Investing in Precious Metals 101 Ad
  • Blog

    Daily Digest 2/2 – $100/Barrel Oil, Commodities Overtake Stocks & Bonds, US Jobless Rate Likely to Stay High

    by saxplayer00o1

    Wednesday, February 2, 2011, 4:00 PM

  • Bridgestone Raises Truck Tire Prices (12%)
  • Libya Welcomes $100 A Barrel Oil
  • Fed’s Hoenig Says QE3 “May Get Discussed”
  • Bernanke and Ethanol Sink Egypt
  • Commodities Overtake Stocks, Bonds After Two-Day Gain
  • Bill Would Give SC Medicaid Doctors Less Money
  • Medicaid Cuts Could Force Hundreds Of Texas Nursing Homes To Close
  • Preckwinkle Proposes More Than 1,000 Layoffs In County
  • Dayton: Cuts Will Have ‘Devastating Effects’ On Poorest Minnesotans
  • Detroit Public Library’s ‘Unprecedented’ Fiscal Crisis Could Mean Closures, Layoffs
  • Nothing Off Limits On OPS Budget
  • Wisconsin Could Face $340 Million Budget Shortfall
  • End of the Road For Idaho Bridges?
  • Cleveland Fed: US Jobless Rate Likely To Stay High

Crash Course DVDOwn the Crash Course Special Edition Set with Presenter’s Pack (NTSC or PAL)

Economy

Bridgestone Raises Truck Tire Prices (12%)

Bridgestone Bandag Tire Solutions has instituted a 12% price increase on its Bridgestone and Firestone brand radial truck and bus tires….“Unfortunately, severely escalating raw material costs, as well as energy and other costs related to manufacturing, have made a price increase of this level unavoidable,” says Kurt Danielson, president of Bridgestone Bandag. “We remain committed always to provide a premium package of quality and value to our customers.”

Libya Welcomes $100 A Barrel Oil

OPEC member Libya rejected today the need for OPEC to meet this month in order to discuss raising production, saying that oil at $US100 a barrel is justified by a weaker dollar and rising food costs.

Fed’s Hoenig Says QE3 “May Get Discussed”

The Federal Reserve could debate extending its bond-buying program beyond June if U.S. economic data proves weaker than expected, Kansas City Fed President Thomas Hoenig said. Another round of bond buying “may get discussed” if the numbers look “disappointing,” Hoenig told Market News International in an interview published on Tuesday.

Bernanke and Ethanol Sink Egypt

In addition to Egypt, the people have taken to the streets to varying degrees in Algeria, Jordan, Libya, Morocco, and Yemen. Local food riots have even broken out in rural China and other Asian locales. While the mainstream media focuses on the political aspects of this turmoil, they are overlooking the impact of rising inflation, driven mainly by record food prices. For example, former Bush advisor Dan Senor notes that Egypt is the world’s largest wheat importer. Yet because of skyrocketing prices, Egyptian inflation is now over 10 percent, while some experts estimate that Egyptian food inflation has risen as much as 20 percent. So I have to ask this tough question: Is Ben Bernanke’s ultra-easy QE2 money pump-priming partially to blame?

Commodities Overtake Stocks, Bonds After Two-Day Gain

The S&P GSCI Total Return Index of 24 raw materials gained 3.1 percent in January and rose for a fifth month, the longest streak since 2004, according to data compiled by Bloomberg….. Commodities have beaten stocks for three months, the longest stretch since June 2008, after the Federal Reserve pledged to buy $600 billion of Treasuries and demand for clothes and food lifted cotton, cocoa and copper.

Bill Would Give Sc Medicaid Doctors Less Money

South Carolina Gov. Nikki Haley said Tuesday she’s asking legislators to overhaul the state’s medical malpractice laws and cut reimbursement rates for doctors to deal with a $228 million deficit in the state’s Medicaid health care system.

Medicaid Cuts Could Force Hundreds Of Texas Nursing Homes To Close

Hundreds of nursing homes across Texas warn they’re at risk of closing if state lawmakers don’t change the proposed 33 percent cut from Medicaid-funded nursing care. Like at many nursing homes, more than half of the residents at the Autumn Winds Retirement Lodge in Schertz rely on Medicaid. If the state cuts reimbursements, the out of pocket expense many patients will have to pay will likely go up, and owner Darlene Evans said that could force some residents out. “Many of them have used their private resources to fund a stay of 5-10 years, and they have exhausted those resources and now depend on the state,” she explained.

Preckwinkle Proposes More Than 1,000 Layoffs In County

To close a $487 million deficit, her plan calls for at least 1,075 layoffs on a county payroll that counts 23,700 employees, refinancing the county’s debt and more aggressively going after unpaid taxes, including from businesses that are not paying county cigarette taxes.

Dayton: Cuts Will Have ‘Devastating Effects’ On Poorest Minnesotans

Gov. Mark Dayton said Monday that his proposal to balance the state’s projected $6.2 billion deficit contains “terrible cuts” that will have “devastating effects” for some of the state’s poorest residents. “I hate what I’m having to do,” Dayton said at a Minneapolis event organized by the Downtown Congregations to End Homelessness.

Detroit Public Library’s ‘Unprecedented’ Fiscal Crisis Could Mean Closures, Layoffs

DPL’s budget stands at around $50 million this year, and Mondowney said in her memo the system may face a $17 million deficit. She also said the Detroit Library Commission authorized a plan for layoffs and furloughs, which will require negotiations with individual labor unions.

Nothing Off Limits On OPS Budget

Class sizes couldgo up. Some programs, such as summer school or programs for the gifted, could be scaled back. And new textbooks could wait a year. All of those are options as Omaha Public Schools look to make budget cuts next school year. District administrators are seeking to make cuts totaling $22.2 million, including $11.1 million from programs funded by federal stimulus money that runs out after this year.

Wisconsin Could Face $340 Million Budget Shortfall

new analysis released Monday showed that Wisconsin’s budget could be between $79 million and $340 million short by June 30 due largely to anticipated Medicaid expenses and a court-ordered repayment to a fund that was raided four years ago. Gov. Scott Walker has said he will begin outlining how he intends to deal with the problem in his first State of the State speech Tuesday. Walker has said he wants to take immediate action not only to deal with the problem this year but also start making savings to lessen the ongoing projected two-year shortfall of roughly $3.2 billion.

End of the Road For Idaho Bridges?

We’re talking about Idaho’s roughly 1,800 roadway bridges. And it really doesn’t matter if you’re cruising the interstate, trucking down a mountain road, or fighting busy city traffic, the safety of those bridges is probably an important factor for you. Yet, due to hundreds of millions of dollars in state budget shortfalls, the safety of those bridges could be questionable. The reason: in just a few short years, about 600 of Idaho’s bridges will reach the end of their life span. What’s more, the Idaho Department of Transportation says they’ll need massive amounts of money and time to fix them.

Cleveland Fed: US Jobless Rate Likely To Stay High

U.S. unemployment will stay high “for some time,” in part because changes in the labor market have made it tougher for those out of work to find jobs, a Federal Reserve Bank of Cleveland economist said on Monday….Some policymakers have suggested that structural changes in the economy have created a mismatch between the skills that job-seekers have and those that employers want. The upshot, these policymakers say, is that the ability to influence the unemployment rate via monetary policy is limited. Minneapolis Fed President Narayana Kocherlakota has suggested the “natural” rate of unemployment, long pegged at 5 percent, could now be as high as 8 percent.

 

Article suggestions for the Daily Digest can be sent to [email protected]. All suggestions are filtered by the Daily Digest team and preference is given to those that are in alignment with the message of the Crash Course and the “3 Es.”

Related content
» More

No Comments

Login or Register to post comments