and fig trees.

Maybe Obama is going to bring this about in spite of himself.

 

Productivity Booms In Obama Years

A Great Experience At DN Supply

Had a great experience, yesterday, at DN Supply , 80 E. Baltimore Pike, Lansdowne.

The shop, which we use for plumbing materials, is not just for contractors. We had to replace a 50-year-old commode and amazingly enough they had one that was a remarkably close color to our 50-year-old sink that we did not have to replace.

Even more remarkably it was two-thirds the price of the one that we were considering at Home Depot that was not a good color match.

The staff is friendly, knowledgeable and patient with questions from novices.

Day Dollar Died

Day Dollar Died — A friend who has had a very successful career in banking sent me this and asked if I’d post it. He asked that his name not be used. Read what he wrote and watch the video. As I said he’s had a successful career in banking.

Please take the time to view this seven-minute video.

The odds of this financial crisis scenario have jumped from 1/100 to 1/5 IMHO in the past 3 months

Having worked in banking in South America during their hyper inflation period,  may give me the credibility with you to take this fictional account seriously.

Buy some gold(however few coins) and stock up on non-perishable  foods,so you can ride out the crisis/adjustment period, IF it comes.

My guess is it will take  2-3 months for things to calm down,if this  scenario plays out.



Day Dollar Died

Great Experience Weathers Motors

I just recently returned from an auto inspection at Weathers Motors on Route 1 in Middletown, Delaware County, Pa., and wish to tell the world that the service was great and price the was pleasing.

Good luck and God speed to Weathers.

Great Experience Weathers Motors

Great Experience Weathers Motors

Quantitative Easing Explained

Quantitative Easing Explained — The-smarter-than-us set says these teddy bears in this YouTube video   just don’t get how our monetary system works. They insist that the fed isn’t printing money — merely buying back bonds from Goldman Sachs — and that we really are in a deflationary spiral. Really.

One is starting to suspect that our wizards of finance are more like the Wizard of Oz. Pay no attention to the man behind the curtain. Pay no attention to the price tag on the package of bagels. 


Quantitative Easing Explained

Green Energy Technology Sailing Away to China

China has moved pass Germany, Denmark, Spain, and the US to become the biggest wind turbine producer in the world.  It is expected that China will be the largest producer of solar energy technology in two years.  In the meantime, as China has been allowed to take the bull by the ring and take all of the green jobs that were proposed during the presidential race, US leaders are still arguing and posturing about whether the government should support the creation of green jobs with taxpayers money or oil companies should be allowed to lead in the production of green energy.  Probably after all the oil is gone.


 I saw a documentary where Bangladesh was even creating solar cells and getting their people to build up their infrastructure with green energy.  Something is definatley wrong with this whole discussion.  I think that a government is supposed to tax people and to spend what they collect with the taxes for the betterment of the people whom they tax.  The idea is that the government takes a little from each person and then spends it to get more than each person possibly could because of the amount of money they have collectively. I believe in big government–government of the people by the people and for the people, that works, instead of a government with no money who has to beg corporations to finance programs.  I guess that I am just old fashion though.  I think of this as I watch all of the green technology projects and jobs floating over to China where they will remain because we, like in most of the manufacturing sector, cannot afford to compete because of their low labor costs. Let’s just wave bye bye to those new jobs everyone wanted.
Green Energy Technology Sailing Away to China
Green Energy Technology Sailing Away to China

Comcast Cuts Customer Service Costs; Subscribers Drop

Munāphē mēṁ vr̥d’dhi which is how to say “we are in the money” in Hindi, at least according to Google’s translation service.

Philadelphia communications giant Comcast Corp. announced yesterday that profits rose 6 percent to $9.5 billion clearly helped by a  2.4 percent cut in customer service expenses and a 7 percent cut in technical labor.

In a certainly unrelated matter subscribers fell by 265,000.

This particular news site was one of them switching to Verizon. While there have been some glitches, Verizon customer service has been Americanly superb and there is no looking back.

 

Comcast Building Lobby Comcast Cuts Customer Service Costs; Subscribers Drop

Comcast Cuts Customer Service Costs; Subscribers Drop

Comcast Customers Surprised By Lost Channels

Comcast without any real warning has begun encrypting the channels that they had led owners of digital-ready TVs to believe would remain accessible to them sans the cheap digital adapter boxes with the even cheaper remotes.

It happened in the Windsor Circle area of Springfield, Pa on Wednesday. Other areas of the town were still getting channels without encryption as of Saturday but don’t expect it to last.

Comcast  had given away the digital adapters for free without an increase in cost but many owners of new TVs declined to hook them up because of the low quality remotes, unnecessary complexity and wire snarls, poorer picture quality and loss of functionality.

Others never bothered ordering them because they had been led by Comcast to believe they were unnecessary for owners of digital-ready TVs.

An explanation for the unexpected action that appeared Comcast.net on Wednesday appears to have been removed. It basically said the new policy was in regard to Comcast concerns about theft of services.

And of course, the tech support people were unable to tell you what had happened and not just due to the language barriers. Comcast apparently didn’t tell them what they did.

People are angry.

Verizon, btw, is offering an equivalent service to Comcast for $50 per month less.

 

Comcast Building Lobby Comcast Customers Surprised By Lost Channels

Comcast Customers Surprised By Lost Channels