miercuri, 25 mai 2011

The President and First Lady Meet the Duke and Duchess

The White House Your Daily Snapshot for
Wednesday, May 25, 2011
 

Photo of the Day

Photo of the Day 

President Barack Obama and First Lady Michelle Obama talk with the Duke and Duchess of Cambridge in the 1844 Room at Buckingham Palace in London, England, May 24, 2011. (Official White House Photo by Pete Souza)

In Case You Missed It

Here are some of the top stories from the White House blog.

Next Generation Fuel Economy Labels Arm Consumers with Information They Can Use
Secretary of Transportation Ray LaHood and Environmental Protection Agency Administrator Lisa Jackson introduce new fuel economy labels that will empower car buyers with better information about what they will spend or save on fuel costs when looking to purchase a new vehicle.

Driving our Nation Toward America's Clean Energy Future
U.S. Department of Energy Secretary Steven Chu, U.S. General Services Administrator Martha Johnson and White House Council on Environmental Quality Chair Nancy Sutley  announce another major step in leading by example and reducing our dependence on oil by boosting clean energy technologies in our Federal fleet.

Taking the Oath in America’s Great Outdoors
The National Park Service has hosted more than 30 naturalization ceremonies, in which over 1,000 people have become American citizens. Jonathan Jarvis, Director of the National Park Service, shares personal remarks from park superintendents who have written about their experiences in hosting naturalization ceremony.

Today's Schedule 

All times are Eastern Daylight Time (EDT).

4:50 AM: The President holds a bilateral meeting with Prime Minister Cameron

5:05 AM: The President holds a meeting with Prime Minister Cameron and Deputy Prime Minister Clegg

5:35 AM: The President holds an expanded bilateral meeting with Prime Minister Cameron

6:30 AM: The President and Prime Minister Cameron attend an event hosted by Mrs. Cameron and the First Lady to honor military families, U.S. and U.K. service members and veterans

7:25 AM: The President and Prime Minister Cameron hold a joint press conference

10:30 AM: President Obama Speaks to the United Kingdom Parliament WhiteHouse.gov/live

12:30 PM: V.P. Biden Speaks on the 50th Anniversary of President Kennedy's Moon Shot Speech WhiteHouse.gov/live

3:30 PM: The President and the First Lady will reciprocate the hospitality of Her Majesty the Queen and hold a dinner in her honor at the residence of the American ambassador in London

6:00 PM: The Vice President delivers remarks at the New Hampshire Democratic Party's McIntyre-Shaheen 100 Club Dinner

WhiteHouse.gov/live   Indicates events that will be live streamed on WhiteHouse.gov/Live

Get Updates 

Sign Up for the Daily Snapshot 

Stay Connected     

 

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 e0nstar1.blog@gmail.com | 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 
    
  
 

 

 

Foreign Languages As A Competitive Differentiator Graywolf's SEO Blog

Foreign Languages As A Competitive Differentiator Graywolf's SEO Blog


Foreign Languages As A Competitive Differentiator

Posted: 24 May 2011 10:27 PM PDT

Post image for Foreign Languages As A Competitive Differentiator

A common issue online marketers have is coming up with unique differentiators. SEOs have this problem – it takes virtually no effort for an intermediate or advanced SEO to understand a competitors’ main link acquisition strategies in an hour or less. That allows new entrants into the field to easily duplicate your hard, pioneering efforts. Affiliates have this problem – there are so many people vying to sell the same thing that it’s hard to stand out. User friendliness and pricing no longer help – price comparisons, coupons, deals and reviews are now commodified. So let’s define the problem: Differentiating your site in a lasting way is difficult, because competitors can copy you without much trouble.

But what about throwing up a language barrier?

Suppose you’re an SEO
blogger and you start reaching out to Russian SEOs. Suddenly, it’s a lot harder for your competitors to build the same links. Even if they see where you’re getting the links, they can’t immediately figure out how you earned them. Google Translate may help, but it’s not great. Besides, it doesn’t even begin to allow them to get in touch and solicit the links. And if your competitors try to outsource Russian language link solicitation, they have to initially put blind faith into the outsourcing company that they’re not spamming and that they’re doing what they promised, and doing it well. They sure as hell aren’t going to start checking the Russian outsourcing company’s grammar.

Suppose you’re an affiliate who starts producing content in French. The same problem applies to competitors – how are they going to source French language content? How will they proofread it? This simple tactical idea applies advanced SEOs’ 7 curiously obvious rules. For example, it questions the assumption that you need to do business in the same language as your competitors. Why not mix it up? And whoever moves first, will likely have a big advantage.

Another example of applying the principles, is that this idea was inspired from experience. I’m currently planning a new SEO plugin, and my friend Jacob Share (who teaches folks to find jobs) asked me whether I’d want it coded in a way that enables translated versions. That seemed an excellent idea to me, as my first WP plugin – Internal Link Building (details on V3 here) – got loads of links from around the world, and was even translated into Russian and ported to other CMSes.

If you liked this, get a free chapter from my book on advanced SEO. The text is done, and we’re finalizing the cover for printing :D .
photo credit: Photospin

tla starter kit

Related posts:

  1. Using Google Sitemaps for Competitive Intelligence I’m a big fan of the Google Webmaster Central Program...
  2. Who’s Afraid Of The Big Gray Wolf? 1 in 7 SEOs I’ve been promoting my advanced SEO book‘s free chapter for...
  3. Outsourcing Content Creation Vs. Hiring in House One of the first considerations for a web site owner...
  4. You’re All Wrong! Paid Links From Offtopic Sites Do Count “Paid links from off topic sites get devalued and flagged.”...
  5. No More Link Begging: 4 Engagement Methods for Content-Based Link Building Link begging is the practice of identifying link prospects, usually...

Advertisers:

  1. Text Link Ads - New customers can get $100 in free text links.
  2. BOTW.org - Get a premier listing in the internet's oldest directory.
  3. Ezilon.com Regional Directory - Check to see if your website is listed!
  4. Directory Journal - Get permanent deep links in a search engine friendly directory
  5. Glass Whiteboards - For a professional durable white board with no ghosting, streaking or marker stains, see my Glass Whiteboard Review
  6. Need an SEO Audit for your website, look at my SEO Consulting Services
  7. Link Building- Backlink Build offers 45 PR5+ Backlinks for $295
  8. KnowEm - Protect your brand, product or company name with a continually growing list of social media sites.
  9. Links From PR9 Sites - - Get In Top 3 Google ASAP
  10. Scribe SEO Review find out how to better optimize your wordpress posts.
  11. TigerTech - Great Web Hosting service at a great price.
  12. What Motivates You - what makes you want to get up and be successful

This post originally came from Michael Gray who is an SEO Consultant. Be sure not to miss the Thesis Wordpress Theme review.

Foreign Languages As A Competitive Differentiator

Article Marketing in a Post Panda World

Posted: 24 May 2011 11:30 AM PDT

Post image for Article Marketing in a Post Panda World

Article marketing has been one of the foundations of link building ever since I got started in SEO. However, since sites like Ezinearticles and Suite 101 have taken a huge loss in ranking and traffic as a result of the panda update, should article marketing still be a part of your overall strategy? We need to take a step back and look at the big picture to find the answer …

While many people will debate this, I don’t believe sites like Ezinearticles were passing much link equity for quite some time. The links acted more like pointers and helped with discovery. The pages themselves could accumulate trust/authority/pagerank, but they weren’t transferring much of that value to the website linked to in the bio paragraph.

Secondly, if the article was republished somewhere else, it was most likely treated as duplicate content. Ezinearticles had more trust than the almost any other site republishing the article, so they were given credit as the original content “owner”. The real value from Ezinearticles was finding people who were interested in taking your content and publishing it in exchange for a link, then tracking the competition in the space to see what other link building sources/methods they were using.

So should article marketing still be a part of your strategy? Yes–just a much less important one. First, you need to be honest about the quality of the articles you submitted. Chances are good that the $3 articles with 250 words that read like it was written by an ESL student working the night shift at an all night convenience store while his boss wasn’t around isn’t worth spending time/money on anymore. Most article directories have raised the bar for quality while trying to get back in Google’s good graces. So, if you are going to use article directories, you will need to send them higher quality content. Unless you are a brand new website, I wouldn’t create more than 15-20 articles a year: the ROI just isn’t there anymore. Keep in mind that you will have to point links at your articles from a variety of sources if you want them to have maximum effect.

If you are doing any ORM work, article marketing is still viable. Get the person/company name in the title, point a few links, and, unless you are competing against major sources, you should be good to go.

Your link building activities should never be dominated by just one tactic.You need to have a blend/mixture for maximum effectiveness. If you focus on just one technique, you run the ris:k of losing all your rankings if that tactic gets devalued.

So what are the takeaways from this post

  • Article marketing should still be part of your overall marketing strategy–just a less important one.
  • Bring the quality of your articles up to good or better.
  • Submit to 3-4 article directories, not just one.
  • Submit 15-20 articles per year.
  • Point links directly at your articles from your website and other sources.
  • Don’t expect a huge transfer of link equity. Think of it as a “fresh pointer”.
  • For ORM, article marketing can be used much more aggressively.
tla starter kit

Related posts:

  1. Getting More Out of Article Distribution Websites At this stage of the game syndicating your content with...
  2. How Do You Archive Pages on a High Post Volume Website Today’s post is an answer to a question I took...
  3. Andrew Wise of SEOLinkWheelers Talks About the Panda Update The following is a sponsored post. For today’s post we’re...
  4. Forbes Article I’m mentioned in a Forbes article about Google along with...
  5. What is a Compilation Post I came across a post today that was actually pretty...

Advertisers:

  1. Text Link Ads - New customers can get $100 in free text links.
  2. BOTW.org - Get a premier listing in the internet's oldest directory.
  3. Ezilon.com Regional Directory - Check to see if your website is listed!
  4. Directory Journal - Get permanent deep links in a search engine friendly directory
  5. Glass Whiteboards - For a professional durable white board with no ghosting, streaking or marker stains, see my Glass Whiteboard Review
  6. Need an SEO Audit for your website, look at my SEO Consulting Services
  7. Link Building- Backlink Build offers 45 PR5+ Backlinks for $295
  8. KnowEm - Protect your brand, product or company name with a continually growing list of social media sites.
  9. Links From PR9 Sites - - Get In Top 3 Google ASAP
  10. Scribe SEO Review find out how to better optimize your wordpress posts.
  11. TigerTech - Great Web Hosting service at a great price.
  12. What Motivates You - what makes you want to get up and be successful

This post originally came from Michael Gray who is an SEO Consultant. Be sure not to miss the Thesis Wordpress Theme review.

Article Marketing in a Post Panda World

Seth's Blog : Kingmaker

Kingmaker

Insertkingpin300 Who can make a hit?

Zipf's Law is the inevitable distribution of items into a curve that follows the power law. For example, the letter "e" appears in English far more often than the letter "u". For just about every human thing we look at (record album sales, votes in political campaigns, income) there's a distribution with hits and with non-hits. Click on the picture at right to enlarge.

Chris Anderson helped us understand a huge implication of the power law curve in his classic The Long Tail. The relevant notion follows...

In any physical store, the store owner has to make bets. She needs to buy inventory, to choose this over that, to make decisions in advance about what's going to sell. With Christmas coming, the owner might need to make these decisions five months in advance, with no chance to re-order if there's a hit and nothing but the trash bin available for what doesn't sell.

The relentless physics of the situation, then, means that retailers needed the ability to not just pick hits, but to make them. And so they invented the speed table and the pile of stuff at the checkout. They perfected the end cap display and the free standing insert as well.

Years ago, getting our products on the table next to the check out at Target and Lechmere was enough to make the year at the software company where I worked. Two big retailers picked our product and that was enough.

Retailers want to be kings and they want to annoint kings. They want the lever to decide what sells and what doesn't, because it earns them power of pricing and profit (if the retailer can make your product a hit, she can extract better terms. If all she does is sell what sells, then the manufacturer is in charge).

Thanks to the long tail, the digital world ignored this thinking. The iTunes store, and Netflix, for example, take the position that, "We're going to sell everything, and a lot of it. We don't care which thing, because it's all the same to us. Just put everything in the store and the market will sort it out."

As a result, they have far less promotional power. They didn't build a lever. The app store doesn't make a hit, it contains hits. Most long tail retailers are staffed around this idea and have a culture that reflects it. They'll sell everything/anything, because the longer the tail, the better.

Marketers, of course, want their product to be the hit, and they're always in search of someone who will make that happen. They understand that the long tail sellers will do well because they sell everything, but marketers don't care about everything--they care about their thing.

And so sites like LivingSocial and Woot) built online levers, permission assets that allow them to become the new kingmakers. If they pick your product and alert their audience, you have a hit, at least for a short while (and sometimes at great cost to the marketer, which turns into profit for the kingmaker.)

Seeing the success of retailers who are able to make kings, sites like Netflix are trying to figure out how to transform themselves. Finding the lever, though, isn't trivial. The cultural shift from ubiquity to selection is difficult.

The challenge for online retailers (and perhaps for your company) is to build the attention and trust and leverage you need to make kings, to earn attention and trust and make hits. While it's digitally enticing to be the indifferent-to-choice long-tail retailer, the fact is that marketers will always be willing to pay a premium to someone with the ability to generate a hit.

 

More Recent Articles

[You're getting this note because you subscribed to Seth Godin's blog.]

Don't want to get this email anymore? Click the link below to unsubscribe.




Your requested content delivery powered by FeedBlitz, LLC, 9 Thoreau Way, Sudbury, MA 01776, USA. +1.978.776.9498

 

marți, 24 mai 2011

Mish's Global Economic Trend Analysis

Mish's Global Economic Trend Analysis


Foreclosure-Gate Screw Tightens: Banks Face $17 Billion in Suits Over Foreclosures; Common Sense Says $5 Billion is Very Generous

Posted: 24 May 2011 09:44 PM PDT

State attorneys general are not happy with a $5 billion offer by major banks to settle lawsuits regarding robo-foreclosures and other alleged grievances. Some officials want as much as $20 billion. The compromise threat is on the high end.

Please consider Banks Face $17 Billion in Suits Over Foreclosures
State attorneys general told five of the nation's largest banks on Tuesday they face a potential liability of at least $17 billion in civil lawsuits if a settlement isn't reached to address improper foreclosure practices, according to people familiar with the matter.

The figure doesn't cover additional billions of dollars in potential claims from federal agencies such as the Department of Housing and Urban Development and the Justice Department. State and federal officials haven't proposed a specific comprehensive settlement figure, but Tuesday's discussions represented the first effort to formally quantify potential liability.

Banks have proposed a $5 billion settlement that would be used to compensate any borrowers previously wronged in the foreclosure process and provide transition assistance for borrowers who are ousted from their homes. Federal and state officials have dismissed that as insufficient. Some officials have pushed for a total price tag of more than $20 billion to resolve foreclosure-handling abuses that surfaced last fall.

The U.S. Trustee Program, a part of the Justice Department that oversees bankruptcy cases, has asked for an additional $500 million to $1 billion in penalties, according to people familiar with the matter. Officials of the unit have raised questions in several cases over the authenticity of foreclosure documents.

Banks have argued that their problems are largely technical and that few if any borrowers have faced wrongful foreclosures. State and federal officials have faulted mortgage companies for not hiring enough staff to provide assistance to millions of borrowers that have fallen behind on their mortgages.

The latest development comes as state and federal officials are intensifying their scrutiny of other parts of the mortgage machine. Attorneys general in California and New York have announced wide-ranging mortgage investigations.
What are the Damages?

This is what I want to know:

  1. How many people lost their home to foreclosure out of an error? By error I mean the wrong person, a home with no mortgage, or a major procedural error.
  2. How many people think they deserve a free house and clear or a principal reduction over "show me the note" nonsense or other problems including unemployment?
  3. How many people did banks string along for many months with promises of work-outs, where the person paid their mortgage for months, then lost their home.

Throw Category #2 in the Ash Can

I am sure category #2 is the largest. Throw those cases in the ash can where they belong.

No one want to admit they were stupid. Yet people paid stupid prices for homes. Others were unlucky. Some lost their jobs. Even then, one can ask "did you have a year's worth of living expenses saved up in the bank, in case you lost your job?" Regardless of the answer, banks should not be on the hook for people losing their jobs or having medical problems.

Here's the cold simple truth: If you do not pay your mortgage, it is reasonable to expect to lose your home. There is no other realistic way of looking at it. Robo-signing may not be right, but it is irrelevant.

Category #1 the Real Problem

I have deep sympathy for those in cases where banks foreclosed on the wrong home, the wrong address, or on homes with no mortgage at all. Those people deserve their home paid free and clear and some huge penalty on top of it.

I suspect the number of such cases is minuscule. They receive enormous publicity but is the number 10,000? 5,000? 500? or 50? I suspect the number is far closer to the lower end than the higher end. 50 might easily be on the high side.

Whatever the number is, banks should pay mightily and punitively for it. The money should go to those wronged, not to the states. Even with massive penalties I doubt the total would come close to $200 million.

Category 3 is Where the Uncertainty Is

I do not know how big the "strung along" category is, but the only ones in this category who were genuinely harmed to any significant degree are those who continued to make mortgage payments, strung along on a promise, when instead they could have and should have walked away.

How many is that? You tell me. However, the harm is easy to quantify. The harm is extra payments people made (if any), while the banks engaged in deceptive practices or were simply understaffed.

Assume banks engaged in deceptive practices and people made extra payments instead of walking away. Would those extra payments amount to as much as $1 billion? I rather doubt it.

$5 Billion is Very Generous

What is a valid penalty? $4 billion seems like a lot of money to me. That would be a 400% penalty if the total wrong-doing amounted to $1 billion which I doubt.

The sad truth of the matter is we have a full scale witch-hunt over robo-signing and other alleged grievances even though there was little actual damage caused by banks.

If you disagree then total up the damages. However, I insist you start from two essential points.

  1. If you do not pay your mortgage, it is reasonable to expect to lose your home.
  2. Robo-signing may not be right, but it is irrelevant as per point #1.

So total up the damages, add a huge penalty, and let me know what you come up with.

No doubt, many will accuse me of siding with banks. The reality is I am siding with common sense. No one fought against bank bailouts harder than I did. Banks should have been allowed to go under.

Unfortunately they were bailed out. However, two wrongs do not make a right.

I am all for punishing banks provided the punishment is based on damages rather than the widespread belief "we need to stick it to the banks".

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List


Chinese Rating Agency Downgrades UK Sovereign Debt; Downgrade Party Needed

Posted: 24 May 2011 03:09 PM PDT

The Wall Street Journal, the Telegraph, and International Business Times have stories regarding a downgrade of UK sovereign debt by a Chinese rating company. Much of the information overlaps, but some snips vary site-by-site.

Wall Street Journal: China Ratings Agency Downgrades UK Sovereign Credit Ratings
Chinese ratings provider Dagong Global Credit Rating Co. said Tuesday it downgraded the local and foreign currency sovereign credit rating of the U.K. from AA- to A+ with a negative outlook.

"The downgrade reflects the true status of the deteriorating debt repayment capability of the U.K. and the difficulty in improving its sovereign credit level in a moderately long term in the future," Dagong said in a statement.

"Considering that the uncertainty arising from (future) monetary policy adjustments of the Bank of England and the spillover effect of the European countries...are likely to further worsen the government's fiscal status, Dagong gives the negative outlook on the local and foreign currency sovereign credit rating of the U.K. (for the next) one to two years," Dagong said.

Dagong said the data indicate a deterioration in the U.K.'s ability to service its debt, while global inflation triggered by excessive issuance of the U.S. dollar will also affect growth.

The U.K.'s debt burden leaves it little room to use monetary and fiscal policies to boost domestic demand and stimulate its economy, and its deficit will remain a high level, Dagong said, without giving a time frame.

The U.K.'s banking system has a large amount of risk exposure, which could create risks for the government, Dagong said, adding it estimates that about 40% of the banking system's GBP2 trillion worth of assets is exposed to risk.
The Telegraph: Chinese rating agency downgrades UK debt
Dagong Global Credit Rating Company downgraded the UK's local and foreign currency sovereign credit rating to A+ from AA- with a "negative" outlook for its solvency, the company said in a statement.

The downgrade reflected "the deteriorating debt repayment capability of the UK and the difficulty in improving its sovereign credit level in a moderately long term in the future," it said.

Uncertainties arising from the Bank of England's future monetary policy and the impact of debt-laden European countries on the British financial system are "likely to further worsen the government's fiscal status", it said.

Dagong has made a name for itself by hitting out at its Western rivals - Moody's, Fitch and Standard & Poor's - saying the big three caused the financial crisis by failing to properly disclose risk.

Britain's deficit for the 2010-2011 financial year fell from almost €162bn (£141bn) the previous year to just below €147bn, after a swathe of cuts ordered by Prime Minister David Cameron.

That meant the deficit was logged at 10pc of national output, down from 11.5pc 12 months earlier.

It is the third-highest in the European Union after that of Ireland and Greece - higher than either Spain or Portugal, next in line at just above 9pc each.

Britain's cumulative national debt, however, rose by almost 20pc year-on-year to more than €1.2 trillion - and now accounts for 82.5pc of GDP.
International Business Times: UK credit rating downgraded by Chinese rating agency
Dagong sees relatively low growth and high inflation. This is simply another institution pointing out the new global phenomenon, Stagflation.

It also stated that because of the slow growth, the budget deficit would still overshoot the government's 7.9% to 9% target.
Downgrade Party Needed

Ironically, Iceland deserves an upgrade for telling the EU where to shove it, thereby getting its fiscal house back on the right track. Nearly every other country deserves a downgrade.

Let's have a downgrade party.

We may as well downgrade some states too. In case you missed it, the Illinois Treasurer Warns Against Lending to Illinois

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List


Structural Problems in Greece Compared to US

Posted: 24 May 2011 09:32 AM PDT

Many countries have restrictions and requirements on doctors, nurses, lawyers etc. Greece carries the idea to extreme.

According to Keep Talking Greece "closed professions" include beauticians, drama and dance school instructors, bakers, antiques dealers, insurance agents, insurance consultants, employment consultants, diagnostics centre staff, translators, divers, cameramen, driving school instructors, cab drivers, tourist bus drivers, newspaper stand owners, electricians, sound technicians, private school owners, tobacco sellers, gun manufacturers and sellers, hairdressers, private investigators, port workers, real estate agents, lifeguards, carpenters, financiers, opticians, auditors, movie/theatre director and even car mechanics.

Restrictions will be lifted July 2. That is a much needed maneuver, and the same applies in the US as well.

Many states have prevailing wage laws and other restrictions that have nearly the same effect as the insanity in Greece.

Greek Asset Fire Sale

Please consider Greece Will Accelerate State Asset Sales to Stem Debt Crisis as Bonds Drop
The Greek government endorsed an accelerated asset-sale plan and 6 billion euros ($8.4 billion) of budget cuts to win extra aid and stem a market slide that threatens to swamp the most debt-laden euro-area nations.

Greek Prime Minister George Papandreou's Cabinet agreed yesterday to sell stakes in Hellenic Telecommunications Organization SA (HTO) by the end of next month, as well as Public Power Corp SA (PPC), Hellenic Postbank SA, and the country's ports.

The state's direct stakes in those three companies currently have a market value of 2.1 billion euros. The government also said it would create a fund comprising assets to accelerate the sales, intended to raise 50 billion euros by 2015. The bulk of that will come from selling 35 billion euros of real estate.

The government plans to complete the sale of Postbank by the end of the year, and to sell 75 percent stakes in Piraeus Port Authority and Thessaloniki Port Authority SA. It also intends to extend the concession for Athens International Airport this year.

Greece owns 20 percent of Hellenic Telecommunications, or OTE, with a market value of 3.2 billion euros. It has the right to sell a 10 percent stake to Deutsche Telekom AG, which already holds 30 percent. The government is seeking financial advisers to exercise the put option, and for the sale of a further 6 percent of the company, the finance ministry said.

The Cabinet also announced the additional budget cuts worth about 2.8 percent of gross domestic product need to reach a 7.5 percent deficit target for 2011 even as its economy contracts for a third year, Finance Minister George Papaconstantinou said.

Greece has a "refinancing hole" of 30 billion euros for both 2012 and 2013, according to economist Nouriel Roubini. The nation could restructure by issuing debt with lower interest payments and extend maturities as it's unlikely the nation will "regain market access for the next five to 10 years," he said in an interview last week.
Untenable Timeline

Note that Roubini's timeline is 5-10 years. The ECB an EU expect Greece to return to the dent markets by 2013.

Structural reforms or not, Greece will not pay back its debt in two years, nor will Greece return to a healthy bond market in two years.

Greece will default.

Greece Compared to US

Ending Restrictions on 130 "Closed Professions" is a badly needed reform. However, the near-term effect will be lower wages, lower benefits, and increased competition.

Increased competition needs to happen in the US as well, with public unions kicking and screaming every step of the way. The SEIU, like the Greek unions, don't want reform at all.

Regardless, the US desperately needs to reduce red-tape and open up competition for jobs in education, in garbage collection, in prisons, in healthcare, in all government work.

Unfortunately Keynesian clowns and politicians alike want results now, and when it doesn't happen now, they clamor for more stimulus, even though stimulus is a problem.

Fed's Misguided Tactics

Compounding the problem, the Fed fights wage destruction with policies that encourage speculation and debase the dollar but don't increase wages. The result is repetitive asset bubbles and debt that cannot possible be paid back.

Wages have not gone up, nor have housing prices, nor has employment, yet the Fed persists with failed policies that slowly destroy the middle class.

It's a nasty brew. In many ways the US has more in common with Greece than most realize, especially when it comes to public unions and lack of competition for protected government jobs.

Interestingly, self-serving extortionists compared the public union protests in Madison to freedom fighters in Egypt.

As I pointed out in Public Union Protesters More Like Greek Extortionists than Egyptian Freedom Fighters; Unions Under Fire in Wisconsin, Ohio, Tennessee; Student Idiocy, comparing SEIU protests to freedom fighting is sheer lunacy.

The Gimme, Gimme, Gimme "Better Way" Chanting Mob looks more like the Greek public union extortion than it does anything else.

Our cure is simple. Pass national right-to-work laws, scrap Davis-Bacon and all prevailing wage laws, and end the Fed.

Dissimilarities

Bear in mind Greece has other problems that are not comparable, so does the US. For example, the US has untenable military spending and a health-care system that is the most costly in the civilized world.

Greece is in a currency union with no fiscal union. Greece has no way to devalue its currency or set interest rates. Greece has few exports while the US is a huge exporter that simply imports far more than it exports.

Thus, I do not want to imply the US is Greece. I simply highlighted one area that is more similar than most think.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List


Energy Shortages Spreading: Rationing in China, Pakistan, Venezuela, Japan, Argentina; China Resorts to Punitive Prices to Curb Demand

Posted: 24 May 2011 12:50 AM PDT

Electric power shortages caused by insufficient water levels at hydroelectric stations in some places, and unaffordable oil prices in others, have led to rationing, blackouts, and other problems.

China Resorts to punitive Prices to Curb Demand

Bloomberg reports China's Zhejiang Plans Punitive Power Prices to Curb Consumer Demand
China will impose punitive power prices on businesses that exceed consumption limits in Zhejiang province, a manufacturing hub bordering Shanghai, to curb demand during an expected electricity supply shortfall this summer.

China faces the worst power shortage in seven years as the economy grows faster than forecast and some utilities cut production or shut, hit by rising coal prices and government caps on tariffs. Zhejiang, on the eastern coast to the south of Shanghai, is host to companies including automaker Zhejiang Geely Holding Group Co., owner of Volvo Cars.

The province's 35.4-gigawatt generation capacity is 3.5 gigawatts short of what it needs during peak summer demand, the local government said.
High Coal Prices Cause Plant Closures

Please consider China's Power-Capacity Utilization at Record Low
China's power plants are operating at a record-low utilization rate as many have closed, potentially causing the most severe electricity shortage since 2004, Mirae Assets Securities said.

"Burdened by bulging losses, many power generators have shut," Gordon Kwan, the Hong Kong-based head of energy research at Mirae, said in an e-mailed note today. "High coal prices and the capped electricity price have also reinforced fears" that power rationing may spread to manufacturing hubs including Guangdong, Zhejiang and Jiangsu, Kwan said.

China's April electricity output fell from a seven-month high as the cost of coal rose. Prices of the fuel at Qinhuangdao port, a domestic benchmark, climbed for a sixth week as of May 9 to the highest in more than two years, according to the China Coal Transport and Distribution Association.

The country may face a summer shortage of 30 gigawatts as supply lags behind demand growth, the China Electricity Council said on April 29. That deficit is about twice the shortfall Japan faced after the March 11 earthquake, Mirae's Kwan said.
Venezuela Plans Rationing

Bloomberg reports Venezuela Plans to Ration Power for Second Year
Venezuela will ration power again this year, planning steps similar to those taken in 2010 amid an energy crisis, Electricity Minister Ali Rodriguez said.

"We're going to reapply the measures we applied in Caracas last year nationwide, which punishes the wasting of electricity and encourages energy savings," Rodriguez said in an interview on state television today. Any rationing measures require President Hugo Chavez's approval, Rodriguez said.

Venezuela has struggled to boost energy-generating capacity to keep pace with an estimated 6 percent increase in demand this year. The consumption jump, if it persists, would require an additional 2,000 megawatts of new capacity a year, which is "unsustainable," Rodriguez said.
Energy Shortages Spreading

Please consider the ASPO May 23 Energy Review
Pakistan and China continue to top the list of countries with the most serious power shortages. Last week brought in reports of energy shortages developing or worsening in Egypt, Guyana, the Dominican Republic, India, Japan, El Salvador, Bangladesh, Libya, Mozambique, Nepal, Venezuela, Argentina, Zimbabwe, Kenya, and Tanzania. Most of the reported shortages are of electric power caused by inadequate water levels at hydro dams or insufficient coal, but some of these shortages stem from unaffordable oil prices or the inability to import sufficient quantities of liquid fuels.

In most countries, electricity shortages quickly translate into increased demand for gasoline and diesel as organizations strive to keep important activities such as computers, elevators, hospitals, refrigeration and even factory production functioning with back-up generators.

Pakistan probably is suffering the worst from electricity shortages, the country simply does not have enough foreign exchange to import large quantities of expensive fuels. China however is a different situation. Beijing is committed to maintaining its economic growth which it can't do without increasing supplies of electricity.

The Chinese only report their oil imports and electricity consumption monthly so the complete picture of their energy situation will not be known for a while, but if past shortages are any indication we can expect imports to increase, perhaps significantly, in coming months. Beijing is being unusually open concerning the seriousness of its growing electricity shortages which are said to be the worst since 2004. Rationing of power has started and reports of production shortfalls are starting to appear. In the past year the price of coal has increased by 20 percent while electricity rates have increased by only 2 percent leading to substantial losses for many Chinese electricity producers.

Summer is nearing, and temperatures across parts of South Asia are already running above 40o C. so the use of air conditioning is putting further strains on power grids. Wide spread blackouts and lost industrial production can be expected this summer if current trends continue. The liquid fuel shortages being reported in a number of the world's poorer countries suggests that demand may indeed be outstripping available supplies with the poorer countries losing out in bidding for available supplies.

The June OPEC meeting is likely to be an interesting one. Iranian President Ahmadinejad appointed himself Iran's acting Oil Minister over the objections of the Iran's Guardian Council and plans to chair the OPEC meeting where he may attempt to drive up oil prices by challenging any Saudi effort to increase production officially.
Rogers Predicts Oil Price to Rise "Beyond Anybody's Expectations"

Speaking with the British BBC, last Tuesday 17 May 2011, famed investor Jim Rogers chairman of Rogers Holding said he believes that the oil prices will rise "beyond anybody's expectations" in the foreseeable future and that America is in serious trouble.



I do not know how high oil prices go and in what timeframe. Nor does anyone else. However, I do know that the price of oil (and everything else) will not rise above people's willingness to pay for it. Demand for oil will drop with rising prices.

Currently, much of the rise in oil has been speculation, just as it was in 2008. Rampant credit expansion and overheating in China has also contributed to higher prices. Near-term, slowing global growth seems likely to put a damper on prices.

Long-term, those who assume the Chinese economy can grow at 10 percent a year for another decade are in Fantasyland. Energy constraints will not permit it.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
Click Here To Scroll Thru My Recent Post List