On November 25, 2020 a New Milestone for the DOW

On November 25, 2020 and exactly a month before Christmas, the DOW Industrial Average topped the 30,000 mark. It is amazing to think about it when this Average was at 13,000 just 8 years ago. That is 2.3 times higher in just an eight-year period.

Gross Domestic Product (GDP) and the Economy

The old theory on the economy was that if the national debt exceeded 90% of the gross domestic product (GDP) then the country would enter recession, and if this was not corrected then the recession turns into depression. A newer look at this theory revealed that the data that was used to generate the old theory was mishandled by the researcher. A newer and more accurate look at the same data resulted in an opposite conclusion. Debt does not seem to affect the economy in a negative way. As a matter of fact, the higher the debt the more likely the nation would overcome slow economy in a faster rate. In other words, debt is good to have. It is a force for advancement rather being a blocking instrument for progress.

Reading the tea leaf...the economy in December

We hear often nowadays about that economical cliff that we are supposed to face soon because of changes in tax laws coming up early next year. There is a strong possibility, and regardless who is going to winn in November, that the economy may take a nose down toward the end of December. For someone who lived through seeing the stocks market looses over 30% of its value in a matter of a few months, this makes me nervous. However, at least this time I have some warnings that I did not have towards the end of 2007. What's troubling is that a lot of my friends are in delusion and observing the market going up and up. They also forgot the market was at 14,000 before the big fall. I hope that these talks about rise in taxes will be overturned. Remember, it is the Congress that raises or reduces taxes and not the president. My hope that the Congress will extend the so-called "Bush tax" and keep everything where it is. Another thing happenning is the national healthcare initiatives that will become fully implemented in 2014. Many small and private businesses are also nervous about that. I am for one that I support this Bill. I think it is a good think that will help a lot of people who do not have currently healthcare. Healthy people keep the economy moving upward, and this Bill will keep people healthy. December of 2012 may register a very low point in the economy,regardless who will win in November.

Why are the "occupiers" angry?

The "Occupy" movement gained a momentum for awhile due to the message it preached. The working class individuals are making the rich people richer while the same rich people are making the working class poorer. There is a great divide between the two, which is greater than the parting of the Red Sea by Moses. The source of all of that is GREED. Rich people want to keep more of their money and pay less taxes. The working class people end up paying the bulk of the taxes that support the rich business' infrastructure. The button line here is inequality. If big companies share their wealth with their workers then this divide would vanish. In fact, the workers would work harder because they know by working harder they get more money. It is the nature of being a human. No one would like to feel he is overworked and underpaid. It is okay to be overworked and fairly paid. Companies need to start paying their share of taxes and give their workers the actual worth of human being. It is not only unfair for a company X's worker to make 1000 time less than the owner of the store, it is actually obscene. Rich people are in business to make money, however this should not and must not be on the expense of the workers.


Workers of the World, UNITE.

The Economy According to the Liberals

The Liberals believe that the working class people are the true drive for the economy. No matter how rich and wealthy a company is it still needs people to work for it to generate more wealth. Thus, Liberals actually believe that wealth is generated by the working class people. And, therefore, the wealth should be shared with the workers because they are the ones who really generated it.

Suppose that a rich man opened a computer repair company. He hired 50 people to repair computers. He paid them by the amount of work they produced. For each computer prepared he paid the worker $10. If the worker repairs five computers a day he made $50. The owner charges $50 per computer being repaired. So the owner is making (40 x 50 x 5 = $10,000/day). So, he makes 200 times more than a single worker. And who actually generated this $10,000/day? You guess it, it is the workers. May God bless the working class people.

The Economy According to the Conservatives

The conservatives believe that rich individuals by investing in business ventures they hire people to work in their factories, agencies, corporations, banks, sport adventures, universities, fast food restaurants, law firms, hospitals, etc. They pay the people a fair market salary. In turn, the people working for them generate more income to augment their business so that they hire more people. The conservatives tell you that "I've never got hire by a poor person". Indeed, poor people cannot hire anyone. No doubt about it.

It is a circle of wealth feeding into the society to help everybody to live better. It becomes a privilege to work for these big organizations. You feel good for working for these rich guys. After all they own everything, and the more they make the better your life becomes. May God bless the rich.

The Vatican's Economy

In this worldwide challenging economy, even the Vatican has not been spared. The Vatican's budget is about $18 million in deficit. This could be due to a decrease in the church collections around the world. The economy affects all nations, even those that are church-based.

The Economy is Improving

In this graph, the x-axis is Period (each period is a 3-month interval). The y-axis is Units (higher units signify improvement). The cross-hair is where December 31, 2007 was. This was the time where the economy began to worsen. Notice that the last 10 Periods (last 30 months) the economy has gone above the December 31, 2007 mark. It is definitely recovering. The plans that the Obama Administration has put in place to revive the economy are working. Just look at the chart above.

Stay-at-home Mom: Who Can Afford it?

There is an economical gap between the have and have not in this country. Only those who are the top 1% can afford to stay-at-home mom. The rest of us, the 99%, will have to work for a living. Romney family belongs to the top 1%. No wonder they could afford it!

Why Are Gas Prices Going Up?

The answer to that is multifaceted. Gas prices are global and not local. So don't rely on your local gas station to lower it on its own. It just cannot. Globally, there are two countries with an increase demand for oil. These are China and India. The main supplier to these two nations is Russia. And, in Russia Mr. Putting is running for president and he needs the oil's money coming in. In the Middle-East, Iran is exercising its option of cutting down on oil sale to the West. In Syria, an armed conflict going on between the government and opposition groups. The United States cannot solve this problem by drilling more for oil. (Remember the phrase drill baby drill.) In fact, the majority of the US oil is sold to outside the country. And building Pipelines would not do it either. More likely, by next year, most of these issues will be resolved, and the price of oil may go down a bit, but not before damaging further the economy in this country. This year's election may not be over abortion, contraception, or jobless rate. It will be over oil. We are addicted to oil, to quote another President, George Bush.

DOW Reaches 13,000 Mark Today

The DOW Industrial Average reached a new high today where it hit the 13,000 point. Since President Obama took office, the DOW has increased by 63%. The economical recovery is solid and on its way to full recovery very soon. Thanks to the sound economical principles that this administration has adopted, this recovery is nothing but a miracle. Yes, WE CAN AND 4 MORE YEARS.

The Cost of Gas

I filled-up my car today with gas. The price was 3.46.90 a gallon. I figured, if I were making minimal wages and lived 20 miles away from where I worked, at 20 miles/gallon x 2 = 40 miles, it would cost me close to $7/day. That would have been approximately 1/8 of my income or about 12.5%. With everything else is rising in price, the minimal wage people have to find a second job (in some cases a third job) to keep up with the economy. But, no one is hiring. Gas prices need to come down....Now.

The Economy is Improving

The Obama Administration has turned the economy to the positive side. While the President has inherited bad economy, he has managed to turn it to positive within one year of being in office (see graph above). Another evidence that the measures taken by the Obama Administration to fix the economy were the right and correct ones. The graph above shows the trend since April of 2009, the state of the economy has been headed in the right direction, thanks to the prudent economical steps taken by the Administration.

Gold, Silver, or Dollars

I am not an economist. I am not an expert in gold, silver, or money either. More and more people are telling me to convert my cash (dollars) into gold or silver. (Most are advocating gold over silver.) The premise for that is the dollar power is diminishing because the government is printing money that is not necessary backed by gold. More cash floating on the market may stimulate the economy, but at the same time reduces the power of the almighty dollar. Their solution: convert your dollar into gold. Gold prices are rising daily and are keeping up with the economy. More money on the market means it cost more to buy foods, gas, cloth, etc... It also means that minimum wages must rise to meet the pressure of inflated prices. I have not panicked yet because I do not think this will happen. However, teachers, pastors, radio-talk shows, and others have been on the bandwagon preaching and advocating the case of gold. Unfortunately, the price of gold has been rising at a rate that the average American cannot afford it. Perhaps this will bring down the price of gold, and with the economy is recovering fast, the almighty dollar rules.

Evidence the Economy is Already Recovered

I just "tried" to go to one of the malls in Raleigh, NC today. This mall is huge and supposedly has many parking spaces. Well, one hour later I could not find a single parking space to park my car. I think this is an early good news to the shopping industry this Christmas. Happy early Christmas.

Bird Nest

Bird nest is on a front porch. It is not where you would expect to find a bird nest. This nest is the house for three little tiny birds. Their mama feeds them all the time and protects them from all dangers. Our economy is like this bird nest. It is not in its right place. And, the Federal Government is doing all it can to protect our savings. I am thankful for that.

Finaly Economical Recovery is a Reality

Today, November 16, 2009, my own micro-economy has reached its peak that of December 2007. It took about two years to get to this point. However, my micro-economy is still down due to what I have lost since January 2008. The recovery is on its way, thanks to the Obama's administration that placed the right steps forward. Thank you President Obama. WE LOVE YOU.

Economy is one person at a time

The news are filled with stories telling us that the economy is re-bouncing. I just do not see it. Millions of Americans are still unemployed, the funds in retirement accounts remain well below December 2007 level, and it is still taking too long to sell a house. The quarter ended on September 30 delivered some economical growth. But October was a disaster. I am not preaching the gloom and doom, but rather reality. Perhaps something is missing in the equations the economists in Washington, D.C. are using. They are not including the "human factor" in them.

My Real Economical Depression

Yes We Can

This slogan was the chant of 2008. It gave people hope and enthusiasm of a better tomorrow. It is true, if you really believe it, you "can" do it. Just think about it, the Wright brothers did not only think that flying was possible, but also they believed it that they could do it. What a spirit, the spirit of hope and belief in changing the world for a better place. The Good Book states that if you believe you could tell the mountain to move, and it would move. It is our turn now to move these mountains, the health care, the education, the economy, making peace---and "Yes We Can".