{"id":6050,"date":"2011-02-25T09:12:34","date_gmt":"2011-02-25T14:12:34","guid":{"rendered":"http:\/\/www.technologyinvestor.com\/?p=6050"},"modified":"2011-02-25T10:09:43","modified_gmt":"2011-02-25T15:09:43","slug":"the-big-opportunities-are-down-on-the-farm","status":"publish","type":"post","link":"https:\/\/www.technologyinvestor.com\/?p=6050","title":{"rendered":"The big opportunities are down on the farm"},"content":{"rendered":"

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,\u00a0 John Deere, Cummins and AGCO are benefiting hugely by the higher demand and the new higher prices.<\/p>\n

Do not underestimate what’s happening down on the farm. It’s one of our economy’s brightest spots.<\/p>\n

Send an SMS text message. <\/strong>Everyone is sending SMS messages to and from cell phones. You can also send them from a free service called <\/span>textem<\/a>.<\/strong><\/span><\/p>\n

The amazing drop in computer monitor prices. <\/span><\/strong>I remember when these things were over $600 a piece. Look at the prices now. From Best Buy’s web site<\/strong><\/a>, I present:<\/span><\/span><\/p>\n

\"\"<\/a><\/strong><\/span><\/p>\n

\"\"<\/a><\/strong><\/span><\/p>\n

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.\u00a0 You cannot run a flat panel LCD monitor successfully at anything other than its native resolution — i.e. the one listed above.
\n<\/span><\/span><\/p>\n

The borrowing and entitlement binge.<\/strong><\/span> The American public and our governments borrowed too much. Politicians paid off the unions — endorse us, the politicians said,\u00a0 and we’ll give you health and retirement benefits like there is no tomorrow.<\/p>\n

The Wall Street Journal writes:<\/p>\n

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.<\/p>\n

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.<\/p>\n

Mary Meeker looks at the US as if it were a business.<\/strong><\/span> She has written a\u00a0 450-page report\u00a0 called About USA Inc.<\/strong> She explains her goal:<\/p>\n

This report looks at the federal government as if it were a business, with the goal of informing the debate about our nation\u2019s financial situation and outlook. In it, we examine USA Inc.\u2019s 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.<\/p>\n

This is her conclusion. It’s on page 448:<\/p>\n

\"\"<\/a><\/p>\n

This is what she writes about reforming entitlement programs:<\/p>\n

Reforming entitlement programs \u2013 Social Security.<\/strong>
\nThe underfunding could be addressed through some or all of the following mechanical changes:\u00a0 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 \u2013 3% of disposable income, compared with a 10% average from 1965 to 1985 \u2013 limit flexibility, at least in the early years of any reform.<\/p>\n

Reforming entitlement programs \u2013 Medicare and Medicaid.
\n<\/strong>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 \u2013 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
\nentitlement 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<\/p>\n

You can download your very own Mary Meeker report for free from here.<\/strong><\/a> But now you’ve read the conclusion, you probably won’t want to.<\/p>\n

Should I buy gold?<\/strong> The answer is clearly yes. Gold has been a good investment in the past 10-15 years. <\/span><\/span>The World Gold Council (an admittedly biased group) has just published the latest issue of Gold Demand Trends full year 2010.<\/p>\n

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.<\/p>\n

Key factors<\/p>\n

\u0007 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.<\/p>\n

\u0007 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.<\/p>\n

\u0007 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.<\/p>\n

\u0007 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.<\/p>\n

Gold demand statistics for full year 2010<\/p>\n

\u0007 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.<\/p>\n

\u0007 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.<\/p>\n

\u0007 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.<\/p>\n

\u0007 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.<\/p>\n

\u0007 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.<\/p>\n

\u0007 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.<\/p>\n

\u0007 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.<\/p>\n

\u0007 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.<\/p>\n

Should children witness childbirth?<\/strong><\/span> Good question.<\/p>\n

Here’s your answer.<\/p>\n

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.<\/p>\n

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!’<\/p>\n

\"\"<\/a>
\n<\/strong><\/div>\n

Harry Newton who is bullish on us solving our entitlements and over-borrowing problems. But the path will not be easy, nor painless.<\/p>\n","protected":false},"excerpt":{"rendered":"

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,\u00a0 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 […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-6050","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=\/wp\/v2\/posts\/6050","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6050"}],"version-history":[{"count":0,"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=\/wp\/v2\/posts\/6050\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6050"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6050"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.technologyinvestor.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6050"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}