Your Pinterest Weekly Email: 6 Recommended Boards

Hi, Hari! Here at Pinterest... Get ready to change your life! We teamed up with The Biggest Loser to share tips from each episode. From Dolvett's fitness guides to healthy recipes, The Biggest Loser (Mon 8/7c) on Pinterest has what you need to turn motivation into reality. Popular Boards Photography Inspiration Karli Alm   Outdoor ideas Melissa Hendricks   Recycle and Upcycle Nancy Smith Take me out to ... Jamie Hinkle   Nails Rachel   Gardening & Landscaping Eileen Pins You'll Love Campfire cake. 375 likes 977 repins Laura Martin via Brenda Caylor onto Party Time thankful rolls: write a thankful message on a piece of ... 317 likes 1096 repins Irene Turner Interior Design & Renovation via Wonderful Idea onto Entertaining Sonoma Style™   Savory Stuffed Sweet Potatoes with White Beans and Kale by ... 383 likes 2353 repins Jane Wang onto Delicious half sparkle nails. 1101 likes 2032 repins molly pickering via Bonnie Glover onto fashion your seat belts.   LBD <3 482 likes 1130 repins Joanna Hawley onto what to wear Lemon Cheesecake Morning Buns with cream cheese filling & lemon zest ... 462 likes 2046 repins synapse * via Pascale De Groof onto eye candy Like us Get the apps This email was sent to e0nstar1.blog@gmail.com. Don't want your weekly Pinterest? Change your email preferences. ©2012 Pinterest, Inc. | All Rights Reserved. Privacy Policy | Terms and Conditions

Why Remarketing? - Whiteboard Friday

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Why Remarketing? - Whiteboard Friday Posted: 21 Feb 2013 05:14 PM PST Posted by addthree No matter what type of product you're offering, how your sales cycle flows, or what the industry you're in looks like, there are a many different ways that you can leverage remarketing to target your audience. In today's Whiteboard Friday, Brian Rauschenbach and Nora Park share their tips and tactics for remarketing success so that you can turn those visits into conversions! Have you had remarketing success? Leave your thoughts and experiences in the comments below! Video Transcription "Brian: Hello, I'm Brian Rauschenbach and this is Nora Park. We're with Add3. We're a search and display network and agency located here in Seattle. We're here today to talk about remarketing and Google AdWords. We've got a couple of examples of some brands that are probably using remarketing and how they're going after sort of the same user and some of the advanced tactics, and some ideas and suggestions that we have that have worked with some of our clients and to share them with you. So, why remarketing, Nora? Why is it so important for brands to be remarketing today? Nora: So there are a lot of reasons why all brands should really be doing a lot of remarketing. Depending on what type of product you're offering, your sales cycle, the type of industry you're in, there are a few different ways that you can really leverage remarketing to target your audience. Kind of the first one, really, the core, basic reason to do it is to get back in front of customers who visited your site and didn't take the desired action. They didn't sign up for your free trial or make a purchase on your site. So that sort of also links into, if you have more of a type of ecommerce site, the really great way to do it is to reengage those customers who actually spent a lot of time on your site, put things in their shopping cart, maybe even got to the payment page, and didn't hit the Submit button and actually make a completed purchase. You can get back in front of those users with remarketing, and even use some dynamic product feed remarketing and show them specific products that they looked at. Brian: Yeah. So I've seen that with some sites like Levi's, where I might put a pair of jeans in a shopping cart, and then I abandon the shopping cart and don't do the purchase, and then come back, like the next day, and I'm just surfing the web, and then I'll see that pair of jeans still in there inside of a banner. Nora: Exactly. Brian: So that's a dynamic product feed. But it's a remarketing of that piece. Nora: Yeah, exactly. It's going to be really effective. Another good scenario is to target your existing customers and upsell or cross sell them. So for example, if you're a software company and you have people who you know have purchased a certain product, based on the way you've cookied them and set up your lists, you can show them ads that promote other similar products that somebody who purchased the other product will be likely to buy in tandem, or might also need down the road. Brian: Okay. These remarketing lists, how is the time piece sensitive? If you have a remarketing list, and you're like, "I know this person is coming to purchase a product," and what's the learning that you can gather from setting up your custom lists with time segments in them? Nora: Yeah, absolutely. That's a really great question. A good thing that you should do some testing around is to kind of find out when it's most effective after that initial purchase, whether it's 10 days, 20 days, 30 days later, that you can effectively reach that customer. Right away they might say, "You know, I already just gave you some money. I don't need to make another big software purchase." But in 30 days, "Well, great, I really like this product. I like this company." They might be more likely to do that. Brian: Oh, so it might be like a brand, like a Brenthaven, like I really like their bags. They have a lifetime warranty. I might have just purchased a backpack, but I might be back next month buying an iPad case or whatever. Nora: Yeah, exactly. So it's like, great, that kind of leads us into our last one, which is that when you have a really strong brand with really loyal customers, is knowing who those existing customers are, who have made purchases in the past, and being able to reach out to them with other products that you have they might be interested in. Brian: Okay. So for any of you that might not be using remarketing yet today with your product or brand that you represent, let's talk a little bit about just setting up campaigns. Where do you find it in the Google AdWords interface, and then what's your best practices for setting these campaigns up from scratch? Nora: Yeah, absolutely. It's pretty simple. Kind of the core is setting up your custom combination lists. So you can go in the AdWords interface to the Audiences section, and that's where you'll be able to find the pixels you need to place on your site and then be able to create these lists to segment people based on what pages they've visited. So you can add lists based on different products, so if they've visited any page related to this certain product, and then you can show them an ad that is aligned with that. Brian: So the page could be just a URL that's like the shopping cart URL or the success confirmation page or the thank you confirmation page, if it's just a sign-up that someone's looking for. Nora: Exactly. That's where you can get really kind of creative and advanced in terms of how you set up the combinations of the list, is to be able to include and exclude people based on how far they got in the cycle. If they did put something in their shopping cart and didn't reach the confirmation page, you might want to target them separately than somebody who didn't even put anything in their shopping cart yet. Brian: So if you have like a subscription-based model for your company and the person has already upgraded, like they've upgraded to a Moz Professional account, you don't want to be following them around and remarketing back to them. So you put them in an exclusion list? Nora: Exactly. Brian: Okay. Nora: That's another great example. When you have a subscription service, to be able to use those exclusion lists to take out people from the remarketing pool that are already subscribed, based on a visit to, for example, a login page using that URL. Brian: Okay. Great. Then talk to us a little about user segmentation and the duration thing again, why that's so important. Nora: Yeah. That one's important too. You may have some insight already into the sales cycle for your product. So basically, if somebody visits your site, it might take a consideration time of one week up to a month, depending on what it is, before they are actually ready to make a purchase. So you can kind of start and use that as how long you want to set the duration of your cookie pool. Brian: So these would be good for clients or brands that have, basically, a free trial maybe, and then to upgrade the free trial to a paid trial. Nora: Exactly. Brian: Okay. Nora: At the end of that 30 days, or whatever it is. But another great way to do it is just to set up a test and kind of do increments of 10 days, where you give those people, you treat them differently, so you can just see how they act if you target them within 10 days after they first visited your site, within 20 days, and within 30 days. Brian: Okay. So these are the actual user list pools that you're doing these time segments? Nora: Exactly. Brian: Your total cookie pool might be 30,000 users. So after 10 days, you're cutting off remarketing to those people, and then you go into a 10 to 20-day window and then a 20 to 30. Nora: Exactly. Brian: Then you're looking at those as three different lists and their effective CPA that they might be achieving. Nora: Yeah. Brian: Okay. Nora: Exactly. So you kind of get those learnings, and then you can start to use some custom messaging. Instead of just saying, the people after 10 days didn't convert as well, we'll give them a different message and see if you can get them to convert as well, whether you're using a promotion code with an expiration date that you put directly in the ad, or offering a higher discount. Or a third example would be . . . Brian: Well, we've got a couple of examples up here. So the discounted example is if you're booking a flight. This example that we've drawn out here is some guys that are planning a mancation to Alaska. So they come in. Someone's been to Alaska Airlines, and they're going to pick up a cookie there. Then, a day later, they might be getting a leader board banner that's targeted to them for a cheaper flight up to Alaska. Then that person's also looking to get some outdoor gear for that trip, and REI might hit them a couple of days later with a marketing message around free shipping. So it's basically a promo, one that's a little bit more time delayed. Then Airbnb might have a call to action that's like, "Are you still looking for a cabin to rent?" I think a lot of those, if you make those messages custom, and don't repurpose what you're running in your existing AdWords campaigns, but understand the audience that you're actually remarketing back to these people. They've been to your website. So you don't need to really talk about the brand too much. But give them a promo or a time-sensitive call to action or something that's like a question. Nora: Exactly. Brian: Going back to the user segmentation duration thing. I found that, when you ask this to a client a lot of times, like, "What's sort of your sweet spot of when your person converts," this is also a way that, if your brand doesn't really know what that is, you could get the learnings from this. Nora: Yeah, exactly. It will definitely give you a good idea of where that sweet spot is. Another thing, too, is how many times those people see those ads. So you can set frequency caps, as well as set up the duration settings to see how effective it is to show them 10 ads a day versus 10 ads a month. Brian: Oh, so there's a good segue there. After you've had your remarketing campaign up and everything is just chugging away, what are some tactics that you've sort of used to enhance the remarketing strategy with all this learning that you're gaining, from setting up custom combination lists to time-delayed market segmentation? What have you been doing to sort of keep the meter going? Because it seems like the remarketing comes out really strong after you're learning, and then it sort of has a little tail. Nora: Yeah. With any AdWords campaign, it's always important to kind of keep up with the marketplace. So optimizing your bids is sort of standard. But something else, the really great thing Google provides, is looking at the managed placement, so the actual list of the sites that your ad showed up on and the performance by each of those sites, so you can find that maybe there are 20 sites . . . Brian: Maybe some pockets. Nora: Yeah. Either a category of sites or just specific sites that you can bid higher on that will allow your ad to show in more prominent positions, potentially more above the fold, and just more frequently. Brian: Then, on sort of the bid management side of things, I've seen some different market or duration list segments where I see if you've run 10, 20, 30, 40 day segments, sometimes they'll pause out, like the 30 or 40, and then really focus in on the ones that are very optimal. Then you mentioned frequency caps. What's a good generic setting for frequency caps, given that some of these ads might appear below the fold, and so even if you're winning in this auction against three different brands, what should you have your frequency cap set to? Nora: Generally, let some of the initial data kind of show you where that drop-off is. You actually can see in Google, after how many impressions in a given week, where your click-through rate starts to drop off or your conversion rate starts to drop off. I've typically seen that it's around eight a week. Brian: Eight a week. Okay. That's good to know. So we talked a little bit about some Google beta programs that are out there. There are a couple other ones that we're testing with different clients that are in different verticals, so it makes sense for them. Can you talk about any of those? Nora: Yeah. The one I think I'm most excited about that we've started to test and see some great success with is the search companion beta. What that does is it enables you to remarket to people who haven't necessarily been to your site. So you choose keywords that you want to retarget. So anybody who's searched for those keywords on Google, then when they are on sites that are part of the Google Display Network and accept AdSense ads, then you can get in front of them that way. Brian: So if you were brand like REI and someone did a search for hiking shoes, and then they visited the REI website, can then one of their competitors, like an outdoor emporium or, something like that, go after that user even though they didn't even visit the site? Nora: Yeah, absolutely. Brian: Okay. Nora: So they would just say anybody who searches for hiking shoes, we want to be able to remarket to them. Brian: Okay. So that's a pretty powerful beta that's out. How about anything in YouTube? Have you done any work with their network? Nora: Yeah. That's another great opportunity, that Google allows you to kind of repurpose your remarketing list and show YouTube ads, in-stream ads. It's within the same log-in account, and they kind of talk to each other. You can set up a campaign and use that same list of people. Brian: So this is the same custom combination list, but just in YouTube. Nora: Exactly. Exactly. Brian: So you don't have to just throw impressions away, basically. Nora: Yeah. So it makes it really targeted. Brian: Well, cool. Well, we've been doing a lot of discovery with remarketing here this last year and paying close attention to it, because all these new beta programs are coming out. Do you think that there's going to be an end to this? Nora: Probably not. Brian: This is our industry crack we have right now. What do you think is going to be on the horizon with Google? Nora: I'm sure more like this. With traditional remarketing, you're sort of capped in terms of how much you can grow just based on the visits you're getting to the site in a given month. Something like the search companion beta really opens that up to a much larger population of available impressions. It just makes the marketplace that much bigger. So I'm sure that they'll come up with more things along the same lines. Brian: We forgot to mention that, in order to sort of participate in this universe, you do need to have content running, right? Nora: Yeah, absolutely. That's what the campaign setting is. Brian: So this used to be one of those check boxes that you used to leave unchecked, but now it's like the Google Content Network or the Google Display network, it's pretty big now, right? Quality's really gone up on it. Nora: Yeah, absolutely. There are so many different ways you can target the Google Network. Remarketing is just one of them. But it's sort of part of the same thing, where you can target on the Google Display Network by keyword content, categories, and interests as well. Brian: Then if you didn't have the resources to get banner creative, this stuff can also just be contextual only, right? Nora: Yeah. You can use text ads. Actually, Google has a really cool thing called the Google Display Ad Builder, and they will just kind of take images from your site and put banners together themselves. I've actually used that, and they look really great. It's a free and effective way for some clients that might not have the resources to get their ads out there. Brian: I was going to say that kind of sounds a little scary, if they're just grabbing images from your site. Nora: Well, you get to see them. You have a lot of choices in terms of the layout and the language, and they actually look great. I don't know how they pick the right images, but from what I've seen, they do a really good job. Brian: Okay, cool. Well, I think that sort of wraps up our segment on remarketing. We'll be online listening and replying back to any commentary or any questions that you might have. Thanks. Nora:  Thank you." Video transcription by Speechpad.com 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!

Announcing #MozCon 2013 Posted: 21 Feb 2013 12:29 AM PST Posted by Erica McGillivray You may have heard the rumor that MozCon 2013 tickets are on sale! I'm pleased to announce that this year's MozCon Command Crew is busy planning the best MozCon yet. Launch your inbound marketing skills into outer space by attending this year's MozCon, July 8th-10th at the WA State Convention Center! This year, we have 400 early bird tickets, which are flying out the door faster than you can say "Roger Mozbot." Snag yours now! Early Bird $999 $799 for SEOmoz PRO members Early Bird $1499 $1299 for SEOmoz non-PRO members Bonus! This year your ticket price includes MozCon 2013 videos. For three days, we bring you amazing, future-thinking content from industry leaders, deep diving into SEO, social media, marketing analytics, content strategy, data science, and so much more. See who's coming to speak and share their expertise with you. You're sure to come back home with a universe's worth of actionable knowledge to start implementing. Get a sample of MozCon caliber speakers by watching Wil Reynolds' talk on #RCS from MozCon 2012.  You'll rub elbows with the brightest minds in the industry. (Hint: you're one of them!) Whether you're posing with Roger for photos; eating bacon while chatting with a speaker; meeting other community members from all over the world; or chilling with the Mozzers who make the magic happen, you'll have an out-of-the-world time. For those of you who've attended MozCons in the past, you might've noticed that we've changed venue to the WA State Convention Center in downtown Seattle. That's right -- we outgrew our last venue with 850 attendees in 2012. We're expecting up to 1,200 community members, plus around 150 Mozzers and various crew, for MozCon 2013! Yes, we're already working with our new venue to get Wi-Fi that actually works. Leave your MiFis at home! We only expect MozCon to become even more amazing! For 2013, we've secured MozCon attendees deals in two fabulous hotels within blocks of the WA State Convention Center. Hotels: Grand Hyatt Seattle 721 Pine Street Seattle, Washington 98101 Hyatt at Olive 8 1635 8th Avenue Seattle, Washington 98101 Hotels come with complimentary wifi, and for those of you driving in, we've gotten parking deals to save you some money. You'll be able to easily walk from your hotel to MozCon and back again in this relatively safe neighborhood. Not to mention, there's tons of food and shopping, and it's also within walking distance of the MozPlex and Pike Place Market. (Stay tuned for more information about office tours.) Plus, everything's right by Seattle's light rail, which gives you easy access to and from the airport. No need for a rental car or an expensive taxi! If you aren't already dreaming of Seattle, browse Rand's killer list of restaurants and bars and even more restaurant, sightseeing, and shopping recommendations. Did you know there's a cupcake shop across the street from the MozPlex? And pay attention to the 15 things you should know about Seattle. We've got a haunted underground, the weird park featured in 10 Things I Hate About You, a Dalek inside a Frank Garrity building, and 1,030,000 search results for "hipster bar Seattle." Our community rocks. We can't wait to meet you face-to-face. See you in July! 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!

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West Wing Week: “A Single Sacred Word: Citizen”

Your Daily Snapshot for Friday, February 22, 2013   West Wing Week: “A Single Sacred Word: Citizen” This week, the President visited his old neighborhood in Chicago, conferred one of the nation's highest civilian honors, met with the president of Italy, and continued to urge Republicans to close tax loopholes for the wealthy to prevent dangerous across-the-board budget cuts that are slated to take effect on March 1st.  Watch this week's West Wing Week. In Case You Missed It Here are some of the top stories from the White House blog: A Balanced Plan to Avert the Sequester and Reduce the Deficit President Obama has already reduced the deficit by over $2.5 trillion, cutting spending by over $1.4 trillion, bringing domestic discretionary spending to its lowest level as a share of the economy since the Eisenhower era. Don't Miss Out! Tickets Lottery for the 2013 Easter Egg Roll Opens Today Enter today for a chance to join President Obama and the First Family on the South Lawn for a day of singing, dancing and egg rolling. Big Bird Visits the White House To celebrate the third anniversary of Let's Move!, First Lady Michelle Obama and the Sesame Workshop teamed up to create PSAs that lets kids know how easy it can be to eat healthy and stay active. Check them out! Today's Schedule All times are Eastern Standard Time (EST). 10:15 AM: The President and the Vice President receive the Presidential Daily Briefing 11:00 AM: The President and the Vice President attend the Democratic Governors Association Meeting 11:30 PM: Press Briefing by Press Secretary Jay Carney  12:15 PM: The President holds a bilateral meeting with Prime Minister Shinzo Abe of Japan 1:15 PM: The President and the Vice President have lunch with Prime Minister Shinzo Abe of Japan Indicates that the event will be live-streamed on WhiteHouse.gov/Live Get Updates Sign up for the Daily Snapshot Stay Connected     Facebook Twitter YouTube Flickr Google+     This email was sent to 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

Seth's Blog : Actually, it goes the other way

 

Actually, it goes the other way

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It turns out that choices lead to habits.

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Mish's Global Economic Trend Analysis

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• France Sinks Further Into Gutter; PMI Accelerates to 4-Year Low; "Core" of Europe Now Consists of Germany Only
• House Subcommittee on Economic Growth Demands Answers From Bernanke on Fed's Exit Strategy; Fed Must Reply by March 5
• Montebourg Translation: In Praise of France, Obama, US; Hidden Insults

France Sinks Further Into Gutter; PMI Accelerates to 4-Year Low; "Core" of Europe Now Consists of Germany Only Posted: 21 Feb 2013 12:19 PM PST While laughing at the amusing exchange of letters between the CEO of Titan and Arnaud Montebourg, Minister of Industrial Renewal of France, I awaited the latest PMI report on France, expecting findings to be horrific. The PMI reports are out today, and inquiring minds will note the Markit Flash France PMI shows the decline in French private sector output accelerates further to reach near four-year record. Key points: Flash France Composite Output Index drops to 42.3 (42.7 in January), 47-month low Flash France Services Activity Index falls to 42.7 (43.6 in January), 48-month low Flash France Manufacturing PMI climbs to 43.6 (42.9 in January), 2-month high Flash France Manufacturing Output Index rises to 41.2 (40.8 in January), 2-month high Summary: Latest Flash PMI data indicated that the downturn in French private sector output deepened in February. January's Markit Flash France Composite Output Index , based on around 85% of normal monthly survey replies, slipped from 42.7 in January to 42.3, its lowest reading since March 2009. The steeper fall in overall output was driven by an accelerated decline in the service sector where activity contracted at the fastest pace in four years. Manufacturers signalled a slightly slower decrease in production compared with one month previously, albeit still sharper than signalled in the service sector. New business placed with private sector companies in France fell again in February, extending the current sequence of contraction to one year. The rate of decline quickened slightly since January and was only marginally slower than December's 45-month record. Service providers indicated that new business fell at the sharpest rate for just under four years. Survey respondent s commented that difficult business conditions and intensifying competitive pressures had conspired to depress inflows of new work. France Economic Output Expect GDP to follow the PMI far more than economists expect. Eurozone Aggregate PMI The Markit Flash Eurozone PMI shows steepening downturn in February. Key Points: Flash Eurozone PMI Composite Output Index at 47.3 (48.6 in January). Two-month low. Flash Eurozone Services PMI Activity Index at 47.3 (48.6 in January). Three-month low. Flash Eurozone Manufacturing PMI at 47.8 (47.9 in January). Two-month low. Flash Eurozone Manufacturing PMI Output Index at 47.5 (48.7 in January). Two-month low. The Markit Eurozone PMI® Composite Output Index fell to 47.3 in February from 48.6 in January, according to the flash estimate. The decline signals a steepening of the economic downturn, contrasting with the easing trend seen in the previous three months. Business activity has now declined throughout the past year-and-a-half, with the exception of a marginal increase in January last year. Output rose for the third month running in Germany, albeit at a slower rate, contrasting with accelerating, steep rates of decline in both France and across the rest of the Eurozone on average. French businesses were particularly weak, reporting the largest monthly drop in output since March 2009. Outside of France and Germany, the rate of decline was the fastest for three months, though it was weaker than the downturn seen in France. New orders fell for the nineteenth month running, with the rate of decline gathering pace having eased to the weakest for 11 months in January. However, the overall rate of loss in February remained less steep than that seen throughout much of 2012. Chris Williamson, Chief Economist at Markit said: "A steepening rate of decline in February is a disappointment, and suggests that the eurozone is on course to contract for a fourth consecutive quarter in the first three months of the year. Digging into the data shows increasing schisms within the eurozone. National divergences between France and Germany have widened so far this year to the worst seen since the survey began in 1998. Germany is on course to grow in the first quarter, recovering from the 0.6% GDP fall seen in the fourth quarter, possibly expanding by as much as 0.4%. In contrast, France's downturn is likely to deepen, bringing the euro area's second-largest member more in line with the periphery than with the now solitary-looking German 'core'." "Core" of Europe vs. Periphery Recall that the "core" of Europe was once Germany, France, and Italy. Italy went down the tubes long ago and the "core" became Germany and France. The "core" is now Germany. Rotten to the Core Last month the eurozone composite PMI rose from 47.2 to 48.6. Chris Williamson, Chief Economist at Markit offered this interpretation: "The eurozone is showing clear signs of healing, with the downturn easing sharply in January and the region moving closer to stabilisation in the first quarter." I offered a completely different interpretation on February 7 in Illusions of Stabilization. No Signs of Healing I disagree with Williamson. Those divergences show the eurozone is getting sicker, not healing. If there was any healing, and certainly if there was any rebalancing, manufacturing and export growth would be picking up in Spain, in Italy, and in France at the expense of Germany. Illusion of Eurozone Stabilization There is no real stabilization and there is no healing. Rather, the policies of Hollande are so disastrous that some output has shifted to Germany and elsewhere, (coupled perhaps with some inventory replenishment and a temporary stimulus-fueled increase in demand in Asia). Even that cannot last. How can it? US growth has stalled (at best) and 2% payroll tax cuts will tip the US into recession (assuming it's not there already). With employment sinking in France, Italy, and Spain, precisely who will buy German exports? Properly rebalancing will require a shift in production from Germany to the rest of Europe as well as a shift towards more consumption in Germany from the rest of Europe. That cannot and will not happen with the destructive polices of Hollande, and the lack of reforms in Spain and Italy. Something has to give. And it's something very few people see coming. Germany Will Pay a Steep Price One way or another Germany will pay a huge price. These are the only two eurozone recovery options Germany gives (not lends) more bailout money to the rest of Europe The eurozone breaks up Until one of those things happens, signs of stabilization are nothing but an illusion. There are no other options, and no other choices. Meanwhile, imbalances grow and German taxpayers keep funneling tax dollars to the Southern states to keep them afloat. How long German citizens are willing to put up with this sorry state of affairs remains to be seen. Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com 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.

House Subcommittee on Economic Growth Demands Answers From Bernanke on Fed's Exit Strategy; Fed Must Reply by March 5 Posted: 21 Feb 2013 09:59 AM PST In a long overdue, yet surprising move, Jim Jordan, chairman of the House Subcommittee on Economic Growth demands answers on Bernanke's exit strategy. Rep. Jim Jordan (R-Ohio) is demanding that Federal Reserve Chairman Ben Bernanke explain exactly how he plans to wind down the Fed's massive portfolio once its run of bond buying comes to an end. In a letter sent to Bernanke on Wednesday, Jordan asked for any research the Fed has done on unwinding its burgeoning portfolio, which recently topped $3 trillion — three times its size in 2008, the lawmaker noted. Minutes of the Fed's January meeting, released Wednesday, showed Fed officials were struggling with when exactly they should stop the bond buying. Several members of the Fed's policy-setting committee warned that the central bank may have to begin varying the amount of bond purchases in response to economic conditions, while some warned that the Fed might have to halt the purchases before the labor market is back to the desired strength. Jordan asked Bernanke to provide all "public and non-public" research done on possible approaches to unwinding. The Fed must provide answers by March 5. Full Text of Letter Fox Business News has the Full Text of Letter to Ben Bernanke From Jim Jordan. The letter is in image form. Here is a snip that I typed by hand. Dear Chairman Bernanke: ...As the Federal Reserve System continues its bond-buying program into 2013, I am troubled by the corresponding effect that the Federal Reserve's expanding portfolio could have on current and future growth...I am especially concerned that the historically low interest rates brought on by the Federal Reserve's monetary policy have hampered economic growth by distorting traditional financial incentives. Younger Americans who have been working to save their income have faced meager returns in bank accounts slowing their overall accumulation of wealth. Likewise, older Americans living off interest-bearing accounts have been forced to move to riskier investments to maintain their standards of living. Most strikingly, by maintaining low interest rates, the Federal reserve has distorted the real cost of the national debt, effectively incentivizing the U.S. government to borrow and overspend. .... Inquiring minds may wish to read the entire letter. I wholeheartedly applaud this effort by Jordan, and I also applaud the action date of March 5. I especially endorse two ideas above Fed policies have "distorted traditional financial incentives" By maintaining low interest rates, the Federal reserve has distorted the real cost of the national debt, effectively incentivizing the U.S. government to borrow and overspend. Fed policies have destroyed those on fixed income for the benefit of the banks and wealthy, as I wrote on Wednesday in Reader Asks Me to Prove "Inflation Benefits the Wealthy" (At the Expense of Everyone Else). Inquiring minds may also wish to read Hello Ben Bernanke, Meet "Stephanie", my response to a reader on fixed income attempting to live on Social Security plus interest on a $16,000 CD. Any clear-thinking person realizes the Fed has no exit strategy and thus will hold on to all or nearly-all of those assets for the full duration of their term. Thus, it will be interesting to see what lies Bernanke comes up with in response.  Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com "Wine Country" Economic Conference Hosted By Mish Click on Image to Learn More 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.

Montebourg Translation: In Praise of France, Obama, US; Hidden Insults Posted: 21 Feb 2013 12:18 AM PST The story of an "incredible letter" from Maurice Taylor, CEO of Titan, to Arnaud Montebourg, Minister of Industrial Renewal of France starts with a question Taylor asked Montebourg: "How Stupid Do You Think We Are?" In his letter, Taylor blasted French workers, French unions, and he also threw in a side insult directed at the USA. A day later, Montebourg, responded with his own set of insults directed at Titan, but the response was in French. In Montebourg Responds, Cites Normandy Landings and Barack Obama I asked readers for a translation of Montebourg's reply to Taylor. Reader "NP" quickly stepped up to the plate and provided this translation. Sir, Your insulting and extremist words show a complete ignorance of France, its competitive advantages, as well as its worldwide acknowledged attractiveness and its links with the United States of America. France is proud to welcome on its soil more than 20,000 foreign companies, representing  close to 2 million jobs, a third of its industrial exports, 20% of its private R&D, and 25% of its manufacturing jobs. Every year, we count 700 decisions of investments creating jobs and value in France. And this solid attractiveness does not weaken, on the opposite every year it becomes stronger. Within those foreign investments, the United States rank at the top. 4200 subsidiaries of American companies employ about 500,000 people. The presence of American companies in France is very old : Haviland since 1842, IBM since 1914, Coca-Cola since 1933, General Electric since 1974. And how many others. Those links are every year renewed: In 2012, companies such as Massey-Ferguson, Mars Chocolate, and 3M have chosen to increase their presence in France. What are the decisive factors in those investment choices? Foreign companies seek in France quality infrastructure, an enjoyable life-style, and an energy among the most competitive in Europe, as well as an environment very favourable to research and innovation. But above all,  far from your ridiculous and disparaging remarks, all of those companies know and appreciate the quality and productivity of the French workforce, the commitment, know-how, talent and skills of French workers. To amplify this attractiveness, the French government has recently taken 35 steps within the framework of the National Pact for growth, competitiveness and employment. Among those, tax credit and employment lightens by 6% companies' employment costs between 1 and 2.5 SMIC [ie: SMIC French minimum wages]. Furthermore, the unions have just stroked an agreement on job security, which illustrate the quality of social dialog [French buzzword for negotiation between unions & corporations] in France, and how important it is for my government. May I remind you that Titan, the company you manage, is 20 times smaller than Michelin, our French internationally famous technological leader, and is 35 times less profitable. This shows how much Titan could benefit and profit enormously from an investment in France. France is especially proud and happy to welcome American investments as both our countries are bound by an ancient and passionate friendship. Do you even know what La Fayette did for the United States of America? For our part, we French, shall never forget the sacrifice of young American soldiers on the Normandy beaches to deliver us from Nazism in 1944. And, as you choose to criticize your own government in the letter you addressed to me. I have to tell you how much the French government admires the policies set up by president Obama. As the minister in charge of Industry, I am especially impressed by his actions in favour of the relocation of manufacturing jobs in the United States, and of radical innovation. Actually, our current policy exhibits a certain closeness with that inspired by your president. You evoke your intention to exploit the workforce of certain countries to flood our market. I have to tell you that this unethical and short-term calculation will sooner or later hit the just reaction of the states. That is already the case for France and its increasingly numerous allies within the EU that plead for trade reciprocity and are organizing a response against dumping. Meanwhile, rest assured that you can rely on me to encourage the relevant services to check your import tires with increasing zeal. They shall be especially careful regarding the respect of social, environmental and technical norms. Arnaud Montebourg Hidden Insults NP added a few of his own thoughts ... Government is traditionally standing in the way of business in France. Only big companies can get by. Note how Montebourg very indirectly tells Titan "You're so small so we don't give a damn". Also note the crusading rhetoric towards the end. When Carlos Ghosn (Renault CEO) told the Hollande administration "Governments should try to determine why consumers are not buying cars" it's almost certainly a jab taken at the government. Ghosn really meant "Government should face the fact that collapsing demand is due to their misguided policies". That was a classic French "hidden insult". "NP" was referring to my January 17 post European Car Demand Near 20-Year Low; Peugeot Workers Shut Down French Plant) when I wrote ... Renault's CEO Proposes Study to Determine Why Consumers Are Not Buying Cars No doubt you are laughing right along with me in response to an inane suggestion by Renault's CEO. When asked what governments and companies could do to address the contraction of the market in Europe, he responded "Governments should try to determine why consumers are not buying cars." Is it the responsibility of government to figure out why Renault and other carmaker's cannot sell cars, or is that the responsibility of carmakers? The answer is obvious, and so is the answer to the original question. The comment by Renault CEO was so ridiculous, I should have recognized it for sarcasm (or as "NP" describes it "a classic hidden insult"). Thanks "NP"! Thanks also to others who provided translations including "JF" and "PR". I took the first translation I came across and it also happened to have interesting comments on a form of French sarcasm. Mike "Mish" Shedlock http://globaleconomicanalysis.blogspot.com 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.

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