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Are you kidding me? October 8, 2013

Posted by hslu in Congress, Economics, jobs, Politics.
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Tge headline reads: Government workers the real victims of shutdown”

Give me a break, please.

They are taking a paid vacation now. They will get paid once they go back to work. 100%. Not a penny less.

The middle class families are the real victims. They earn their money the old fashioned way but they paid their taxes through the nose without a break. They are supporting the bottom 47% all the time and almost all tax breaks were taken away from them.

They are paying for the government workers too and they are having a great time of their lives now: in the coach and watching TV.

Summary of the Economy and Financial Markets October 5, 2013

Posted by hslu in China, Economics, Energy, Euro, Global Affair, Gold, jobs, Oil, stocks.
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I wrote this short report for my friends in Dallas yesterday; October 4, 2013. It helps me to get a grip of what’s going on in the financial market. It is a very simple and brief summary of what’s important over the last month on Bonds, stocks, crude oil and gold. I am learning to spot investment opportunities and I thought understanding the macro economics is essential.

  • The Fed delayed tapering due to deteriorating economy and pending gov. shutdown.

    • Unemployment rate @ 7.3%; Labor participation rate @ 63.2%; lowest since 1970.
    • U6 remains at ~14%; 90,473,000 not in Labor Force – BLS data.
    • Stock market popped due to QE but gave back gains 3 days after- A concern!
    • Treasuries rallied: 10-year Bond yield to decline from ~3% (record low: ~1.40%.) Watch TBT.
    • Government shut down and pending debt ceiling fight (2 weeks) will impede rally
    • Emerging markets had relief rallies.
    • Countries with current account deficits continue to see market/currency decline.
    • India and Indonesia in trouble.
  • Crude oil and metals continue to trade lower;
    • China slow down weighs and Inflation absent.
    • Bull market in gold ran out of steam.
    • Economy needs to pick up steam to see crude oil and gold moving higher.
  • European economic conditions improved but recoveries slow to come.
    • Merkel stayed on for 3rd term. Steady as she goes. No major policy change.
    • Recession may be over.
    • Sovereign debt yields declining: Spain and Italy 10-year Treasury yield. LT buy?
  • Japan
    • Business confidence improves: capital investment up 5.1%
    • GDP up 3.8% in Q2 2013; revised up from 2.6%. 4.1% in Q1 2013.
    • Sales tax increased to 8% (4/2014) from 5%. Up to 10% in 2015.
    • Government: ¥10 trillion (~$100 B) stimulus: lower than expected. GDP = $5.96 trillion.
    • BOJ on target to increase currency float. Deflation may be over.
    • Debt: ¥1,000+ trillion. Deficit: 40+% spending borrowed. Structural reform from Abe not enough.
    • DXJ and YCS are still in play. US government shutdown affected Nikkei’s decline and yen’s strength.
  • Chin Economy expanded at ~7.5%
    • 12-5 is in progress (2011 – 2015): sustainable growth of 7%, industrial upgrading and the promotion of domestic consumption. 11-5 expected 7.5%. Actual 11%.
    • 10 new cities to accommodate 250 million people from farms: urbanization
    • 户口制度to relax?
    • Shanghai Free-Trade Zone: testing for 2-3 years. To expand to other areas.
    • Preparation for a floating 人民币?
    • More countries signed up for direct exchange with人民币: by-pass US dollar.
    • China ADRs could be good investments.


Government Shutdown, It’s about time April 8, 2011

Posted by hslu in Congress, Economics, Energy, Global Affair, Military, Obama, Oil, Politics, Taxes.
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Don’t pay the law makers. Stop paying their staffs.
Stop paying the White House. Obama can cook for his family.
Don’t pay the federal employees.
Find out who are the non-essential ones and fire them.
Find out wasteful programs and terminate them.
Only active, essential, combat military personnel gets paid.
Military personnel stationed in foreign countries should be paid by host countries. Otherwise, bring them home.
Stop funding non-essential programs such as NPR. Auction it off to the highest bider if it is so hot.
Stop funding foreign aids.
Stop funding the UN.
All research programs should go through value assessment. Shut them down if it shows no value or no chance of ever going commercial.
Stop ethanol subsidies and make the industry survive on it’s own.
Send every tax payees their shares of money saved from government shutdown.

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