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May 28, 2004

Economic News: Mixed to Hopeful

Nothing here you can't get off Yahoo Finance, but since I read this stuff, I might as well digest it and blog it.

OPEC considers quota suspension. Trouble is, most oil-producers, except Saudi Arabia, are already pumping at capacity. However:

Suspending output quotas temporarily would make little difference to actual output but could provide the psychological impact on prices that OPEC's President Purnomo Yusgiantoro spoke of in Jakarta on Thursday.

It would also give official cartel blessing for Saudi to pump more without blatantly ignoring any new, higher quota.

This might not have a major impact on oil prices, but it couldn't help but have a sanguine affect.

Once again, Midwest factory activity surprises. "Midwest factory activity surprises" = "a bad surprise for John Kerry," since he's counting on a lingering manufacturing recession to deliver him Ohio.

And Michigan. And Wisconsin. And Pennsylvania. And Minnesota. And etc.:

Strength in the Chicago Purchasing Management index of business activity backed up that argument. The index jumped to 68.0 in May, when economists had looked for a modest pullback to 61.0 after April's already robust 63.9. The employment index also firmed, pointing to some improvement in the labor market.

"This is a very stunning report. The Chicago PMI is a volatile series and I thought you'd get some retracement and you didn't," said an impressed Joseph LaVorgna, senior U.S. economist at Deutsche Bank Securities.

But complicating this is the public's anxiety over rising gas prices and the uncertain (they think) situation in Iraq, which has reduced confidence:

The University of Michigan's final survey of consumer confidence for May showed its index falling to 90.2 from April's final reading of 94.2.

"What's affecting consumer sentiment is the geopolitical news, which is quite negative coming out of Iraq. But also the rise in oil prices is of concern to consumers as it affects their pocketbooks directly and that surely had an impact," said Kevin Logan, senior economist at Dresdner Kleinwort Wasserstein.

On the other hand, personal spending rose with expectations, personal incomes jumped, and yet inflation remained tame:

Personal spending rose 0.3 percent in April, the smallest gain in six months, the Commerce Department said. The figure was in line with forecasts.

More importantly for the economic outlook, incomes rose by a solid 0.6 percent, the biggest gain since last November as the job market improved. The rise showed households will have the wherewithal to keep on spending in the months ahead even if gasoline prices stay high.

A key indicator of inflation in the report -- and the Fed's favored measure of prices -- came in weaker than expected with a 0.1 percent increase, easing worries in the bond market that the Fed would need to make a series of aggressive rate hikes. The annual increase in the core personal consumption expenditures index was a moderate 1.4 percent.

"This eases fears that the Fed was behind the curve," said JP Morgan senior economist Jim Glassman.

"It allows the Fed to go at a measured pace without causing people to worry they are falling behind. The inflation scares are going to be dying down," he said.

Net effect? Well, the markets are slightly down.

Runaway inflation and interest rates, the liberals' latest economic bugaboos -- now that their unemployment bugaboo has been thoroughly rubbished by events -- would seem to be a phantasmal threat at this point.

Alas, no cowbell for mixed-to-hopeful economic news.

posted by Ace at 02:19 PM

Comments

Ace, you missed one important point in the reporting of the good economic news from Chicago and that is that the numbers report were the HIGHEST since july of 1988. Just let that date sink in a moment....ok, are you siting down? Because what I am about to tell you will absolutely shock you.

We have just had a higher increase in manufacturing in May then we EVER had under Clinton economic boom years.

Since the mainstream media is constantly assuring us that the pre-Clinton era was the economic dark ages, you know...forced child labor camps, single mothers having to sell their children for medical experimentation, orphans used as yard markers on golf ranges, etc....I am really having a hard time coming to grasp with this. After all the liberal economic "experts" have stated point blank that W's tax cuts would hurt the economy and NOT help it. So how can this horrible economic policy by the present administration possible produce economic output greater than that of the glory years under Clinton.

I'm going to go lay down for a moment...all this cowbell is making my head hurt.

Posted by: WindyCity on May 28, 2004 03:13 PM

New poll shows that more people think the economy is bad. 41%, up from 29% in April.

I blame media brain control. I have the cure.

http://zapatopi.net/afdb.html

Posted by: lauraw on May 28, 2004 04:17 PM

Dude,
Here I was....scrolling down...looking for some cowbell....*sigh*. Don't blame me for wandering to greener pastures for cowbell.

Posted by: Rusty Shackleford on May 28, 2004 07:11 PM

War economies do tend to boom, especially when the gov't is going into deficit to pump up the economy.

Bush's tax cuts may be helping the machine to hum smoothly (finally), but your children and grandchildren will have one hell of a hole to dig themselves out of.

Posted by: Jeremy Brendan on May 31, 2004 04:48 AM

Jeremy,

Thanks for providing the other great liberal scare tactic...the deficit is going to destroy the world that we give to our children. The funny thing is that economic growth has a way of making deficits go "poof". If I can take you back to the 90's I can show you that the reason the deficit shrank so much back then had very little to do with government restraining its spending habits and a great deal to do with economic growth (people and companies make more money, which means the government collects more in taxes).

Similarly, long term economic growth can make any deficity disappear faster than a whiskey and coke in Ted Kennedy's hand.

Finally, how big does a deficit need to get before it has a chance of causing a financial crisis similar to what's happened in Korea or Brazil? As a percentage of GDP, the US deficit is a tiny fraction of what it was to those countries and the amount of additional spending for the War is an even smaller fraction of the total economic throughput of the US. Amazingly liberals refuse to factor in these things.

But take heart Jeremy, you can still go on scaring old people about medicare and telling the college kids that the FBI is looking at their library records.

Posted by: WindyCity on June 1, 2004 11:56 AM

Really cool blog! What you say makes total sense! Keep up the good work.

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Ryan Long goes to the No Kings rally to pick up young liberal hotties and is greatly disappointed in the quality of the mish
thanks to stevey

You know we "joke" about the GOPe just "conserving" leftist things?
David French just posted:

Populists ask what conservativism has ever conserved?
Well its about to conserve birthright citizenship!
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I couldn't hate this queen of the cuck-chair more if it paid seven figures and came with a corner office.

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Podcast: CBD and Sefton talk birthright citizenship, the 14th Amendment and SCOTUS, no boots in Iran, Artemis II and refocusing NASA, the NBA's hatred of everything non-woke, and more!

In more marketing for Project Hail Mary, scientists say they've found the biosigns indicating life growing on an alien planet. It's not proof, just signatures of chemicals that are produced by biological metabolism, and it could be nothing, but scientists think it's a strong sign that this planet is inhabited by something.

In a paper published in the Astrophysical Journal Letters, a team of scientists announced the detection of dimethyl sulfide (along with a similar detection of dimethyl disulfide) in the atmosphere of an exoplanet called K2-18b. This is actually the second detection of dimethyl sulfide made on this planet, following a tentative detection in 2023.
Tons of chemicals are detected in the atmospheres of celestial objects every day. But dimethyl sulfide is different, because on Earth, it's only produced by living organisms.
"It is a shock to the system," Nikku Madhusudhan, first author on the paper, told the New York Times. "We spent an enormous amount of time just trying to get rid of the signal."

He means they tried to prove the signal was caused by things other than dimethyl sulfide but they could not.

Artemis moon shot a go, scheduled for 6:24 Eastern time tonight
Great marketing arranged by Amazon to promote Project Hail Mary. Okay not really but it does work out that way.

TJM talks John Boorman, director of Excalibur

Good rickroll

What? Skeleton of the most famous Musketeer, D'Artagnan, possibly discovered in Dutch church closet.
Dumas picked four names of real musketeers out of a history book, D'Artagnan, Athos, Aramis, and Porthos. So there was an actual D'Artagnan, though he made most of the story up. (Or, you know, all of it.)*

Charles de Batz de Castelmore, known as d'Artagnan, the famous musketeer of Kings Louis XIII and Louis XIV, spent his life in the service of the French crown.
The Gascon nobleman inspired Alexandre Dumas's hero in "The Three Musketeers" in the 19th century, a character now known worldwide thanks to the novel and numerous film adaptations.
D'Artagnan was killed during the siege of Maastricht in 1673, and there is a statue honoring the musketeer in the city. His final resting place has remained a mystery ever since.

A lot of Dumas's stories are based on bits of real history. The plot of the >Three Musketeers, about trying to recover lost diamonds from the queen's necklace, was cribbed from the then-almost-contemporaneous Affair of the Queen's Necklace. And the Man in the Iron Mask is based on real accounts of a prisoner forced to wear a mask (though I think it was a velvet mask).
* Oh, I should mention, Dumas says all this, about finding the names in an old book, in the prologue to his novel. But authors lie a lot. They frequently present fictions as based on historic fact. The twist is, he was actually telling the truth here. At least about these four musketeers having actually existed and served under Louis XIV.
Fun fact: You know the beginning of A Fistful of Dollars where the local gunslingers make fun of Clint Eastwood's donkey and Eastwood demands they apologize to the donkey? That's lifted from The Three Musketeers. Rochefort mocks D'Artagnan's old, brokedown farm horse and D'Artagnan is incensed.

A commenter asked which should be read first, The Hobbit of LOTR?
Easy, no question -- read The Hobbit first. It's actually the start of the story and comes first chronologically. It sets up some major characters and major pieces in play in LOTR.
Also, the Hobbit is Beginner-Friendly, which LOTR isn't. The Hobbit really is a delightful book, and a fast read. It's chatty, it's casual, it's exciting, and it's funny. In that dry cheeky British humor way. I love that the narrator is constantly making little asides and commentary, like he's just sitting next to you telling you this story as it occurs to him.
LOTR is a very long story. Fifteen hundred pages or so. The Hobbit is relatively short and very punchy and easy to read. If you don't like The Hobbit, you can skip out on LOTR. If you do like it, you'll be primed to read LOTR.
Oh, I should say: The Hobbit is written as if it's for children, but one of those smart children's stories that are also for adults. Don't worry, there's also real fighting and violence and horror in it, too.
LOTR is written for adults. (It's said that Tolkien wrote both for his children, but LOTR was written 17 years later, when his children were adults.) Some might not like The Hobbit due to its sometimes frivolous tone. Me, I love it. I find it constantly amusing. Both are really good but there is a starkly different tone to both. LOTR is epic, grand, and serious, about a world war, The Hobbit is light and breezy, and about a heist. Though a heist that culminates in a war for the spoils.

The Hobbit Challenge: Read two more chapters. I didn't have much time. Bilbo got the ring.
I noticed a continuity problem. Maybe. Now, as of the time of The Hobbit, it was unknown that this magic ring was in fact a Ring of Power, and it was doubly unknown that it was the Ring of Power, the Master Ring that controlled the others.
But the narrator -- who we will learn in LOTR was none of than Bilbo himself, who wrote the book as "There and Back Again" -- says this about Gollum's ring:
"But who knows how Gollum had come by that present [the Ring], ages ago in the old days when such rings were still at large in the world? Perhaps even the Master who ruled them could not have said."
In another passage, the ring is identified as a "ring of power."
I don't know, I always thought there was a distinction between mere magic rings and the Rings of Power created by Sauron. But this suggests that Bilbo knew this was a ring of power created by Sauron.
Now I don't remember when Bilbo wrote the Hobbit. In the movie, he shows Frodo the book in Rivendell, and I guess he wrote it after he left the Shire. I guess he might have added in the part about the ring being a ring of power created by "the Master" after Gandalf appraised him of his research into the ring.
I never noticed this before. I know Tolkien re-wrote this chapter while he was writing LOTR to make the ring important from the start. And also to make Gollum more sinister and evil, and also to remove the part where Gollum actually offers Bilbo the ring as a "present" -- Bilbo had already found it on his own, but Gollum was wiling to give it away, which obviously is not something the rewritten Gollum would ever do.
But I had no memory of the ring being suggested to be The Ring so early in the tale.

Finish the job, Mr. President!
Melanie Phillips lays out the case for the total destruction of the Iranian government and armed forces. [CBD]

TJM acts like he knows anything about John Wick and screenwriting. It's embarrassing, really.

Podcast: Sefton and CBD talk about how would a peace treaty with Iran work, Democrats defending murderers and rapists, The GOP vs. Dem bench for 2028, composting bodies? And more!

Oh, I forgot to mention this quote from Pete Hegseth, reported by Roger Kimball: "We are sharing the ocean with the Iranian Navy. We're giving them the bottom half."

Batman fires The Batman
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Batman tries to fire Superman
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Forgotten 80s Mystery Click: Red Leather Suit and Sweatband Edition
And I was here to please
I'm even on knees
Makin' love to whoever I please
I gotta do it my way
Or no way at all

Tomorrow is March 25th, "Tolkien Reading Day," because March 25th is the day when the Ring is destroyed in the book. I think I'm going to start the Hobbit tomorrow and read all four books this time.
The only bad part of the trilogy are the Frodo/Sam chapters in The Two Towers. They're repetitive, slow, and mostly about the weather and terrain. But most everything else is good. Weirdly, the Frodo-Sam chapters in Return of the King are exciting and action-packed and among the best in the trilogy. (Though the chapters with everyone else in Return of the King get pretty slow again. Mostly people talking about marching towards war, and then marching towards war.)

Sec. Army recognizes ODU Army ROTC cadets for their bravery and sacrifice in private ceremony
[Hat Tip: Diogenes] [CBD]