Why The Stock Market Shot Up Today
Northrop Grumman's latest SUV
People like to project information upon events especially that many legged centipede, the Stock Market. Sometimes it pays to step back and look at less obvious events to see if the market goes up or down.
Big news today (if you are very diligent):Congress overwhelmingly passes yet another special OFF BUDGET Iran/Afganistan war budget
The Senate on Thursday overwhelmingly approved $81 billion for wars in Iraq and Afghanistan in a spending bill that would push the total cost of combat and reconstruction past $300 billion.
"I'm confident we will be able to come back with a product, in the form of a conference report, which the Senate can support," said Sen. Thad Cochran (news, bio, voting record), R-Miss., chairman of the Senate Appropriations Committee.
In both the House and Senate, lawmakers struggled to give troops whatever they needed and pay only for projects deemed urgent. Congress was leaving other items to be dealt with in the regular budget for the new budget year starting Oct. 1. In doing so, they were sending a message to the White House that it cannot expect a rubber stamp from Congress on its emergency war-spending requests.
This is mucho money. In addition, Congress voted to give to Isreal the annual billions in gifts, too, after chiding them for making missile technology available to the Chinese. With friends like these....
All this money is...DEBT. We have no money. The plan is, next month we visit China and sell them our debts. You see, we are building this vast military machine so we can force China to do what we want. The average American thinks the Chinese want us to menace them with our weapons systems. Those inscrutible Orientals!
The stock market and our entire manufacturing system is now nearly totally a military/industrial twin headed beast. So when Congress shovels in another $80+ billion in Chinese loans of course, the entire stock market shoots upwards. Money is going to pour in! Whooray! Whoopeee!
The entire Pentagon budget is gigantic. While trimming money for useless things like hospitals and gear for soldiers, money for odd projects is just pouring in. Like the aircraft carriers. The one that is supposed to be mothballed, the Kennedy, isn't now because certain companies will make tons of loot rebuilding it.
This was not a popular decision in the Pentagon.
The controversial Navy decision to retire one of its 12 aircraft carriers may be a blessing in disguise for the service’s air wings, which are stretched thin due, in part, to a higher operational tempo.
The Navy fields 10 active air wings for its 12 carriers, which normally is a manageable situation because at any given time at least two carriers are in extended overhaul or yard periods. The Navy also maintains a reserve carrier air wing, but two of its squadrons were eliminated in recent months. An air wing typically comprises 72 aircraft, including F/A-18 strike fighters, EA-6B electronic combat aircraft, E-2C radar warning aircraft and H-60 helicopters. The reserve carrier air wing now has approximately 36 carrier-deployable aircraft.
However, the Navy’s new Fleet Response Plan to reschedule maintenance periods and get more sea days out of existing ships has placed increased demand on the air wings. At a press conference in early February, a senior Navy budget official said the service has no plans for a reduction in air assets because, “we need the airplanes.”
The reduction to 11 carriers would reduce the strain on naval aviation, the official said.
Well, here is a site we should all visit frequently: Taxpayers for common sense
The annual Department of Defense Appropriations Bill (defense appropriations bill) is, by far, the single largest spending measure that Congress passes each year. The fiscal year (FY) 2005 version weighed in heavier than most at $391 billion. In such a large bill, Congress has plenty of opportunities to hide the pet projects coveted by individual lawmakers. This year's bill includes 2,671 parochial and politically motivated earmarks worth $12.2 billion, both record highs. These projects were not requested by the President, but were instead inserted at the request of individual legislators while the bill was in subcommittee, committee, or conference committee.
Despite its status as the 800-pound gorilla of spending bills, the defense appropriations bill has historically contained the least amount of information about where our tax dollars are being spent. In this year's bill, for example, there was specific geographic location information on less than one percent of the earmarked funding in the bill. Consequently, no one, outside of Congress itself, knows where all the money in this bill goes. Taxpayers for Common Sense set out to remedy this lack of transparency by tracking down how this money is being spent and who is benefiting as a result. After starting with very little, we now know where close to 90 percent of defense earmarks are directed.
This url is a must read. It details how the members of the Defense Appropriation sub committee all pork out like crazy. The needs of our country are nearly totally distorted or even ignored as they concentrate on bringing home make-work and creating jobs and profits for Americans while evading taxes to pay for this. We have tried this before. The Vietnam war was utterly useless and made fabulous amounts of money for the stay at homes who weren't being blown up like today's victims in the helicopter shoot down.
This is why the Vietnam war was popular with politicians. It created endless opportunity for profit. Unlike during Vietnam, though, it is worse today for we are nearly finished with wiping out our industrial base that is nonmilitary. If we cut our military back to where it was a mere seven years ago, half of the manufacturing base will go belly up.
Things look bad in Reality World:Greenspan states the painfully obvious while disregarding his own role in creating this:
Sounding an increasingly familiar and urgent warning, Alan Greenspan, the chairman of the Federal Reserve, testified today before Congress that the federal budget is on an "unsustainable path" that, if left alone, will cause the economy "to stagnate or worse."
Congress has promised more than it can continue to deliver, he said, and it must quickly make major changes in how it manages its finances, especially as it prepares to shoulder the cost of new programs like the prescription drug benefit and growing demands on Social Security and Medicare. .
In the fiscal year ended Sept. 30, 2004, the federal budget ran a deficit of $412 billion, or about 3.5 percent of the nation's gross domestic product, according to the Congressional Budget Office. Moreover, the size of federal debt relative to G.D.P. has "risen noticeably" since bottoming out in 2001, Mr. Greenspan told the Senate Budget Committee.
Of course, as all the GOP guys have done, Greenspan leaves out the $100 billion in special funds tacked onto this deficit which is all "off budget". What a concept. I should call my bank and tell them a quarter of my budget will be "off the record" and thus, not appear on my balance due.
You know why they are doing this? Here is a group of men who decided to imitate our Federal Reserve:
2 Brits caught with $3 trillion
The National Bureau of Investigation (NBI) on Thursday said it has arrested two British nationals with $3 trillion fake US federal bank notes in their possession, DZMM reported.
NBI Director Reynaldo Wycoco identified the suspects as Paul Edward John Flavell and Sam Beany. The two listed their address as Unit 305 CEO Apartments in Jupiter Street, Makati City.
Yes, that is 3 TRILLION dollars. Sounds like Bush has a new possible Treasury Secretary! They figured out how you budget things if you run the printing presses: you print up what you need. Which is what Greenspan is going to do. Keep interest rates very low so we can lend ourselves money we print up at a cheap rate below the rate of inflation and lala! Here we go, to the moon!
Talking about the moon,NASA is being asked to cut everything to the bone an this is causing problems. Many scientists are not going quietly into the good night.
Meanwhile, back at the Pentagon, the money flows like a tsunami.
The Navy's new destroyer, the DD(X), is becoming so expensive that it may end up destroying itself. The Navy once wanted 24 of them. Now it thinks it can afford 5 - if that.
The first two DD(X)'s are now supposed to total $6.3 billion, according to confidential budget documents, up $1.5 billion. A new aircraft carrier, the CVN-21, is estimated at $13.7 billion, up $2 billion. The new Virginia-class submarine now costs $2.5 billion each, up $400 million. All these increases have materialized in the last six months.
The Navy says it can make do with fewer big ships patrolling the oceans. It wants more fast boats and aircraft to fight offshore and upriver, a speedier force to counter terror. But Congress, seeking to sustain America's shipyards, wants as many big ships as possible.
Admiral Clark, who plans to retire later this year, says both strategies could be sunk by soaring costs.
The sky is the limit if it is for Northrop Grumman Ship Builders. They have pretty ads in the editorial pages of the NYT and WP and advertise on TV. As if consumers are going to buy this junk. "One CVN-21, please". "That will be $6.3 billion, sir". Looks like those two Brits were getting ready to make some purchases!
So let us celebrate a vibrant stock market today. They just got the greatest gift the Easter Bunny could have made...$450 billion dollars. Next year they will try for $3 trillion, thanks to the example of the clever Brits.