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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (531633)	1/28/2004 6:31:14 PM
From: Ish	Read Replies (2) \| Respond to of 769670

<<The reason is that with offshore everything, >> You see where there is a bill to stop offshoring?

To: Lizzie Tudor who wrote (531633)	2/8/2004 12:16:23 PM
From: Rarebird	Respond to of 769670

<OK so today you saw the durable goods numbers. Notice this is 2 down durables in a row. The reason is that with offshore everything, there is no market for durables here.> Durable goods and capital expenditures are the siamese twins of any REAL economy. When both falter, one knows that the economy is under grave stress because the one feeds the other. As one declines, the other must until a mutual balance is reached where salaries and company earnings again allow savings to accumulate, savings which can be used for new additional capital investments which, once made, will make a new flow of produced economic goods appear and pay the salaries of those who produce them. Profits and savings out of retained earnings in the corporate sector are real economic factors to reckon with. Easy credit at low interest rates is no substitute. Real profits and retained earnings are the financial base for proper depreciation of all equipment on the balance sheet. This is necessary to allow the company to replace its necessary equipment as and when required. Where no such profits or retained earnings exist, cheap loans are no substitute. New loans increase debt/equity gearing with debts up but the equipment older than before. The end consequence of this is capital CONSUMPTION.