Weekend Economists and the Denim Years June 7-9, 2013

[Demeter]

Sorry for the tardy thread...I was working, then dinner and admiring my sister's NEW PUPPIES!

She acquired two Scotties, 8.5 weeks old, brother and sister, last night. They are the most darling, cunning little things. They like everybody, including each other. Sis was only going for one, but she ended up with the set. They were meant to go together.

If she ever gets her camera photos on line, I will post. They don't have names yet...their daddy gets the honor. They are his reward for being such a good husband, son and brother in law, etc.

Now, back to our regularly scheduled topic:



DENIM! Whatever your age, whatever your economic class, whatever your educational level, you have denim (unless it's against the Amish dress code).


?w=490

Denim…Again?

http://tribeofmannequins.wordpress.com/2011/07/21/denim%E2%80%A6again/

Denim.

Ah, denim, denim, denim.

If you weren’t a fan of the 2010 denim trend (you couldn’t have missed it…Dungaree’s everywhere!), then you may not be a fan of 2011’s double denim.

This year had a lot of diversity with denim outlines with the return of the boot cut jean and the revisiting of the 70′s Boho Chic, think fringed bags and waistcoats. Although…Thinking in terms of celebu-tant, it never really left.

Here’s a list of Denim’s I’ve seen around lately, and next to the items I shall give my swift opinion; simply as a yes or no....

MANY EXAMPLES OF DENIM USE (GOOD OR BAD) AT LINK.

THIS BLOGGER WRITES LIKE IT'S NEW...IN 2011! BETCHA HER GRANDMOTHER WORE DENIM...UNLIKE MINE!

Denim sweatpants – I’m sorry, what? Denim sweatpants?? No!

[Demeter]

1. TWO BANKS DOWN; ONE WENT YESTERDAY!

1st Commerce Bank, North Las Vegas, Nevada, was closed THURSDAY by the Federal Deposit Insurance Corporation (FDIC). The FDIC Board of Directors issued an order authorizing the FDIC to close, and become receiver of, 1st Commerce Bank, by exercising its self-appointment powers granted by Congress through the FDIC Improvement Act of 1991 (FDICIA).

To protect depositors, the FDIC entered into a purchase and assumption agreement with Plaza Bank, Irvine, California, to assume all of the deposits of 1st Commerce Bank...The sole former office of 1st Commerce Bank will reopen on Friday as a branch of Plaza Bank during its normal business hours...

As of March 31, 2013, 1st Commerce Bank had approximately $20.2 million in total assets and $19.6 million in total deposits. In addition to assuming all of the deposits of the failed bank, Plaza Bank agreed to purchase essentially all of the failed bank's assets.

The FDIC and Plaza Bank entered into a loss-share transaction on $12.2 million of 1st Commerce Bank's assets...The FDIC estimates that cost to the Deposit Insurance Fund will be $9.4 million. Compared to other alternatives, Plaza Bank's acquisition was the least costly resolution for the FDIC's DIF. 1st Commerce Bank is the 15th FDIC-insured institution to fail in the nation this year, and the first in Nevada. The last FDIC-insured institution closed in the state was Nevada Commerce Bank, Las Vegas, on April 8, 2011.




Mountain National Bank, Sevierville, Tennessee, was closed today by the Office of the Comptroller of the Currency, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with First Tennessee Bank, National Association, Memphis, Tennessee, to assume all of the deposits of Mountain National Bank.

The 12 former branches of Mountain National Bank will reopen as branches of First Tennessee Bank, National Association during their normal business hours...As of March 31, 2013, Mountain National Bank had approximately $437.3 million in total assets and $373.4 million in total deposits. In addition to assuming all of the deposits of the failed bank, First Tennessee Bank, National Association agreed to purchase essentially all of the failed bank's assets...

The FDIC estimates that cost to the Deposit Insurance Fund will be $33.5 million. Compared to other alternatives, First Tennessee Bank, National Association's acquisition was the least costly resolution for the FDIC's DIF. Mountain National Bank is the 16th FDIC-insured institution to fail in the nation this year, and the first in Tennessee. The last FDIC-insured institution closed in the state was The Farmers Bank of Lynchburg, on June 15, 2012.

[Demeter]

2. Denim From Wikipedia

Denim (which gets its name from the French for "from Nîmes" (de Nîmes)) is a rugged cotton twill textile, in which the weft passes under two (twi- "double&quot or more warp threads. This twill weaving produces the familiar diagonal ribbing of the fabric, which distinguishes denim from cotton duck.


A high-resolution image of black denim.

It is characteristic of any indigo denim that only the warp threads are dyed, whereas the weft threads remain plain white. As a result of the warp-faced twill weaving, one side of the fabric shows the blue warp threads, the other side shows the white weft threads. This is why jeans are white on the inside and what makes denim's fading characteristics unique compared to every other fabric.

Origin

The word 'denim' comes from the name of a sturdy fabric called serge, originally made in Nîmes, France, by the André family. Originally called Serge de Nîmes, the name was soon shortened to denim. Denim has been used in America since the late 18th century.



Dry denim can be identified by its lack of a wash, or "fade". It typically starts out as the dark blue color pictured here.

Denim was traditionally colored blue with indigo dye to make blue "jeans", though "jean" then denoted a different, lighter cotton textile; the contemporary use of jean comes from the French word for Genoa, Italy (Gênes), where the first denim trousers were made.

Worldwide market

In 2007, the worldwide denim market equalled USD 51.6 billion, with demand growing by 5% and supply growing by 8% annually.

Over 50% of denim is produced in Asia, specifically China, India, and Bangladesh. The following table shows where the world's denim mills are located.

Region No. of Denim Mills

Asia (China)----------------------297
Asia (other countries)-------------104
North America-----------------------9
Europe-----------------------------41
Latin America-----------------------46
Africa------------------------------15
Australia-----------------------------1

____________________________________
Total Denim Mills (World-wide)------513

[Warpy]

3. I'm at the advanced age when kids start to look at me funny

for living in jeans but fuck 'em running, there is no other fabric currently available that holds its shape and survives multiple washings, no matter how much money you have to spend on it.

Everything else is blended with plastic and has a short life because of it, bagging at knees and elbows, fraying and pilling, and generally looking like shabby thrift shop junk in a bad 'hood within three months of purchase. It is also sauna like in summer, dissolving even the sweetest flowers of southern womanhood into puddles of "dew" within half an hour of putting it on.

Now they're trying to put plastic into Denim! Sacrilege! Nothing is sacred to these corporate bastards!

Since denim is now under attack, it's a very timely theme for this weekend's economic post. It exemplifies the urge of bloodless bean counters everywhere to cheapen a product and to take one that works beautifully and try to make it barely work, at all.

[bread_and_roses]

17. EXACTLY SO!

Caps because I so emphatically agree with every word you wrote. Plastic/polyester crap - and they want to charge like $50 for some blouse/shirt made out of it - or an ordinary sweater - that will be worthless after a few washings. Not to mention that the arms are too short, the armholes either gape or bind, the seams are badly set, and the buttons fall off.

And as you say, wearing petroleum clothing in the summer is like living in a sauna. I have something wrong with my "thermostat" and can't endure heat - if I wore polyester in the summer I'd faint.

This is partly why I buy nearly everything at thrift stores - and it's often "vintage" - because I can natural fibers and garments made in the days when clothes were produced by union workers who knew what they were doing.

[Demeter]

4. Have at it, Weekenders!

I am crashing, because we didn't get the puppies home until midnight, and I worked extra today (and played with puppies instead of catching up on my sleep). I will return after some shut-eye. Maybe I can curl up with a little bitty puppy.

My cats are royally pissed off, by the way. The downstairs cat is guarding her food dishes. The upstairs cat is disappeared into the cold air vent. Maybe by Christmas they will have forgiven me.

[DemReadingDU]

12. We have another dog, that makes 4!

Two weeks ago, son brings over the grandkids who are holding a 2.5 month beagle puppy. She is adorable, kids named her Cupcake.

But then I get a call from soon to be ex-daughter-in-law. Basically she says kids cannot keep the puppy, she would take it do the dog pound

So we are fostering this puppy and getting it trained until son's divorce is finalized. Thankfully, she is getting along with the other 3 older dogs. It's like a dog party every day!

[Fuddnik]

5. JPMorgan Chase lays off 435 workers in Tampa

JPMorgan Chase lays off 435 workers in Tampa

Jeff HarringtonJeff Harrington, Times Staff Writer

Friday, June 7, 2013 5:41pm

In a bitter dose of economic irony, an improving housing market is triggering 435 job cuts at JPMorgan Chase's Tampa offices.

The cuts in the megabank's mortgage banking unit, effective Sept. 4, were outlined in a Worker Adjustment and Retraining Notification notice filed with the state Friday.

Earlier this year, the bank said it planned to cut 12,000 jobs nationwide in its mortgage unit by the end of 2014 as demand waned for mortgage modifications and other homeowner aid. Florida still has one of the highest foreclosure rates in the country, but a rise in home prices and declining unemployment has helped stabilize the once-traumatized housing front

Similarly, JPMorgan Chase is shuttering a call center in Albion, N.Y., that assists struggling homeowners, a closing affecting more than 400 employees.

"Fewer homeowners are falling behind on their mortgages, so we need fewer employees to assist those who were struggling," said Amy Bonitatibus, a spokesman representing the New York bank's mortgage operation. "This shift is good for homeowners and the economy overall."

Bonitatibus said the cuts will be mitigated because the company has about 300 openings at its credit card and auto units in Tampa.

(snip)
http://www.tampabay.com/news/business/banking/jpmorgan-chase-lays-of-435-workers-in-tampa/2125493

[hamerfan]

6. Musical Interlude

Bell Bottom Blues by Eric Clapton:

[Demeter]

7. Thanks, hamerfan!

I am always amazed at your ability to find songs for the themes.

[Demeter]

8. Warning: ‘Prepare’ for Commodity Supercycle End

http://www.cnbc.com/id/100779278

With multiple investment banks signposting the end of the commodity supercycle, a World Bank director has warned developing countries that have benefited from the surge to protect themselves against a price crash. Marcelo Giugale, the World Bank's director of economic policy and poverty reduction programs for Africa, told CNBC that states which have gained from the commodity boom should prepare for a slump.

"We don't want another wasted opportunity," he said. "This time around, things should be done differently. The material bonanza has the potential to become a human bonanza – whereby the standard of living for many people across these developing countries can be raised."

The high prices of commodities, such as industrial metals and oil, have boosted the revenues of countries rich in these resources. But notoriously volatile commodity markets have had catastrophic consequence for countries in the past. The so-called Commodity Crisis of the 1980s saw countries in Latin America and Africa battle financial, social and political instability, following rapid, commodity-driven expansions. Economists describe the apparent pattern in these price booms and busts as the commodity supercycle, with decades of rising prices followed by a crash. Last year, Columbia University's Bilge Erten argued there have been three complete supercycles of between 30 and 40 years: the first peaking in 1917, the second in 1951 and the third in 1973. We are in the midst of the fourth cycle, she said, which began at the start of the century and is driven primarily by the industrialization of China.

"It is not clear how long this cycle is going to be," Erten told CNBC. "Overall, we found that supercycles have between 15 and 20 years of expansion. We've had about 10 years of expansion since 2000 so we have maybe five more years to go if this cycle fits the pattern of previous ones."

MORE

[Demeter]

9. PIMCO braces for euro zone debt writedowns as revival disappoints

http://in.reuters.com/article/2013/05/31/pimco-braces-for-euro-zone-debt-writedow-idINDEE94U0B720130531

PIMCO, the world's largest bonds house, is weighing up a fresh sell-off in "expensive" euro zone debt, fearing policymakers could ask investors to forgive more sovereign debt. Sketching out a three- to five-year investment outlook this week, managers at the $2 trillion fund firm said they believed the European Central Bank was reviewing its Fairy Godmother role in money markets after months of stubborn recession, a switch PIMCO says could herald painful losses for complacent investors.

"Investors and financial markets are very confident that the ECB, in extremis, will be the lender of last resort, that they won't let things fall apart. We are less so," Andrew Balls, head of the firm's European portfolio management said.

"We think the ECB is likely to swing between periods of 'whatever it takes' activism and periods of refusal to act."

Reflecting this caution, PIMCO has steadily reversed small overweight positions on Spanish and Italian government debt in most of its accounts since March. The firm is now broadly underweight on euro zone sovereigns, euro zone credit and the European banking sector and is recommending gradual movement into assets with 'real' returns, including inflation-linked bonds, commodities, real estate and emerging market currencies. While it sees little chance of a big bond market exodus in the near term, PIMCO said this strategic change should help to protect portfolios against the feeble 0.5 percent annual economic growth it expects in the euro zone over the next three to five years.

Investors have gorged on euro zone risk assets ever since ECB Chief Mario Draghi made his vow last summer to defend the euro concept, sending stocks soaring and driving down yields on bonds once shunned by all but the bravest of buyers. But PIMCO is preparing for more 'tough love' policies from Frankfurt, including more defaults and debt haircuts, as it becomes clearer that record low interest rates and the billions of euros of cheap cash the ECB has pumped into the system have failed to shock-proof banks or spur growth.

"You can see why the ECB might be forced to act in this way. Ever since the Draghi pledge, you've seen very limited progress on the various reforms Europeans were meant to make. The notion that the ECB will be a very certain, predictable stabiliser is possible but remains untested," he said.

The surprising calm in which markets greeted Italy's election and the Cypriot financial meltdown has given the ECB greater freedom to experiment with these more aggressive and less investor-friendly measures, Balls argued. While most competitors have read the fall in contagion risk as a buying signal for euro zone sovereign debt, PIMCO believes the probability of large debt restructurings in the medium term is actually increasing. Pension funds and other institutional investors have slashed cross-border holdings in favour of domestic government debt since the most acute phase of the crisis, meaning that any haircut would be a more country-specific issue than a sweeping systemic event capable of fracturing the monetary union.

"We thought Cyprus was a pretty big event but the markets looked through it," Balls said. "If you are prepared to sign off haircuts on insured depositors in Cyprus, then it makes us think that everything is on the table."

[kickysnana]

10. If you had puppies, why no pictures?

(I have yet to post a picture to my computer/internet from my smart phone but some day.)

[Demeter]

21. I have no camera

and they aren't my puppies...they will be going home next week. I'm hoping Sis will send me a photo and I can post it.

[kickysnana]

25. At last, a reason to live out the next week.

[Demeter]

11. AMEN, SISTER!

[xchrom]

13. Chinese Trade Numbers Come In Massively Below Forecasts

http://www.businessinsider.com/chinese-trade-numbers-come-in-massively-below-forecasts-2013-6



China on Saturday reported a sharp slowdown in exports in May compared to the previous month while imports unexpectedly dropped, as the world's second largest economy grapples with slowing growth and sluggish overseas demand.

Overseas shipments rose just one percent to $182.8 billion last month, far lower than 14.7 percent recorded in April, customs authorities said in a statement.

It also missed a medium forecast of 5.6 percent expansion in a Dow Jones Newswires' poll of economists.

Imports dropped 0.3 percent to $162.3 billion, said the statement, down from a rise of 16.8 percent in April and well below the economists' median forecast of a five percent increase.



***expressions of 'SURPRISE' are expected later.

Read more: http://www.businessinsider.com/chinese-trade-numbers-come-in-massively-below-forecasts-2013-6#ixzz2Vd9D42uT

[xchrom]

14. Wet And Dry {iran and alcohol}

http://www.businessinsider.com/irans-armenians-home-brew-arak-2013-6


Arak with water and ice.

It's enough to drive you to cheaper forms of drink

THE middle-class northern suburbs of Tehran are the wet part of Iran. In no other place in the Islamic Republic are piety and conservatism less evident and alcohol consumption more so. But a run on the rial throughout 2012, set off largely by international sanctions on Iran's banking and oil, has made imported alcohol too expensive even for the better-off.
Absolut Vodka, long a favourite tipple, now changes hands for three times more than it did before the currency began to slide at the start of last year.

This has been a boon for Iran's Armenian bootleggers, who distil arak, a cheap and heady moonshine, from raisins. Posh drinkers of the better brands of whisky and brandy, who would previously have been snooty about arak, are now turning to it, because its price has stayed fairly stable at around 100,000 rials (less than $3) a litre. "Business is great right now," says an arak dealer. "Many of my Armenian friends have left for America but they all now say business is better here."

Alcohol is strictly prohibited for Muslims in Iran. Repeat offenders can even face the death penalty. But Iran's Armenians, who are Christian, are allowed to quaff booze, though those caught selling it in large amounts are regularly thrown into prison.


Read more: http://www.businessinsider.com/irans-armenians-home-brew-arak-2013-6#ixzz2VdAgA55Q

[xchrom]

15. The May Jobs Report Contains Warning Signs That The Economy Is Stalling

http://www.businessinsider.com/the-may-jobs-report-contains-warning-signs-that-the-economy-is-stalling-2013-6



***SNIP

As always for me, after the headline the next thing I want to do is look at the more leading numbers in the report which tell us about where the economy is likely to be a few months from now. This was generally good, but mainly in that April's bad numbers were reversed, putting us back a March levels:

temporary jobs - a leading indicator for jobs overall - increased by 25,600.

manufacturing jobs declined -8,000. This is the third month in a row of manufacturing job losses, and is a red flag
the number of people unemployed for 5 weeks or less - a better leading indicator than initial jobless claims - rose 232,000. This places it back in the caution zone nearly 300,000 off its lows.

the average manufacturing workweek rose +0.1 hour from 40.8 hours to 40.7 hours. This is one of the 10 components of the LEI and will affect that number positively.

construction jobs gained 7000.


Read more: http://bonddad.blogspot.com/2013/06/may-employment-mixed-report-that-isnt.html#ixzz2VdBVtR2E

[xchrom]

16. Chinese Trade Growth Collapsed Because The Old Numbers Were A Sham

http://www.businessinsider.com/chinese-trade-growth-collapsed-because-the-old-numbers-were-a-sham-2013-6



No. Basically the old numbers were a sham.

From BofA/ML's Weijan Hu, Ting Lu:

In “The secrets of arbitrage and China’s inflated trade data” published on 10 May, we argued that “export growth in Jan-April 2013 was just around 5.0%, a far cry from the headline growth at 17.3%.” Export growth in May confirms our estimates that China’s “true” export growth so far this year could just be lower single digit. In that report, we list three evidences for inflated export growth caused by hot money inflows: exports to HK, exports to bonded area and exports of high unit-value goods such as IC products. In May, all of them slowed down sharply, suggesting these usual channels for hot money inflows were hit heavily by the regulatory storm in May. Export growth to HK slumped to 7.7% yoy from 57.2% in April. Export growth to bonded area and IC products also dropped to 45.8% and 99.0% yoy from 249.4% and 286.8%, respectively.

Basically, there's a lot of faux trade that happens, solely for the purpose of companies getting outside cash into the country, circumventing capital controls, which are designed to prevent a flood of money. One way companies have been gaming the system is by "exporting" to Hong Kong. These exports aren't real trade, just efforts to move goods offshore and move cash onshore. So China is cracking down on that, either the practice, or the inclusion in the statistics. So the numbers are unimpressive, but not indicative of total collapse.


Read more: http://www.businessinsider.com/chinese-trade-growth-collapsed-because-the-old-numbers-were-a-sham-2013-6#ixzz2VdCMQck1

[bread_and_roses]

18. Why union leaders should wear denim

I have this running battle with my brother - who's also union staff. I say that when we wear suits and ties - or suits and heels if we're women - we're dressing like the enemy and validating the world-view that only the "suits" matter - the labor is lesser, not to be respected, somehow even embarrassing.

He's a good trade unionist, but thinks I'm crazy.

[Demeter]

19. Dry denim

Dry or raw denim, as opposed to washed denim, is a denim fabric that is not washed after being dyed during its production. Over time, denim will generally fade, which is often considered desirable. During the process of wear, it is typical to see fading on areas that generally receive the most stress, which includes the upper thighs (whiskers), the ankles (stacks) and behind the knees (honey combs).

After being crafted into an article of clothing, most denim is washed to make it softer and to reduce or eliminate shrinkage, which could cause an item to not fit after the owner washes it. In addition to being washed, non-dry denim is sometimes artificially "distressed" to produce a worn look.

Much of the appeal of factory distressed denim is that it looks similar to dry denim that has, with time, faded. With dry denim, however, such fading is affected by the body of the person who wears the jeans and the activities of his/her daily life. This creates what many enthusiasts feel to be a more natural, unique look than distressed denim.

To facilitate the natural distressing process, some wearers of dry denim will often abstain from washing their jeans for more than six months, though it is not a necessity for fading.

[Demeter]

20. Selvedge denim

Selvedge denim (alternative spelling: selvage denim) is a type of denim which forms a clean natural edge that does not unravel.[citation needed] It is commonly presented in the unwashed or raw state. Typically, the selvedge edges will be located along the out-seam of the trousers, making it visible when cuffs are worn.

The word "selvedge" comes from the phrase "self-edge", the natural edge of a roll of fabric. As applied to denim, it means that which is made on old-style shuttle looms. These looms weave fabric with one continuous cross thread (the weft) that is passed back and forth all the way down the length of the bolt. As the weft loops back into the edge of the denim it creates this “self-edge” or selvedge. Selvedge is desirable because the edge cannot fray like denim made on a projectile loom that has separate wefts, which leave an open edge that must be stitched. This advantage is only realized on one edge of the fabric, however, as the fabric has to be cut to shape and anywhere it is cut the self-edge is lost.

Shuttle looms weave a narrower piece of fabric, and thus a longer piece of fabric is required to make a pair of jeans (approximately 3 yards). To maximize yield, traditional jean makers use the fabric all the way to the selvedge edge.[citation needed] When the cuff is turned up, the two selvedge edges (where the denim is sewn together) can be seen. The selvedge edge is usually woven with a coloured stripe: green, white, brown, yellow, and (most commonly) red. Fabric mills used these colours to differentiate between fabrics. Contrary to popular belief, the stripe is not sewn in finishing the product, but woven into the fabric itself.

Most selvedge jeans today are dyed with synthetic indigo, but natural indigo dye is available in some denim labels. Though they are supposed to have the same chemical make-up, there are more impurities in the natural indigo dye. Loop dying machines feed a rope of cotton yarn through vats of indigo dye and then back out. The dye is allowed to oxidize before the next dip. Multiple dips create a dark indigo blue.

In response to increased demand for jeans in the 1950s, American denim manufacturers replaced the old shuttle style looms with modern projectile looms. The new looms produced fabric faster and wider (60 inches or wider). Synthetic dying techniques along with post-dye treatments were introduced to control shrink and twist.

[Fuddnik]

22. The end must be near again.

I'm hearing all kinds of commercials on the radio on how to become wealthy flipping houses. Again.

And as I was flipping through a few channels before I went to bed, more infomercials on house flipping.

Like than man said a few years ago, "When your barber is talking about stocks, and giving advice, it's time to run".

[hamerfan]

23. Musical Interlude II

Tight Fitting Jeans by Conway Twitty:

[hamerfan]

24. Musical Interlude III

Blue Jean Blues by ZZ Top:

[Demeter]

26. Puppies are a lot of work, even as house guests

I ended up sleeping the afternoon away. The rest of the time I was cooking or working.

Hence, very little posting.


Tomorrow, the City is sponsoring a marathon, which will interfere with most of my Sunday paper route. I have to try to get it done before they close streets at 7:30 in the morning. It is insane.

If I survive, and finish, I'll be able to post some. If not, who knows? They won't open the streets until noon.

It must be nice to be able to goof off for a day like that. Someday, maybe I'll get the chance to find out. Or better yet, maybe I can mess up other people's lives by arbitrarily inflicting inconvenience on them, trapping them in their driveways for hours on end....

[xchrom]

27. Urgency on debt fades with big issues unsolved

http://www.washingtonpost.com/business/economy/urgency-on-debt-issue-fades-but-underlying-danger-remains/2013/06/07/4b83350e-cf85-11e2-8845-d970ccb04497_story.html

After two years of harrowing confrontations in Washington, the national debt is no longer growing out of control and policymakers from President Obama to House Speaker John A. Boehner (R-Ohio) have rushed to take credit.

But nearly half the improvement forecast for the coming decade is due to factors unrelated to the budget battles, including lower-than-expected health-care costs and a recovering economy, according to a Washington Post analysis of congressional budget data.


The brighter budgetary outlook is recasting the political debate. A growing chorus of Democrats is urging policymakers to declare victory and move on, leaving deficit hawks to plead for them to focus on an unfinished job.

Legislation passed since Republicans took control of the House in 2011 should generate significant savings this year and through the rest of the decade, the data show. But much of it will not materialize unless policymakers adhere to caps on agency spending — including a layer of sharp cuts known as the sequester — that people in both parties view as unrealistic.

[xchrom]

28. The jobs report was pretty solid. So why aren’t wages rising?

http://www.washingtonpost.com/blogs/wonkblog/wp/2013/06/07/the-jobs-report-was-pretty-solid-so-why-arent-wages-rising/

The nice thing about the latest jobs number is how very normal they seem.

The nation added 175,000 jobs in May, which is right on track with the trend over the past year (average monthly jobs gained: 172,000). The May job gains were a bit better than expected, but that was offset precisely by revisions to previous months that subtracted from earlier reported gains. The jobs report giveth and the jobs report taketh away.



The unemployment rate, meanwhile, ticked up to 7.6 percent, but that was mainly for a good reason: More than 400,000 people joined the labor force, and there weren’t enough new jobs to accommodate all those new entrants.

These are all subtle details, though. This is the big point to take away: Whatever you thought about the U.S. economy Thursday, the same should be true Friday. Nothing in this should radically reshape anyone’s theory of how the economy is doing. And that is good news.

After more than five years on an economic roller coaster, what we need is steady, month-after-month gains in jobs that over time repair the broken U.S. labor market. It would be great if it were faster. But the most important thing is that it is continuing. If it keeps continuing for a few more years, we’ll make it out of our economic doldrums; a decade later than we might have hoped, but it beats the alternative. Just ask Spain.


***i guess we can all go back to sleep, now.

[xchrom]

29. MAULDIN: I'm So Sure Japan Is Screwed That I'm Converting My Mortgage Into Yen

http://www.businessinsider.com/mauldin-mortgage-in-yen-2013-6



Banzai! Banzai! Banzai!

I shot an Arrow into the air

It fell to earth I know not where….
- Henry Wadsworth Longfellow

As kids, not knowing that we were being politically incorrect on so many levels, we would shout “Geronimo!” when we were playing war or getting ready to do something reckless. (For those not familiar, Geronimo was a rather fearsome Apache chief who plagued Mexico and the American cavalry.) Sam Houston and his fellows cried, “Remember the Alamo!” as they rode down upon Santa Ana at San Jacinto. The British went to battle with “God Save the Queen [or King]!” Confederate soldiers took up the rebel yell as they charged live bullets and fixed bayonets. Every good war movie has its own memorable moment of the battle charge.

In Japan, the term Banzai! literally means “ten thousand years” and can be used to wish someone long life and happiness. But during World War II, “Banzai!” was shouted in battle. It was the Japanese equivalent of "Long live the king!" – but to soldiers on the other side it came to mean a suicidal, hell-for-leather attack.

If the central bankers of the world think they're hearing a battle cry of “Banzai!” from the lips of their Japanese brethren, they may not be far from wrong, because the Japanese are indeed on a mad charge to fight deflation at all costs. As with all good suicidal charges, at least in legend and lore, once the cry has gone up and the thundering charge has begun, there can be no turning back.
For the last three weeks, I have been making what I personally think is a rather strong case that the Japanese have embarked on what may be simultaneously the most outrageous, intriguing, and desperate monetary policy experiment by a major economic power in history. (Those letters are here, here, and here). The Japanese are rapidly coming to their own Endgame, the end of their ability to borrow money at interest rates that are economically rational. If interest rates on Japanese bonds rise to a mere 2.2%, 80% of tax revenues will go just to pay the interest on their debt. At a 245% debt-to-GDP ratio, they are in desperate straits, and they know it. And desperate times call for desp erate measures.


Read more: http://www.businessinsider.com/mauldin-mortgage-in-yen-2013-6#ixzz2Vj9QG2xH

[xchrom]

30. French President Says The Euro Crisis Is 'Over'

http://www.businessinsider.com/french-president-says-the-euro-crisis-is-over-2013-6



The eurozone crisis is over, French president Francois Hollande said as he sought to reassure Asian investors on a visit to Japan.

"What you need to understand here in Japan is that the crisis in Europe is over," he said. "And that we can work together, France and Japan, to open new doors for economic progress."

Europe needs to put more emphasis on taking steps to promote growth and competitiveness "so that we can have a better presence in the world", he added.

Mr Hollande, the socialist leader who ousted Nicolas Sarkozy, is not the first European politician leader to declare an end to the crisis. Last year the Spanish prime minister Mariano Rajoy said that "the worst has passed" for the euro .


Read more: http://www.businessinsider.com/french-president-says-the-euro-crisis-is-over-2013-6#ixzz2VjACvoL4

***so, have we jailed the banksters and hedge fund managers and fired the incompetent economists?

[AnneD]

37. When a politician tell me something is over.....

it's time to hit the deck due to incoming.

[xchrom]

31. Japan's Abe Announces A Plan For A Big Tax Cut

http://www.businessinsider.com/japans-abe-unveils-tax-cut-plan-2013-6



TOKYO (Reuters) - Japanese Prime Minister Shinzo Abe said on Sunday the government would decide on tax cuts in autumn to encourage companies to boost capital expenditure as part of sweeping reforms to revive the economy from nearly two decades of stagnation.

The government will also work on legislation to scrap regulations hampering corporate research and investment and secure passage in parliament in autumn, he said.

"We'd like to decide on bold tax cuts for capital expenditure in autumn," Abe told public broadcaster NHK.

The measures will add to a series of steps the government unveiled in a draft of its growth strategy last week, such as setting up special economic zones to attract foreign business and raising incomes by 3 percent annually.


Read more: http://www.businessinsider.com/7e072a7731b70a709d5fa894acdd1019#ixzz2VjC8g4Al

[xchrom]

32. The Reason Gas Is So Expensive Is Because Of America's Crappy Railroads

http://www.businessinsider.com/why-gas-prices-are-so-high-2013-6

Given increasingly abundant supplies of natural gas and crude in the U.S., some consumers scratch their heads at the sight of high gas prices, which aren't expected to sink much as the summer season gets under way.

Yet some observers point a finger at inefficiencies in the U.S. transportation system, which forces oil companies to rely heavily on heavy transport to move crude supplies. Crude pipelines – such as the hotly debated Keystone XL that's now mired in Washington politics – could transport fuel more rapidly and at lower cost, some argue.

Better methods of transportation are needed "to move the commodities from where they are to where they aren't," said Joe Petrowski, Gulf Oil's CEO, in an interview on CNBC's "Squawk Box" this week.


Read more: http://www.cnbc.com/id/100795763#ixzz2VjCu2prR

[hamerfan]

33. Musical Interlude IV

Forever In Blue Jeans by Neil Diamond:

[Tansy_Gold]

34. Welcome home: 'Made in USA' on the rise

Thanks to LeftCoast 2020 who posted this in LBN http://www.democraticunderground.com/1014504357 :




http://www.nbcnews.com/business/welcome-home-made-usa-rise-6C10225157



Thompson Tee: Made in the USA
California entrepreneur Billy Thompson is another manufacturing innovator. In 2010, during the depths of the recession, Thompson began tinkering with layers of cooling fibers that eventually yielded sweat-proof shirts for men. Thompson Tee wants to expand—and remain on U.S. soil. But potential angel investors have requested that production move offshore.

Thompson has politely declined their money. He's instead turned to crowdfunding site Indiegogo to raise $25,000 in public donations to launch an undershirt company that will stay in America. Most men's undershirts are made overseas.

Many entrepreneurs, in fact, are mining crowdfunding to help manufacture American-made goods. A scan of the crowdfunding site Kickstarter yields start-ups making everything from apparel to bottle openers—many with prominent "Made in USA" messaging.




Much more at link, a very interesting article.

[bread_and_roses]

36. some denim, at least, still manufactured in US

White Oak Denim http://www.conedenim.com/white_oak.html

Still true to its heritage, the White Oak plant in Greensboro, NC, operates today as the denim flagship operation, serving as the center for product development and innovation, and the production of Cone Denim’s authentic premium vintage denims made exclusively in the USA.

Of course, it's "about us" page also mentions its other manufacture in other countries - I guess those are not labeled "authentic premium vintage?"

Our global platforms include denim operations in the United States, Mexico and China. Cone Denim is focused on effectively serving the worldwide market with quality products and superior service

[xchrom]

35. China rolls out dollar diplomacy in the Caribbean

http://elpais.com/elpais/2013/06/03/inenglish/1370274573_030447.html

Chinese President Xi Jinping began a long-awaited trip to Latin America and the Caribbean on Friday to establish stronger political ties and influence in the region, and speak with leaders about increasing trade with the Asian giant.

It was the first visit by a Chinese head of state to the English-speaking Caribbean, and the first by Xi to the region. His first stop was in Trinidad and Tobago where he met with leaders of the Caribbean island nations that have no formal diplomatic ties with Taiwan or Tibet as independent states.

“The people of China will never forget that Trinidad and Tobago gave its vote in favor of the welcoming back of the People’s Republic of China to the United Nations in 1971,” said Xi as he met with reporters at Port of Spain during his first stop.

Xi’s visit comes one week after US Vice President Joe Biden met with Caribbean Community (Caricom) leaders in Port of Spain