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OKdon
Senior Contributor

Re: Gloom and Doom

Your example of the hog market confirms what i have been saying that "BUSINESS WILL HIRE WORKERS FOR 8 CENTS PER HOUR IF THEY CAN GET BY WITH IT. Giving businesses lower taxes and higher profits will not result in better jobs and higher wages. If they will steal your hogs they will steal your labor.

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hardnox
Advisor

Re: Gloom and Doom

I think it is probably underappreciated the extent to which fracking and other high cost unconventional oil and gas techniques have a very high economic multiplier.

 

They borrow money at high interest rates via junk bonds to produce $80-100 oil (formerly) at a $100 cost. A zero sum game but that $100 all gets spent for wages, steel, sand, equipment etc.

 

The $100 is still mostly flowing into the economy (but beginning to falter) even with $40-50 oil. There's still gas in the tank as long as companies have cash to burn but the burn rate is rapid. The first junk bond default hit yesterday to the tune of $175M.

 

I expect economic date to disappoint more often than not going forward owing to this. I think the drag will exceed the benefits of cheaper fuel.

 

Ethanol has also been a kind of zero sum game- and it also has a high multiplier- but exists in a space where the expectation for government economic support is well entrenched. I expect the program to continue as is with the exception of cellulosic which is now fully in the "ain't gonna happen" category. I don't expect gasoline demand to respond strongly to lower prices as economic factors put drag on it and fuel economy standards continue to bite.

 

I don't think that if oil breaks below support that refiner and retail margins will expand enormously.

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Hobbyfarmer
Honored Advisor

Re: Gloom and Doom

The Hy-vee grocery store on Jordan Creek parkway in Des Moines had a big hand made sign on the window by the entrance "help wanted $10 hr" yesterday.

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BA Deere
Honored Advisor

Re: Gloom and Doom

Well Don, that's what this whole amnesty deal is about, you guys want it for the 11million new Democrat votes, but the evil rich Republicans want the cheap labor supply. If you want wages that are a living wage, you will manage the supply of labor through the use of tariffs and limiting the supply of labor coming into the country. Until you do both, nothing will improve.
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sw363535
Honored Advisor

Re: Gloom and Doom

Noone can afford to employ a worker who will work for 8 cents per hour..............  

 

okdon,

You analogy is rediculous --------- just start a new thread and give it a soap opera name

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OKdon
Senior Contributor

Re: Gloom and Doom

TEll that to the packing plants that used to pay union wages. Now they pay far less and will still buy your hogs for 8 cents a lb if they could. That is capitalism at work and corporations do not have a conscience. So while you fellows are opposed to better wages, you are taking the side of the folks that screw you out of ever dime they can.  

 

Maybe you ought to see who the white hat guys are. The guys that buy  your hamburger ribeyes and pork chops or the guys that want to buy your hogs for 8 cents a pound. They have done it before because they could and they will hire their labor as cheaply as they can.

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Hobbyfarmer
Honored Advisor

Re: Gloom and Doom

Pay cut for Putin: Russia's billionaire president slashes salaries, including his

 

Published March 06, 2015FoxNews.com

 

All of Russia's government workers are facing a 10 percent pay cut, even the top boss. (Reuters)

Vladimir Putin, by some accounts the richest man in the world, has ordered an across-the-board pay cut for government workers - including himself.

 

Falling oil prices and tightened economic sanctions have given new meaning to "bearish economy" in the nation, and President Putin, who has controlled Russia from the positions of prime minister or president since 1999, is giving everyone on the Kremlin payroll a 10 percent pay cut. The move was signed into law by Putin on Friday, as was another decree that cuts the number of government officials by up to 20 percent.

 

“Beginning from March 1 and ending on December 31, 2015, pay the president of the Russian Federation (Putin), the head of the government of the Russian Federation (Prime Minister Dmitry Medvedev)…their monthly salaries and quarterly bonuses with a decrease of 10 percent,” the order on the Kremlin's press service’s site reads.

 

" ... I worked like a galley slave, to spare no effort. I am happy with the results."- Russian President Vladimir Putin

Putin’s press secretary, Dmitry Peskov, told reporters Putin broke the news in a meeting of the permanent members of Russia’s Security Council Friday. Earlier this week, State Duma speaker Sergey Naryshkin told fellow lawmakers that he planned to ask Putin for the pay cut as part of the Russian government’s budget plan. Russian lawmakers are paid approximately $6,700. The average salary in Putin's administration is about half that. The order apparently applies to all government workers.

 

The Draconian measures are part of Moscow's emergency plan to address collapsing revenues due to the fall in global oil prices and economic sanctions imposed on the country in the wake of Russia's incursion into Ukraine. Crude oil is currently trading around $50 a barrel, less than half the price when Russia's national budget was formulated last summer.

 

Related Image

 

richvlad3.jpgExpand / Contract

The belt-tightening decree applies to Prime Minister Dmitry Medvedev (l.), as well as Putin. (Reuters)

A 10 percent pay cut - or even worse, a layoff - would prove crippling to most Russians, but Putin can handle it. His net worth has been the subject of wild speculation, with some placing it as high as $200 billion.  

 

"Frankly, I don’t even know my own salary – they just give it to me, and I put it away in my account," Putin told members of the press during his annual Q&A session in December.

 

Putin had some idea of what his salary was in 2013, when he listed his presidential salary as 5.8 million rubles, about $95,000 at current conversion rates.

 

Putin has always dismissed charges that he has amassed a huge fortune since taking control of Russia. Because his wealth is believed to be spread out through secret bank accounts, shell companies and frontmen, pinning down the size of his net worth is impossible.

 

Whatever he has accumulated, he appears to believe he earned.

 

"As for my personal perception, I am not ashamed before the citizens who voted for me," Putin said in a famous 2008 quote. "All these eight years I worked like a galley slave, to spare no effort. I am happy with the results."

 

Related Image

 

richvlad2.jpgExpand / Contract

Putin will presumably still be able to afford his manly vacations, which include fishing, shooting and scuba diving. (Reuters)

In 2012, Putin critic Boris Nemtsov turned the quote around on Putin with a 32-page report entitled "The Life of a Galley Slave." The report detailed the fleet of cars, planes and boats at Putin's disposal and claimed the onetime KGB agent owns 20 homes, 58 aircraft and four yachts, including a 176-foot vessel with a spa pool and waterfall and a more elaborate five-deck boat with a barbecue.

 

Nemtsov was killed mysteriously last month as he walked with his girlfriend near the Kremlin.

 

Economists say the moves show Russia is staggering under the weight of sanctions and low oil prices. The International Monetary Fund estimated that Russia's economy would shrink by 3 percent this year, and inflation in the country rose to 16.7 percent in February. Russians reportedly spend half of their salaries on food alone.

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BA Deere
Honored Advisor

Re: Gloom and Doom

Don, the reason we had 8¢ hogs wasn`t completely the packer`s fault, if they were running a 3rd shift and their coolers and freezers were full of pork how could they pay more than 8¢?  When you`re full, you`re full!    Truth be told it was outfits like Murphy "Family" Farms producing like mad and breaking the independent hog farms...and they did.

 

 

It`s like you going to Mexico to have your teeth worked on.  You get $5,000 worth of dental work and all it cost you was a couple old spent hens, you were happy but you cheated the business of your hometown dentist.  If you and other retired people in your hometown stayed local, perhaps the town could justify another dentist coming in...his family would build a new house, hiring a local carpenter, buy a new Chevy made in America that is sold and serviced by your neighbors, they would eat at local restaurants, pay taxes and send their kids to the local school and write out a $500 check to the local fire department at their annual chili supper.

 

That, is how the economy is supposed to work!

Slim123
Senior Contributor

Re: Gloom and Doom

There is a interesting book out about what contract feeding has done to the meat industry. THE MEAT RACKET writing by Chris Leonard tells about the vertical integrated structure in the meat industry. It is a good read

OKdon
Senior Contributor

Re: Gloom and Doom

I didn't cheat the dentist. I paid $3500 for a $15k job. I paid $2K for one tooth for my wife in OK. At that rate it would have cost $15 K to do my repair in Tulsa.  I don't owe the local dentist anything. He doesn't deserve my business any more than the Lexus dealer or the mercedes dealer. They have product to sell and i have the right to buy it or not.

 

I don't recall any dentist buying a corn crop or a bean crop or a hog or a steer from me and he certainly never offered me 5 times what it was worth. Plus I would never have gotten the repair done at $15K. So the mexican dentist got $35 hundred of my hard earned money and the American dentist got $2K for the one tooth.  

 

Was that a hard decision? Would you drive to 800 miles to south texas to save 11 grand on a 15 grand transaction?   Tell me you wouldn't.

 

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