11.07.07 Dow Down 360

ECONOMY

GM Reports $39 Billion Loss on Deferred Tax Charge (Bloomberg). I chose the Bloomberg link because of their headline. If it wasn't so tragic, it would almost be funny. Without that charge, how would GM have done? Only a $16 billion dollar loss. Let's hope the old saying "As GM goes, so goes the country," still isn't true. Here's a link to the CNN Money article on GM's earnings report, which has more detail and is better than the Bloomberg article.
...From the perspective of middle class workers, and in this case anyone related to the automotive industry in this country directly or indirectly, there was more bad news in this report. GM pointed out that they earned $122 million in their overseas operations, but lost $247 million for the quarter in their U.S. based operations.
...I ran across a quote some time ago - I can't locate it now - by a GM executive who made the observation that GM was not really an American company anymore. He made the point that they were a multinational corporation that happened to be based in the U.S. The point was also made that capital is mobile, labor is not. In other words, grand times for multinational corporations who worship the bottom line, bad news for the workers in the countries who see their jobs going somewhere else.
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The Fed Digs Us A Deeper Hole, by Bill Fleckenstein (MSN Money). Excellent article by MSN's resident bear Bill Fleckenstein. Quote: "No shortage of ink was spilled last week about the Fed's quarter-point rate cut. Yet none of it acknowledged the big elephant in the room: Why in the hell was the central bank easing the federal funds rate with (1) the dollar at a new low, (2) oil at $90, (3) gold at $800, (4) virtually every commodity on the planet going wild and (5), despite government statistics to the contrary, inflation raging?"
...Another quote from the article: "Just to show you what a pathetic joke the Federal Reserve is, last week the Mexican central bank raised interest rates from 7.25% to 7.5% -- and the peso has been far stronger than the dollar lately."
...He also pointed out, as I did a few days ago, that if the government had not come up with that unbelievable 0.8% inflation number to use in their calculations that allowed them to say GDP grew 3.9%, their report would have been much different. For example, if they had used an inflation figure of 3.9% (If you ever have to buy groceries, fill your gas tank, or pay for utilities, you probably agree that number is low, right?), then GDP growth would have been ZERO.
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Quote by George Soros in his book Soros on Soros: "I cannot see the global system surviving. Political instability and financial instability are going to feed off each other in a self-reinforcing fashion. In my opinion, we have entered a period of global disintegration only we are not yet aware of it."
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Quote from William Greider in his book One World Ready Or Not: "The nation-state faces a crisis of relevance. What remains of its purpose and power if authority over domestic social standards is yielded to disinterested market forces?"
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...One of the themes of these blogs is that we have entered the last days before the return of Jesus Christ in His second coming. The pieces are falling into place politically, economically, and in the religious and social worlds. There are definite signs being fulfilled now that could never have been fulfilled at any other point in world history. Check my End Times Event blog for more on that. There are momentous events ahead.
...Are you ready to meet the Lord? Do you know where you will spend eternity? My father used to have a little wooden sign by the front door of our house that said, "Only one life, it will soon be past; only what's done for Christ will last."
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Borders: If you believe the government, then you certainly know that they are unable to stem the tide of illegal immigrants and illegal drugs into this country, but at the same time, they are somehow able to keep terrorists out. Right?
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