Tag: budget deficits

Is the Administration waking up to the predicament of the U.S. debt load?

Bloomberg relays the epiphany:

“We can’t keep on just borrowing from China,” Obama said at a town-hall meeting in Rio Rancho, New Mexico, outside Albuquerque. “We have to pay interest on that debt, and that means we are mortgaging our children’s future with more and more debt.”

Holders of U.S. debt will eventually “get tired” of buying it, causing interest rates on everything from auto loans to home mortgages to increase, Obama said. “It will have a dampening effect on our economy.”

You don’t say.

Sorry folks, but China is already tired of buying Treasuries. The world economy is slowing drastically, which means the king of exports is feeling the pain too. And they’ve got plenty of their own to take care of.

I’m not sure which is scarier: the thought that China may run out excess capital at some point in the future, and be altogether unable to buy US government debt despite whatever politicking the US throws their way; or that while these bold statements about the ‘unsustainable’ government debt load are being made officials are endorsing the largest budget deficits in history.

Just another case of ‘do as I say, not as I do’? Or prima facie insanity?

Around the world in nine paragraphs flat – 03/30/09

World MapTechnology

– Jeff Bezos spent a week working in one of his own warehouses. When I first heard about it, I thought he was making a shift from strategic to operational, with an eye to cutting some costs. I was right. But I admire the man and the company enough that I can only believe those that were cut were treated right. If they weren’t, I’m assuming those cut couldn’t cut it themselves. I have a couple of friends working their, and have, on occasion, wished I could join the fun.

– Google layed off some sales folks in the past few weeks, and I imagine it’s all for the better. Their top dog of sales, Tim Armstrong, is gone. New blood replaces, and cohesion will be key to Google’s finding their next growth spurt. Will the next chapter in Google’s story be charging full steam into the enterprise? They don’t want to suffer the curse of eBay, but I hope they don’t listen to BusinessWeek either – those guys suggest they first buy Twitter and then get better at acquisitions.

– On that note, Twitter and Facebook are capturing so gosh darn much attention I’d usually be willing to bet that they’ll fizzle out in the blink of an info tech eye. But I don’t actually think that’s going to be the case.

twitsearch

I’m bullish on Twitter and Facebook – just wholeheartedly bearish on all the media who can’t find another story.

facesearch

And, I’m feeling sorry for the folks on the job hunt after they get their master’s degrees in social networking, as well as those businesses that try hitching a ride based solely on advertising. This is one godawful hype brawl, and plenty of folks are going to get knocked out.

Finance

– The S&P has been on a tear the last few weeks, but now it has the Quadruple Confirmed Evil Knievel Formation to contend with. If that technical analysis wizardry isn’t enough for you, there’s another economic bubble about to rear it’s ugly head. It’s called the budget deficit.

– In the luxury goods department, modern art prices are getting slashed and burned as collectors run to the masters. I’m not surprised – tossing a couple of cans of paint on a 20′ X 20′ canvas and calling it a million bucks was bound to fizzle on the business model front. The art world is certainly not without it’s scammers. Top shelf wine lovers are getting a bit more cautious now too – cult wine lists, space on which once sold to the highest bidder (yes, before you got your first bottle), are now looking for the last sucker too. Once the lists start including grape juice in a box, I’m in.

– This morning’s Asian markets were closing on an ugly note, with the Nikkei and Hang Seng off over 4.5%. Meanwhile, some commodities prices are on the skid as well. US markets have been on a tear as of late, but Nouriel Roubini was also saying a few weeks back to expect a bear market rally. I thought he might just be a little tired from all the media attention, and yet things are shaping up for him to be right. Again.

Fly Fishing

– There’s a recession in fly fishing – interest is down and nobody seems to have a solution yet. Still, there are a few folks keen on catching a big trout on the fly – my only suggestion is that instead of putting that goal on a list of things to do before dying, why not try making a habit of it. Easier said than done, and probably a significant part of the reason fly fishing is taking a hit – it’s less instant gratification than constant aggravation. Neverthless, I am, and shall remain, a glutton for punishment.

– Thomas McGuane wrote what is easily my favorite book on fly fishing, The Longest Silence: A Life in Fishing. And this last weekend he took aim at shotguns, dogs, and dinner. I’m all for dogs and dinner, as long as the dogs aren’t begging for mine. As for the shooting, I’m pretty sure I’ll be spending more time at the clays course this summer, and I’ll credit the story as well. As for my dog, he’s a herder. Anyone have some spare sheep?

And finally…

– Speaking of the Wall Street Journal, there’s been a lot of hype about ‘brownlining’ over the past few weeks, and with Denver’s urban South Platte on center stage. Fly fishing history is being rewritten, and there’s even a new ‘nation’ for those who’ve been busted scratching rocks with their cleats and are now banished from the clear stuff. Even wholly unprofessional (at fly fishing) jokers such as myself have been fielding inquiries as to how it’s done, as well as a few more that say “great going Gracie…now the the joint is going to be packed all summer.” I don’t know how it’s done (I’m just lucky), and as for the crowds, well the flows looked docile in that WSJ video, but said water level won’t be a crowd pleaser for much longer…

South Platte Flow

MG signing off (to get some more coffee)