PeakTrader.com

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PeakTrader:

RJS: “they dont make them like they used to.”

Yet, the average age of consumer durables has not fallen over time, like its price.

Also, politicians will accelerate the cost of living with expensive and inefficient economic policies.

Before the Fed, over a hundred years ago, we had deflationary growth with inefficient boom/bust cycles and a large uneven wealth distribution.

Today, the destructive economic policies of politicians more than offset the huge benefit of much smoother business cycles.

We didn’t have to borrow massive amounts of money to maintain or raise our living standards over a hundred years ago.

And with so much redistribution of wealth by government, we still have a large uneven wealth distribution.

I suspect, the masses are suffering much more than the rich in Europe.

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If you give one person $1 million, he’ll squander it. If you give another person $1 million, he’ll turn it into $2 million.

That’s why wealth redistribution always fails.

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It fails, because it destroys wealth creation and creates wealth destruction.

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It seems, when politicians compromise on taxes, that means more work for accountants to help the affluent avoid taxes.

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http://www.aei-ideas.org/2012/12/with-average-age-of-consumer-durables-at-49-year-high-replacement-cycle-boom-could-boost-economic-growth/#comments

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PeakTrader:

“[Obama] will need to choose between pleasing the green purists around him and generating a long boom that would elevate him to Mount Rushmore levels.”

So far, he’s spent trillions of additional dollars for trillions of dollars of lost output.

His solution: The people who actually work need to work harder and pay more taxes.

This isn’t the Clinton economy:

http://research.stlouisfed.org/fred2/series/EMRATIO/

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Ironically, if output, employment, and oil consumption were back to the 2007 level, the price of oil would be much higher and investment in renewable energy much greater.

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Mac, the dollar is stronger now than three years ago.

You don’t seem to believe more demand with a fixed supply will raise the price.

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Chart of U.S. dollar index:

http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=DXY&insttype=Index&freq=2&show=&time=13&x=36&y=11

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Here’s a 12-year chart of U.S. oil consumption and oil prices (click chart):

http://earlywarn.blogspot.com/2012/04/us-oil-consumption-and-oil-prices.html

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http://www.aei-ideas.org/2012/12/sunday-energy-links-2/#comments