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DERIVATIVES WILL BITE U.S. AND U.S TAX PAYERS AGAIN

U.S. ECONOMICS

The current U.S. economic depression (as measured by industrial production) is the longest since the Great Depression of the 1930’s.  And unemployment numbers are moving closer to depression levels each day.

Yet while the economic reality is clear, there is an unwritten convention not to call it a depression.  Perhaps this is to avoid unsettling people and creating fear.  But calling it by its proper name would at least be more truthful.  And in these times when truth is sorely lacking in pronouncements by public figures it would be just what the market ordered.

We estimate that . . .
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CHINA AND EMERGING MARKETS

RECENT CHINA TRIP SUMMARIZED

An analyst friend and I recently took a trip to China.  Although I had been to China many times, I particularly enjoyed the trip because it was my friend’s first visit.  Seeing it though his eyes I re-experienced some of the wonder of the enormous current and future success that is China.  If you wish to understand what China is and how it will impact the world in the years to come, I suggest that you pack your bags and take a trip there yourself.

There is really only one way to describe the China . . .
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TALK IS CHEAP

Here are the numbers for the first nine months of the 2009 U.S. fiscal year, which ends September 30th.  Federal receipts are down 18% from 2008 levels.  Individual income tax receipts are down 22%, and corporate tax receipts are down 57%.  Meanwhile, federal outlays are up…a lot.  The budget deficit for the nine months now stands at $1.086 trillion versus a deficit of just $286 billion over the same nine months of fiscal year 2008

As the budget data was released, Treasury Secretary Geithner was in Saudi Arabia speaking to our allies (and financiers) in the Middle East about . . .
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Monty Guild discusses oil speculation – Fox Business Morning 07/08/09 (Video)

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