Mish's Global Economic Trend Analysis

---

• Germany's Finance Minister Lectures Obama On Debt, Defends Euro, says German Referendum Needed Soon
• Greek Finance Minister Resigns Before Being Sworn In; Cyprus Seeks Bailout From Euro Zone Partners
• EU Takes Great Britain to Court over Garlic; Nannyzone Nonsense; Time for UK to Kiss EU Goodbye
• Is There a Limit on Central Bank's Ability to Inflate?

Germany's Finance Minister Lectures Obama On Debt, Defends Euro, says German Referendum Needed Soon Posted: 25 Jun 2012 02:06 PM PDT President Barack Obama should focus on cutting America's own budget deficit before advising Europe on how to tackle its debt problems says German finance minister Wolfgang Schäuble in the Spiegel article in Germany Rejects Obama's Criticism in Euro Crisis German Finance Minister Wolfgang Schäuble rebuffed recent criticism of Germany's handling of the euro crisis from Barack Obama, telling the US president to get his own house in order before giving advice. "Herr Obama should above all deal with the reduction of the American deficit. That is higher than that in the euro zone," he told German public broadcaster ZDF on Sunday night. Obama, worried about the impact of the debt crisis on the global economy and financial markets -- and on his own prospects for re-election --has been urging Europe to step up its efforts to tackle the problem. In the interview, Schäuble also reiterated his opposition to euro bonds, saying countries must remain individually liable for their public debt as long as they were taking sovereign decisions on how the money was being spent. "If you spend the money from my account, you won't be frugal with the money," said the finance minister. He added that he was against devoting large sums of money -- for example from the European Central Bank -- to fight the crisis. The roots of the crisis needed to be fought credibly, he said, adding that that was succeeding in Ireland and Portugal, which have both received international bailouts. "It's not succeeding so well in Greece,"he added. "I don't know when that will happen, and I doubt anyone does," he told SPIEGEL. "But I assume that it'll happen sooner than I would have thought a few months ago." Wolfgang Schäuble Defends Euro and Jean-Claude Juncker In an interview with Spiegel published on Monday, Schäuble said he could imagine that Germany will soon have to hold a referendum on a new constitution enshrining greater EU sovereignty. Please consider these snips from Der Spiegel interview 'We Certainly Don't Want to Divide Europe' SPIEGEL: Minister Schäuble, the European Union is mired the worst crisis in its history with the euro threatening to break apart. What is at stake? Schäuble: Our prosperity. The world, with its globalized economy, is changing at a rapid pace. Those who want to keep up cannot go it alone. It only works in collaboration with other European countries and with a European currency. Otherwise we would fall far behind, and that would lead to a substantial loss of prosperity and societal security. SPIEGEL: Was it a mistake to introduce the euro? Schäuble: No. The monetary union was the logical consequence of the advancing economic integration of Europe. SPIEGEL: Nevertheless, the euro is a miscarriage. The necessary political union was absent. Schäuble: To call it a miscarriage is nonsense. But it's clear that we wanted a political union at the time, but it wasn't possible. Germany would have been prepared to relinquish powers to Brussels, because it was only through Europe that we received a new chance after World War II. But other countries had trouble with the concept, because of special traditions, for example, or because they had only recently regained their national autonomy after the fall of the Iron Curtain. As such, we faced a fundamental question: Do we introduce the euro without having the necessary political union, and do we assume that the euro will bring us closer together, or do we abandon the idea? SPIEGEL: And in that situation you preferred to take the risk. Schäuble: If we had always said we would only take steps toward integration if they would immediately work 100 percent, we would never have advanced by so much as a meter. That's why we wanted to introduce the euro first and then quickly make the decisions needed for a political union. Luxembourg Prime Minister Jean-Claude Juncker was right when he said, at the time, that the euro would prove to be the father of future European developments. SPIEGEL: In the meantime, however, the common currency has, above all, powers of destruction. Schäuble: Now you're exaggerating. ... SPIEGEL: You want nothing less than a United States of Europe. Schäuble: Even though the term is used repeatedly, it doesn't make it any better. No, the Europe of the future will not be a federal state based on the model of the United States of America or the Federal Republic of Germany. It will have its own structure. It's an extremely exciting venture. SPIEGEL: It sounds more like a new experiment, not unlike the introduction of the euro. And yet you want to transfer as much power as possible to Europe? SPIEGEL: What would a fiscal union have to look like so that Germany could accept euro bonds? Schäuble: In an optimal scenario, there would be a European finance minister, who would have a veto against national budgets and would have to approve levels of new borrowing. It would be up the individual countries to decide how to spend the approved funds, that is, how to answer the question: "Should we spend more money on families or on road construction?" SPIEGEL: And you seriously believe that this could work? Schäuble: It's been working for a long time in competition policy. When the current Italian prime minister, Mario Monti, was the EU competition commissioner, he successfully tangled with major international corporations like Microsoft. A European finance minister would, should it become necessary, be forced to take on Italy, for example. SPIEGEL: Or with Germany. Let's assume the finance minister in Brussels rejected your budget. People here would be incredibly outraged. Schäuble: There is certainly the risk that there would be national reactions, and that's why all of this requires intensive discussion. SPIEGEL: With all due respect to your vision, is there truly more willingness today among EU member states to give up sovereignty than there was in the 1990s? Schäuble: The recognition that this is necessary, and the willingness to do so, has certainly grown due to the crisis, and not just in Germany. Hypocrisy The interview reviews a set of arrogant statements, foolish actions, lies, and hypocrisy. Let's start with the hypocrisy. In response to a comment on "powers of destruction", Schäuble responded "Now you're exaggerating.". Yet, in response to the opening question "What's at stake?" he responded "Our prosperity. .... Otherwise we would fall far behind, and that would lead to a substantial loss of prosperity and societal security." A "substantial loss of prosperity and societal security" sounds pretty destructive to me. Arrogance and Foolish Actions Defending the introduction of the Euro while admitting these problems were known in advance is arrogant foolishness. Anyone care to ask how Spain, Greece, or Ireland feels about this position? Calling for a strengthening of European parliament complete with all their nannyzone ideas, tariffs, and regulations is beyond foolish. For a prime example, please see EU Takes Great Britain to Court over Garlic; Nannyzone Nonsense; Time for UK to Kiss EU Goodbye Yet, without a fiscal and political union, the euro cannot function at all. Indeed it certainly hasn't. Of course Germany expects to be in control of the parliament, but that may not happen, especially if France, Spain, and Italy all agree to do some foolish thing (exactly as they propose right now I might point out!). The very first thing to go in a political union would be austerity if those countries had their way. Of course, the proposal would contain "strict" budget limitations. Think those would matter when politicians would have the chance to vote on them? Why should German citizens (or any citizens for that matter) subject themselves to such nonsense? Outright Lies or Disingenuous Bullsheet? Schäuble claimed "In the most recent election in Greece, more citizens voted for parties that support the course that was agreed to with Europe than in the first election." That is a gross distortion of reality at best. There is near unanimous sentiment in Greece against more austerity. Pasok, the only pro-austerity party received a mere 12% of the vote. Political and Cultural Differences Are Immense Political and cultural difference make agreements on a new treaty impossible. If anything, odds of hammering these things out in a crisis is all the more difficult, as repeated disagreements about Greece (a very minor player) have shown. A timing sequence issue also suggests It's Just Impossible. The Bundesbank said there should be no banking union until there is a fiscal union. Angela Merkel said that there should be no fiscal union until there is political union. François Hollande said that there should be no political union until there is a banking union. The German supreme court will not allow a political union nor a fiscal union, nor a banking union without a German referendum. Schäuble believes a German referendum will happen soon. How can that be given there is no agreement on eurobonds, the order and timing of events, or anything else substantial? Recall that French president Francois Hollande even wants to rework the last agreement! Yet, until a treaty is hammered out, no referendum is possible. Even if by some miracle a treaty is hammered out, how long will the ratification process take? Would German citizens vote for it?  Finally, will the bond markets wait that long? Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com Click Here To Scroll Thru My Recent Post List Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.

Greek Finance Minister Resigns Before Being Sworn In; Cyprus Seeks Bailout From Euro Zone Partners Posted: 25 Jun 2012 11:01 AM PDT One might think the the newly elected Prime Minister of Greece would have enough common sense to not appoint a finance minister with a history of medical problems. One might also think a person with known medical problems would turn down the position if offered because of the obvious stress. However, one would be wrong on both counts. Reuters reports Greek finance minister resigns, crisis deepens Greece's new finance minister resigned because of ill health on Monday, throwing the government's drive to soften the terms of an international bailout into confusion days before a European summit. Vassilis Rapanos, 64, chairman of the National Bank of Greece, was rushed to hospital on Friday, before he could be sworn in, complaining of abdominal pain, nausea and dizziness. Greek media said he had a history of ill-health. The office of Prime Minister Antonis Samaras, who himself only took office last Wednesday following a June 17 election, said Rapanos had sent a letter of resignation because of his health problems and it had been accepted. Samaras himself has only just emerged from hospital after undergoing eye surgery to repair a damaged retina. Both he and Rapanos had already said they would not be able to attend the June 28-29 European summit. Cyprus Seeks Bailout In other news, the New York Times reports Cyprus Seeks Bailout From Euro Zone Partners The euro zone's sovereign debt crisis took a turn for the worse Monday as Cyprus said it would seek aid from the euro zone's bailout funds. "The purpose of the required assistance is to contain the risks to the Cypriot economy, notably those arising from the negative spill over effects through its financial sector, due to its large exposure in the Greek economy," the government said in a statement. Earlier in the day, the ratings agency Fitch downgraded the island nation's government debt to junk status. Cyprus last year received a three-year, €2.5 billion loan from Russia. Greece, Portugal and Ireland have already received bailouts. Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com Click Here To Scroll Thru My Recent Post List Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.

EU Takes Great Britain to Court over Garlic; Nannyzone Nonsense; Time for UK to Kiss EU Goodbye Posted: 25 Jun 2012 08:19 AM PDT If you are looking for solid reasons why the UK should kiss the EU goodbye, then I can provide one: Brussels acts over garlic tax. The European Commission is taking Britain to court in a battle over an unpaid bill of millions of pounds in duty on imports of garlic. The European Commission announced legal action after an ultimatum to pay £15m to Brussels or face action in the European Court of Justice expired. The wrangle is over the fact that import tariffs on frozen garlic from outside the EU are lower than the rates for fresh garlic. And, according to the Commission, UK authorities carelessly levied the lower rate applicable to frozen garlic on imports of the fresh product from China, in breach of EU customs rules. All customs duties charged on imports of goods coming from a non-EU country are collected by member states on behalf of the EU and paid to the common EU budget as part of each member state's annual contributions. One quarter of the total raised from such duties is held back by the national authority to cover collection costs. A Commission statement explained: "Between 2005 and 2006, the UK customs authorities allowed imports of fresh garlic from the People's Republic of China, erroneously stating that it was frozen garlic, subject to significantly lower import duties than fresh garlic. Nannyzone Nonsense For starters, there should be no tariffs on garlic at all, fresh, frozen, freeze dried, or otherwise. This is not just about garlic. This is about agricultural tariffs in general. Pater Tenebrarum at the Acting Man Blog discusses free trade including the following absurdity regarding sale of cabbage. Mind, we do believe that free trade, free movement of capital and open borders are essential and important achievements. But here is a little comparison that shows you quickly and easily what isn't (hat tip to one of our readers at Seeking Alpha): Pythagoras' theorem – 24 words. Lord's Prayer – 66 words. Archimedes' Principle – 67 words. 10 Commandments – 179 words. Gettysburg address – 286 words. US Declaration of Independence – 1,300 words. US Constitution with all 27 Amendments – 7,818 words. EU regulations on the sale of cabbage – 26,911 words. Tenebrarum sarcastically asks "How on earth did we ever buy and sell cabbage before there were such edicts from the bureaucracy in Brussels?" Who Benefits From This Nonsense? Such tariffs are primarily for the benefit of French farmers who could not otherwise compete in the global marketplace. Not only do consumers have to pay higher prices for no reason, but 25% of such taxes go straight to the nannycrats' pockets, disguised as "collection costs". The nannycrats wanted prime minister David Cameron to sign a nanny-agreement last December, but the only reason he didn't was the possibility the EU would implement a financial transaction tax. For details, please see my December 10, 2011 post Britain Seethes, Germany Sulks, France Gloats; UK "Big Loser" Falls into "French Trap"?; Who is the "Real Loser"? Bazooka Math The idea that the UK fell into a French trap is totally absurd. Cameron would have been willing to sign that fool agreement had not France insisted on a financial transaction tax. Then had he signed, the UK would have been subject to the tax by popular vote later. Thus it was France who made the foolish move if they wanted Cameron to sign. Nonetheless, Cameron did make a huge mistake and he also painted himself into a corner by stating it would be "disastrous" for the UK to leave the EU. Why? Disastrous for who? The UK would get to shed arcane EU regulations on damn near everything, but especially agricultural tariffs that cost UK citizens plenty. The UK can stop sending money to the EU that goes into creating policies that further cost UK citizens money. Whatever downside there is to leaving the EU, would be more than made up for by shedding EU bureaucracy and idiotic rules entirely.  Time for UK to Kiss EU Goodbye There is no reason for the UK to be in the EU. Agricultural tariffs including garlic taxes are proof enough. Financial transaction taxes, supported by France and Germany, are icing on the cake. The UK wisely avoided a eurozone entry. It would benefit from telling the EU to go to hell over agricultural tariffs and financial transaction taxes as well. If the EU is stupid enough to sponsor agricultural tariffs for the primary benefit of French farmers at the expense of everyone else, then let them. There is no reason UK citizens should have to suffer as well. Put it to a vote David Cameron. Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com Click Here To Scroll Thru My Recent Post List Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.

Is There a Limit on Central Bank's Ability to Inflate? Posted: 25 Jun 2012 12:24 AM PDT On Friday, ECB President Mario Draghi announced ECB to Accept BBB- Rated Debt (One Step Above Junk) as Collateral. Reaction from the German central bank was immediate: Bundesbank Swipes at Draghi as European Fault Lines Deepen "We're critical of this," Bundesbank spokesman Michael Best said yesterday. In terms of collateral, "we won't accept what we don't have to accept," he said. Fault Lines Looser collateral is the latest issue to divide Europeans days before a summit that Italian Prime Minister Mario Monti said must succeed or risk a bond-market selloff. German policy makers are reluctant to put too much on the line to help debt- strapped nations before they fix their budgets and banks. French and Italian leaders are pushing for a wider range of crisis- fighting tools. Those debates have flared on the ECB's Governing Council too. Two years ago, the German central bank came out and opposed the ECB's unprecedented decision to buy the bonds of distressed nations as part of a broader push to stamp out a crisis that was starting to spread from Greece. While the German central bank ultimately went along with the plan, it has since been largely shelved and deemed ineffective by most ECB officials. Weidmann Letter In February, Bundesbank President Jens Weidmann wrote to Draghi warning of the risks the ECB is taking in lending more than 1 trillion euros ($1.3 trillion) to banks. The ECB's Target2 system, which calculates debts between the euro region's central banks, shows that the amount owed to the Bundesbank has soared as Germany helps fund the region's most indebted nations. Earlier this year, the German central bank shunned another measure aimed at easing collateral requirements. The ECB's latest announcement is a "clear sign that the Bundesbank opposes any further increase in risks on the euro system's balance sheet," said Juergen Michels, chief euro-area economist at Citigroup Inc. in London. Target2 and ELA Explained If you do not know what target2 balances are, or if you want to understand how much Germany is really at risk of (most have it wrong), then please see Discussion of Target2 and the ELA (Emergency Liquidity Assistance) program; Reader From Europe Asks "Can You Please Explain Target2?" Do Central Banks Face "Power Limits"? In light of loosening collateral standards by the ECB to one step above junk, some might be wondering about limits on central bank actions. The Bank of International Settlements (BIS) says Central Banks Face Power Limit as Debt Persists "Central banks are being cornered into prolonging monetary stimulus as governments drag their feet and adjustment is delayed," the Basel, Switzerland-based BIS said in its annual report, published today. "Both conventionally and unconventionally accommodative monetary policies are palliatives and have their limits." "In the middle of all this we find the overburdened central banks, pushed to use what power they have to contain the damage," Stephen Cecchetti, BIS economic adviser, said on a conference call. "There are very clear limits to what central banks can do. It's critical for the health of the global economy to break the vicious cycles and reduce the pressure on central banks." "As the benefits of extraordinary monetary easing shrink and become less certain, the risks of expanding central bank balance sheets are likely to grow," Jaime Caruana, general manager of the BIS, said in prepared remarks for a speech in Basel today. "Such hazards may materialize in ways that are not completely clear today." Loose policy also poses risks for developing nations by fueling credit- and asset-price booms, complicating efforts to stabilize price gains, the report said. In emerging economies, interest rates have been raised "only hesitantly" out of concerns about stoking further capital inflows. On the debt crisis in Europe, the BIS said it's "hard to escape" the conclusion that the solution to the crisis will have to include a pan-European banking system. Politically Impossible to Avoid Breakup Emphasis added to key ideas. I agree with all the points above except the last one. I suggest it is "hard to escape" the conclusion that the eurozone will break up. Efforts to resist that breakup will only make the breakup when it does occur more violent. Reasons To Expect Breakup Six Reasons Why Italy May Exit the Euro Before Spain; Ultimate Occupy Movement Italy "Gasping Like Beached Whale"; Berlusconi Reiterates Euro Exit "Not Blasphemy"; Beppe Grillo Discusses "Taboo of the Euro" It's Just Impossible Key Breakup Idea  Here is the key idea from It's Just Impossible The Bundesbank said there should be no banking union until there is a fiscal union. Angela Merkel said that there should be no fiscal union until there is political union. François Hollande said that there should be no political union until there is a banking union. The German supreme court will not allow a political union nor a fiscal union, nor a banking union without a German referendum Central Banks Do Have Limits Except as noted, I agree with the BIS position on limits. I have explained many times. First note that the Fed (central banks in general) cannot give away free money. They can provide liquidity (but not capital). They will stretch what they are willing to do, but even in the case of the ECB accepting near-junk as collateral, it is only with a haircut. For further discussion of liquidity vs. capital including some statements by a Fed governor, please see No Helicopter Drop For Failed Banks Can The Fed Cause Hyperinflation? I put together other key ideas in Hyperinflation Nonsense in Multiple Places. Here are some snips. I do not think the Fed itself can cause hyperinflation and more importantly I am sure they would not if they could. The reason is "Hyperinflation Would End The Game" Hyperinflation by definition would destroy the currency and thus the banks Hyperinflation would destroy the wealthy and all their corporate bond holding Hyperinflation would destroy the Fed Hyperinflation would destroy the wealthy political class To understand how powerless the Fed is, one needs to understand the difference between credit and money, how much the former dwarfs the latter, and what the Fed's role is in getting banks to lend. I discussed those ideas above and in far more depth in Fiat World Mathematical Model. Note that the Fed has no power to give money away. Nor would they do so if they could. Unlike the Fed, Congress could give money away. I do not know if giving everyone in the US $60,000 would do it or not, but giving everyone $60,000 a month indefinitely would sure do it. How likely is that? The answer is 0%. Theory vs. Practice Please note that banks do not want hyperinflation or even massive inflation. The reason is simple: Banks will not want to be paid back with cheaper dollars, especially worthless dollars, and Congress is beholden to itself and the banks. Hyperinflation could theoretically come from massive sustained political will to bail out the little guy at the expense of the banks, the wealthy, and the political class. However, unlike Mugabe and Zimbabwe, neither the banks nor the Fed nor the political class wants to bail out the poor at the expense of the wealthy. Indeed, Bernanke's, Paulson's, and Geithner's actions to date have done the exact opposite! We have bailed out the banks at the expense of the ordinary taxpayer (keeping the little guy in debt). This is what it comes down to: In theory, Congress can easily cause hyperinflation. In practice, they won't, and neither will the Fed. As Yogi Berra once quipped "In theory there is no difference between theory and practice. In practice, there is." Unlike super-deflationist Robert Prechter, I expect gold to hold its value over the mid-term (another swoon is always possible) as the Fed fights massive deflationary forces of excess leverage, excess debt, boomer demographics, global wage arbitrage, cutbacks in state and local governments, and most importantly - consumer attitudes towards debt. In the final analysis, it's all about attitudes. The Fed cannot force consumers or businesses to borrow or banks to lend (and it wouldn't for reasons stated, even if it could). In a fiat credit-based system, that is what matters. Attitudes the Key In a credit-based economy such as the US and Europe, attitudes are the key. The Fed can print at will, but it cannot make consumers spend or businesses expand or hire. The Fed is desperately (and foolishly) trying to get consumers to lever up once again, however attitudes of consumers have changed. Boomers need to deleverage heading into retirement and Generations X and Y, are loaded up with student debt, struggling to find jobs. This is a deflationary setup, not an inflationary one. For more on generational attitudes, please see Three Key Reasons Housing Not Coming Back: Demographics, Student Debt, No Jobs Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com Click Here To Scroll Thru My Recent Post List Mike "Mish" Shedlock is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction. Visit http://www.sitkapacific.com/account_management.html to learn more about wealth management and capital preservation strategies of Sitka Pacific.

You are subscribed to email updates from Mish's Global Economic Trend Analysis To stop receiving these emails, you may unsubscribe now.	Email delivery powered by Google
Google Inc., 20 West Kinzie, Chicago IL USA 60610

Damn Cool Pics

---

• What Your Salad Dressing Says About You
• How To Get More Likes, Comments & Shares on Facebook [Infographic]
• It's All About The Images [Infographic]

What Your Salad Dressing Says About You Posted: 25 Jun 2012 01:09 PM PDT This may seem counter intuitive, but every single salad dressing is like a gateway into the mind. What someone chooses to put on their salad or use as a dip holds the blueprints to their personality. Check out what your particular dressing says about you below. Click on Image to Enlarge. Via Bite.ca

How To Get More Likes, Comments & Shares on Facebook [Infographic] Posted: 25 Jun 2012 12:49 PM PDT Social media data expert Dan Zarrella who tracked and analyzed more than 1.3 million posts from the 10,000 most-Liked Facebook pages has released details about which posts get the most likes, shares and comments on Facebook, from post type and length to the best time of day to add updates. Photos bring in the highest number of engagement across the board, followed by text and video, according to Zarrella. News links bring in the least numbers of likes, shares and comments. Click on Image to Enlarge.

It's All About The Images [Infographic] Posted: 25 Jun 2012 12:35 PM PDT Some say image is everything, and that's especially true on the Internet where the shift to visual optimization is playing an increasingly important role in the recent phenomenon of photo marketing. In light of their numerous benefits for brands of all kinds, MDG Advertising developed an insightful infographic that illustrates the influence of images on a company's business, branding, search, and social media efforts. For insight on optimizing images for content and commerce, along with advice on image optimization techniques, take a look at the following infographic to see why images can help make success a snap. First, the infographic details the power of Pinterest whose popularity has propelled the use of high-quality images in sharable online content. It also explains how Facebook's greater focus on images has led the social media giant to switch to Timeline and acquire photo startup Instagram. Click on Image to Enlarge.

You are subscribed to email updates from Damn Cool Pictures To stop receiving these emails, you may unsubscribe now.	Email delivery powered by Google
Google Inc., 20 West Kinzie, Chicago IL USA 60610

Here's how to know if you'd qualify for refinancing

Hello -- President Obama's plan to give mortgage relief to responsible homeowners boils down to one important principle. He wants to simplify the refinancing process.   And the very first step is to let people know if they would benefit from the President's proposal -- so we've built a tool to help answer that question.   Just enter a few basic facts about your mortgage, and this tool will help you figure out if you currently qualify for easy, low-cost refinancing -- or whether, like millions of families, you need Congress to act to help you lower your interest rate.   Get started now.   As tens of thousands of people have spoken up and written in to the White House, we've heard one message loud and clear: The refinancing process is anything but easy to navigate.    Even homeowners who have done everything right and made all their payments on time are getting caught up in unnecessary red tape. Sitting down and reading through some of these stories is a powerful reminder of why it’s so important that we get this done right away.   One mom in Maryland, raising two teenage boys by herself, wrote in to say that she's working 15 hour days to make her mortgage payments and keep current on her bills. Another family from Illinois is hoping to lower their mortgage payments so they can help pay for college for their kids. One woman in Arkansas called the President’s plan a "no brainer" and talked about how much good it would do for the broader economy.   So if you are like these people and think that both you and our economy could stand to benefit from the President’s refinancing plan, give the tool a try, then take a moment to share it with your friends:   http://www.whitehouse.gov/refi Thanks,  Brian Brian Deese Deputy Director National Economic Council      This email was sent to e0nstar1.blog@gmail.com. Unsubscribe | Privacy Policy Please do not reply to this email. Contact the White House The White House • 1600 Pennsylvania Ave NW • Washington, DC 20500 • 202-456-1111

Photo of the Day: The Littlest Salute

Your Daily Snapshot for Monday, June 25, 2012   Photo of the Day: The Littlest Salute A young boy along the rope line salutes President Barack Obama after the President spoke at the NALEO Conference in Orlando, Florida, June 22, 2012. (Official White House Photo by Pete Souza) In Case You Missed It Here are some of the top stories from the White House blog: Tropical Storm Debby forms in the Gulf of Mexico FEMA provides an update on the development of Tropical Storm Debby in the Gulf of Mexico and encourages everyone to take the time to prepare. The Battle for Title IX and The Opportunities It Created National Economic Council Director Gene Sperling writes about his father, Larry Sperling, who fought and won 40 years ago to ensure young women their full rights to compete in sports. Celebrating Success: 40 Years of Pell Grants This milestone is an opportunity to reflect on four decades of progress toward fulfilling the fundamental promise of bringing higher education within reach of every American and rededicate ourselves to making college affordable for all. Today's Schedule All times are Eastern Daylight Time (EDT). 10:30 AM: The President and The Vice President receive the Presidential Daily Briefing 11:00 AM: The President and The Vice President meet with Secretary of State Clinton 12:05 PM: The President departs the White House en route Joint Base Andrews 12:20 PM: The President departs Joint Base Andrews en route Portsmouth, New Hampshire 1:35 PM: The President arrives Portsmouth, New Hampshire 2:05 PM: The President delivers remarks at a campaign event 4:05 PM: The President departs Portsmouth, New Hampshire en route Boston, Massachusetts 4:30 PM: The President arrives Boston, Massachusetts 5:10 PM: The President attends a campaign event 7:35 PM: The President delivers remarks at a campaign event 9:25 PM: The President delivers remarks at a campaign event Get Updates Sign up for the Daily Snapshot Stay Connected     Facebook Twitter YouTube Flickr Google+     This email was sent to e0nstar1.blog@gmail.com Manage Subscriptions for e0nstar1.blog@gmail.com Sign Up for Updates from the White House Unsubscribe | Privacy Policy Please do not reply to this email. Contact the White House The White House • 1600 Pennsylvania Ave NW • Washington, DC 20500 • 202-456-1111

The Guide to Developing a Content Strategy for "Boring" Industries

The Guide to Developing a Content Strategy for "Boring" Industries

---

The Guide to Developing a Content Strategy for "Boring" Industries Posted: 24 Jun 2012 01:57 PM PDT Posted by Stephanie Chang There have been multiple articles that have discussed the value and opportunities that content marketing brings to SEO - from organically building external links and ranking for more long tail keywords, to establishing a community and building brand awareness. As the SEO industry slowly moves away from manual linkbuilding and adapts a more long-term and forward-thinking approach (whether it be forced as a result of recent aggressive Google algorithm updates or because as an industry, we're starting to seek a sustainable methodology to establish authority), the challenge is in figuring out how to set up a proper framework that would help our community develop a content strategy for all websites.  Image courtesy of SEOmoz   The goal of this post is to show the SEO community how to start thinking about how to develop a cohesive and integrated long-term content strategy (and not just one-off linkbait pieces). It won't be easy and definitely will not result in immediate returns, but if the goal is to build a sustainable and authoritative site in the long-term, the upfront costs can be justified. To show you the steps of how to create a content strategy, I've chosen what might be a seemingly "boring" industry (and an industry I knew very little about prior to writing this post), tires, to demonstrate how a content strategy is possible for all industries and all sites, and how a little research can go a long way.  Image courtesy of Distilled Step 1: Asking the Right Questions (Learning About the Industry) As an industry, we already have a very good idea of how people in general use the Internet. However, if I were to do a content strategy specifically tailored around the tire industry, I would want to understand how the core demographic for tires is utilizing the Internet.  For example, the type of questions we want to learn about tire shoppers could be: How do tire shoppers use the Internet? Where do they spend their time online? Who is considered an influencer in the tire industry? We also want to understand what the industry landscape looks like.  Who are your business competitors? Who are your online competitors?  What currently makes up your biggest market? What markets are out there that you might not have previously targeted? Examples include: Car aficionados  Car manufacturers General consumers  Automobile repair/service shops And more about your specific tire company. What story do you have? What is your company background? Why should an individual looking to purchase a tire choose you? What is your unique value proposition?  As well as, what does your current customer base look like? Are they advocates and influencers for your brand? Are they one-time/casual shoppers or repeat customers? Are they price-focused or are they service-oriented? All this information helps you as an SEO garner a much deeper understanding about the tire business, which will be fundamentally important in determining the type of content to produce.  Following the background research on the tire industry, it's also worth speaking directly to individuals who you know are very knowledgeable about the tire industry - their insight can ultimately help you develop different personas to target.  Let's say hypothetically, you own a tire company and through this research realized that street racers was a target demographic you could develop content for. Through the research, you've learned that the majority of street racers are: Upper middle class Lives in suburbia  Ages 16-25 Male You want to start locating and having conversations with people who fit this demographic or, at the very least, have access and knowledge about this demographic. This will provide you with the type of insight that will help you develop content street racers would be interested in or will provide you with the opportunity to interact and potentially, influence street racers.  Step 2: Compiling the Data (Analysis of the Industry) The second element of the project requires conducting an in-depth competitive analysis on the competitors and seek answers to the following questions: What types of backlinks has the site received? What types of relationships have these sites built?  Is there one specific competitor who is dominating the industry? If so, spend more effort and time taking a deeper analysis of the site, its content, and its community. (This is especially apparent in the tire industry).   What types of content has the site produced that have performed well? Are there are any content holes based on a culmination from the market research you've already compiled about the industry and the personas that you want to target?  It's also worth ensuring that your own site's metrics and analytics tracking is properly set up, which can be used to measure growth, traffic, and conversions. Tire Industry Example:  For instance, in the tire industry, it's clear that the dominant player in the industry is Tire Rack.  The site has received links from high-authority sites like Car and Driver, the Webby Awards, ABC News, and Popular Mechanics.  What has been Tire Rack's competitive advantage?  Many of these articles talk about Tire Rack's video driving tests. For example, their Winter/Snow vs. All-Season vs. Summer Tires video has generated over 440,000 views. Their YouTube channel has over 1,000+ subscribers and over 2 million views.  They also have a back story, an army veteran who opened up shop in 1979 and made customer service/educating consumers his number one priority. The family-owned business now has 3 generations working at the shop. On top of it all, their price points are competitive with all major tire retailers.  However, it appears that the site targets the general consumer, meaning there is opportunity for other tire sites to develop content around different target personas, such as speed racers or truckers to name a few.  Step 3: Defining the Target Audiences and Identifying Project Goals Using all of the above research, determine how you would differentiate your site from your competitors. Is it based on your target personas? Is it based on the type of content you will produce? Is it based on your brand voice?  Image Courtesy of SEOmoz At the same time, you also must consider the internal resources that you have access to - what type of content could you more easily create based on the resources you have available? The reality is that often times, dependencies are involved - whether it be departmental approval for different forms of content or budget constraints. These all need to be taken into consideration when compiling a long-term content strategy.  Finally, define your goals - is it to develop content for your target audience? The integration of different marketing teams to build value?  Develop a deeper understanding of your target audience? Become an authority in a specific space? All of the above? What is the vision for investing this much effort/budget/time? Tire Industry Example: Let's say I wanted to target the street racer demographic. Based on my understanding of the target demographic, street racers would likely be interested in: Image courtesy of YouTube Racing videos - burnouts, drifting, traction tests Comparison charts on different racing tires Magazines - for tuners and racers  Street racing forums I've included links to the best examples I could find. Clearly videos are a huge hit and have an enormous audience, but there isn't a single channel dominating street racing videos. The street racing forum is relatively active and I honestly could not find good examples of comparison charts on different racing tires or even a single linkworthy site of street racing resources. Clearly, there is an opportunity for a company who might be interested in targeting the street racing demographic to become the online authority of street racing.  Step 4: Prospecting Influencers / Determining Shareability  Before investing the time and budget to create a piece of content, first properly outreach and make sure that there is an audience who is willing to share this piece of content. Ideally this would be to sites that have the same audience/personas that you are trying to target. Take a look at social media for potential engagement opportunities (please read and apply Wil Reynold's "Stalking for Links"), search industry news, and reading the content that your competitors are creating.  Tire Industry Example:  If I were targeting the street racer demographic, I'd be very involved on the street racer forum, as well as other car forums that are active. Though this is a long-term strategy, ultimately, building relationships with these individuals is worthwhile.  Image courtesy of Honda-Tech I'd also build relationships with street racers who have a large following on Twitter for the very same reason.  Image Courtesy of Followerwonk Through investing in these relationships, not only will you be able to build relationships with influencers, you'll also gain a big picture understanding of the common questions street racers ask and thus, have insider knowledge of the type of content that will prove to be successful in helping to build your own following.  Step 5: Creating the Content Now that we've conducted the market research for our industry, identified target personas, determined the type of content we could create, and initiated relationships with potential prospects that would share our content, the next step is to create the actual content.  We have to: Brainstorm the type of content we want to create and the form we want the piece of content to be in (white paper, video, infographic, data visualization, images) Filter the ideas and select which content you want to develop first Conduct research on that piece of content  Develop the piece of content  Outreach the content once the piece is live Step 6: Analyzing the Results Once outreach has been conducted on the content piece, we want to take the time to properly evaluate the metrics and draw conclusions. Overtime, you can measure a variety of metrics like: Was there an increase in traffic?  Was there an increase in conversions? If not, is it because the landing page needs some CRO? Or is it because the target demographic didn't respond as expected to the content?  If the target demographic did respond, is there any way to repurpose the content in other forms? (Let's say if wrote a guide, can we use that same type of content and post it into a video or an infographic?) Based on the results of the content piece, the next steps are to iterate, test, and repeat with the purpose of ultimately building a following and a brand.  Conclusion The purpose of this post was to help you develop a long-term content strategy framework for your site. The reality is that there is no "boring" industry and all industries have the ability to build a passionate community because ultimately, the Internet has become a source for all forms of knowledge. The difficulty is in finding these individuals, reaching out to them, and building content that they would read, enjoy, and share. The value of placing emphasis on long-term returns is that at some point, it doesn't matter what the next Google update looks like, if your site saw a change in rankings, or even how many external backlinks you've built. What matters, is that you've built something that has garnered a loyal following, a dedicated community, and something you can be proud of.  Sign up for The Moz Top 10, a semimonthly mailer updating you on the top ten hottest pieces of SEO news, tips, and rad links uncovered by the Moz team. Think of it as your exclusive digest of stuff you don't have time to hunt down but want to read!

You are subscribed to email updates from SEOmoz Daily SEO Blog To stop receiving these emails, you may unsubscribe now.	Email delivery powered by Google
Google Inc., 20 West Kinzie, Chicago IL USA 60610