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I'm a wingnut when you admit that the only sector booming is wall street and I point that out.
Where did I "admit" that?
Several sectors of the economy are doing very well - the energy industry for one is doing great - as is the mining industry. High tech is doing pretty well too as are others.
Here's the list of the fasting growing industries in the U.S. last year with their NAICS code and their sales growth:
2131 - Support Activities for Mining 32%
4247 - Petroleum and Petroleum Products Merchant Wholesalers 27%
3332 - Industrial Machinery Manufacturing 25%
1121 - Cattle Ranching and Farming 24%
3323 - Architectural and Structural Metals Manufacturing 23%
3335 - Metalworking Machinery Manufacturing 21%
3327 - Machine Shops; Turned Product; and Screw, Nut, and Bolt Manufacturing 19%
5613 - Employment Services 18%
4471 - Gasoline Stations 18%
5415 - Computer Systems Design and Related Services 18%
4238 - Machinery, Equipment, and Supplies Merchant Wholesalers 17%
The fact is, the economy is not nearly as bad as people (especially wingnuts) generally think it is. Job creation is pretty substantial (on a par with the pre-recession Bush years).
There were several instances of Goldman Sachs and the other Wall Street trading operations driving down the stock market when Bernanke hinted that it was time for the QE program to end. You could look it up. Why did it happen? Because Goldman in particular, but Wall Street in general benefited greatly from the QE program.
So yeah, QE was propping up the market, enabling the Wall Street trading desks to book ever growing profits on the back of QE.
Over the past couple of years, the general consensus has changed regarding the prospects of the economy. The phonied up government assessments of inflation (the CPI excludes food and energy, dont you know) says there is no sign of inflation on the horizon. Gold is a scam. (Ask anyone who bought and held within the past couple of years, then listen to the current wave of gold purchase advertising) so the Wall Street traders are working to extract the last profits they can. You can bet that their positions are sufficiently hedged, and that their computers are ready to sell at the drop of a hat.
Sorry, but the Big Boys have the distinct advantage over most of us. All we can do is hope that the managers of those mutual funds that we own have the same kinds of smarts that Goldman's traders have.
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More ignorant nonsense - including the classic wingnut "I read it on the internet so it MUST be true" garbage that the CPI excludes food and energy. Anyone who makes THAT claim is either a liar or really, really, really ignorant - which really discredits anything else you post. The CORE CPI excludes those things, the CPI does not (and BOTH are pretty low).
If there is inflation what sector will absorb it?
From the later 90's to 2007 it was housing that absorbed the lions share and a good portion of Americans their credit is shot. So where will that inflation go? if you agree there will be inflation. If you do not ,why?
DOWN THE ROAD there probably WILL be some degree of inflation in excess of what we see today. Once the labor tightens (which it's about to do) then there WILL probably be wage-based inflation. As long as it doesn't become excessive that's perfectly fine. The biggest inflation of the last 50 years was energy-based inflation - but that's unlikely to repeat considering the fact that the U.S. oil production is rising to record highs while U.S. oil consumption is falling.
Name some names. When you say "wingnuts" who specifically are you talking about?
I don't generally like to point out names. Any search on "QE", "dollar", "Zimbabwe" or other such wingnut nonsense will bring up their "doom and gloom", "the U.S. dollar will collapse", "better buy gold" themed posts.
More ignorant nonsense - including the classic wingnut "I read it on the internet so it MUST be true" garbage that the CPI excludes food and energy. Anyone who makes THAT claim is either a liar or really, really, really ignorant - which really discredits anything else you post. The CORE CPI excludes those things, the CPI does not (and BOTH are pretty low).
Ken
Although inflation remains low, wholesale prices last month were up 2.1% on an annual basis. That's the biggest 12-month increase in more than two years and close to the Federal Reserve's 2% annual inflation rate target.
"Inflation is back and this can only mean one thing. Slack in the economy is evaporating more quickly now as the economy gets closer to full employment," said economist Chris Rupkey, of Bank of Tokyo-Mitsubishi in an email to clients. "Bet on it. Inflation isn't dead. We found some in today's PPI report."
Looks like Ron Paul led a lot of people off the cliff. He was really pushing gold, especially since he is heavily invested in it more than half of his portfolio is in gold and silver mining stocks
He has been pushing gold as an alternative to other investments for decades. Gold has vastly outperformed the stock market since 2001. Those who predict the collapse of gold or the collapse of the stock market are always eventually right. As are those who predict the opposite.
Well, anyone who follows the markets based on fact and historical interpretation, knows two things. 1) the economy has been recovering steadily since 2009 (Q2 IIRC but I could be wrong) and 2) the Obama recovery has been the weakest in the post WW2 era, growing at a measly 1.9% as opposed to the 4% or so that is the historical norm. So the Obama "recovery" is nothing to write home about.
In fairness, I would say that there are a number of structural things going on that Obama cannot control. Growing automation of manufacturing processes, growing internet commerce, growing fobbing off of administrative services and related costs onto the consumer, the exporting of labor to China and other offshore locations. A examples.
I share some of your issues with "the wingnuts" who think that their "free market capitalism" religion is the solution to all problems. But I also think that your liberal left condemnations of "wingnuts" is narrow minded at best.
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It wasn't just THIS recovery that was weak. The PREVIOUS recovery after the collapse of the dot-com boom in 2000 was ALSO very weak (that's when the term "jobless recovery" was coined).
There's a REASON for that, both of these recoveries are the first since the internet revolutionized business - making it possible for U.S. firms HERE to oversea and manage production and operations in overseas nations with very cheap labor forces. The result of that is that the previously backward "3rd World" nations can now more easily compete for manufacturing (and almost any other job) that USED to be able to be only done here.
Same thing is true regarding the automation you mention.
Those things changed A LOT in regards to how fast/easily the U.S. economy is able to recover.
As I said, the Bush recovery after the 2000 crash was the first recovery to feel those impacts - and that recovery was very slow too. It's only saving grace compared to this recovery is that the recession that led into it was nowhere near as deep as this past one was - but the rate of recovery was very slow and enemic for that recovery as well.
Oh, and I'm NOT "a Liberal" - I'm a Left-leaning CENTRIST (which is why I like what Obama is doing - True Liberals are not that happy with him).
Although inflation remains low, wholesale prices last month were up 2.1% on an annual basis. That's the biggest 12-month increase in more than two years and close to the Federal Reserve's 2% annual inflation rate target.
"Inflation is back and this can only mean one thing. Slack in the economy is evaporating more quickly now as the economy gets closer to full employment," said economist Chris Rupkey, of Bank of Tokyo-Mitsubishi in an email to clients. "Bet on it. Inflation isn't dead. We found some in today's PPI report."
Even with the recent increase it's still pretty low by historical standards. Aside from that, I don't disagree with the quote you posted - slack in the economy IS evaporating more quickly now - and that's a GOOD THING. I've said for MONTHS now (if not YEARS) that once the labor market tightens - which it's starting to do, but will REALLY happen once the UE drops into the 5-something percentage range - wages will start to rise as competition for workers heats up. At THAT point inflation will become a more serious issue. Having some "decent" inflation is a sign of a healthy economy because it's an indicator of strong demand - that's part of the reason the FED is LOOKING for it.
The fact is, the economy is not nearly as bad as people (especially wingnuts) generally think it is. Job creation is pretty substantial (on a par with the pre-recession Bush years).
That's what makes me nervous
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more than half of his portfolio is in gold and silver mining stocks
no conflict of interest here. No sir
