OptionEye Mar 28th

[ShelladyOptions]

Good morning.

Everything is fine. Nothing to see here. Move along quietly. Move along.

Seems like that is what the talking heads are trying to tell us about the US economy.

3 years and trillion dollar deficit. 3 years and hundreds of billions in stimulus. 3 years and QE1 and QE2 with the threat of QE3. And, drum roll please, we have a GDP of 2.1%. Yep. 2.1%. We need to take a serious look at our selves and decide if that is the new normal. 8.3% unemployment rate with the housing market still in the doldrums. What am I missing?

We need growth. Real economic growth. Not fudged equity valuation growth but grass roots expansion. Until that happens there will be a glass ceiling on everything.

Scott

[vrbuck]

We need to slash the budget and noone is off limits.  Neither farmers or old people should be spared from the ax.  Stop being the worlds police force and pull our resources back home.

[jec22]

vrbuck, you are missing the scary thing.  The government has been cutting all kinds of programs, and the deficit is still booming upward.  Just ask your local ASCS office how much their budget has been cut.  I think that is the definition of 'out of control'. 

As farmers we should know better than anyone....you reap what you sow.  The US goes from housing crisis to student loan crisis to underfunded pension crisis, etc.   I think the government spent like the farmers did in the 70's and are now facing the 80's.  But being able to print money will push it forward another decade.

There are alot of sectors of the economy doing quite well, farming included.

We sure could use a few good men.

"But choose some capable men from among the people, men who respect God, who can be trusted, and who will not change their decisions for money."  Exodus 18:21

The more things change, the more they stay the same.

[Red Steele]

Buck, you may not know beans about the markets but you are dead on about what needs to be done. Too much government is sucking all the oxygen out of the economy.

[bullrider685114]

Our entire mind set will have to change!!! This countries manufactureing base has been gutted! There are few if any decent living wage employment opportunities out there! We have embraced and locked in to the service economy. Most of our manufacturing has moved overseas in our race to the bottom. Until we realize that it is you and me that create jobs and not the 1%'s we are doomed to slavery. For all of his warts Ron Paul is the only  candidate that sees the federal reserve and banking system as the cancer that it is!!!

[GoredHusker]

I'm not willing to count us out yet.  If you look around the World, you will see we have some disadvantages like labor costs.  However, we also have something that should make each and every other country out there envious.  As we begin to cure our addiction to foreign oil with a huge supply of natural gas, it will bring the manufacturing base back to the U.S.  Even though the politicians in Washington continue to fight this tooth and toenail, it is becoming more of a reality each day.  Labor costs throughout the World are rising as well as energy prices, but natural gas here is getting cheaper and cheaper.  When you compare our natural gas price to that of Europe, Asia, etc.; our price is a very small percentage of their price.  Energy costs in the next few decades is going to be a leading indicator of manufacturing base which means the U.S. stands to benefit greatly over the next few decades. 

I'd argue that our economy would look a lot brighter today had our politicians embraced what we have and spent the stimulus money on infrastructure for natural gas fueling stations, electrical fueling stations, etc. rather than handing it out to banks who because of new rules have difficulty loaning it back to debt ridden consumers.  Can any of you imagine the power we the U.S. will have once we become not only the World's food supply but also the leader in energy supply?  Great days and times are ahead of us if we could just get Washington out of the way. 

[kraft-t]

There are those that want to blame our deficits on spending when recession caused revenue declines have greatly increased the deficits. The reason they do that is that they want to cut social programs which they have never favored.

Tax increases are considered a sin as these folks don't even want those that are making money to pay taxes. They take fast write off of $100K tractors and then blame poor folks for being aburden on government. $100K of which $35K comes dorectly off the tax bill. The same folks batched because Joe six pack got a little cash for clunkers or a tax incentive for a hybrid or electric car.

We farmers have had our nose in the federal trough so long that we think it is a right. Many have received hundreds of thousands in FSA benefits and insurance subsidies and fight health insurance subsidies with a passion. One is welfare the other is not?

These same guys want to cut medicaid, medicare, food stamps, student loans, wic and nutrition programs because that is  socialism and raising taxes 3% is communism.

So ,Yes I disagree with those anti labor conservatives. They ought to quit grumbling with their mouths full of blue berry pie. (CDT_ AlSharpton)

[Palouser]

Slow growth for an extended period was predicted by more than one economist this time around. The economy was damaged in a major way by previous hijinks. There's a cost. With the consumer largely tapped out by loss of assets, higher expenses and falling wages,  and less flexibility due to the inability to recover from lower home prices and few buyers, the consumer isn't going to power the economy as in former times.

Though I do keep hearing some who blame government for everything insisting the government is the solution. It tends to start with 'we need growth!'. OK. What do you want the government to do?