03-20-2013 07:44 AM
Interesting debate about whether or not U.S. savers have been penalized like Cypriot savers, just in a different way. The U.S. saver has been marginalized by zero interest rates and no market appreciation and hit with an eroding balance in the face of inflation while the Cypriot government just outright stole the money from the saver. Some say they are the same thing, one is just more abrupt than the other. Causing a bit of a stir in the office this morning.
With the FED today we will be back and forthing with every word from Cyprus and/or the FED.
Grains are green. Wheat and beans up 8ish and corn up 3.
Equities are rallying on reports that the Cyprus Popular Bank has been sold to the Russians for $4B Euro reducing that country's need for capital by that much. Gold still above $1600 trading at $1607.
This should be an interesting day.
03-20-2013 08:58 AM - edited 03-20-2013 10:00 AM
Very good points on savings. If one has money in cash in a 401K, the fees are more than interest each year. Legal robbery by the Fed. Savers paying for the low interest rates of the borrowers. So in effect, the Fed is taking 5% away from savers each year, heck, in Cyprus they only took 8.5% for one year.
Another reason I like my working capitol in grain.
I have to wonder how all the college students that love their low interest student loans while in college feel when they get that first job, think they are making 'big bucks', and then get hit with the realization that their take home pay will be about 60% or less of the gross. For someone with a family, healthcare costs(insurance and deductible and out of pocket) on a 40 hours week are around 10+ dollars an hour--so a job that pays more of that bill is a HUGE bonus, ie government jobs. I am still not holding my breath to hear that Washington will meet their cut quotas by having the top employees pay more of their healthcare insurance costs like the rest of the taxpayers.
So between no interest for savings, and healthcare costs and fuel costs....now that is the real big gulp. No wonder auto sales are down. I wonder if we can import car buyers like we talk of importing corn.... Can't understand why Argentine farmers would be in a hurry to sell grain, when they have an inflation rate of 26%, seems rather risky to me. Then again, maybe they are better off selling and buying next years inputs before they go up faster than grains.
Hobby, I wonder if grain is moving because cash is over 7.50, or because property tax and income tax bills are just around the corner.
03-20-2013 02:01 PM - edited 03-20-2013 05:15 PM
The Cypriot banking situatiuon is more confirmation that regulation and accountability of the financial sector is required to reign in the obscene behavior of management. It is absolutely bizarre that corporations 'are people too!' and yet we require no accountability.
Like Iceland, that went from riches to rags by encouraging an outlandish and unmonitored banking systens through tax advantages, Cypriot banks took in Russian cash that is assumed to be basically money laundering for the Russian oligarchy taking wealth out of the country and avoiding Russian taxes (not unlike what U.S. corporations do). Nobody questioned how Cypriot banks could give 13% interest on accounts of less than a year? And of course the Cypriot banks lent heavily to Greece.
It's amazing that a man in California who allowed hackers to post a silly headline in a paper is facing a felony (the government wants to make a point) and yet no Wall St bankers or equity ratings firms personnel have yet to face even a misdemeanor! It's clear the one banker, Jimmy Dimon, who supposedly was 'smart' enough to avoid huge entanglements with the mortgage crisis, has been lying through his teeth about billions of losses on money that was required to be in the safest of investments.
When corporation's management are [not] made to be as responsible as ordinary citizens, with [no] ongoing strict regulation, then we will continue to see mismanagement w/o accountability. The requirement for accountability needs the teeth of criminal investigations and prison time for participants. The idea that fining corporations is good enough is absolutely false as the individuals in the corporations realize they will never be held personally accountable. Thus they continue their reckless behavior.
03-20-2013 05:12 PM
It's just possible politicians would have to go to their OWN constituents for money to campaign. They might have to listen to them. Or they might educate them. I'm ALL for limiting contributions to citizens w/ public disclosure for amounts over $1000 (to minimize the effect of the rich 'buying a candidate'). They could still buy them but at least the public could be aware of it. Organizational money of any kind - OUT!
I used to get individual replies to questions from at least staff of Congressmen. Now I usually get boilerplate on a topic that isn't quite related - which confirms the input is worthless. I have become changing my votes in response. Believe me - I'm an equal opportunity source of scorn - based on the facts I know, not the ideologies being pushed like baby formula.
03-20-2013 06:20 PM
------- it has irked me for some time to see that an international Corp. has donated highly and equally to both sides. If they have no position on the outcome all they can be doing is buying influence.
03-20-2013 06:58 PM
Ummmm . . . but . . .but . . . but the US Supreme Court ruled a few years ago in Citizen United that Corporations have the same standing and rights as individuals aka homo-sapiens in the United States, and hold all the same rights as citizens exept the right to vote.
The Iowa courts are whining alot about that, when we raised that matter in a court case where 100% shareholder officer wanted to represent his corporation in an Iowa Court. It is kinda funny, they sure do not want to give up the property rights that go along with the letter of marque issued here in Ioway which is handed down from lawyer to son. lol. John
03-20-2013 09:08 PM
Appreciate the info. The ever increasing "waist" of $$ on the sport of elections is a strong indicator of how bold the thieves are. And the celebration of the event says something about the public.
The Courts have become a arrogant tool. Making broad judgment rulings over singular issues.
03-21-2013 01:04 AM
Sure sign of an activist court! Show me in the Constitution where it shows anything of the kind for corporate rights.
Citizens have rights under the Constitution. Citizens have the right to form corporations. Corporations aren't citizens. They are legal constructs for business. Corporations are subject to regulation for the good of the nation's citizens.
The court's problem is interpretation of the Consitution and extending the logic of governing a nation through new developments while guaranteeing citizens rights with a framework of divided government to prevent a concentration of power in one branch that threatens the Consitution and therefore its citizens. However, they can't 'create' citizens of legal entities. Why not robots? Create a business identity for an independent robot and he becomes a citizen that just happens to be unable to vote? Really? Fascinating. True of nano robots too?
What we may be developing is protection for a protection racket by the elite and insiders. That is what concentration of wealth and the impoverishment of the middle class will lead to. Farmers might even lose access to the trough.