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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: axial who wrote (108052)	2/8/2010 4:19:10 AM
From: mishedlo	4 Recommendations Read Replies (2) \| Respond to of 116555

BLS Seasonal Adjustments Gone Haywire; 11% Unemployment Coming by May? globaleconomicanalysis.blogspot.com Mish

To: axial who wrote (108052)	2/9/2010 3:32:41 PM
From: axial	4 Recommendations Read Replies (1) \| Respond to of 116555

Re:[D] Government and administration are inefficient almost everywhere; costs are excessive; compensation and perks for legislators, managers and staff needs realignment. The same applies to private industry, but that's not relevant to debt reduction. Gary Shilling: Higher Government Pay Will "Likely Lead to a Tax Revolt" According to a December report from the BLS, state and local government employers spent an average of $39.83 per hour worked ($26.24 for wages and $13.60 for benefits) for total employee compensation in September 2009. Total employer compensation costs for private industry workers averaged $27.49 per hour ($19.45 for wages and $8.05 for benefits). In other words, government employees make 45% more on average than private sector employees. According to another BLS report, compensation for private industry workers has increased by 6.9% between December 2006 and December 2009, compared to a 9.8% increase for government workers (state and local) over the same period. If that's not enough, the trend will lead to a lowering of our standard of living, even for the highest paid workers on Wall Street, Shilling tells Henry in the accompanying clip. If reforms like the Volcker Rule take hold, Shilling's "not sure Wall Street (will be) permanently bidding up the prices of Manhattan real estate and vacation homes in the Hamptons." finance.yahoo.com Jim

To: axial who wrote (108052)	2/10/2010 3:38:30 AM
From: axial	Respond to of 116555

Re: "[E] ...massive pork-barrel overspending, useless and counterproductive subsidization, etc." --- Brazil to Sanction U.S. on Goods, Intellectual Rights Brazil may break patents on U.S. goods in accordance with a World Trade Organization ruling allowing it to impose trade sanctions in retaliation for U.S. cotton subsidies, a Brazilian trade official said. “We intend to retaliate on intellectual property rights and services,” Marcio Cozendey, head of the economic department of Brazil’s foreign ministry, told reporters in Brasilia. “Breaking patents is a possibility,” he added without providing additional details. The WTO ruled in August that Brazil has the right to impose $294.7 million annually in sanctions against the U.S. because of subsidies paid to American cotton farmers, the second highest amount ever permitted by the Geneva-based trade arbiter. Brazil says that amount has since grown as U.S. payments to cotton farmers exceed a specific cap. Cozendey said Brazil can impose up to $830 million in sanctions, including $560 million on goods and the rest on intellectual property rights and services. bloomberg.com --- The chickens are coming home to roost... Jim

To: axial who wrote (108052)	2/16/2010 6:23:08 AM
From: axial	Respond to of 116555

Re: "[C] Program costs could be reduced by clawbacks. For example, retired individuals whose income exceeds $100,000/yr year should be willing to accept reduction or elimination of benefits." --- "Slow the growth of entitlement benefits: To protect lower income seniors who depend most heavily on their Social Security benefits, one option would be to slow the growth of initial benefits for higher income people. In terms of Medicare, MacGuineas said, one option is to ask higher income retirees who can afford it to contribute more to the cost of their benefits." Curbing debt: Shoulda, coulda. Now gotta. money.cnn.com --- It can be done. Default is NOT inevitable. Jim