Fucked Yen : Dollar Oil Politics

[Buraku]

Oil prices finally fucking starting to drop

The dollar rose against the euro and the yen on Wednesday, propped up by lower oil prices and renewed speculation about possible US interest rate hikes, dealers said.

In morning deals, the European single currency dipped to 1.5733 dollars, from 1.5781 dollars late on Tuesday in New York.

Against the Japanese currency, the dollar rose to 107.79 yen from 107.25.

"A fall in oil prices is the main reason for the stronger dollar, along with hawkish comments by the Philadelphia Fed," said Kanako Oikawa, a currency strategist at Traders Securities.

World oil prices have tumbled by 20 dollars since striking record heights above 147 dollars per barrel earlier this month, but remain at elevated levels compared with the start of the year.

"A sustained move lower (in oil prices) would clearly pave the way for central banks globally to ease restrictive monetary stances that would be favourable for the dollar," added economist Derek Halpenny at The Bank of Tokyo-Mitsubishi UFJ in London.

Leading central banks are battling high inflation levels that have been fuelled partly by the soaring cost of crude.

Philadelphia Federal Reserve president Charles Plosser warned in a speech overnight that a rise in US interest rates was unavoidable in the short-term in the face of inflation pressures.

While Plosser is seen as one of the most hawkish members of the Fed's rate-setting committee, his remarks rekindled speculation about possible US rate hikes that could boost the dollar, dealers said.

Investors generally prefer currencies offering higher yields.

The greenback also climbed after Tuesday's solid showing on Wall Street, which staged a late rally on easing worries about high energy costs and renewed interest in the battered financial sector.

Further support stemmed from US Treasury Secretary Henry Paulson, who reiterated Washington's preference for a strong dollar and renewed his backing for troubled US mortgage finance giants Fannie Mae and Freddie Mac....
GOOGLE NEWS London (AFP)

[Buraku]

The dollar was modestly lower against most major counterparts Monday, remaining in recent ranges but unable to dodge the effects of sagging stock markets and pricier crude futures.

http://www.marketwatch.com/news/story/dollar-slips-recent-ranges-crude/story.aspx?guid=%7BB48CEE23-E52C-4AE2-AEB7-6E81A17E54C9%7D&dist=msr_1

Japanese consumer confidence drops to record low in June

http://www.forbes.com/afxnewslimited/feeds/afx/2008/07/11/afx5204117.html

Australia Dollar Peak Pushes Traders to Yen on Growth

Daiwa Asset Management Co., which holds 4 percent of the government's bonds, expects the currency to close the year at $1, compared with 95.83 U.S. cents today, after earlier forecasting a surge to $1.10. Daiwa cut its estimate as the country's benchmark S&P/ASX 200 Index of stocks dropped to a 2 1/2-year low this month and the Reuters/Jefferies CRB Index of commodities fell 13 percent from its record high on July 3.

``The rally is finished as the best days for the economy may be over,'' said Tsutomu Komiya, a money manager in Tokyo at Daiwa, a unit of Japan's second-largest brokerage. Daiwa, which manages the equivalent of $93 billion, isn't buying the currency because cash flowing into Australia funds ``has stopped in recent days,'' he said.

Mizuho Asset Management Co., State Street Global Advisors and Putnam Investments are also turning into bears as the U.S. economic slowdown spreads, curtailing the rally in coal, oil and metals that fueled Australia's expansion. Lehman Brothers Holdings Inc., which recommended the currency in February, now predicts it will depreciate 20 percent by 2009.

The Aussie gained 9.3 percent against the greenback this year, lagging behind only the Brazilian real and the Swiss franc among the 16 most-traded currencies. It touched 98.49 cents on July 16, the highest since 1983. The Australian dollar soared 44 percent over the past five years, on demand from China for the country's coal, iron ore and nickel.

http://www.bloomberg.com/apps/news?pid=20601213&sid=aMNtRbiXkxiw&refer=home

[Buraku]

Japan shares snap 4-day losing streak

Japanese shares ended a four-day losing streak Monday, rising sharply following strong gains on Wall Street Friday and easing crude oil prices.

The benchmark Nikkei 225 index rose 212.62 points, or 1.68 percent, to 12,878.66. The broader Topix index advanced 1.88 percent to 1,239.25.

Bargain-hunting investors boosted shares in nearly all sectors, with banking and rubber issues among the biggest winners of the day.

Financial names, battered recently on growing credit market concerns, sprung back to life Monday following speculation of a possible takeover of Lehman Brothers.

Sumitomo Mitsui Financial Group, Inc. surged 4.24 percent to 664,000 yen, and Mizuho Financial Group, Inc. added 4.76 percent to 462,000 yen. Nomura Holdings, Inc. increased 2.98 percent to 1,450 yen.

Although bank stocks' recent losses "look excessive," their outlook in the coming months may be modest, said Deutsche Securities analyst Shin Tamura in a research memo.

http://www.iht.com/articles/ap/2008/08/25/business/AS-Japan-Markets.php

[pheyton]

Been looking for somewhere to post these charts from Kitco and an article from Mike Whitney giving us a peek behind the scenes. First the charts, then the article. Lemme know what you guys think.

[pheyton]

By Mike Whitney 8-23-08

Sharp contractions in the money supply and recession are two spokes on the same wheel. When the money supply shrinks, there's less economic activity, and the economy slows; it's as simple as that. An article in this week's UK Telegraph by Ambrose Evans-Pritchard shows that the country is sliding inexorably into the jaws of a deep recession.

From the UK Telegraph:

"The US money supply has experienced the sharpest contraction in modern history, heightening the risk of a Wall Street crunch and a severe economic slowdown in coming months. Data compiled by Lombard Street Research shows that the M3 ''broad money" aggregates fell by almost $50bn in July, the biggest one-month fall since modern records began in 1959.

"Monthly data for July show that the broad money growth has almost collapsed," said Gabriel Stein, the group's leading monetary economist." (Ambrose Evans-Pritchard,"Sharp US Money Supply contraction points to a Wall Street crunch ahead", UK Telegraph)

The Telegraph confirms what many of the doomsayers have been saying for more than a year now; we're facing a severe bout of deflation. The persistent credit-drain from rising foreclosures and deleveraging financial institutions is shrinking the money supply. Now it's visible in the data. Bernanke's low interest rates haven't stopped the hemorrhaging; deflation is spreading like Kudzu. According to Evans-Pritchard, "The growth in bank loans has turned negative" (while) "the overall debt burden in the US economy is currently at record levels, raising concerns that a recession - if it occurs - could set off a sharp downward spiral."

The under-capitalized banking system has slowed its lending and consumers have stopped borrowing; all the main economic indicators are pointing down. In fact, according to the Conference Board, "weakness among the leading indicators continues to be widespread" and dropped more than 0.7% in July alone. The report is a composite of selected indicators that show the overall direction of the economy. At present, they're all in negative territory.

The Fed lowered interest rates to 2 per cent hoping to help recapitalize the banks and stimulate consumer spending, but it hasn't worked. The banks still don't have the capacity to lend, so the main artery for credit distribution remains clogged and GDP is dropping off. A python has wrapped itself around the financial system and is gradually cutting-off the oxygen supply. Naturally, when the credit system is broken, the money supply contracts. That's true here, too. What's troubling is the speed at which it is all of this is taking place. It's "the biggest one-month fall since modern records began in 1959". The process is accelerating and will require the Fed to slash rates at its September meeting.

Economist Nouriel Roubini puts it like this:

"Over time inflation will be the last problem that the Fed will have to face as a severe US recession and global slowdown will lead to a sharp reduction in inflationary pressures in the U.S.: slack in goods markets with demand falling below supply will reduce pricing power of firms; slack in labor markets with unemployment rising will reduce wage pressures and labor costs pressures; a fall in commodity prices of the order of 30% will further reduce inflationary pressure.

The Fed will have to cut the Fed Funds rate much more as severe downside risks to growth and to financial stability will dominate any short-term upward inflationary pressures. Leaving aside the risk of a collapse of the US dollar given this easier monetary policy the Fed Funds rate may end up being closer to 0% than 1% by the end of this financial crisis and severe recession cycle."

Interest rates are going down not up as the futures market believes.

Federal Reserve chief Bernanke understands the problem, but has no way to fix it. The market is simply correcting from massive credit imbalances. The economy needs time to cool off and rebalance. Bernanke's various "auction facilities" were created to keep the banking system afloat while the government delivered "stimulus checks" to working people. The plan was designed to bypass the dysfunctional banking system and give money directly to taxpayers. Unfortunately, the strategy failed and added to the bulging fiscal deficits. Martin Feldstein summed it up like this in the Wall Street Journal:

"Recent government statistics show that only between 10% and 20% of the rebate dollars were spent. The rebates added nearly $80 billion to the permanent national debt but less than $20 billion to consumer spending....Here are the facts. Tax rebates of $78 billion arrived in the second quarter of the year. The government's recent GDP figures show that the level of consumer outlays only rose by an extra $12 billion, or 15% of the lost revenue. The rest went into savings, including the paydown of debt....Consumer outlays increased to $36 billion from $24 billion. So the additional $12 billion of consumer spending was less than 16% of the extra $76 billion of disposable personal income. By comparison, savings rose by $62 billion, or five times as much....This experience confirms earlier studies showing that one-time tax rebates are not a cost-effective way to increase economic activity."

The whole "stimulus" plan backfired. Americans did the responsible thing and used the money to pay off debts or stash it in savings instead of than wasting it Walmart or Target on more useless knick-knacks. It just goes to show that average working people can change their spending habits and making prudent choices when they see that times are tough. The culture of consumerism is the result of Madison Ave. saturation-campaigns and propaganda; there's nothing inherently wrong with the American people. Workers are constantly being blamed for "living beyond their means", but the real problem originates from flawed monetary policy and destructive commercialism. It's the prevailing "sicko" corporate culture that has created a nation of spendthrifts and speculators. Ordinary people are not at fault.

Fiscal stimulus can work if it is used properly, like if it was applied to the payroll tax. That would be the same as giving every working man and woman in America a sizable raise in pay that could used to give the economy a boost. (Couples making under $70,000 per year spend 100% of their earnings. They represent 50% of total GDP) The problem, however, is that that would violate a central tenet of neoliberalism which dictates that the payroll tax be used in the General Fund as a de facto flat tax levied against the poor and middle class to ensure that the ruling elite don't not have to pay their fair share for the maintenance of the empire. Bush and his ilk would rather run the economy off a cliff than compromise on their core values. The real reason we are faced with the current economic downturn is because wages have not kept pace with production which means that workers have had to increase their borrowing to maintain their same standard of living and keep the economy growing. If wages are flat the economy can't grow; it's as simple as that. That's why banking elites have lowered standards for lending; it's just a way to generate profits and create growth without giving workers the raise they deserve. It has the added benefit of pushing people into a life of debt-peonage. Americans are deeper in debt than anytime in history and are struggling just to make the interest payments on their loans. As a result, more and more homeowners are walking away from their mortgages and leaving the banks with huge, unanticipated debts. The architects of America's debt-slavery system are turning out to be its biggest victims.

Currently, billions of dollars are disappearing in the secondary market where bets were placed on mortgage-backed securities that are now virtually worthless. As market volatility increases, frazzled investors are moving into cash. Credit is being wrung from the system while the money supply continues to contract.

Mike Shedlock of Mish's Global Economic Trend Analysis gives this technical analysis:

"The recent plunge in M3 (ed.--M3 is the broadest measure of money used by economists to estimate the entire supply of money) makes it likely that credit lines have been fully tapped and/or banks have simply turned off the spigot. Liquidity shrinks by the day. Banks scrambling to refinance long-term debt are going to have a very tough go of it. Weekly unemployment claims are soaring. Consumers out of a job are going to have a tough time paying bills. Those looking for a bottom in these conditions are simply barking up the wrong tree."

The prospects of a deep and protracted downturn are now greater than ever. Financial institutions are either pulling back and preparing for the storm ahead or taking advantage of existing credit lines while they last. The herky-jerky market action suggests that a growing number of CEOs and CFOs can see that the walls are closing in on them. The crash-alert flag is about half-way up the pole.

Author Ellen Hodgson Brown's new book "The Web of Debt", points out some of the parallels some between our present predicament and events leading up to the Great Depression:

"The problem began in the Roaring Twenties when the Fed made money plentiful by keeping interest rates low. Money seemed to be plentiful, but what was actually flowing freely was 'credit' or 'debt'. Production was up more than wages, so more goods were available than money to pay for them; but people could borrow. ...Money was so easy to get that people were borrowing just to invest, taking out short-term, low interest loans that were readily available from the banks".

Sound familiar?

[pheyton]

Continued:

Brown continues: "The Fed began selling securities in the open market, reducing the money supply by reducing the reserves available for backing loans..The result was a huge liquidity squeeze---a lack of available money. Short-term loans suddenly became available only at much higher interest rates, making buying stock on margin much less attractive. As fewer people bought, stock prices fell, removing the incentive for new buyers to purchase stocks bought by earlier buyers on margin...The stock market crashed overnight."

The money supply contracted dramatically during the first few years of the Great Depression. Free-market guru, Milton Friedman, went so far as to blame the Central Bank for the disaster. He said, "The Federal Reserve definitely caused the Great Depression by contracting the amount of currency in circulation by one-third from 1929 to 1933."

As a result, interest rates rose and credit became scarcer. To some extent, these things are taking place already. Long-term interest rates and LIBOR have been rising and are headed higher. These are much more accurate gages of the "real" price of credit than the Fed's artificial Fed Funds Rate (2 per cent) which is just a give-away to the banks.

Brown does a good job of connecting the dots and showing how the Federal Reserve engineered the Depression with their failed monetary policies and serial bubble making. In another chapter, she quotes Louis T. McFadden, Chairman of the House Banking and Currency Committee, who is explicit in his condemnation of the Fed:

(The Depression) was not accidental. It was a carefully contrived occurrence. ...The international bankers sought to bring about a condition of despair here so that they might emerge as rulers of us all". (Ellen Hodgson Brown; "The Web of Debt", page 146)

Whether the present economic crisis was deliberate or not is irrelevant. The ultimate responsibility for our economic woes lies with the Fed; that's who created the speculative bubble that is now wreaking havoc on the broader economy. Millions of people will lose their homes, trillions of dollars of equity will be wiped out, and hundreds of banks will fail. Eventually, there will be more consolidation among the banks and greater concentration of wealth among fewer people. An self-regulated system run by unelected businessmen naturally gravitates towards monopoly and, yes, tyranny.

Charles Lindbergh summed up the role of the Federal Reserve like this:

"The financial system has been turned over to ...a purely profiteering group. The system is private, conducted for the sole purpose of obtaining the greatest possible profits from the use of other people's money." (Ellen Hodgson Brown; "The Web of Debt")

The impending global recession has nothing to do with crafty mortgage lenders, opportunistic loan applicants, dodgy rating agencies, or crooked home appraisers. That's like blaming Lindy England for Abu Ghraib. The source of the troubles is the Federal Reserve and monetary policies that are designed to rob people of their life savings.

Abolish the Fed.

[Buraku]

Gold looks ok, but I'd wait because word out there is certain governments are still big into currency manipulation, dumping the market and trying to lower the price of gold if it hits 700 IMO that's a bottom the gov manipulation can't lower it more and next it will skyrocket so at 700 I think its time to buy, buy, buy. Silver looks tempting very tempting but I think Food commodities are going to be the next big winners, look at how the cost of rice, wheat has risen etc and then Sugar. This is big used in every food and a possible Future Fuel alternative to middle east oil. Don't take my word to buy decide yourself what is right but I've heard some governments might consider a strategic reserve of sugar, for me sugar will become more precious not just for food but in the Gas Tank
Just make sure the price is right when you buy

http://www.forbes.com/topstories/feeds/reuters/2008/08/27/2008-08-27T064749Z_01_T3284_RTRIDST_0_MARKETS-JAPAN-STOCKS-UPDATE-6.html

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Reuters
Nikkei falls 0.2 pct, exporters and property weigh
08.27.08, 2:47 AM ET

Japan - *Nikkei dips 0.2 pct, exporters lead fall on economic outlook

*Drugmakers and energy stocks gain

*Failure of Sohken Homes hurts other property stocks (Adds stocks and comments)

By Taiga Uranaka

TOKYO, Aug 27 (Reuters) - The Nikkei average dipped 0.2 percent on Wednesday, led lower by exporters like Honda Motor Co Ltd (nyse: HMC - news - people ) amid concerns about the global economic outlook while property shares dropped after the collapse of another builder.

The market's fall was cushioned by gains in drugmakers like Eisai Co Ltd which attracted investors looking for stocks considered less vulnerable to an economic downturn.

Energy shares such as oil and gas explorer Inpex Holdings Inc also climbed on a rise in oil prices.

Throughout the day, market moves were stuck within a narrow range as investors lacked cues.

"It's hard to find a direction. In the absence of market moving factors and given the thin trade, the market has been pulled down by gravity," said Kenichi Hirano, operating officer at Tachibana Securities.

Trade continued to be very light, hitting a new year low with 1.3 billion shares changing hands on the Tokyo stock exchange's first section, compared with last week's daily average of 1.59 billion.

"Investors have ample reasons to sit still, including the credit crisis and rising tensions over Georgia," said Masatoshi Sato, senior strategist at Mizuho Investors Securities, referring to Russia's conflict with ex-Soviet country, which has angered the United States and its western allies.

"I think the decline in trade volume is also partly attributable to the global credit tightening. Market players are not able to take advantage of leveraging and move money around as freely as they used to," he said.

Honda ended down 2.2 percent at 3,530 yen and Toyota Motor Corp (nyse: TM - news - people ) shed 2.7 percent to 4,770 yen, both among the biggest drags on the Nikkei.

[Buraku]

[SIZE="5"]The US Economy is going Wonderful![/SIZE]

http://news.yahoo.com/s/ap/20080828/ap_on_bi_go_ec_fi/economy

The economy shifted to a higher gear in the spring, growing at its fastest pace in nearly a year as foreign buyers snapped up U.S. exports and tax rebates spurred shoppers at home.

The Commerce Department reported Thursday that gross domestic product, or GDP, increased at a 3.3 percent annual rate in the April-June quarter. The revised reading was much better than the government's initial estimate of a 1.9 percent pace and exceeded economists' expectations for a 2.7 percent growth rate.





PS
[SIZE="1"]Can anyone smell the bullshit?[/SIZE]

[Uhhuh35]

I realize this isn't good news for the Democrats who are running the "shit US economy" as their number one issue now that we've won the Iraq war.
But there is still some gloom and doom in the article for you "sky is falling" types:

"Still, the growth pickup is not likely to be seen as a lasting sign that the fragile economy is back on solid ground. Federal Reserve Chairman Ben Bernanke recently warned the economy will be weak through the rest of this year. A growing number of analysts fear that the country will hit another economic pothole in the fourth quarter, as the bracing impact of the tax rebates disappears. And there are concerns exports could tail off as other countries' economies slow down".

[Buraku]

Thanks for the partisan attacks Uhhuh35, I've never seen you as a dude schooled in economics
maybe schooled in McCain values and schooled in guns and shit but not economics
but seriously the economy should be EVERYONE'S number one issue now. Bush and his junkie multi billion economic stimulus injections are actually robbing BOTH CANDIDATES of their next budget. If Republican nominee McCain wins he's going to find his Y2009-Y2010 budgets are really fucked up because the Bush admin has got so desperate it decided to suck money out of the future economy. McCain or Obama will find empty checkbooks as the previous admin were already siphoning the dollars away.

This sudden spurt of growth are the basically those economic steroid stimulus injections kicking in and Yipppeee
but once morning comes we're going to be left with one hell of a hangover

Japan so closely linked to the US economy is going to suffer, I'm not sure where Jack's Dollar Yen bet will be but I think rates might stay near today's values

Whoever wins the election is going to inherit an economic nightmare and this new US President is going to take a lot of blame for something they never created.
I expect Bush and his boys will be living it up on some tropical island

[pheyton]

I realize this isn't good news for the Democrats who are running the "shit US economy" as their number one issue now that we've won the Iraq war.
But there is still some gloom and doom in the article for you "sky is falling" types:

Oh boy, where to begin with this....

How many times are you guys going to "Win" the Iraq war? Have you won the Afghan one too? Especially since Al Queda was in Afghanistan and not Iraq.

Your "Surge" was a 2 pronged load of shit too. First, it was Ethnic Cleansing 101, kill or get rid of all the others and there is no one left to fight or kill so violence drops. Second, the US was paying the Iraqi militias to chill the fuck out. The only problem is that money is now running out which is why Commander Bunnypants has decided to set a "Surrender Timeline" to bring the troops home. Mission Accomplished

At least 80,000 men across Iraq are now employed by the Americans as ISVs. Nearly all are Sunnis, with the exception of a few thousand Shiites. Operating as a contractor, Osama runs 300 of these new militiamen, former resistance fighters whom the U.S. now counts as allies because they are cashing our checks. The Americans pay Osama once a month]
http://www.rollingstone.com/politics/story/18722376/the_myth_of_the_surge

Oh, and I know John McSame has problems understanding who Sunni and Shiites are, but did ya know that the government of Iraq is, gasp, Shiite! Yup, the Iranian kind! Mission Accomplished.

Oops, China just got rights to Iraq's biggest oil field. Mission Accomplished:
http://tinyurl.com/5bskvf

Try and fudge the numbers as you will, but everyone knows the economy is in the shitter and it isn't going to be getting better for a long time. Just ask Mr. Buffet:

Billionaire investor Warren Buffett said the US economy was still "in recession" and would continue to be for at least several more months.

http://ukpress.google.com/article/ALeqM5iIlMob0t8hX0eX5wfQmEdLcmx7aA

[Uhhuh35]

"Why The Surge Worked":
http://www.washingtonpost.com/wp-dyn/content/article/2008/08/08/AR2008080802918_pf.html
Of course the surge worked. That's why Obama purged his site of any criticism of it:
http://www.nydailynews.com/news/politics/2008/07/14/2008-07-14_barack_obama_purges_web_site_critique_of.html
He also purged his site of the cuts to NASA that he wanted to pay for his spending increases. Seems that wasn't very popular.
Ethnic cleansing huh? Have any proof that doesn't come from The Daily Kos? Of course you don't.
So Warren Buffet thinks the US is in a recession huh? From your link:

Mr Buffett said by his reckoning the economy was in a recession because most Americans were not doing as well today as before.The technical definition of a recession most economists use is two consecutive quarters of negative growth in the nation's gross domestic product.

http://economictimes.indiatimes.com/International_Business/US_growth_at_33__in_Q2_of_2008/articleshow/3418467.cms

The US economy grew at 3.3 per cent in the second quarter of 2008, the government said on Thursday in revised figures that showed strong international trade had helped stave off a feared recession.

Rolling Stoned magazine? Why don't you quote "The Onion" too while yer' at it too?

[pheyton]

"The writer served as Gen. David Petraeus's executive officer in Iraq from February 2007 to May 2008. He holds the Gen. Raymond Mason Chair of Military History at Ohio State University and is the author of the forthcoming book "Baghdad at Sunrise: A Brigade Commander's War in Iraq.""

Lol once again you quote The Government's figures which everyone knows are complete bullshit and Petraeus's executive officer in Iraq? Again, just as in my Climate change thread you refuse to address the facts, we paid off the sunnis to stop fighting, now that money is running out so it's time to get the fuck out. Or perhaps you would like to sell one of your houses and invest it in Iraqi freedom? Either way you are going to be paying for it sooner or later.

Ethnic cleansing:
http://www.todayszaman.com/tz-web/detaylar.do?load=detay&link=151394&bolum=109

Yes, I quoted a reporter, on the ground it Iraq, reporting who happened to either be freelance or employed by Rolling Stone.

Regardless of who I quote you will brush it off because Rush tells you to.

[Uhhuh35]

[pheyton]

[nottu]

[pheyton]

and Bin Laden and the Saudis attacked us - why?

Because they hate our freedom of course.

But seriously, because the Saudi Royals let the Americans sully the Sunni holy land by putting up the Bin Sultan Air Base. As well as a laundry list or Palestine/Israel gripes. At least that is what Osama has said. So we took out Iraq, closed up Bin Sultan and wallah, Osama and the Saudis have gotten some of what they wanted. The only player left is Iran, a direct threat to Saudi and Israeli authority and the flow of oil in the region.

See, if we would have stuck with Jimmy Carter's original plan to kick our oil dependency it's possible none of this shit would be happening. Damn liberals and their plans for a better world!

[canman]

But didn't I hear last week that the price of gas was supposed to drop 5 yen starting September 1st? Well according to my calendar that is the date, so what gives? The pricks are so fast to up the price whenever they can, but will they lower it, no way. I took the family to our favorite Chinese place last night for dinner, and on the menu there was a small sign saying please add 50 yen to each dish due to the increase in costs. I don't have a problem with that as the guy is trying to do business and I know that costs have increased. But it got my wife and I talking about with the fall in oil and gas, will we see costs decrease. My opinion, not on your life. Companies will never decrease prices. I think this was a godsend for many of them, an easy way to raise prices and there wasn't much the customer could do about it. Once people get used to the prices there is no hurry to bring them back down. Also on another note, I can't believe I said "good price" when my student told me he got a roundtrip ticket to Ottawa for only Y130 000.

[GuyJean]

.. The pricks are so fast to up the price whenever they can, but will they lower it, no way...

Do Gas Prices Rise Faster Than They Fall?
http://www.slate.com/id/2196273/

.. Why does it seem like gas prices go up faster than they come down?

Because they do. Analyses of gasoline economics show that when the price of oil rises, it takes up to four weeks for gas station prices to catch up, with most of the increase taking place within the first two weeks. But when oil prices sink, it takes up to eight weeks for the savings to be passed along to consumers. The phenomenon is known as "asymmetric price adjustment" (PDF) or, more informally, "rockets and feathers."..

This was in the US, but I was reading something about inflation the other day]was around 5%[/URL], but 'producer' inflation had risen 10%.. That we should be happy producers aren't passing along everything.. thus far.

GJ

[canman]

Damn you GJ, you always have a response to my rants. And they always shoot down my theories as well.

[GuyJean]

Damn you GJ, you always have a response to my rants. And they always shoot down my theories as well.

:lol: .. Hey! They're great questions! And rants..

I don't think I shot down anything]FUCK[/I] you at the gas station!

GJ

[canman]

I'm just pissed that the Bengals cut Rudi Johnston one day after I drafted him. And I am getting into my smack talk for FF, that's all.

[Buraku]

it was Ethnic Cleansing 101

Fucking sad state of affairs and I agree with this statement, his Daddy ie President Bush senior played it much better
before the Bush/Cheney inspired invasion of Iraq there was a society of Mandeans - thousands of them. They follow the teachings of John the Baptist and through history suffered a life of servitude under the various Islamic Empires but their population and culture stayed alive. Now only a few hundred left they have been more or less exterminated, those who survived are running to Iran, Europe, Russia and the US to escape their life of extermination in a chaotic terrorist sandbox. As much as an asshole as Saddam was he kept the fucking state together and prevented the society from falling in to absolute terrorist inspired anarchy.
Asskisinger's solution might have played much better
http://www.fuckedgaijin.com/forums/showthread.php?t=6884
keeping the emperor on the throne like MacArthur did

In fairness to Jack (did I really just say that!?) the year is far from over.

With the FM twins problems about to explode I think the dollar is in for a wild ride in the coming weeks. I sure as hell hope it doesn't hit 90 but things are not going to be pretty.

no concrete ideas about the dollar yen rates these next weeks but bloomberg offers some interesting insight



Japan's Stocks Fall on Spending, Wage Concern]http://www.bloomberg.com/apps/news?pid=20601101&sid=ac3GC4GgYGEQ&refer=japan[/url]
Japan's stocks fell the most in two weeks on concern demand for cars and electronics will fall as spending slows and wages stagnate.

Honda Motor Co., Japan's second-largest carmaker, dropped the most in a month after U.S. consumer spending declined and domestic auto sales fell. Sharp Corp., Japan's biggest maker of liquid crystal display TVs, sank 3.1 percent after the nation's wages grew at the slowest pace all year. Nippon Oil Corp., Japan's largest refiner, tumbled 3.8 percent as crude prices advanced, raising its production costs.

``We can't expect consumer spending to improve soon,'' said Yoshinori Nagano, a senior strategist in Tokyo at Daiwa Asset Management Co., which manages about $94 billion. ``It will be difficult for companies with high dependence on exports, such as automakers, to regain revenue.''

The Nikkei 225 Stock Average dropped 238.69, or 1.8 percent, to close at 12,834.18 in Tokyo. The broader Topix index declined 24.07, or 1.9 percent, to 1,230.64. Both gauges retreated the most since Aug. 19, and almost eight shares fell for every one that rose on the Topix.

Purchases in the U.S. rose 0.2 percent, one-third the pace in June, the Commerce Department said on Aug. 29, while prices surged the most in 17 years. Japan's wages grew in July at the slowest pace all year, the Labor Ministry said today.

The Nikkei has fallen 16 percent this year as the fastest inflation in a decade dented Japanese households' purchasing power and the U.S. mortgage crisis triggered a global economic slowdown. Exports to the U.S. fell in July for the 11th-straight month, allowing China to pull ahead as Japan's biggest overseas customer, the Ministry of Finance said on Aug. 21.

[Buraku]

Reuters
Gold steady above $830, sheds oil-led gains
09.01.08, 12:42 AM ET
http://www.forbes.com/reuters/feeds/reuters/2008/09/01/2008-09-01T044216Z_01_SP14581_RTRIDST_0_MARKETS-PRECIOUS-UPDATE-2.html
Australia - * Gold slips from intraday highs

* Eyes on oil, Hurricane Gustav

* Volumes likely to remain low because of U.S. holiday (Updates prices, adds quotes)

By Lewa Pardomuan

SINGAPORE, Sept 1 (Reuters) - Gold gave up early gains by midday on Monday, after rising almost $5 on the back of higher oil prices ahead of Hurricane Gustav, but volumes will likely remain low because of a U.S. holiday.

Purchases from jewellers in Indonesia spurred trading in the physical sector ahead of the Muslim Eid al Fitr holidays in October, while a political crisis in Thailand had yet to attract safe-haven buying. Thailand is Asia's fourth-largest gold investor.

Gold hit an intraday high of $835.25 an ounce before slipping to $830.75/831.75 an ounce, little changed from $830.35/832.35 an ounce late in New York on Friday.

U.S. markets were closed on Monday for Labor Day holiday and investors waited for the release of U.S. economic indicators, including Friday's non-farm payrolls.

[nottu]

[American Oyaji]

I'm just pissed that the Bengals cut Rudi Johnston one day after I drafted him. And I am getting into my smack talk for FF, that's all.

I was wondering why you dropped him.

[Buraku]

Nikkei jumps 3.4 pct, banks soar on U.S. bailout
http://www.guardian.co.uk/business/feedarticle/7782041

* Reuters
Monday September 8 2008
*Nikkei posts biggest gain in five months, up 3.4 percent
*Financials soar after the U.S. bailout of Fannie, Freddie
*Japan biggest banks make double-digit gains (Adds stocks and comments)
By Taiga Uranaka
TOKYO, Sept 8 (Reuters) - The Nikkei average jumped 3.4 percent on Monday, posting its biggest gain in five months, with financial shares soaring on the U.S. government's bailout of mortgage finance companies Fannie Mae and Freddie Mac.
Top lenders such as Mitsubishi UFJ Financial Group and No.2 Mizuho Financial Group made double-digit gains and a dozen other financial shares topped the list of gainers on the Nikkei.
Sharp gains were seen across a broad range of shares, including exporters like Toyota Motor Corp helping the Nikkei erase steep losses made on Friday.

....

Why U.S. moved on mortgage giants
http://www.iht.com/articles/2008/09/07/business/fannie.php
Freddie Mac's books jolted inspectors

The U.S. government's planned takeover of Fannie Mae and Freddie Mac came together hurriedly after advisers poring over the companies' books for the Treasury Department concluded that Freddie's accounting methods had overstated its capital cushion, according to regulatory officials briefed on the matter.

The proposal to place both mortgage giants, which own or back $5.3 trillion in mortgages, into a government-run conservatorship also grew out of deep concern among foreign investors that the companies' debt might not be repaid.

Falling home prices, which are expected to lead to more defaults among the mortgages held or guaranteed by Fannie and Freddie, contributed to the urgency, regulators said.

The details of the deal have not fully emerged, but it appears that investors who own the companies' common stock will be virtually wiped out; preferred shareholders, who have priority over other shareholders, may also end up with little. Holders of debt, including many foreign central banks, are expected to receive government backing. Top executives of both companies will be pushed out, according to those briefed on the plan.

While it is not yet possible to calculate the cost of the government's intervention, it could rise into tens of billions of dollars and will probably be among the most expensive rescues ever financed by taxpayers. The takeover comes on the heels of a rescue of the New York investment bank Bear Stearns, which was sold to JPMorgan Chase in a deal backed by taxpayer dollars. The U.S. housing crisis already has cost investors and consumers hundreds of billions of dollars.
....

[nottu]

[pheyton]

The US will never, NEVER, let the banks go down. Remember that - don't ever bet against it - even you liberal idiots - unless you enjoy suffering.

Not sure why you had to toss in "liberal idiots" comment but since you did I'll raise you. This whole debacle was orchestrated by Republicans. Phil Gramm of McCain's Campaign was the author of the repeal of Glass-Stegal which ushered this crisis in. Greenspan created the bubble to keep the economy going for Bush. Once again, another Bush, another billion dollar bail out by the taxpayers. Privatize the profits, socialize the costs. It's the Republican, not the conservative, way.

[nottu]