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3M Lowers Year Outlook on Slowing Global Growth

Americans are buying less LCD TV's and electronics, putting pressure on companies like 3M, who rely heavily on those types of products to drive their business. 3M lowered its expectations for earnings this year mainly because of decreasing imports from Asia. Many of the company's products are made overseas and sold here in the U.S., making up 70 percent of the company's sales.

Outlooks from 3M show that earnings in the third-quarter fell about 2 percent. However, revenue rose 10 percent, which was mostly due to gains and acquisitions from foreign exchange. The company's biggest revenues come from its transportation and industrial unit, which grew in double-digits. 3M also experienced double-digit growth in its sales in health care, security, safety and protection services.

Post-its and Scotch tape are the products most familiar to consumers, as well as other office products, and showed a 4.6 increase in revenue. The gains in office products were not enough to balance the loss in graphics sales for the LCD TV market, which fell 14 percent.

See Link : http://finance.yahoo.com/news/3M-lowers-year-outlook-on-apf-3130734585.html?x=0

Wall St. Down on Rising Concerns over Europe

Stocks are falling in reaction to the news that the meeting by the euro zone finance ministers has been cancelled. Once again, economists are having doubts about European leaders' efforts on minimizing the regions debt. This puts more fear in the market with people worrying about income and job prospects.

Larry Peruzzi, senior equity trader at Cabrera Capital Markets in Boston, stated, "This comes as a shock because we thought they were nearing an agreement."

Shares are dropping as people react to Europe's inability to make a plan of action on the regions debt. Netflix shares continue to fall at an alarming rate to $75.99, more than 36%. Netflix is losing more customers than what was expected due to its price increase and cancelled plans to split the company.

See Link: http://beta.finance.yahoo.com/news/stock-index-futures-seen-mixed-104653385.html

Home Building Jumps 15 Percent in September

September was a good month for home builders who started new projects at the fastest pace in over a year. This shows to be a promising sign for the economy.

Volatile apartment construction has been a driving force for most of the gain. Although this could encourage economic growth and create more jobs, it doesn't necessarily mean that the housing market is coming out of its slump. According to the National Association for Home Builders, for every home that is built, an average of three jobs is created for the year and about $90,000 in tax revenue.

Despite the jump in home building, builders with low collateral are struggling to compete with foreclosures and short sales.  Consumers find it is a better deal to buy a previously occupied home rather than a new home by at least 30%. Plus, many Americans who have lost their jobs have been forced to move into apartments and abandon their homes, continuing the vicious cycle.

See Link: http://finance.yahoo.com/news/Home-building-jumps-15-apf-2196751386.html?x=0

Violence Erupts as 2-Day Strike Shuts Down Greece

Greek citizens are livid from more than a year and a half of austerity bills. Hundreds of young adults vandalized stores in central Athens and had altercations with riot police during an egregious government rally against new austerity policy's that were voted in approval by Parliament on Wednesday. The rioting started instantaneously during a nationwide 48-hour strike that temporarily put a halt on services from flights, banks, customs offices, stores and ferries.

The Austerity bill holds measures including tax hikes, more salary and pension cuts for public servants and suspensions on collective labor contracts. Greek officials have been saying that that the government will run out of money to pay its debt by mid-November and needs help from other European Banks. However, European banks won't give Greece more money without measures being put into place to control the countries debt.

Nikos Anastasopoulos, head of workers' union for an Athens municipality, stated, "We just can't take it anymore. There is desperation, anger and bitterness."

The bill won its first round of voting from a 300-member parliament, a second round of votes must be done before the bill is passed and put into effect. The Parliament has received threats from a communist party-backed union that they will encircle it and attempt anything to prevent members from entering the building for the second round of votes.

Violence still continued long after the strike was over. Police were fighting burning barricades created by the young rioters that came close to the tourist town of Monastiraki.The capital's streets were filled with debris and thick black smoke coming from burning bus-stops and trash.

European leaders are still cultivating a strategy to Greece's debt crisis. Leaders are starting to realize that the current bailout for Greece has not helped as much as they hoped and a second bailout will be needed. However, before a second bailout is given, measures will need to be taken on how the private sector will be affected from the bailout.

See Link: http://finance.yahoo.com/news/Greece-Riots-as-austerity-apf-4013630638.html?x=0

Stocks Slide as Germany Cools Hope for Debt Deal

Last week stock markets rose in reaction to hopes that a strategy to fix the debt crisis in Europe was being developed. Yesterday, the stock market fell as German leaders showed little progress on plans to minimize Europe's debt. 

Expectations that a plan of action would be completed by October 23rd showed to be too optimistic, resulting in emotional let downs and dropping stocks. The U.S. stock index hit an all time low for the year on Monday, making it the worst day since Oct. 3rd. 

Jason Pride, the director of investment strategy at Glendale, a wealth management firm in Philadelphia, stated, "It's completely a reaction to Germany. The reality is everybody is hanging on to what Europe's doing."

French and German leaders gave false hope by promising to create a solution to Europe's debt crisis by the end of October, exciting stock markets around the world. Some German leaders are planning to have a strategy formulated by Sunday, while other leaders say plans to tackle to debt crisis could last well into the next year. 

Everything relies on Greek government bonds, which have been the driving force behind the dramatic swings in the stock markets lately. If Greece defaults on its debt, then the premiums on Greek bonds plummet, and will cause the banks who own them to take heavy losses. This could result in banks not being able to lend to each other, which would result in another crisis similar to that experienced in 2008. The European debt crisis holds the global financial system in its hands, which could fall through its fingers like sand.

Source: http://finance.yahoo.com/news/Stocks-slide-as-Germany-cools-apf-2139606591.html?x=0

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Wells Fargo 3Q Profit Up 21 Percent but Revenue Slips

Wells Fargo & Co. reported that profits rose 21 percent during its third-quarter. However, the bank reported that its revenue for the period was lower than they predicted, resulting in shares slipping in pre-market trading.

This has caused for concern for banks, as new banking procedures are coming into effect, such as lower overdraft fees and making it more difficult to raise interest rates on credit cards. Money earned from fees and charges provide banks’ with non-interest profits. Wells Fargo's service charges on their deposit accounts fell 3 percent in the quarter and mortgage banking fees dropped 27 percent.

Interest rates are at record lows, which also contributes to lower revenue for banks. Net interest income has dropped 5 percent, which means banks are earning less money from deposits and loans. Wells Fargo is also putting less money aside to pay for uncollected loans. This dropped 47 percent shows that both consumer and commercial clients are getting better at paying back their debt.

View Source: http://finance.yahoo.com/news/Wells-Fargo-3Q-profit-up-21-apf-192339940.html?x=0

Companies Posted Fewer Job Openings in August

Fewer jobs were advertised in August by employers then the previous month. Employers may be limiting the amount of hiring due to the unstable stock market and fears that another recession is around the corner. 

Not only are fewer jobs being offered, competition for these jobs is rising. In a good economy, the ratio of people applying to jobs and jobs being offered is 2 to 1. Currently it is 4.6 to 1.

Jeff Joerres, Chief Executive of ManPowerGroup, which is currently the world's largest staffing agency, stated, "As soon as companies hear talk of a 'soft patch,' they hit the pause button on hiring."

This is causing employers to fill available positions at a slower rate; due to not finding "qualified applicants" to fill the position. Employers are also offering less pay for the positions available. This also may be a reason why employers cannot find qualified candidates to fill the positions. These days it may take up to 3 months to fill a position, if it is filled at all. 

See Link: http://finance.yahoo.com/news/Companies-posted-fewer-job-apf-2714889148.html?x=0

PepsiCo 3Q Profit Climbs on Snack and Beverage Sales

PepsiCo Inc. has gained revenue due to raising its prices and growing overseas.

Higher costs of fuel, packaging and ingredients have caused many companies in the United States to raise prices. Along with raising prices, many companies in the U.S. have had to cut back on spending, forcing them to expand overseas. This has turned out to be a recipe for success for PepsiCo Inc. who has shown higher revenue in the 3rd quarter, despite a shaky economy. The company has shown a 4 percent profit for the 3rd quarter, which beat Wall Street's predictions.

PepsiCo showed its largest gains in Europe, which showed a 37 percent increase. Asia, Africa and the Middle East all showed gains of 25 percent while Mexico and Brazil showed gains of 19 percent. In North America, snack foods like Frito lay, Doritos, Cheetos and Ruffles all showed gains of 2-4 percent despite higher prices and cost controls.

The company is brainstorming, trying to think of new ways to attract the customers in the U.S. who have cut back on their spending but still want to buy Pepsi products. The Company has also stated that they will be raising prices further on select products during the fourth quarter.

See Link: http://finance.yahoo.com/news/PepsiCo-3Q-profit-climbs-on-apf-1516145140.html?x=0

ECB Slows Down Government Bond Buying Further

Last week in Frankfurt, Germany, the European Central Bank bought 2.3 billion euros ($3.1 billion) in government bonds in an effort to keep pressure off the shaky governments suffering from the eurozone debt crisis.

In response to the debt crisis, the ECB has been lending substantial amounts of cash against collateral to the banks so that they can operate day to day.

Despite the effort to keep the banks afloat, the bond purchases have caused controversy between bank officials, resulting in the resignation of Juergen Stark, the bank’s chief economist.

The bond purchases are a high risk for banks. If they cannot be paid off, it will put the ECB in an uncomfortable position of supporting faltering governments.

This has forced Beligum, Luxembourg, and France to rescue Dexia because of their ownership in large amounts of Greek and Italian bonds. Greece's Proton Bank has already been taken over and is under reconstruction from the country's bank rescue fund.

Banks are fearful that the debt crisis could spiral out of control if Greece and other governments default on their payments.
Consequently, banks are depositing more and more money into the ECB. European banks have already deposited 255.6 billion euro ($347.1 billion), this is the highest it has been all year, and has surpassed the previous year’s amount.

European banks feel more secure after depositing money into the ECB rather than lending it to each other.

If Greece can’t pull itself out of debt, how could this affect the price of gold? 


Call in for our Collapse of Gold Prices report to find out.

See Link: http://finance.yahoo.com/news/ECB-slows-down-government-apf-4128206917.html?x=0

Stocks Jump on European Pledge to Help Banks

The leaders in France and Germany have promised to strengthen the European banks, trying to stop a global debt crisis caused by Greece not having enough money to pay its debt. In response, U.S. and Europe stocks have risen sharply.

Micheal Sansoterra, a portfolio manager for Silvant Capital management in Atlanta, stated "The more we can put our arms around the problem with a little more detail, the better; and time frames usually help."

With the new help from France and Germany, the Euro strengthened against the U.S. dollar, showing improvement after the most recent wave of aid. One bank desperately seeking rescue is the Franco-Belgian bank, Dexia. Dexia owns large amounts of government bonds, which rely on the financial status of Greece. If Greece defaults on its debt, then Greek bonds lose their value, resulting in detrimental losses. U.S. banks would also be affected if Greece defaults on its debt because of their close ties to European banks and ownership in large amounts of Greek bonds.

European banks are so apprehensive that another credit crunch could happen, they are not lending to each other, putting more pressure on overextended banks, like Dexia.  This scenario led to the ECB offering unlimited one-year loans to the regions banks until 2013 so they can still have credit.

See Link: http://finance.yahoo.com/news/Stocks-jump-on-European-apf-1432038199.html?x=0

ECB Offers New Emergency Support To Banks

The European Central Bank is lending an unlimited amount of short term loans to banks to keep the region from entering a credit crunch like the one that started the recession two years ago. The 12 to 13 month loans provided to the banks by the ECB will help European banks to keep lending between banks possible. The ECB is also buying euro40 billion ($53 Billion) in covered bonds in an effort to help banks raise funding.

The government debt crisis from Greece has exposed European banks to threatening losses and shaky finances. It is essential for daily business for banks being able to borrow between each other. However, the fear  is that the money being borrowed will not be repaid. These fears have become reality for Franco-Belgian Bank Dexia, who was bailed out once before and is now struggling again to raise funds to pay its debts.

The Eurozone economy has only grown 0.2 percent resulting in the worst crisis since WWII. Consumer and business spending is suffering due to lower incomes, higher taxes and governments having too much debt that will not be able to be paid.

See Link: http://finance.yahoo.com/news/ECB-opens-cash-taps-to-avoid-apf-2139268920.html?x=0

Retailers Report Solid Gains For September

Americans are shopping, but only when they are getting a deal. Consumers are taking advantage of big sales and discounts buying affordable luxuries last month. According to the International Council of Shopping Centers, revenue rose 5.5 percent in the month of September showing strong gains for big retailers like Target, Macy's and Limited brands.

Ken Perkins, President of Retail Metrics, stated, "Bargains drove the month. There were lot of deals to be had, and we expect to see that follow through the rest of the year."

Despite these strong increases in September, many retailers are showing concerns that shoppers are worried about unemployment, a weak housing market, and a tumultuous stock market. Thus, causing shoppers to look for the type of bargains that result in a significant drop in retailers' profits. 

See Link: http://finance.yahoo.com/news/Retailers-report-solid-gains-apf-814454991.html?x=0

Stocks Rise As Service Sector, Private Hiring Growing

Stocks rose for the second day in a row today after the U.S. service sector showed a continual increase, inspiring private companies to increase hiring. The U.S. service sector employs 90 percent of the workforce, which includes jobs in health care providers, banks, real estate and business other than manufacturing.

ADP, a payroll possessing company, stated that private companies added 91,000 jobs in September. ADP's numbers do not necessarily predict what the government's employment report will be, however, they do influence trader's expectations. Economists are still predicting that unemployment will remain current at 9.1 percent, despite the increase in stocks.

Some financial analysts are stating that the increase in the Stocks is because of a late day rally that was influenced by European officials implementing new efforts to support the region's struggling banks. If Greece defaults on their debt payments, then the European banks will take a huge loss causing Greek bonds to plummet in value. Many European banks have substantial holdings in Greek bonds. 

Rob Stein, head of Astor Asset Management, stated "The market is trading on sentiment right now, not fundamentals. People are hoping that the bounce yesterday means that we've hit a bottom, but the problems that were in the economy Monday haven't changed since then. 

See Link: http://finance.yahoo.com/news/Stocks-rise-as-service-sector-apf-3845343497.html?x=0

 

Greece Has Until Mid-Nov to Get Bailout Loans

Global markets are sinking due to worries that European banks will default causing another global recession. Greece is projecting to have enough money to pay pensions, salaries and bondholders through mid-November. Greece has continued to threaten that it would run out of funds in mid-October if it does not receive a rescue package of eurp8 billion.

If Greece is unable to pay European banks then this could cause a major credit crunch, pushing the global economy into another recession. The Greece government has implemented new measures to try and stall the default, including higher property taxes and civil service worker suspension with reduced pay. Greeks are outraged at these methods from the government. Even Greece government officials are voicing their concerns.

Most economists are predicting that it is highly unlikely that Greece will climb out of its debt hole which could cause European banks to take higher losses then presently planned in a second bail out deal.

See Link: http://finance.yahoo.com/news/Greece-has-until-midNov-to-apf-1533046240.html?x=0

Daily Economic Articles

1. China warns of trade war if U.S. bill passes:

http://news.yahoo.com/senate-takes-first-step-china-yuan-bill-001119095.html

Bring it on. It is easy to beat up on the U.S. from the shadows, let’s see how they like a face to face confrontation.

2. S&P 500 enters bear market on Europe worries:

http://news.yahoo.com/p-500-enters-bear-market-europe-worries-142523281.html

Socialism is great until you run out of money. Europe is out of money.

3. US futures fall ahead of Bernanke testimony:

http://finance.yahoo.com/news/Stocks-slip-ahead-of-Bernanke-apf-4010127047.html?x=0

If you listen to the Democrats in the meeting, you can hear them begging Bernanke to do a QE3.

4. Greece has until mid-Nov to get bailout loans:

http://finance.yahoo.com/news/Greece-has-until-midNov-to-apf-1533046240.html?x=0

Good chance they will default in December, Ireland also.

5. Gov't report: Fannie knew of 'robo-signing' in '03:

http://finance.yahoo.com/news/Govt-report-Fannie-knew-of-apf-3965362442.html?x=0

Fannie and Freddie are the most responsible for the recession and foreclosures.

6. Oil below $76 as Greece crisis gnaws at confidence:

http://finance.yahoo.com/news/Oil-below-76-as-Greece-crisis-apf-3090038261.html?x=0

Oil heading to $65 in next 6 months.

Signs of China Slowdown Add To Dim Global Outlook

The Chinese Economy is showing signs of slowing down and is affecting global markets and fears that the global economy is heading towards another recession.

Many forecasters are predicting that the economy will grow above nine percent this year and  next year.
Nations like Australia are heavily dependent on mineral exports from China. The Conference Board expects China to drive about a third of the increase in global GDP for 2011.

Andy Rothem, CLSA Analyst, stated, "If you look at other measures of what is happening in China ... everything is cooling down, but not dramatically, and there is still strong growth."

None the less, China is playing a huge role in world growth.

See Link: http://finance.yahoo.com/news/Signs-of-China-slowdown-add-apf-332577335.html?x=0

Economy Update by Paul Buzby

Fannie Mae cited for failing to stop robo-signing

http://finance.yahoo.com/news/Fannie-Mae-cited-for-failing-apf-197671808.html?x=0

No Kidding. I hope they do more than citing.

Oil falls to $80 a barrel

http://finance.yahoo.com/news/Oil-falls-to-80-a-apf-4248488261.html?x=0

End of summer oil spike.

Moody's downgrades 8 Greek banks

http://finance.yahoo.com/news/Moodys-downgrades-8-Greek-apf-1724410420.html?x=0

Greece could collapse in December.

A.M. Kitco Metals Roundup: Comex Gold Sharply Lower on Follow-Through Selling Pressure; Technical Damage Inflicted

http://www.kitco.com/reports/KitcoNews20110923JW_AM.html

Federal Reserve turning corner and starting to strengthen the dollar. Dollar up, gold down.

Fed Expected To Take New Action To Lift Economy

The Federal Reserve said yesterday that it will shuffle $400 billion of its portfolio to try to lower interest rates to spike the economy. By the fed lowering interest rates helps people and companies save money on borrowing and spending on the economy. The economy relies heavy on consumer spending.

The interest rates are all ready at historic lows, however, Americans are still afraid that the economy is strengthening. Thus, Americans are not taking out new loans despite the aggressively low interest rates. Americans are fearful to buy houses when prices are still dropping.

Frank Sorrentino, CEO of North Jersey Community Bank in N.J. stated that he doesn't think the Feds decision will encourage people to buy homes or take out loans for vehicles.

The stock market fell rapidly after the announcement from the Fed, the Dow Jones dropping 300 points yesterday. The four highest ranking Republicans in Congress sent the Federal Reserve a letter urging them not to try to lower interest rates, any further then they all ready are, due to risks of creating higher inflation.

The past couple of years, inflation rates have been historically low. However, high prices for food and gas have caused inflation to spike this last year. Economists are putting a much higher concern on unemployment, rather than inflation.

See Link:http://finance.yahoo.com/news/Fed-does-the-Twist-400B-plan-apf-96033563.html?x=0

Economy Update by Paul Buzby

IMF: Financial risks rising in US and Europe
http://finance.yahoo.com/news/IMF-Financial-risks-rising-in-apf-1707768304.html?x=0

Spin tag line, the premeditated weakening of the U.S. Dollar by the U.S.Government and the Federal Reserve is killing the U.S. Economy. Europe is going down to 55% of the citizens are on the public dole and they have out of money to support it.

Oil is rising as tropical storm supply effects linger

http://finance.yahoo.com/news/IMF-Financial-risks-rising-in-apf-1707768304.html?x=0

Summer oil spike is over. There was no shortage. Oil is pulling commodities and stock market down. these industries are begging the Federal Reserve to weaken the dollar more to drive up commodities. 

Economy Update by Paul Buzby

Stocks rally on hopes for Fed stimulus measures

http://finance.yahoo.com/news/Stocks-rally-on-hopes-for-Fed-apf-2497909805.html?x=0

Stock Market begging for QE3. If Fed does do it, dollar down, gold up. If Fed does not do it, dollar up, gold down. Probably will not do anything.

EU, IMF raise concerns over bank capital

http://finance.yahoo.com/news/EU-IMF-raise-concerns-over-apf-1023365343.html?x=0

Dollar will start getting stronger in next year. Dollar up, Euro down.

August home building fell 5 pct., slide continues

http://finance.yahoo.com/news/August-home-building-fell-5-apf-316920322.html?x=0

More foreclosures, Public Employees being fired or laid off at the Fed, State, County and City leve.

US files complaint against Chinese chicken tariffs

http://finance.yahoo.com/news/US-files-complaint-against-apf-2297288501.html?x=0

Files a complaint. That will be effective.

United Auto Workers leaders endorse new contract

http://finance.yahoo.com/news/United-Auto-Workers-leaders-apf-3500774308.html?x=0

Anything the Unions endorse is not good for everybody else.

Stock buybacks rise for 8th consecutive quarter

http://finance.yahoo.com/news/Stock-buybacks-rise-for-8th-apf-3615032829.html?x=0

Corporations are buying back control of their companies.

IMF: World economy enters 'dangerous new phase'

The world economy is entering a "dangerous new phase," for economic growth. The International Monetary Fund has lowered its expectations for economic growth for the United States from 2.5 percent to 1.5 percent and Europe from 2.7 percent to 1.8 percent.

Olivier Blanchard, Chief Economist for IMF stated, "The recovery has weakened considerably. Strong policies are needed to improve the outlook and reduce the risks."

The downgrade for Europe has sparked because of the fear that the countries debt crisis will continue to get worse, furthering destabilizing the nation. Banks in Europe are holding on to their cash and reducing the amount of lending.

The high stock market drops in the United States are hitting consumers and businesses belief in a strengthening economy causing a reduction in spending. This is causing investors to transfer money from stocks and move it into safer investments, such as Treasury. The U.S economy is also taking blows from high gas prices and disruptions from the Japan crisis. This slow economy is causing U.S. employers to stall the creation of new jobs while increasing wages for management. Homeowners in the U.S. are experiencing a drop in property values resulting in owing more on mortgages then homes are actually worth.  The outlook for the U.S. economy making a fast recovery is not good.

President Obama's plan to cut taxes and increase spending on infrastructure is highly needed for short-term stimulus. However, a long term plan for recovery is needed to reduce the deficit. There is a fine balance in economic growth. If budget cuts are too fast then they will kill economic growth. If budget cuts are too slow then they will kill creditably. Obama's tax increases and job proposal are facing strong opposition from the Republican party. Republicans strongly oppose tax increases and have little faith in Obama's plans.

See link: http://finance.yahoo.com/news/IMF-World-economy-enters-apf-1240337037.html?x=0

Obama announces debt plan built on taxes on rich

Obama has proposed a tax hick on the rich to help cut U.S. deficits by  more then $3 trillion. He also promised to veto any effort by republicans to cut medicare benefits for the elderly without raising taxes at the same time.

Obama stated, "This is not class warfare. It's math.We can't just cut our way out of this hole."

This tax increase for the rich will also target loopholes and subsidies for large corporations and cut most of the spending in Medicare spending to health care providers.

Obama also stated, "I will not support any plan that puts all the burden for closing our deficit on ordinary Americans."

Republicans are thankful the beneficiaries are spared but are not necessarily pleased with some of the proposals by Obama.

The "Buffet Rule", named after billionaire Warren Buffet, will target familys who make over $1 million and prevent them from taking advantage of lower tax rates on investment earnings, then what the middle-income tax payers pay on their income taxes.

However, the wealthy, on average, pay more in income taxes the the middle-income tax payers by nearly 15%, according to the non-partisan Tax Policy Center.

The tax hike also hits federal workers. The plan would reduce federal workers paychecks by 1.2 percent over three years, saving the government over $21 billion over 10 years.

This issue could play a major role in re-election and the President is playing his winning hand.

See Link:http://finance.yahoo.com/news/Obama-announces-debt-plan-apf-2168506349.html?x=0

China Consolidates Grip on Rare Earths

China is on track to monopolize the rare earths industry by increasing prices on rare earth materials. This is causing companies in the United States and Europe to relocate to china, taking advantage of inexpensive raw materials.

China has caused the price of compact florescent light bulbs in the United States to soar by closing or nationalizing dozens of rare earth metals producers. China produces most of the world's rare earth materials, currently 95%, and is taking action to improve pollution controls in an effort to clean up the environment. However, by doing so, it is shutting down the infamously toxic mining industry, restricting the global supply of vital resources. The major green producers, like wind turbines, hybrid-gasoline electric cars and compact florescent bulbs, are the most heavily impacted by this action from china. Despite government subsidies, the high cost of rare earths is having a significant effect on green product companies. This is so drastic, that some companies are being reactive and buying and hoarding rare earths materials.

Even though china is stating that its reason for shutting down its rare earth industry was to "address" pollution problems, it is looking quite different to foreign trade companies. The European Union believes china is trying to dodge international trade rules by discriminating against foreign trade. The United States and Europe have been in in preparation of filing a case with the World Trade Organization saying the China is breaking W.T.O. Laws by imposing tariffs and quotas on rare earth exports. China is currently a member of the W.T.O. and promised that it would not enforce restrictions on exports, except a few small materials. Rare earth metals, was not one of those materials.

China is sticking to its story, saying that they are worried about high pollution in the environment. China says polluted water, air and radioactive residue is increasing. Especially with small private companies, since some of them operate without having a license.

A member of the Chinese Chamber of Commerce, Xu Xu stated, "The government is determined to clean up the industry. The entrepreneurs don't care about environmental problems, don't care about labor problems, and don't care about their social responsibility. And now we have to educate them."

One can only speculate that some hidden agenda is behind the green efforts from china. The Chinese government is creating a monopoly by shutting down private companies and forcing bigger companies to merge. China wants to consolidate 80 percent of the production from southern china and maintain 3 major companies. How ironic that these three major companies were once ministries of the Chinese government.

 See Link: http://finance.yahoo.com/news/China-Consolidates-Grip-on-nytimes-2650144197.html?x=0&.v=1

Dollar Up, U.S. Stock Market Up, Gold Down, Everyone Else’s Currency Down.

According to a statement from the ECB, "The Governing Council of the European Central Bank has decided, in coordination with the Federal Reserve, the Bank of England, the Bank of Japan and the Swiss National Bank, to conduct three US dollar liquidity-providing operations with he maturity of approximately three months covering the end of the year."

What this means to us is that the world's central bankers are providing a temporary plug in the European crisis until the end of the year by pumping as much money as necessary into the European banks. This is due to two European banks being forced to ask the ECB for help because they were not able to get short-term dollar funding in private markets. Thus, the ECB giving them $575 million.

In a statement written by Miller Trabak strategist for Peter Boockvar,  "The stress is still there as long as sovereign debt issues aren't dealt with aggressively but this move eases short-term funding problems."

This was no surprise to Stanley Morgan, whose global economics team predicted this action would have to be done by global policy makers. Market participants are speculating that "someone" knew this was coming. According to Scott Bleier of Create Capital, " Between the government taking these actions and a market that moves before the news, we are living inside a giant insider trading machine."

It looks like, once again, that global policy makers calculating synchronized responses, in an effort to forestall a funding crisis in the banking sector. Meanwhile, Wall Street embraces the free money given to them, taking it openhanded, regardless of the reasons it was provided.

See link: http://finance.yahoo.com/blogs/daily-ticker/fire-bad-free-money-good-traders-react-global-144357415.html?sec=topStories&pos=main&asset=&ccode

Today's Daily Economic Report

Pressure grows on Europe to do more to help euro

http://finance.yahoo.com/news/Pressure-grows-on-Europe-to-apf-2996897748.html?x=0

European socialism is hurting everyone in the world. The world is tired of it.

Retail sales flat in August, auto demand declined

http://finance.yahoo.com/news/Retail-sales-flat-in-August-apf-1271111181.html?x=0

Government spending has everyone worried and not spending and do not forget college tuitions were do (which are overly priced because of guaranteed government student loans which leads to colleges charging whatever they want).

Stock indexes edge higher on optimism about Greece

http://finance.yahoo.com/news/Stock-indexes-edge-higher-on-apf-2029585439.html?x=0

Stocks move higher? 34 points is nothing in this age of billion dollar buys and sells done in nanoseconds, total spin. Volatility and large swings in the stock market are the norm now. This is a manipulated market that donates 2/3 to the Democrats.

Wholesale prices flat, as inflation pressures ease

http://finance.yahoo.com/news/Wholesale-prices-flat-as-apf-37687744.html?x=0

Spin. Inflation has been deferred until trillions of dollars of bonds and treasuries mature over the next 3, 5 and 10 years. Also, every other currency in the world is doing even worse than the dollar.

Business inventories and sales rose July

http://finance.yahoo.com/news/Business-inventories-and-apf-2621209299.html?x=0

Private Business (70% of U.S. GDP) has been increasing since the Bush tax cut extensions were passed in Dec 2010. The total economic numbers are down because the public sector (30% of U.S. GDP) has been tanking since the Republican led house has stopped funneling Federal Dollars into the states. The public sector (public unions and publicly traded companies, stock market) has been insulated for the last three years by Pelosi, Reed, Bernanke and Obama. No longer. Now they are feeling what the rest of us have for the last three years.

House probing $528M loan to failed solar company

http://news.yahoo.com/house-probing-528m-loan-failed-solar-company-125931197.html

Eric Holder will not investigate. The rampant theft and corruption by Obama and his people will not change until we have a new president with a new attorney general.

Daily News

Greece, Europe struggle to contain debt crisis

http://news.yahoo.com/greece-europe-struggle-contain-debt-crisis-061201682.html

Working on another patch, extension. This house of cards will fall.

Oil rises on expected drop in supplies

http://finance.yahoo.com/news/Oil-rises-on-expected-drop-in-apf-2476453895.html?x=0

Summer oil spike ending. U.S. consumption is up because of private business (70% U.S. GDP).

Large US banks must show how they would wind down

http://finance.yahoo.com/news/Large-US-banks-must-show-how-apf-2152201017.html?x=0

Concern: Is this an attempt by government regulators to break up specific banks that are not towing the liberal progressive agenda?

Stocks mixed in another choppy session; banks rise

http://finance.yahoo.com/news/Stocks-mixed-in-another-apf-98514025.html?x=0

Stock market will be vary volatile from now on. Little guys (private citizens) are out of the market, leaving only the big guys who move billions in seconds.

Italy confirms China talks amid bond help reports

http://finance.yahoo.com/news/Italy-confirms-China-talks-apf-1511022464.html?x=0

China is over extended. China will probably do very little.

Ahead of the Bell: Federal Budget

http://finance.yahoo.com/news/Ahead-of-the-Bell-Federal-apf-2991940442.html?x=0

Unsustainable.

Daily Economic Articles

A.M. Kitco Metals Roundup: Comex Gold Lower amid Stronger U.S. Dollar Index

http://www.kitco.com/reports/KitcoNews20110912JW_am.html

Buzby: In a global down turn the U.S. will come out on top. The U.S. is 25% of the world GDP with a robust and diversified economy.

Economists cut growth forecasts for 2011 and 2012

http://finance.yahoo.com/news/Economists-cut-growth-apf-2425638584.html?x=0

Buzby:The public sector (30% of U.S. Economy) is tanking, making the overall numbers down. The private sector (70% U.S. GDP) is growing.

Greek default fears slam banking sector

http://finance.yahoo.com/news/Greek-default-fears-slam-apf-3114583969.html?x=0

Buzby:Everyone is coming to the conclusion that saving Greece is a no win gamble.

Europe worries drag stocks lower in early trading

http://finance.yahoo.com/news/Europe-worries-drag-stocks-apf-3116752067.html?x=0

Buzby: One country defaults, six others will follow. Ten countries are doing ok.

Obama calls on Congress to act on jobs bill

http://news.yahoo.com/obama-calls-congress-act-jobs-bill-152431593.html

Buzby: Spin and Politics.

Market Swings Are Becoming New Standard

http://finance.yahoo.com/news/Market-Swings-Are-Becoming-nytimes-3273349406.html?x=0&.v=1

Buzby: Twenty years ago the stock market and publicly traded companies donated 2/3 to the Republicans. Today 2/3 donate to the democrats. The U.S. stock market has become a manipulated market controlled by the very rich and buying democrats to do it legally.

Daily Economic Articles

Stocks plunge as worries about Europe intensify

http://finance.yahoo.com/news/Stocks-plunge-get-no-lift-apf-2532453913.html?x=0

Bernanke and Obama say and do nothing, same old, sale old. Europe tanks again because U.S. will not change direction.

Oil down more than 2 pct on Europe debt concerns

http://news.yahoo.com/oil-down-more-2-pct-europe-debt-concerns-150231134.html

Bernanke and Obama say and do nothing, same old, sale old. Europe tanks again because U.S. will not change direction.

Top ECB official Stark resigns unexpectedly

http://finance.yahoo.com/news/Top-ECB-official-Stark-apf-3803080287.html?x=0

Bernanke and Obama say and do nothing, same old, sale old. Europe tanks again because U.S. will not change direction.

Developed nations look to restore growth

http://finance.yahoo.com/news/Developed-nations-look-to-apf-1253319514.html?x=0

Bernanke and Obama say and do nothing, same old, sale old. Europe tanks again because U.S. will not change direction.

Economic Report - September 8, 2011

Stocks waver ahead of Bernanke, Obama speeches

http://finance.yahoo.com/news/Stocks-waver-ahead-of-apf-534166181.html?x=0

They both are going to support anti business policies, but they will support their base (financial institutions and liberal progressives).

ECB chief signals rates firmly on hold

http://finance.yahoo.com/news/ECB-chief-signals-rates-apf-26394072.html?x=0

The velocity of money is stagnant. Until the U.S. and Europe both raise their interest rates, the velocity of the dollar and private business will remain stagnant.

More people applied for unemployment benefits

http://finance.yahoo.com/news/More-people-applied-for-apf-3110111585.html?x=0

The results of stagnation caused by long term low rates leading to almost zero velocity on the dollar.

US, rich nations need to support growth, OECD says

http://finance.yahoo.com/news/US-rich-nations-need-to-apf-4023476336.html?x=0

Liberal progressives (socialist) demanding more money for their base. Socialism is great until you run out of money.

Daily Economic Update

After the Labor Day weekend, here are a few articles to catch up on what is happening in the economy.

Swiss central bank sets limit on franc's strength

http://finance.yahoo.com/news/Swiss-central-bank-sets-limit-apf-2514152395.html?x=0

Europe is in Trouble.

US stock futures fall to start short holiday week

http://finance.yahoo.com/news/US-stock-futures-fall-to-apf-3363144889.html?x=0

Europe in trouble and the U.S. Government's anti-business policies are not changing.

Oil falls to near $84 on global slowdown fears

http://finance.yahoo.com/news/Oil-falls-to-near-84-on-apf-3873693627.html?x=0

This shows that Europe is in trouble.  The U.S. Government's anti-business policies are not changing.

Starbucks plans to triple its China coffee shops

http://finance.yahoo.com/news/Starbucks-plans-to-triple-its-apf-3724844460.html?x=0

U.S. Private Businesses Expanding.

Hong Kong's first Apple Store nears completion

http://finance.yahoo.com/news/Hong-Kongs-first-Apple-Store-apf-3274857060.html?x=0

U.S. Private Businesses Expanding.

World Bank expects slow US growth but no recession

http://finance.yahoo.com/news/World-Bank-expects-slow-US-apf-2334225071.html?x=0

U.S. Public Sector down (30% U.S. GDP). U.S. Private Sector up (70% U.S. GDP).

Economy Report - August 31, 2011 Paul Buzby - Rare Coin Wholesalers

Justice Department blocks AT&T-T-Mobile merger

http://finance.yahoo.com/news/Justice-Department-blocks-apf-118757875.html?x=0

More government regulation. Capitalism is based on survival of the fittest. T-Mobile is having problems. There are multiple carries.

Rise in factory orders pushes stocks higher

http://finance.yahoo.com/news/Rise-in-factory-orders-pushes-apf-3801535349.html?x=0

Summer oil spike coming to an end. Factories ramping up.

Natural gas rises as power demand returns in East

http://finance.yahoo.com/news/Natural-gas-rises-as-power-apf-2934009710.html?x=0

Blip.

Economy Report - August 30, 2011 - Paul Buzby: Rare Coin Wholesalers

Comex Gold Trades Near Daily High on Fed Governor Remarks, Weak U.S. Economic Data

http://www.kitco.com/reports/KitcoNews20110830JW_upd_1.html

Government and Federal Reserve kicked the can down the road on fiscal responsibility, dollar weaker, stock market, gold and oil up.

Plunge in consumer confidence sends stocks lower

http://finance.yahoo.com/news/Stocks-edge-higher-apf-1960692671.html?x=0

Private Businesses (70% U.S. GDP) wants fiscal responsibility, confidence will stay low until they change direction.

Stocks edge higher; Caterpillar, Boeing lead Dow

http://finance.yahoo.com/news/Stocks-edge-higher-apf-1960692671.html?x=0

Private Businesses (70% U.S. GDP) recovering in spite of the Government and Federal Reserve.

Consumer confidence lowest in 2 years.

http://finance.yahoo.com/news/Consumer-confidence-lowest-in-apf-4117065490.html?x=0

Private Businesses (70% U.S. GDP) wants fiscal responsibility, confidence will stay low until they change direction.

Obama faces tight restraints in crafting jobs plan

http://finance.yahoo.com/news/Obama-faces-tight-restraints-apf-1088993502.html?x=0

Spin, he only wants to help public unions, banks, stock market and foreign countries, not Private Business (70% U.S. GDP).

Business, consumer views darken in Europe

http://finance.yahoo.com/news/Business-consumer-views-apf-1751155126.html?x=0

Germany and France moving to consolidate responsible countries in euro zone (17). The non-responsible ones will be left to burn.

Oil rises as East Coast refining resumes

http://finance.yahoo.com/news/Oil-rises-as-East-Coast-apf-2626634745.html?x=0

Any excuse to raise prices at the pump before the holiday weekend and the end of the summer oil spike.

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Economy Report - August 29, 2011: Paul Buzby - Rare Coin Wholesalers

Irene: Wet, deadly and expensive, but no monster

http://news.yahoo.com/irene-wet-deadly-expensive-no-monster-033752511.html

Crises mongering by the media for the government. There is opportunity in crises.

Oil rises on stronger consumer spending

http://finance.yahoo.com/news/Oil-rises-on-stronger-apf-2447147009.html?x=0

Spin. This is a spike to take advantage of holiday weekend.

Consumer spending rebounds, rose 0.8 pct. in July

http://finance.yahoo.com/news/Consumer-spending-rebounds-apf-1701587266.html?x=0

Back to school spending. Temporary.

Contracts to buy homes fell 1.3 percent in July

http://finance.yahoo.com/news/Contracts-to-buy-homes-fell-apf-1909809319.html?x=0

Public employees (Fed, State, Country and City) being fired. One more round of foreclosures.

Obama to tap Krueger for economic post

http://finance.yahoo.com/news/Obama-to-tap-Krueger-for-apf-1034695460.html?x=0

Bringing in another elitist Princeton professor who has been in academia for the last 20 years.

twitlonger..

http://www.twitlonger.com/show/clr2q0

Economy Report - August 25, 2011: Paul Buzby - Rare Coin Wholesalers

Low rates squeeze savers and may hold back economy

http://finance.yahoo.com/news/Low-rates-squeeze-savers-and-apf-3139420642.html?x=0

This is the single most important thing that is holding the U.S. economy back and transferring wealth from average U.S. citizens to banks, Europe and emerging economies. The Federal Reserve is not our friend.

Flash slide in German stocks hurts world markets

http://news.yahoo.com/flash-slide-german-stocks-hurts-world-markets-150607531.html

More problems in Europe. Will continue for years.

Stocks open lower; BofA jumps on Buffett deal

http://finance.yahoo.com/news/Stocks-open-lower-BofA-jumps-apf-3532893883.html?x=0

Interesting. Not sure what it means.

Without Jobs, Apple must show it can still deliver

http://finance.yahoo.com/news/Without-Jobs-Apple-must-show-apf-2045452593.html?x=0

Businesses trying to grow in spite of the government and the banks.

Fixed mortgage rates rise from decades lows

http://finance.yahoo.com/news/Fixed-mortgage-rates-rise-apf-2761294665.html?x=0

Too little, too slow.

Oil falls on higher jobless claims

http://finance.yahoo.com/news/Oil-falls-on-higher-jobless-apf-1575595849.html?x=0

Coming to the end of the summer oil spike. Should go lower.

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Economy Report - August 24, 2011 : Paul Buzby - Rare Coin Wholesalers

Survey: Employers consider ending health coverage

http://finance.yahoo.com/news/Survey-Employers-consider-apf-4875845.html?x=0

We are watching the collapse of the American health care system unless we change direction.

CBO: Budget deficit to hit $1.28T, down slightly

http://finance.yahoo.com/news/CBO-Budget-deficit-to-hit-apf-3012070231.html?x=0

We are spending at record levels and they have the temerity to say the yearly deficit is down slightly.

Higher durable-goods orders ease economic worries

http://finance.yahoo.com/news/Higher-durablegoods-orders-apf-1444690685.html?x=0

Private business (70% of U.S. GDP) is slowly recovering. Numbers are down overall because Public employees who have been shielded for the last three years are now having extreme problems like the rest of us.

Oil climbs on stronger manufacturing activity

http://finance.yahoo.com/news/Oil-climbs-on-stronger-apf-1550091911.html?x=0

Summer oil spike is almost over and manufacturing knows this and is increasing production in expectation of dropping prices.

Local wheat sees revival in former grain states

http://finance.yahoo.com/news/Local-wheat-sees-revival-in-apf-4079000411.html?x=0

Ethanol farm subsidies are pushing all food prices up. This will be repealed and when it is, the price of food will drop big.

Europe, US stocks rise on upbeat economic report

http://news.yahoo.com/europe-us-stocks-rise-upbeat-economic-report-143922356.html

Europe temporally stabilized. They will have more problems which are more severe. U.S. private businesses (70% U.S. GDP) is recovering.

Economy Report: August 23, 2011 - Paul Buzby: Rare Coin Wholesalers

New-home sales fall, 2011 could be worst year yet

http://finance.yahoo.com/news/Newhome-sales-fell-07-percent-apf-3845011766.html

More foreclosures from public employees (Fed, State, County and City) pushing home prices down again.

APNewsBreak: Iran shows UN advanced nuke equipment

http://news.yahoo.com/apnewsbreak-iran-shows-un-advanced-nuke-equipment-163305986.html

Shows UN what Iran wants the UN to see.

World stock markets rise amid hopes for Fed move

http://news.yahoo.com/world-stock-markets-rise-amid-hopes-fed-move-101022265.html

Hoping the Fed will devalue the U.S. dollar more with a QE3. Take buying power away from U.S. citizens and transfer it to foreign citizens.

S&P chief resigns; hedge fund seeks parent split

http://finance.yahoo.com/news/SampP-chief-resigns-hedge-apf-2708009512.html?x=0

Major pressure being brought by U.S. government (Obama) against S&P for down grading the U.S.

FDIC: Number of problem banks fell to 865 in Q2

http://finance.yahoo.com/news/FDIC-Number-of-problem-banks-apf-799617749.html?x=0

We are running out of banks to fail.

Stocks rise for second day; Exxon leads Dow

http://finance.yahoo.com/news/Stocks-rise-for-second-day-apf-248753887.html?x=0

Dollar down, oil and stock market up.

Oil trades near $85 on mixed economic news

http://finance.yahoo.com/news/Oil-trades-near-85-on-mixed-apf-3608006122.html?x=0

Dollar down, oil and stock market up.

Economy Report - August 22, 2011 - Paul Buzby: Rare Coin Wholesalers

European Central Bank buys euro14.3 billion in bonds

http://finance.yahoo.com/news/European-Central-Bank-buys-apf-2797821859.html?x=0

Another temporary patch.

Oil prices should fall with Gadhafi overthrow

http://finance.yahoo.com/news/Oil-prices-should-fall-with-apf-3565426360.html?x=0

Winter will bring stability to middle east. End of summer oil spike. Oil down, dollar up.

Stocks open higher, breaking 4-week losing streak

http://finance.yahoo.com/news/Stocks-open-higher-breaking-apf-3463920309.html?x=0

Temporary stability in Europe is giving the U.S. stock market a breather.

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Economy Report - August 18, 2011 - Paul Buzby

Consumer prices rose by the most since March

http://finance.yahoo.com/news/Consumer-prices-rose-by-the-apf-3790978188.html?x=0

Temporary.

Leading indicators rise 0.5 percent in July

http://finance.yahoo.com/news/Leading-indicators-rise-05-apf-695197136.html?x=0

Temporary.

Home sales dropped 3.5 pct. in July, hit 2011 low

http://finance.yahoo.com/news/Home-sales-dropped-35-pct-in-apf-187016727.html?x=0

One more round of foreclosures from public employees being fired (federal, state, county and city).

Gold hits latest record high, near $1,830

http://finance.yahoo.com/news/Gold-hits-latest-record-high-apf-4267775375.html?x=0

Federal Reserve statement not to raise interest rates till 2013 and congress kicking the debt problem down the road.

More people sought unemployment benefits

http://finance.yahoo.com/news/More-people-sought-apf-1671987739.html?x=0

One more round of foreclosures from public employees being fired (federal, state, county and city).

Here we go again: Stocks plunge on economic fear

http://finance.yahoo.com/news/Here-we-go-again-Stocks-apf-515292663.html?x=0

Europe crises bleeding into U.S. stock market, not U.S. private businesses (70% GDP).

Car dealers fear economy could scare off buyers

http://finance.yahoo.com/news/Car-dealers-fear-economy-apf-827292235.html?x=0

Anti Business policies by Washington and Federal Reserve cause uncertainty.

Oil drops on disappointing economic news

http://finance.yahoo.com/news/Oil-drops-on-disappointing-apf-36548065.html?x=0

Summer oil spike is coming to an end. Oil will drop more.