Central Perk

duminică, 21 septembrie 2014

Seth's Blog : Producers and consumers

Producers and consumers

In the short run, it's more fun to be a consumer. It sure seems like consumers have power. The customer is always right, of course. The consumer can walk away and shop somewhere else.

In the long run, though, the smart producer wins, because the consumer comes to forget how to produce. As producers consolidate (and they often do) they are the ones who ultimately set the agenda.

Producers do best when they serve the market, but they also have the power to lead the market.

The more you produce and the more needs you meet, the more freedom you earn.

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sâmbătă, 20 septembrie 2014

Mish's Global Economic Trend Analysis

French Farmers Upset Over Falling Prices, Torch Tax and Insurance Offices, Dump Produce

Posted: 20 Sep 2014 10:18 AM PDT

As a direct result of sanctions on Russia, there is an overabundance of fruits and vegetables in France, Spain, Poland, and elsewhere in Europe. Basic law of supply and demand dictates prices of crops would fall. And they did.

While most foolishly want to stick it to Russia, few actually are willing to pay the price if it affects them.

Here is another case in point: French Farmers Torch Tax Office in Brittany Protest.

French vegetable farmers protesting against falling living standards have set fire to tax and insurance offices in town of Morlaix, in Brittany. The farmers used tractors and trailers to dump artichokes, cauliflowers and manure in the streets and also smashed windows, police said.

Prime Minister Manuel Valls condemned protesters for preventing firefighters from dealing with the blaze.

The farmers say they cannot cope with falling prices for their products.

A Russian embargo on some Western goods - imposed over the Ukraine crisis - has blocked off one of their main export markets.

About 100 farmers first launched an overnight attack on an insurance office outside Morlaix, which they set light to and completely destroyed, officials said. They then drove their tractors to the main tax office in the town where they dumped unsold artichokes and cauliflowers, smashed windows and then set the building on fire.

Everyone Loses

The French protest underscores the stupidity of sanctions. No one wins. Russia does not get fruits and vegetables, but European growers lose income.

France actually the worst end of it, with a tax office destroyed and widespread discontent spreading. In Russia, support for Putin is at all-time high.

Sanctions will never work.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

The World Is United in the Fight Against ISIL

Featured

Weekly Address: The World Is United in the Fight Against ISIL

In this week's address, the President thanked Congress for its strong bipartisan support for efforts to train and equip Syrian opposition forces to fight ISIL. This plan is part of the President's comprehensive counter-terrorism strategy to degrade and destroy the terrorist group, and does not commit our troops to fighting another ground war. America, working with a broad coalition of nations, will continue to train, equip, advise, and assist our partners in the region in the battle against ISIL.

In the coming week, the President will speak at the United Nations General Assembly and continue to lead the world against terror, a fight in which all countries have a stake.

Click here to watch this week's Weekly Address.

Seth's Blog : What everyone reads

What everyone reads

Everyone used to read the morning paper because everyone did. Everyone like us, anyway. The people in our group, the informed ones. We all read the same paper.

Everyone used to read the selection of the book of the month club, because everyone did.

And everyone used to watch the same TV shows too. It was part of being not only informed, but in sync.

Today, of course, that's awfully unlikely. Only 1 or 2 percent of the population watch the typical 'hit' show on cable. Of course, it's entirely possible that everyone in your circle, the circle you wish to be respected by, is watching the same thing, but that circle keeps getting smaller, doesn't it?

And when 'everyone' isn't part of the picture any more, when the long tail is truly the only tail, plenty of people stop trying. They stop reading difficult books or watching less-than-thrilling video, and they don't push themselves to do the hard stuff, because, really, why bother?

Society without a cultural, intellectual core feels awfully different than the society that we're walking away from.

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vineri, 19 septembrie 2014

Mish's Global Economic Trend Analysis

Idiotic Proposals for Fed to Give Away Money

Posted: 19 Sep 2014 12:27 PM PDT

A Fiscal Times, Yahoo Finance article by by John Grgurich claims that Instead of QE, Fed Could Have Given $56,000 to Every Household in America .

Grgurich formulated his article after reading "an intriguing piece just published in Foreign Affairs, Brown University political economist Mark Blyth and London-based hedge fund manager Eric Lonergan argue the Fed could have done better by pursuing a far different type of grand policy experiment."

The "intriguing piece" is Print Less but Transfer More, Why Central Banks Should Give Money Directly to the People.

Sheer Idiocy

First, the Fed cannot give away money, it can only make money available for lending.
Second, the idea that the Fed should give away money is ludicrous, even it the Fed could.
Third, Grgurich is in severe need of math lessons as to what actually transpired.

The Math

According to the census department the number of US households is 115,226,802.

Base Money Supply has gone up from $848 billion at the start of 2008 to $4.150 Trillion today. That is an increase of roughly $3.3 trillion.

An increase in money supply of $3.3 trillion is not the same thing as a gift of $3.3 trillion. At most, banks made 0.25% interest (free money) on excess reserves parked at the Fed.

The actual amount of excess reserves is $2.7 trillion.

0.25% of $2.7 trillion is $6.75 billion. That is the amount the Fed effectively gives banks, per year. Spread among 115,226,802 households the gift would be $58.58 per year (less actually because excess reserves grew over time they did not suddenly hit $2.7 trillion).

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

"Surprising" MH17 Crash Update

Posted: 19 Sep 2014 07:33 AM PDT

The title of this article, "Surprising" MH17 Crash Update, is accurate only in the sense the average sheep believes the average mainstream media report.

Since that is the majority, the title is accurate. Mish readers, however, may find this report not surprising.

Reader Marina from Toronto explains via email ....

Hello Mish,

My name is Marina. I am a long-time fan of your blog and a friend of Nicole Foss at Automatic Earth.

I am also a volunteer translator for The Vineyard Saker website. Our team has just translated a very important report on the MH17 crash released by the Russian Union of Engineers.

We have included several prominent journalists and other persons in the distribution of this important document.

Regards,
Marina
Toronto

Union of Engineers Report

Please open your minds and download the Translated Report on MH17.

Forget about the origin and give the report a read. It may open your eyes.

Looking for another opinion? If so, please consider the Automatic Earth Commentary on MH17.

I side with Raul on Automatic Earth who says "At the very least the report should be broadly discussed in western media, and western experts asked to refute what parts of it they find fault with."

Indeed. Where is the discussion?

My take: There is no government interest in any possibility other than a preordained self-serving US conclusion. Thus, there is not, nor will there be any mainstream media analysis of that nature barring a Watergate or Snowden-type disclosure.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Damn Cool Pics

This Guy Found Out The Hard Way That Cheating Is Wrong
The Inside Of A Turtles Mouth Is Absolutely Terrifying
Unknown Facts About Well-Known Paintings

This Guy Found Out The Hard Way That Cheating Is Wrong

Posted: 19 Sep 2014 11:16 AM PDT

Poor Charlie Fisher went away on holiday and when returned he had a surprise waiting for him at the airport. He got off the plane and then saw his girlfriend, standing with his other girlfriend, who was standing with his other girlfriend. Looks like someone got busted.

The Inside Of A Turtles Mouth Is Absolutely Terrifying

Posted: 19 Sep 2014 10:23 AM PDT

Chances are you've probably never seen the inside of a turtles mouth or even wondered what it looked like. Well after you see what it looks like in there, you will never forget it.

Unknown Facts About Well-Known Paintings

Posted: 18 Sep 2014 08:28 PM PDT

When it comes to famous paintings throughout history these are the ones that everyone is familiar with. But how much do you really know about these paintings?