US Money Talk

Markets At A Glance: Gold, Silver, Crude Oil

Victor Hatley — Tue, 30 Nov 2010 18:30:03 +0000

Speculation about the sovereign debt crisis in Europe has served to boost demands in precious metals and crude oil as a safe haven. The Euro is fell to a two month low against the dollar after the bailout for a Ireland did not ease concerns that the debt crisis could spread. Part of the sudden jump in prices could be attributed to the news that Chinese authorities have approved funds for investing in gold overseas. So far this year gold has gained over 25% touching a record $1424.30 an ounce on November 9.

Gold On The Uprise

February delivery gold futures rose $3.20 to $1367.50 per ounce on the Comex in New York by 2:00 PM yesterday. This is a contrast to the previous two sessions where the metal lost more than 1% of value. And while the Euro dipped, at least 1.3% against the dollar, gold priced in euros reached an all time high in June when Greece was looking for their bailout. Matt Zeman, a metal trader at Lasalle futures group, claims the gains may be limited, he says “a big head-and-shoulder top is forming on the daily chart, people are shying away from gold.”

Silver And Crude Oil Gains

More than 2% in profits were recorded yesterday for the price of crude oil, with the contract price of January delivery rising by $1.97 to $85.73 per barrel on the New York commodities exchange. This is the highest level the market has seen since November 11. Silver also made out pretty well after a weak start earlier this week, futures for march delivery ended higher by over 1.5%, going up to $27.19 per ounce yesterday.

Weak Markets Force Losses

Week equities and stronger rates at the Forex on the dollar has forced crude oil futures to take losses, as traders look for any kind of indication of a future demand in any of the market’s. Analysts are estimating that the resistance of the price of oil may suggest that the fundamental supply and demand can maintain the prresent level at an average of around $80.00 per barrel.

Market Reports: Starbucks vs. Kraft In Contract Dispute

Stephanie Robins — Tue, 30 Nov 2010 17:50:38 +0000

Kraft (Fortune 500: KFT) has announced that it will begin arbitration proceedings against Starbucks (Fortune 500:SBUX) after the Seattle based coffee company attempted to end a contract under which Kraft supplies prepackaged coffee to grocery stores.

Strabuck’s To Terminate Contract With Kraft.

The agreement began in 1998, when Starbucks generated less than $50 million annually. Starbucks accuses Kraft of failing to work with it on developing market strategies, which led to an “the erosion of brand equity.” In a statement released on Monday, Starbucks said “Kraft did not meet its responsibilities, Starbucks raised these issues with Kraft, but there was never any improvement in Kraft’s performance.”

The Claims

Kraft says its grown the grocery coffee business to about $500 million annually. “It is curious that they are now trying to get this business back for free,” said Marc Firestone, Kraft Chief Attorney, “In effect, Starbucks is trying to walk away from a 12-year strategic partnership, from which it has greatly benefited, without abiding by contractual conditions.” Kraft states termination of the distribution contract will force Starbucks to pay 35% over the value of the contract, which would amount to over $1.5 billion. This estimation is based on J.M. Smucker’s (NYSE:SJM) purchase of Folgers Coffee from Procter and Gamble (NYSE:PG) for $3.3 billion in 2008.

Kraft States Contract In Effect Indefinitely.

Maintaining that it’s contract with Starbucks remains in affect perpetually, Kraft says it does not dispute Starbuck’s right to take control of the coffee distribution, but that the contract calls for Kraft to receive adequate time to establish an orderly transition. Starbucks states publicly that it disagrees with Kraft, and that the contract was not perpetual. The Seattle based company stated that the contract was set to expire in 2014. Starbucks plans to take control of the business on March 1, 2011.

Unemployment Extension: Lame Ducks fight for Unemployment Extensions

William Finch — Tue, 30 Nov 2010 17:44:51 +0000

As the lame congress reconvened yesterday Democrats hoped Republicans would be more reasonable about unemployment extensions. The parties polarized yet again on Tuesday, at the expense of common sense or even common decency, when Republicans again stubbornly refused to pass the bill for unemployment insurance extensions. The price tag for these extensions is only $12.5 billion a tiny amount for the US government, yet it seems a matter of principle for both parties. Democrats can only hope that Republicans co-operate.

Job Creation Failing

There are no jobs, due to the failed policies of the Bush administration which took scores of millions of good paying industrial jobs out of the country, and gave them to workers in dozens of third world countries. Corporations were encouraged with tax breaks to do this, against the best interest of America. There were millions of jobs lost during the Bush Administration and seven million more since 2007.

Now there are no jobs and even college graduates cannot get a job flipping burgers or digging ditches. There simply are no jobs, and when there is a single opening, hundreds if not thousands of desperate people respond. In this environment the Republicans remain staunchly heartless, and apparently from the results of the last election, the majority of Americans have given them carte blanch to commit even more atrocities.

Wealthy Get Preferential Treatment

It seems clear that Democrats are the party that represent the best interest of 80%- 95% of the population while the Republicans represent only the greed of the top 2% which are billionaires avidly and tolerate the existence of the top 20% which they euphemistically dub the Middle Class. Meanwhile the average person is suffering tremendous financial stress. Republicans have waged war the poor and disenfranchised in America, and about sixty percent of us gave them permission to do so in the last election. It seems that a majority of Americans prefer a congress which does not act in their best interest, and protects wealthy people who have exported their jobs.

Republican Oppositionism

In addition, Republicans have been blocking progress and recovery for two years after the failed Bush administration, clinging to old ideas that do not work, and making sure new ideas are held up. With over 150 topics left hanging, the lame ducks will soon leave congress to the mean spirited Republicans. The three Democrat priorities for this week are Unemployment Extensions, adjusting income taxes for the lower 98% of Americans, and passing the START treaty with Russia. The Republican’s self admitted Agenda is blocking all progress and making Obama look bad so he will not be re-elected.

The country is digging itself out a bit and things are better, but no thanks to the Republicans. The GOP will not do anything to help the American People and are bent on destroying our country in the name of the GOP.

Healthcare Reform Bill: The Effects Of This Healthcare Reform

Jeffrey Paulsen — Tue, 30 Nov 2010 17:37:17 +0000

The astonishing victory began on March 21, 2010, when Congress finally passed the Health Care Reform Bill to make insurance more affordable for working families. President Obama and his cabinet members had been working since the beginning of his presidency in early 2009 to pass the reform bill. He says the reform bill is to benefit all working class Americans. However, there are politicians and news reports that says otherwise. President Obama says its purpose is to expand the government role in health care and to make the US health care more affordable for all Americans.

How This Will Affect Americans

According to a CNBC report the day after the bill passed, the current health care system that passed both chambers of Congress requires Americans to buy their health insurance similar to the way they buy auto insurance for their vehicles. The report also says the marketplace for private health sectors would expand as more Americans would have to purchase their health insurance in order to have good coverage. The finance for the new health care system will rely on high income Americans in the form of higher Medicare coverage costs, health insurance companies offering higher cost plans, manufacturers for medical advice and employers who don’t provide health insurance to their workers. However, President Obama has called for controlling the health care costs that he claims threatens to bankrupt businesses, families and government.

What It Means For Workers

Many Americans who get their health care benefits through their job will have to make a decision regarding their health care. According to a recent article published by the Washington Times, many experts and industry insiders expect the insurance rates to rise and for employers to shift more of the health care costs onto employees. This means employees would have to pay their employers for health care coverage.

Immigration Reform Arizona Lawmaker Hope For Volunteer Force

Victor Hatley — Tue, 30 Nov 2010 16:58:41 +0000

In spite of the fact that homeland security department officials have touted to military leaders of pentagon that they are highly impressed with the support from the almost 2000 troops that have been deployed to the border to give assistance to the DHS and Immigration and Customs Enforcement and Border Patrol Agents, Arizona Senator Jack Harper has plans on introducing legislation that will revive a 2007 bill that was vetoed by the then governor Janet Napolitano.

Similar To The 2007 Legislation That Was Vetoed

The bill that he is planning on introducing in December will be similar in form to a bill that was vetoed by then governor Janet Napolitano in 2007. If approved the bill would be enacted in two parts. The first part would be to establish the homeland security force that would be used for disasters with the possibility of boosting the border patrol. The boosting of the border patrol, this is considered to be the second phase, would be enacted if the Federal government draws down the 2000 National Guard troops that are assisting in the border patrol duties.

Is The Force Really Needed

The Senator envisions his volunteer force, as assisting the border patrol agents, in their duties, this in the event that the Federal government does withdraw their National Guard troops, or funding. But according to reports, the National Guard presence has been highly valuable. The number of illegal immigrants has dropped by more than 23% during the period from January until August. During this time drug seizures were up by 15% and weapons seizures were up by 30%. In spite of this increase in siezures, violence has Been on the rise in Mexico, but only some little has spilled into the U.S. Borders. Yet, even with these numbers further funding is doubtful. Official’s are stating the funding will run out sometime in the spring.

Bush Tax Cuts: Democrats Now Willing To Consider Compromise

Jeffrey Paulsen — Tue, 30 Nov 2010 13:32:08 +0000

Congressional Democrats are considering a new compromise on the extension of the controversial Bush era tax cuts, which are set to expire on December 31. Under the new plan, which has not been formally presented to Congress or the President, the Bush tax cuts would remain in place for households earning up to $1 million a year.

Political Gambit To Make GOP Show Cards

Democrats see the compromise measure as a way to force the GOP to take an unpopular stand defending millionaires.

Congressman Charles Schumer (D-NY) told the Washington Post, “There’s a strong view in the caucus that if we make the dividing line $1 million, it becomes a very simple argument: We are for giving the middle class a tax break; they’re for tax cuts for millionaires.”

Extending the Bush tax cuts another decade would cost around $70 billion dollars a year. Raising the threshold to $1 million earners would save around $30 billion a year over the next ten years.

Who Is Middle Class

While the compromise measure is being touted as a “tax cut for the middle class,” the question of, “who is middle class and who is rich?” has been central to the tax cut debate.

When initially introduced in 2001, the bulk of the Bush tax cuts benefited households making over $250,000 a year. As debate over tax cut extensions has intensified, some critics have pointed out that in many parts of the country, a person making $200,000 a year, or a household making $250,000 is middle class.

If the proposed compromise were enacted, it would mean only the richest 315,000 families would see a tax increase at the beginning of 2011.

GOP Leaders Voice Opposition

House Republicans immediately opposed the measure saying that raising taxes on anyone in the current economic climate would be disastrous.

Unemployment Extension: Will It Make It Through The Lame Duck Session

Janet Peterson — Tue, 30 Nov 2010 13:25:33 +0000

Most recently, an unemployment extension bill was introduced as of November 17, 2010. This bill was introduced by the House of Representatives and was created as a way to extend the deadline to file for federal unemployment benefits to February 28th. President Obama signed a bill extending federal unemployment benefits until November as recently as July 2010. This extension benefited the 2.3 million Americans who ran out of basic unemployment benefits. The recent federal unemployment extension for Americans expires on the 30th of November. The federal unemployment benefits is just emergency benefits for Americans who lost unemployment coverage due to the recession.

How The Bill Was Turned Down By Legislation

On November 26, 2010, the Unemployment Extension Bill was blocked by the House by a ratio vote of 258: 154. The bill needed to be passed by a 2/3s of the majority. House Republicans claimed that the spending on unemployment needs to start by cutting spending or savings elsewhere in the national budget. After the expiration of the current unemployment benefits program, millions of Americans will run out of their benefits and will have to find other ways to receive income.

The Effects It Will Have On Americans

According to a Washington Times report, the expiration for the unemployment extension bill set to take place on November 30th will affect the millions of Americans who have been out of work for six months or for more than six months. One the states hardest hit by the economic downturn is the state of Michigan. In a recent letter written to House speaker Nancy Pelosi by Michigan governor Jennifer Granholm, 336,000 Michigan residents receive federal unemployment benefits and 181,500 Michigan residents will have exhausted their unemployment benefits in five months. Democratic member of Congress, Dale Kidee, feels the next bill will be passed, but many people who work for the Michigan social services are not so convinced.

Financial Report: US Status in the Financial World Still On Top

Ashley Jones — Tue, 30 Nov 2010 13:15:49 +0000

Despite the recent economic downturn in both countries, the US and the UK still managed to take the top two spots in the Financial Development Report according to the World Economic Forum. The UK dropped to number two because of the low scores in financial stability. Both countries’ rankings were supported by the decline of scores in other countries. Other countries that improved their financial status were Singapore and Hong Kong; both came in third and fourth place.

Effects On Americans

Even though the United States still managed to be ranked as number one, the recession is still affecting millions of Americans. As of October 2010, unemployment in the US is at a staggering 9.6%, nearly reaching it’s record high percentage of 10.8% in 1982. However, payrolls increased by 151,000 after a 41,000 drop the following month according to the Department of Labor. Bloomberg economists predicted for the unemployment rate to stay at 9.6%. The wages also increased by 1.7% in October 2010 as so for October 2009. Studies also show that private hiring, excluding government agencies, increased over 159,000, which was the biggest gain for the economy since April. The survey showed the economists were only predicting an 80,000 gain.

Report In Other Industries

However, manufacturing industries decreased by 7,000 as of October 2010; the economists predicted a 5,000 gain. Employment in service providers increased by 146,000 since May 2010. Construction companies hired an additional 5,000 workers and retailers hired 27,900 workers. The average hourly earnings increased from $22.68 to $22.73 prior to October. However, government payrolls decreased 8,000, state and local governments reduced employment by 7,000 and federal government jobs cut approximately 1,000 jobs. There are new reports showing the US GDP (Gross Domestic Product) growing at 2.5%. Overall, the US economy grew at 2.5% because a lot of companies spent more.

Obama Recommends A Two Year Pay Freeze For Federal Employees

Stephanie Robins — Tue, 30 Nov 2010 12:50:04 +0000

President Obama has declared a freeze in pay for 1.9 million workers for the federal government. The plan is for the pay halt to be in place for two years, this is in response to Republicans who are concerned about the rising deficit. Polls show that 52 percent of Americans consider federal employees receive better wages.

Lowering The Deficit Will Require Sacrifice

The pay freeze would be the first one to occur in recent years. The last time a freeze was enacted was in 1986 for one year. Those who are employed by the government are also looking at a health insurance cost increase by 7.2 percent. Federal employees currently receive transit aid and that is going to be reduced by half at the first of the year. Making these changes to federal employees will only reduce the deficit by $2 billion.

Republicans Are To Blame

Republicans took up federal employee pay as an issue when they were campaigning this year. They are claiming that these employees are protected from the problems that employees employed by private companies are encountering. Republicans are also looking to reduce funding for retirement pay, lower bonuses and hire less workers. They are agreeing that Obama’s plan is a good place to begin reducing the deficit.

Federal Employees Earnings

Officials are disputing whether federal employees earn more than those employed by similar entities in the private division. Government administrators are claiming that the calculations are incorrect. President Obama has already halted pay increases for senior White House officials for the second year consecutive. Congress also voted to freeze their pay increase for 2011. Concerns have been expressed over the ability to attract new talent with funds on hold.

Cyber Monday At Amazon.com Is Full Of Amazing Deals

Victor Hatley — Mon, 29 Nov 2010 20:18:32 +0000

Promising to last until at least midnight the sale goes on, at least the Cyber Monday sale does. The best deals to be had on their website now can be had in their Cyber Monday Lightning Deals box, right on the front page. The deals in this box are categorized, and arranged as you wish, and the prices are low. But so is the supply. so if you secure a purchase in your cart, check out…someone can purchase it if you haven’t paid for it yet.

Their Deals Are Everywhere

They have been going since yesterday, and as I said they intend on having the lightning sales until midnight tonight. In the Lightning Deals you will find the merchandise changing every hour or so. But you don’t have to buy from the lightning Deals box to get a good deal. In all of their categories they have everything they advertise marked with some kind of discount, and many have free shipping. A trend that is becoming more popular with retailers, and buyers alike.

What Kind Of Deals

If you are looking for a laptop they have the Apple MacBook Pro 13.3-Inch Laptop for $1098, or a Toshiba Satellite 15.6-Inch LED Laptop for around $600, or a HP Mini 10.1-Inch Netbook on the low scale at 323.99.

Looking for a television? The Samsung LN26C350 26-Inch 720p 60 Hz LCD HDTV sells for only around $300, or a larger television is the TCL L40FHDF11TA 40-Inch 1080p 60 Hz LCD HDTV, this comes with a 2 year warranty and only runs $430.

Other Items Of Interest

They have musical instrument deals galore. They have every brand, type and size of guitar on a discount. And the amps they had are just as wide reaching, all types, guitar, bass, and P.A. The bass guitars were many, and the deals were great. I would listy a few, but you wouldn’t believe the prices I would print.