Sunday, December 25, 2005
Corporate America, the brokerage houses and especially the Republican majority and the President of our country present a constant paradox of conflicting statements. On the one hand the corporate and brokerage people are saying:
DOW MAY CLIMB ON MOUNTAINS OF CASH
In the Dow's favor, analysts point out that corporations are sitting on excess cash and are likely to spend some of it next year replacing old equipment. This forecast, if it comes true, may help nudge the Dow average of 30 large-capitalization industrial shares climb into positive territory for the year. In addition to watching to see whether the Dow finishes 2005 in the black, investors will stay tuned to see if the blue-chip average can cross the 11,000 milestone.
"There's all this money sitting out there, with individuals and corporations, plus from countries," Birkelbach said, referring to foreign governments looking for places to invest their piles of cash. "They're sitting there ready to buy into the market."
The President has consistently stated that money from tax cuts that, for the most part, benefit corporations and rich individuals, will trickle down. The brokers speak of "There's all this money sitting out there."
Private Pension plans for the workers are going down the tubes while corporate executives and boards are receiving record salaries and bonuses.
Bush is telling us that the economy is healthy while Ford and GM are stating they are laying off 60,000 workers between them.
The world market for the barrel oil cost has risen to new heights. We are told this is because of the “demand for the product in the world market.” Yet, national oil companies, themselves consumers of foreign oil, have seen their profits reach record heights.
Nevertheless, the Republican majority and the President of our country have managed to spend billions on the Iraq war and make the huge tax cuts for the most affluent while pushing the deficit to heights never seen even when adjusted for inflation.
And, all the time telling us what a wonderful job they’re doing.
It is a paradox we will never solve--except at the ballot box.
Terry D. Barhorst
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