Farming is suddenly highly profitable. The farm machine sellers have cleared their huge inventories of 2008-2009 with big sales and have now raised their prices substantially. Companies like Caterpillar, Joy Global, John Deere, Cummins and AGCO are benefiting hugely by the higher demand and the new higher prices.
Do not underestimate what’s happening down on the farm. It’s one of our economy’s brightest spots.
Send an SMS text message. Everyone is sending SMS messages to and from cell phones. You can also send them from a free service called textem.
The amazing drop in computer monitor prices. I remember when these things were over $600 a piece. Look at the prices now. From Best Buy’s web site, I present:
I run three 22 inch screens with my laptop. The key is to figure what’s the maximum resolution your laptop will support for an external monitor/s. Note that these two have different resolutions. You cannot run a flat panel LCD monitor successfully at anything other than its native resolution — i.e. the one listed above.
The borrowing and entitlement binge. The American public and our governments borrowed too much. Politicians paid off the unions — endorse us, the politicians said, and we’ll give you health and retirement benefits like there is no tomorrow.
The Wall Street Journal writes:
The showdown in Wisconsin over fringe benefits for public employees boils down to one number: 74.2. That’s how many cents the public pays Milwaukee public-school teachers and other employees for retirement and health benefits for every dollar they receive in salary. The corresponding rate for employees of private firms is 24.3 cents.
The average Milwaukee public-school teacher salary is $56,500, but with benefits the total package is $100,005, according to the manager of financial planning for Milwaukee public schools.
Mary Meeker looks at the US as if it were a business. She has written a 450-page report called About USA Inc. She explains her goal:
This report looks at the federal government as if it were a business, with the goal of informing the debate about our nation’s financial situation and outlook. In it, we examine USA Inc.’s income statement and balance sheet. We aim to interpret the underlying data and facts and illustrate patterns and trends in easy-to-understand ways. We analyze the drivers of federal revenue and the history of expense growth, and we examine basic scenarios for how America might move toward positive cash flow.
This is her conclusion. It’s on page 448:
This is what she writes about reforming entitlement programs:
Reforming entitlement programs – Social Security.
The underfunding could be addressed through some or all of the following mechanical changes: increasing the full retirement age to as high as 73 (from the current level of 67); and/or reducing average annual social security benefits by up to 12% (from $13,010 to $11,489); and/or increasing the social security tax rate from 12.4% to 14.2%. Options proposed by the CBO include similar measures, as well as adjustments to initial benefits and index levels. Of course, the low personal savings rates of average Americans – 3% of disposable income, compared with a 10% average from 1965 to 1985 – limit flexibility, at least in the early years of any reform.
Reforming entitlement programs – Medicare and Medicaid.
Mathematical illustrations for these programs, the most underfunded, seem draconian: Reducing average Medicare benefits by 53%, to $5,588 per year, or increasing the Medicare tax rate by 3.9 percentage points, to 6.8%, or some combination of these changes would address the underfunding of Medicare. As for Medicaid, the lack of a dedicated funding stream (i.e., a tax similar to the Medicare payroll tax) makes the math even more difficult. But by one measure from the Kaiser Family Foundation, 60% of the Medicaid budget in 2001 was spent on so-called optional recipients (such as mid- to low-income population above poverty level) or on optional services (such as dental services and prescription drug benefits). Reducing or controlling these benefits could help control Medicaid spending – but increase the burden on some poor and disabled groups. Ultimately, the primary issue facing the US healthcare system is ever-rising costs, historically driven by increases in price and utilization. Beneath sustained medical cost inflation is an
entitlement mentality bolted onto a volume-based reimbursement scheme. All else being equal, the outcome is an incentive to spend: Underlying societal, financial, and liability factors combine to fuel an inefficient, expensive healthcare system
You can download your very own Mary Meeker report for free from here. But now you’ve read the conclusion, you probably won’t want to.
Should I buy gold? The answer is clearly yes. Gold has been a good investment in the past 10-15 years. The World Gold Council (an admittedly biased group) has just published the latest issue of Gold Demand Trends full year 2010.
Global gold demand in 2010 reached a 10 year high in tonnage and an all time high in value, with strong demand across all sectors. Gold demand for the year reached a ten year high with annual demand of 3,812.2 tonnes worth approximately US$150 billion.
Key factors
The jewellery sector enjoyed a strong recovery in 2010, with annual demand 17% higher than in 2009. Asian consumers drove jewellery demand, particularly in China and India. Chinese demand is expected to continue to increase rapidly during 2011 as economic growth in China remains strong, while Indian gold jewellery demand is likely to remain resilient and grow.
Asian consumers led demand with the revival of the Indian market and strong momentum in Chinese gold demand, which together constituted 51% of total jewellery and investment demand during the year.
A structural shift in central bank policy towards gold meant that in 2010 central banks became net buyers of gold for the first time in 21 years, removing a significant source of supply to the market.
Investment demand was down 2% compared with 2009, but was the second highest year on record at 1,333 tonnes, which equated to US$52 billion. Investment demand for gold as a foundation asset in portfolios is likely to remain strong, fuelled by ongoing uncertainty surrounding global economic recovery and fiscal imbalances, as well as fear of impending inflationary pressures and currency tensions.
Gold demand statistics for full year 2010
Gold demand in 2010 reached a 10 year high of 3,812.2 tonnes. Demand was up 9% year-on-year, and marginally above the previous peak of 2008 despite a 40% increase in the annual average price level between 2008 and 2010. In value terms, total annual gold demand surged 38% to a record of US$150 billion.
Jewellery demand was remarkably robust in the face of record prices in the majority of currencies. Annual demand for gold jewellery rose 17% from 1760.3 tonnes in 2009 to 2059.6 tonnes. The rise in annual average prices over the same period was 26%. In value terms, this resulted in record annual jewellery demand of US$81 billion.
Investment demand, comprising bar and coin demand, ETFs and similar products, but excluding OTC investment demand, remained stable in 2010, down just 2% from the exceptional levels seen in 2009. This equated to a 23% rise in value terms from US$43 billion in 2009 to US$52 billion in 2010. Physical bar demand was particularly strong during the year, recording an annual gain of 56% at 713.2 tonnes.
Demand for gold ETFs and similar products totalled 338.0 tonnes during 2010 or 9% of total demand. Although this was 45% below the 2009 peak of 617.1 tonnes, it was nevertheless the second highest annual figure on record. As at the end of 2010, total gold holdings in ETFs and similar products stood at 2,175 tonnes with a US$ value of $96 billion.
Demand for gold used in technology was 419.6 tonnes, 12.4% higher than in 2009 as the electronics segment fuelled recovery in the sector, with demand returning to long-term trend levels. Demand soared by 41% year-on-year in US$ terms to a record US$17 billion.
India was the strongest growth market in 2010. Total annual consumer demand of 963.1 tonnes registered growth of 66% relative to 2009, which was largely driven by the jewellery sector. In value terms this was worth US$38 billion.
China was the strongest market for investment demand growth. Annual demand for small bars and coins increased by 70% year-on-year, totalling 179.9 tonnes, which is worth approximately US$7 billion.
Total supply is estimated to have increased marginally, 2% higher year-on-year for the full year 2010, with a number of new projects across a range of countries and regions contributing to higher levels of mine supply. Within total supply, recycled gold, which accounts for 40%, fell 1% compared with the previous year to 1,653 tonnes.
Should children witness childbirth? Good question.
Here’s your answer.
Due to a power outage, only one paramedic responded to the call. The house was very dark so the paramedic asked Kathleen, a 3-yr old girl to hold a flashlight high over her mommy so he could see while he helped deliver the baby… Very diligently, Kathleen did as she was asked. Heidi pushed And pushed and after a little while, Connor was born.
The paramedic lifted him by his little feet and spanked him on his bottom. Connor began to cry. The paramedic then thanked Kathleen for her help and asked the wide-eyed 3-yr old what she thought about what she had just witnessed.. Kathleen quickly responded, ‘He shouldn’t have crawled in there in the first place…..smack his butt again!’
Harry Newton who is bullish on us solving our entitlements and over-borrowing problems. But the path will not be easy, nor painless.
The Mary Meeker numbers on percent of revenue spent on SS, Medicare, & Medicaid are BS. In 2009 US Federal revenue was $2.7 Trillion (T), Budget (from Bush) was $3.1 T. SS + Medicare + Medicaid = $1.296 T in 2009. Divide $1.296 T by either $ 2.7 T or $3.1 T and you get 48% or 41%, respectively.
per education level including benefits Wisconsin teachers make less money than the private sector.
http://www.politifact.com/trut…/
conclusion:
But the comparison of compensation for Wisconsin teachers to the compensation for all private sector employees is misleading. On average, Wisconsin teachers are far more highly educated than the average worker. People with higher levels of education tend to make more.
I question the math that results in the teacher salary “resulting” in $100k… but even if it's true- so what? $100k
for a teacher, the person we entrust to educate our child and solidify the knowledge basis of our society- that's too much? I say let's raise our educational level to that of Western Europe, Japan, Korea, where people can't be easily duped because the masses are not ignorant like ours, not subject to simplistic political manipulation like us… 100k, even 200k is not too much for one of the most critical and influential positions in our culture and as an investment for our future. $100k is a middle class salary. The alternative: offer salaries that will ensure the downward spiral of education because good people will shun the profession.
I am now trying to educate myself more on economics because something smells very funky with the things we're being told. I don't know Meeker, but Harry, you are a big admirer of innovative thinkers, like Steve Jobs;
she sounds like someone who wants to put band-aids on a work horse that is old, tired, and on its last legs: the model is broken, I suspect and not so much in need of “repair” as replacement with a new and appropriate model that is not tied to unworkable assumptions.
As I said, looking at economics is new to me but here one thought I have: despite it's difficulties, is not the US STILL a very very wealthy and productive nation, a nation that can have a bright future despite challenges?
And if it is wealthy, why swallow the propaganda corralling us in the direction of a race to the bottom, telling us there is not enough to go around, and that most of us must settle for “reasonable and necessary” cuts to our standard of living, for our own good. I notice that the economies of Germany, Scandinavia, and Northern Europe- the ones that are preserving benefits and salaries are the ones doing the best even in this climate…
I for one am not swallowing the Mary Meeker type of standard thinking without questioning it… time to teach our children and adults that the way you think is instrumental in shaping reality.
Mary Meeker appears to be a shill for the Military. She doesn't think our military is sucking the life out of our country? She wants to attack foreign countries while cutting back on social security for the elderly?
So sorry Harry but Mary Meeker is nothing but a craven greedy cheerleader for whatever felonious scheme her Wall St employers assign to her. I knew her when show drove the car over the cliff in the 90’s and incredibly, she seems to have lost brain cells since then. The US govt is not a business. Not that she knows anything about running a business. Did itever occur to her that her that the way most businesses succeed is by growing the top-line first. Her analysis is simplistic, even childish. She misses every important point. She lacks all understanding of causation. She tows the line she’s been spoon-fed by her country-club cronies. She has only one goal: rob from the poor to pay herself and her corporate overseers. What's Mary Meeker's effective tax rate, I wonder, 6%?
Joe (the Electrician)
Hi Harry,
With respect to external monitors, I love the concept. Is there any easy way to tell “the maximum resolution my laptop will support” ?? I would hate to buy a gorgeous 22+ inch monitor and have it look bad.
Thanks for the help!
Running Windows? Go to Control Panel, Display, then Settings. Check the max resolution on a monitor. If you're only running one external monitor buy the one with the greatest solution. It will work.