I'm currently looking at a 236.51 rise in the DOW. It was getting dangerously close to the magic 10,000 mark. This comes on the heels of Obama announcing a new phase of our 'mission' in Iraq. As the market is increasingly a construct of manipulation between the banks and the Federal Government, the Obama declaration is as good a cover as any to inject new taxpayer debt into it. The bankers need to see their income continue to grow. As Americans continue to see their wages slide, the only way for bankers to see their standard of living rise, is through direct Fed intervention.
So we went from a War on Iraq to depose Saddam Hussein, to 'Mission Accomplished', to 'Current Mission Phase Over'? Of course, the term 'War' doesn't fit a never ending slaughter. Wars are meant to be won. Then you agree to terms. Then you have peace.
The USA defeated Saddam's government. The USA deposed Saddam. The USA won. But the USA didn't want to just win the war, it needed to conquer the people. The people need to be beaten and broken.
The USA continues to fight the people of Iraq for control of the country. It was largely won by killing over 1.5 million Iraqis and forcing 3-4 million to flee the country. We are told this is worth it, because 'Saddam killed thousands of his own people.'
We've now gone from major combat operations, where we shell city blocks with phosgene or bust down doors and machine gun families to death, to outsourcing these activities. Now Iraqis who who enjoy being part of death squads, and hired mercenaries who enjoy slaughtering families for money, can do the heavy lifting of making sure the people understand the meaning of defeat.
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In local news, Dallas county is raising the property tax rate 1.5%. Home values have been declining as unemployment rises. The County, which like most government entities, only plans for ever brightening economic news. So it's finding itself in a bind. Passes for DART (Dallas Area Rapid Transit) are seeing a big fare increase. They've essentially doubled in price over the last couple of years. The new fare looks to be a break even for me on vehicle drive costs and riding the trains. For many people, getting back on the road will likely be cheaper. DART is partly financed by sales taxes. Revenue is down as incomes decline. DART is working on some major expansions, and being squeezed by the increasing poverty of it's riders, and increasing expenses.
And it looks like Homeland security is taking an interest in DART.
Passengers report presence of Homeland Security guards on trains this morning.I've seen them brings dogs onboard in the past. I notice, because with all of the animals I care for, they all home in on me. I'm a smorgasbord of scents for their sensitive noses.
Back on the county tax hike, a woman whose husband is a county employ was interviewed. She's relieved about the increase as she has two children and if they saw a pay cut, she doesn't know what she'd do. As I thought about how the one year anniversary of my 20% pay cut, just passed by in July, I found it difficult to summon any sympathy for her fears. Those of you on the government payroll, you've got it better than the rest of us. But if you're not Federal, you should be putting in applications. City and County jobs may seem safe now, but tax raises only help if people have money to pay them. As private industry continues to decline, revenue will decline and your jobs will be shed.
If you're a Federal Employee, then your salary is fueled by the Federal Government's infinite borrowing capacity. an infinite quantity of money can be borrowed from banks, that borrow from the Fed, that has an infinite money making machine. So you can be assured you'll have a job, and regular raises, no matter how high unemployment goes.
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Hurricane Earl looks worrisome. Many of coastal cities that it could be hitting, haven't seen a hurricane in some time. Our Federal Government's ability to respond to crisis that don't involve slaughtering civilians, has been eviscerated by Bush, and left in a state of disrepair by Obama. Obama is comfortable sending the military out to slaughter innocent people in other countries, or printing pallets of money to give to rich friends, but he doesn't seem to have any real interest in domestic concerns. If the Coastal States are hit hard, the death toll and misery in the aftermath could be staggering. Obama's unlikely to step up and show any leadership if this occurs.
Let's keep our fingers crossed that the hurricane becomes a non-event. Much as I'd like to see the world recognize that Obama is a passive empty suit, I'd prefer is didn't happen with a natural disaster.
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Food prices keep going up. With the grain shortage in Russia from the failed crop, the US has been shipping a significant tonnage overseas. Bread prices are already rising in my area. Soon we should see rises in other foods as the price increases trickle up into other products.
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Over on Peak Oil Debunked, the fact that demand hasn't bounced back quickly is touted as proof that demand destruction is a myth. At least on poster isn't even sure if there is an economic crisis. Others explain that energy and economics have no connections. They exist in separate worlds, with separate rules. In their view, what happens in energy has no effect on economics. As they also explain, current trends show that the world doesn't need growing energy supplies. After all demand is low and we have a supply glut. Obviously, everything is hunky dory! Fred Hutter is posting there now. He gave me a lot of crap about my predictions in 2000 and 2001 that we were about to see a peak. He's continuing to argue the old EIA mantra that demand drives supply. So in his view, we'll peak in 2030 or so.
