June 21, 2012

It is all about PERCEPTION

I wrote earlier that there is less gas and fuel being used because there are less miles traveled by personal and business vehicles.  You are driving less miles because of the cost of gas, and transportation companies are putting on less miles because there is less freight to move.  Companies are producing less, shipping less and consuming less.

To some degree it is  difficult to understand why the stock market is still holding so high compared to the feeling that the economy is staled.  Some say jobs are being created, businesses are hiring.  That will be true because there was a lot of cutting done because the profitability issue the last couple of years.  Now that they have tightened their belts and cut the fat from the overhead, they are willing to expand with the savings they have been banking. But the true fact is, there are still fewer jobs today than there were when Owe-Bomb took office.  Inflation is up, unemployment is up and the regulatory burden is up. 

There isn't a lot of new business, some, but not steady.  It seems to go in spurts.  Good for a few months, then slacks off for a month or two. Cars wear out, spring brings out the desire to beautify, maintenance needs to be taken care of.  Factory equipment breaks down, technology changes, bringing the need for updating.

So, how long will it last?  .... the perception that all things are good, unemployment going down, stock market going up, interest rates low, is created by the government by doing the one thing they can do... keep interest rates low.  As long as there is the perception, they have a chance.  It is when that perception starts eroding that things will fall apart.  This is keeping our dollar weak.  Who wants to invest in low interest bearing CDs?  Money flows where interest rates give a decent return.  That is not here.

If business was good and the demand for gas was up, that would mean the price of gas would go up. For example, gas prices went up this last weekend as much as 20cents in some places... then two days later this report shows up. That is built on perception. But Salon.com says, The recent gloomy forecast is putting pressure on the price of oil, which has fallen by nearly $32 a barrel, or 29 percent, since its high of $109.77 on February 24.  We aren't seeing that at the pump in most places.  Where did these gloomy numbers come from?  Unemployment, housing starts, inventory reports, new orders all are being spun as showing improvement, but most are revised toward reality in the next report.  Remember... it is all about perception.
US commercial crude oil inventories increased by 2.9 million barrels in the week ending 15 June.

Both finished gasoline inventories and blending components inventories increased last week.

Propane/propylene inventories increased by 1.3 million barrels last week and are above the upper limit of the average range.

Total commercial petroleum inventories increased by 11.1 million barrels last week.

You know the suppliers are having a hard time because of lack of volume. So their answer is to charge more money.... so we do the only thing we can do faced with real world problems... we quite using it as much as possible.  Why do we have to put up with such?  Maybe we are not being heard.  How much louder do we have to say it.... we are hurting and are tired of the shafting!

Are we going to wake up and demand that this administration actually do something other than destroy our economy via spending, regulating and lying?

From Iowa
The President

June 4, 2012

Make Believe World

Thinking of the presidential race gives one pause.  Is there anything real in this world? 

Is it worth contemplation?  Is there anything that is worth considering? Or is it all just a make believe wold of make believe issues rolling around a make believe media world? 

It is almost like anything you read in the newspaper, hear on the radio or see on the TV,  you know it is not only not true, but it is fabricated to fit the moment and mostly to distract from the real issue that we may or may not ever see or know about.

From Iowa
Prez