The Peanut Gallery

Statements, comments and forecasts that have no substance, but just might turn out to be relevant.

1.There has been some pretty bad economic news in the headlines lately. Housing is in the feared "double dip" with millions of foreclosures in the wings. Employment statistics are disappointing, consumer sales are stagnating, Washington is in a chaotic mood and unable even to agree on what time it is. Bill Gross and El-Erian, both of PIMCO, say there'll be QE3. So is Bernanke just going to sit and watch as the economy slips into the dreaded "double dip?"

2.The  past decade in wage growth of 4.2%, has been the worst ever -- worse even than the 5% growth rate from 1929 to 1939 during the Great Depression. The current rate is occurring while prices for consumer goods are rising. No wonder Americans are grumbling.

3.Diverging messages from the markets. The Peanut Gallery believes that all known news has been discounted by the marketplace. Markets look ahead, not backwards. Equity and commodity markets are still trending up, despite recent profit taking. The USD is still trending down. Conclusion: Stagflation. Markets to tread water, while at the same time whispering a prayer heavenwards to calm the waves.

4.The best kept secret in Washington! So well kept, that even Obama is unaware of it. TARP, QE1 and QE2 were never meant to create economic growth and jobs. These programs were put in place to avert a catastrophe of momentus proportions and slow the downward slide. Anybody who can read a balance sheet, would agree. Humanity can handle misery and hardship, not fear, panic or hunger.

5. Another peanut gallery principle: Government does not create jobs. They are created by large, medium and small business. The Robin Hood principle might sound good in theory, but only works in thriving economies. Doubtful if the present qualifies.

6.Osama BL might be fishfood, but Al Qaeda is not going away. AQAP - Al Qaeda on the Arabian Peninsula is alive and well. They now control two cities in Yemen. It is the nature of this beast, that wherever The US retreats, they will be there to replace them. The war on terror never ends.

7.In March 2010, Secretary of State Hillary Clinton let it be known that the United States no longer supported the British in the matter of the Falkland Islands, which have been British territory since 1833, and that "negotiations" with Argentina were in order. This administration makes a point of abandoning allies and appeasing crocodiles. Distateful.

8.Li Na became the first woman from the continent of Asia to win a grand slam event when she beat defending champion Francesca Schiavone 6-4 7-6 in the French Open final. The sixth seed from China lost her first major final at the Australian Open earlier this year but went one better against the Italian with a determined performance. Peanut gallery philosophy: Sport creates more flexibility and understanding than do politicians.

9.Anybody who still does not believe in global warming should ignore this. France has 58 nuclear power stations. They are expecting the warmest summer in their history. However, 24 of these stations do not have cooling towers and therefore will be offline as the temperature heats up. France imports electricity from  Germany, but Germany has decided to do away with nuclear power, immediately taking 40% of capacity offline. In 2003, the heat wave in France was exceptionally severe, with the minister of health issuing a report that about 15,000 people may have died as result of increased temperatures.

10.The root of California's woes is its reliance on taxing the wealthy. Nearly half of California's income taxes before the recession came from the top 1% of earners. High earners, it turns out, have especially volatile incomes -- their earnings fell by more than twice as much as the rest of the population's during the recession. When they crashed, they took California's finances down with them. New York, New Jersey, Connecticut and Illinois -- states that are the most heavily reliant on the taxes of the wealthy -- are now among those with the biggest budget holes. The peanut gallery believes the solution is a flat tax on all income.

It is the business of the future to be dangerous - Alfred North Whitehead