[Posted 6:00 AM ET…Rapid City, S.D.]
The Election and Foreign Policy
The White House hopes voters think about the economy far more
than the situation in Iraq as they go to the polls on Tuesday.
Certainly Friday’s report that the unemployment rate had hit a 5-
year low of 4.4% gave the Bush administration and Republican
congressional candidates something to crow about these last 48-
72 hours. But after traveling over 2,000 miles and through parts
of six states the past two weeks, I’m not so sure voters are
actually doing so well as the numbers offer and thus they may
select candidates depending on their feeling about the war in
Iraq, or, in the case of the electorate in South Dakota or Missouri,
social issues such as abortion and stem cell research.
But this column has always been about foreign affairs and hot
spots, as much as stocks and finance, because the former from
time to time can have a debilitating impact on the latter. It’s
often all about confidence, or lack thereof, and since few cover
the foreign beat like I do, week in and week out, let me offer that
the Democrats have missed a huge opportunity on this front.
Let me remind you that after the 2004 presidential race, we had
basically six hot spots…the axis of evil (Iran, Iraq and North
Korea), Afghanistan, the Israeli-Palestinian issue, and China.
Today? Try eight, leaving out the likes of Pakistan, Syria and
Venezuela.
Iraq, Iran, North Korea, Afghanistan, China, Palestine, Lebanon
and Russia.
How did this happen? Whose fault is it? Look no further than
1600 Pennsylvania Ave.
Let’s give the White House grades on each.
Iraq: “F”. And what did we hear this week? President Bush
reassured us he has “a plan for success.” Then he told us
Secretary of Defense Donald Rumsfeld, the architect of the
disaster, was staying (as was Vice President Cheney, though no
one thought Cheney would be shown the door at this stage).
From Iraq itself we had a joint statement between Prime Minister
al-Maliki and President Bush that began thusly, “As leaders of
two great countries….” I need not go further with that one,
unless you’re nuts and think Iraq is great. Maliki earlier was all
bent out of shape and said “I am a friend…but I am not
America’s man in Iraq.” Then he proved he is not even a friend
when he demanded the blockade on Sadr City (Moqtada’s
hangout and the hideout for his death squads) be taken down
following a U.S. raid that sought to find a kidnapped American
soldier as well as bring to justice a chief henchman of Sadr’s.
This week also saw the 156th university professor killed in Iraq
since the war commenced, while during the same time period
250 doctors and health care workers have been murdered, along
with tens of thousands of Iraqis of various description, many
buried without their head….or the head without the body, I
guess.
We also learned the past few days that the U.S. military has
failed to write down serial numbers on many of the arms
provided to Iraq’s security forces, so we can’t even trace those
which are being used by the militias that have infiltrated the
ranks.
Ralph Peters, conservative commentator for the New York Post
and a long-time staunch supporter of the war effort has been
changing his tune the past few weeks as I’ve chronicled in this
space. The other day he wrote:
“We went to Iraq to overthrow a police state. Through a
combination of stubbornness, naivete, and noble intentions we’ve
replaced it with another police state – more violent, more corrupt
and less accountable.”
The secret police are back in the form of death squads, Peters
writes, but there is one last chance; to expand and develop the
Iraqi Army to then take on the corrupt police and insurgents /
militias. I agree with this.
But to those aligned with the president’s policies thus far, I can’t
help but think of George Will’s succinct summation the other
week.
Will said that supporters of the current situation keep saying that
if we get out of Iraq there will be chaos. “There already is
chaos,” he said.
Afghanistan: “D”. Talk about cut and running. The U.S.
reduced forces significantly to pursue the Iraq operation without
completing the job in Afghanistan. President Hamid Karzai,
however, is as good as we could have hoped for, and there is
hope for the Afghan Army, but now NATO is in charge and its
track record the past few decades is spotty at best.
Iran: “F”. They are on the verge of obtaining a nuclear
capability; either home-grown, stolen, or both. Russia and China
continue to say they will not allow harsh sanctions to be placed
on Iran for defying the UN. We do nothing but whimper in
return. And as an aside, Saturday’s Times of London reports that
Algeria, Egypt, Morocco, Tunisia, UAE and Saudi Arabia all
announced they now desire nuclear technology. Russia will be
the first to offer it to them, just wait.
North Korea: “F”. The hermit kingdom with the little whacko
tested a nuclear device. Our whole policy was built around Kim
Jong-il’s not doing so. Since the last election in the U.S., Kim
has done nothing but jerk us around.
Here, however, there is a shred of hope. The North has
announced it would return to the six-party talks, having been
pressured by China to do so, but only if the Bush administration
agrees to discuss the financial sanctions placed on Pyongyang.
The White House should say no. “We’re going to discuss the
complete dismantlement of your nuclear weapons program in
return for some security guarantees and possible economic ties
and nothing else,” then turn to China and say “Make it happen.”
This contest has a long, long ways to go and, yes, it was
encouraging China finally put the screws to Kim, but as I wrote
just a few weeks ago, Kim is looking to get through the winter at
this point and he needs China’s oil.
I also loved how the Bush administration trumpeted the potential
return to the negotiating table as some great victory. Spokesman
Tony Snow, chief b.s. artist these days, said it was a
“vindication of our policy.”
I prefer the line from a Washington Post editorial.
“(It was) a victory for China and its strategy of preserving Kim
Jong-il’s totalitarian regime.”
Israel / Palestine: “F”. This ongoing crisis has taken another
decided turn for the worse and the Bush administration refuses to
question anything Israel does.
I understand that Israeli settlers should not be under constant
rocket fire, but the fact is following the kidnapping of Cpl. Gilad
Shalit, over 300 Palestinians have been killed in retaliation, many
of whom were totally innocent victims.
Lebanon: “F”. This wasn’t even on the radar screen until the
assassination in 2005 of Rafik Hariri, and then when people
power helped expel the Syrians, with pressure from the U.S.,
France and the UN, the White House totally abandoned the
fledgling Siniora government and its cries for help so pro-West
Lebanese could begin to rein in Hizbullah.
Then Hizbullah kidnapped two Israeli soldiers, kills some more
who went out to find their comrades, actions that, unfortunately,
had occurred on countless occasions in the past, but suddenly this
time Israel went bonkers. The United States then looked the
other way, feeling Israel was only doing its bidding in the war on
terror, and instead it helped buttress another generation of
disaffected youth who hate both Israel and America even more
than before. Hizbullah, battered, still survived to fight another
day and now Washington, just this week, admitted what I’ve
been writing since the war ended that the Siniora government is
on the verge of being taken down by a coup orchestrated by
Hizbullah, Syria and Iran.
None of this ever should have happened and it’s beyond me why
the Bush administration hasn’t been taken to task for the
Lebanese conflict.
The United States must be seen as an honest broker in the Middle
East and it isn’t. Do you really think one or two swings through
the region by Secretary of State Condoleezza Rice is all that’s
needed?
China: “C”. The White House, I’m sure, would tell you our
policy towards China has been terrific; that we’ve gotten China
to bend on many an issue and that all one needs to do is look at
North Korea. I, in turn, would point to a total lack of
cooperation on issues like Iran, as well as China’s aggressive
moves in both Latin America and Africa, while the White House
twiddles its thumbs.
But at least in other respects we’re engaged, and that’s why it’s a
“C” and nothing worse at this point. But unless China pulls a
rabbit out of its hat, one pleasing to us when it comes to North
Korea and Iran, the grade gets lowered.
Russia: “D”. Another not on the radar screen as a top hot spot
from the standpoint of acting counter to western sensibilities
until the past two years and the spike in oil prices. Since then,
Russian President Vladimir Putin has been feeling his oats and
he’s strutting, in full bloom. ‘Look at me,’ he says to the rest of
us. ‘Just look at my power.’ And then he goes into a room and
turns off the gas spigot to some poor souls, or extorts huge sums,
like he did to Ukraine last winter and is now doing to Georgia.
You know what’s truly pitiful? Georgian President Saakashvili
is more American than some of our own corrupt politicians are.
He loves everything about our country, our history, the Founding
Fathers. I wish he was my governor, for crying out loud, yet the
White House can’t even get Russia to back off.
So there you have it; one voter’s opinion. In China I’d be thrown
in jail for writing what I just did, and it’s very possible that since
this isn’t a presidential election, merely a mid-term conniption,
the vast majority of Americans couldn’t give a damn about the
above and vote for more of the same.
Of course the Democrats haven’t offered a scintilla of a plan of
their own outside of holding some grand international
conferences, and/or just pulling our troops out before a last
concerted effort to salvage some sort of stability in Iraq. Instead
it’s the American people who are the losers in the 2006 vote.
Wall Street
Stocks finally stumbled in unison this week for the first time in
six as all the major averages registered declines, with the Dow
Jones leading the way, down 0.9% to 11986, while the S&P 500
lost 1% and Nasdaq 0.8%.
It was a pretty orderly slide as virtually every piece of data early
on in a busy week showed that the economy was continuing to
slow and the only question that remained was whether it would
be a hard or soft landing.
Leading indicators of manufacturing, for example, came in far
below expectations, a key reading on consumer confidence was
less than expected, and ditto for consumer spending, a fact major
retailers then confirmed with the release of their October sales
figures, topped off by Wal-Mart’s dismal 0.5% same-store sales
growth and a flat forecast for November.
On the housing front, pending home sales were down and
foreclosure rates soared; regarding the latter to the tune of 17%
in the third quarter over the second and 43% over a year ago. In
Florida, foreclosures soared 55% in the quarter. What was that
about Alan Greenspan recently saying real estate was bottoming?
Meanwhile, with all the gloomy news on the economy bonds
were rallying, with the yield on the 10-year Treasury hitting
4.56% intraday on Thursday.
Then all hell broke loose, at least in the bond pits, with Friday
morning’s release of the October jobs report. 90,000 new jobs
were created, not a super number in and of itself but the figures
for August and September were revised sharply upward.
“Omigosh!” bond traders said as they spit up their coffee and
donuts. “Sell!!” and bonds dutifully tanked in the biggest
drubbing in about 16 months. By the close on Friday the yield
on the 10-year was back up to 4.72%.
Suddenly everyone came to the opinion that the Federal Reserve
will not be lowering interest rates anytime soon because the
economy is not doing as poorly as they thought at 8:29 a.m.,
before the 8:30 release of the jobs data.
Totally absurd. The economy is indeed slowing and, remember,
we don’t need to dip into negative territory on GDP in order for
stocks, and earnings, to underperform going forward. If we have
a string of numbers between 1 and 2 percent in the quarters
ahead, I can virtually guarantee stocks will not do well as
earnings miss still frothy expectations.
But while the White House celebrates the 4.4% unemployment
rate, it still all comes down to housing, with the true impact on
the consumer still yet to be felt. Maybe we salvage Christmas on
the retail front, but you have a hard time convincing me that by
February or March we won’t be seeing a major pullback in
spending.
One last item why the Bush crowd shouldn’t be so smug when it
comes to the voter and the economy. A survey for the Financial
Times got a lot of ink this week and for good reason. Looking at
CEO pay for 375 of the S&P 500 companies, total CEO
compensation in 2005 increased 20%, versus a 15% increase in
earnings and a 9% gain in shareholder returns. [Average wages,
meanwhile, are finally rising but at about the 4% level.]
American workers and shareholders know this isn’t right, and
it’s why many of us see two different economies; the kind of
environment the official statistics just aren’t picking up because
of distortions at the top.
Street Bytes
–U.S. Treasury Yields
6-mo. 5.17% 2-yr. 4.82% 10-yr. 4.72% 30-yr. 4.81%
–Auto sales rebounded in October, but they need to be placed in
context to the dismal levels of a year ago. General Motors’ sales
of cars and trucks were up 17%, Ford’s 8% and Toyota’s 9%.
DaimlerChrysler’s, however, were down 3%.
–Let’s go to the tapes of “CSI: Wall Street,” shall we? Former
Computer Associates CEO Sanjay Kumar was sentenced to 12
years and fined $8 million for his role in the company’s
extensive accounting fraud. Over $2 billion in revenue was
misreported as CA sought to beat, or at least meet, the Street’s
estimates on earnings. Kumar will have to serve at least ten
years of his term.
–And former Cendant Chairman Walter Forbes was found guilty
on three counts of securities fraud for attempting to inflate the
stock of predecessor CUC International. This $3 billion crime
scene has already claimed Forbes’ vice chairman, who has been
sentenced to ten years.
–Hong Kong has topped New York in terms of market
capitalization of IPOs thus far in 2006. [London is first.] This is
a big issue and speaks to the health of the financial industry’s job
market unless reforms are implemented, including a review of
Sarbannes-Oxley. [For more see my “Wall Street History”
column.]
–Canada’s markets were roiled on Wednesday on word the
government wants to clamp down on income trusts. These are
the vehicles that pay out virtually all of their income to
shareholders, with tax advantages. But the conservative
government cites the fact the practice has exploded beyond the
old energy and natural resources realms to include all manner of
activities and the proliferation of them (over 250 are now
registered) is creating large distortions in the economy and far
less revenues. So the government is proposing that over four
years the distributions would be taxed at the maximum corporate
rate…46%, if I recall correctly.
–Housing prices in the UK have risen 187% in 10 years. This
has created a giant wealth effect, particularly in Northern Ireland
(and the Republic for that matter), where in the border town of
Newry, for example, home prices have risen 371% over the
decade. I think it was 1992 that my friends and I went through
Newry, during “The Troubles,” and had a gun pointed at our car
at the checkpoint; until the British guard realized we were
Americans. I also had this bizarre dream this week where I was
in Ireland and everyone I met was superrich. Then I awoke in a
cold sweat.
Turns out the worrying is warranted. Despite the housing boom
in the UK and Ireland, in the former, at least, personal
bankruptcies are suddenly at record levels. Like in the U.S., it’s
about the housing bubble, affordability, and too much debt.
[Brits have twice the amount of credit card debt Americans do.]
I can’t emphasize enough this is a global problem. Yes, even the
Irish housing bubble will pop at some point, but I’m more
interested today in cases like Spain, where everyone European
I’ve met over the past few years seems to have purchased a
second home there.
–Morgan Stanley is buying up hedge funds left and right; not a
big surprise when you realize CEO John Mack worked with one,
Pequot Capital.
–Related to the above, private-equity funds have raised $178
billion thus far in 2006, exceeding the record set in 2000; and we
all know what happened then.
–Newspaper circulation is plummeting. The New York Times
and Washington Post have both seen their numbers drop 3.5%,
while the Wall Street Journal’s are off 2% [Up on the new
weekend edition, however.]. The New York Post is bucking the
trend, up over 3%. I have to admit this current trip of mine I
haven’t missed for a second not having hard copies of various
papers, being able to access anything I want to.
–It was pile on time for British Petroleum, not that it doesn’t
deserve it, as “60 Minutes” aired a devastating segment on the
Texas City refinery fire of March ’05 that claimed 15 workers,
and federal officials said BP’s cost-cutting directly impacted
safety.
–Inflation Watch: Brad K., owner of International Swimming
Pools, maker of fine steel models since 1643, said Mittal just
announced prices are going up anywhere from 11 to 27 percent,
depending on the timeframe. But Brad said the pain is alleviated
because he has inventory, which is also more valuable, so he’s
now selling scrap along the highway during lunch hours.
–The New York Times was the latest to run a story on click
fraud; reporting that large advertisers are demanding more be
done to prevent it.
–YouTube is frantically returning copyrighted clips, while new
parent Google is rushing around trying to sign deals with those
currently being ripped off.
–KFC gained a ton of publicity in announcing it was cutting out
trans fats in its cooking oil, while on Thursday night I saw foie
gras on the menu at the restaurant I was eating at and couldn’t
resist. So I compensated by having a glass of red wine, having
just seen the latest study on the benefits of it. I then went to a
sports bar to watch Louisville-West Virginia and had another 299
glasses of red wine because I was told that’s how many I needed
to drink to gain the benefits that lab rats had. But because I had
the foie gras, I probably needed to drink another 6,000. It’s all
so confusing.
–A study in the Journal Science made news around the world.
There will be no edible sea fish left in 50 years unless we act
immediately to create more protection zones. This is kind of
depressing, but it creates a business opportunity.
Wait for real estate and land prices to bottom, in 2023, and then
buy up properties that will be perfect for fish farming.
Aquaculture is the game of the future, sports fans. [Or just buy
into the existing players, including the feed companies.]
–My carbon fiber play had been rallying recently, but suddenly
took on gas for no apparent reason. [Hedge funds messing
around, probably.] I’m also running out of patience with
management, the absolute worst in investor communications I’ve
ever come across. More on this next time if appropriate.
–Lastly, I saw a ton of cattle while cruising the West and Plains
the past two weeks in my Ford Taurus rental. I can’t get enough
of the scene, frankly. Call me Mr. Bucolic. But as you pass the
ranches with miles and miles of fence to tend you can’t but help
think of cattle theft. So I took note of the story this week that
thefts in Texas, Oklahoma and New Mexico soared in 2005…
$6.2 million worth vs. $4 million in 2004….due mostly to rising
beef prices during that timeframe.
Foreign Affairs
China: The commies are playing host to 48 of 53 African leaders
as they attempt to buy them off and pillage their minerals and oil.
The heads of state were all too eager to be wined and dined. It’s
fun for them, you know.
The Chinese government did announce a significant step in
providing some form of human rights. All death sentences will
now have to be approved by the Supreme People’s Court, headed
up by Judge Judy Zedong.
Meanwhile, off the coast, Taiwan’s President Chen Shui-bian
once again hinted he was considering a new constitution that
would specify Taiwan is independent. China has always said if
Taiwan ever went through with this it would be war.
However, Chen already has his hands full over the corruption
scandal that has now claimed his wife, who was indicted this
week on charges of embezzlement. The chief prosecutor said
Chen could face charges when he leaves office in 2008. For now
he is immune, but this weekend there is a movement afoot to
force him out.
In other words, there is no way Chen can act on a new
constitution, even if he survives; all of which makes it easier for
China to in effect launch a de facto coup by ensuring its favored
son succeeds Chen.
Russia: As alluded to above, the Kremlin’s personal gas-boy,
Gazprom, has doubled Georgia’s natural gas price, directed by
Putin to do so as he wields the energy card with vigor.
Pakistan: There was all manner of confusion following the attack
on the suspected al-Qaeda camp that killed 80. Forget whether
the victims were really terrorists or not; regardless, the tribal
leaders would be upset, but at first the reports had the missiles
being fired from a U.S. drone. [NBC reported this.] Then we
learned that, yes, it was Pakistani military helicopters that carried
out the mission, though with support from U.S. intelligence.
Either way, the attack showed guts by President Musharraf,
knowing the extremists will only want to target him more.
Turkey: Prime Minister Erdogan is blowing off Pope Benedict’s
upcoming visit, instead choosing to attend a NATO summit.
With an election next year, Erdogan doesn’t want any pictures of
the two of them together, especially after the Pope’s comments
on Islam. Separately, as I said long ago, Turkey’s EU bid is
dead, finis…history. Unless it made a sudden move to accept
Cyprus, talks of membership will grind to a halt and the West
will have lost a great opportunity. But in this instance, Erdogan
and the Turkish people share the blame.
Nigeria: Oil rallied a bit on rumors insurgents would renew their
attacks on the nation’s oil facilities. Earlier in the week there
was another plane crash, the third in a year here, that claimed the
leader of Nigeria’s Muslim community. The pilot evidently
ignored warnings to wait for a thunderstorm to pass before taking
off.
Venezuela: After 47 ballots, President Hugo Chavez and his
negotiators reached a compromise with Guatemala on Latin
America’s representative to the UN Security Council.
Guatemala, the preferred choice of the United States, and
Venezuela were stalemated and the new winner is….Miss
Panama!
Cuba: He’s alive! Fidel Castro is alive and he walks! But
geezuz he looked as bad as some of the jalopies tooling the
streets in Havana.
Brazil: President Luiz da Silva (Lula) cruised to reelection in the
run-off, 60-40, but now comes the hard part. Following through
on needed economic reforms.
Random Musings
–I was watching Larry Kudlow on his show this week and he
said “there is lots of optimism out there.” Bull. Maybe a
majority of Americans are satisfied with their own lot, but
optimistic? There’s quite a difference between the two
sentiments.
But thank god this political season is finally winding down. I’m
sick of Tony Snow and Ken Mehlman and their spinning. I’m
sick of the Democrats. Why should they be elected? Alas, as
reader Scott P. and I muse from time to time, there is no real
choice for many of us, no viable third party, or, more
importantly, term limits.
You know that old argument against term limits, that it would
preclude tapping into the experience of congressmen as they rise
up through the ranks and develop their fields of expertise. What
a crock. You want to develop some expertise? Read a few good
newspapers and journals on your topic of choice, form an
opinion, then run with it. No one needs to be in Congress 20-30
years. Instead you’ve seen corruption run rampant. You need
money to win elections, even if your district is rigged, and the
pursuit of it often leads to criminal, or at best unethical behavior.
So we’re left with the mess we have today. Personally, I have
never voted Democrat in my life and this time I’m voting for
Republican Tom Kean Jr. for U.S. Senate in my state of New
Jersey, even though he is far from ready for prime time,
because the crooked Democratic alternative should be serving
time in prison rather than occupying a seat in Washington.
But when it comes to my congressional district, I am voting
Republican only because I know my congressman’s father and
saw him again two months ago in Ireland. A terrific man. I was
careful not to promise anything when we chatted and thus did not
send his son money for the first time. But I can’t vote for the
Democratic alternative, as much as I’m tempted to just to send a
message, because I feel like it would be a betrayal to the father.
As for the national picture, I’ve written in the past that I really
believe Bush’s job approval rating, even though we all say
politics is local, is still critical. The fact it remains below 40
percent [39, NBC News/Wall Street Journal; 34, CBS News/
New York Times] could yet be telling.
Back in October 1994, Bill Clinton’s approval rating in the
NBC/WSJ survey was 48 percent and yet Republicans won 52
seats in the House and 9 in the Senate (including an incumbent
who switched to the Republicans after). The political
environment isn’t apples to apples when looking at 1994 vs.
2006, but it hardly speaks well of the Republicans’ chances with
Bush mired where he is.
And then there is Iraq. Only 37 percent in the NBC/WSJ poll
believe removing Saddam was worth it, and in the CBS/NYT
survey just 29 percent approve of the president’s plan.
When it comes to the issue of who should hold Congress, the
NBC/WSJ poll maintained a 15 percent margin in favor of the
Democrats.
One thing is for sure, we’re about to learn a lot about the efficacy
of the polls themselves, and we’re also likely to learn whether
the likes of Mark Foley, John Kerry, or Ted Haggard had much
of an impact. In the end, it’s about what motivates Americans to
get out and vote…or stay home.
As for Senator Kerry, yes, should the Democrats fail to at least
take the House he’s wrapped up “Idiot of the Year” with his
comment that if you don’t study hard you “could get stuck in
Iraq.” I’ll throw in a “Jerk of the Year” trophy, too, for his
collection.
Finally, I just yearn for a day when, as columnist David Brooks
put it, our political system is less about theater and more “about
legislation and results.” I’m not holding my breath.
–The piece on “60 Minutes” last Sunday on the care of wounded
GIs in Iraq was as powerful an anti-war story as you’ll find;
timed for the election, of course.
–Here in South Dakota, the abortion issue is front and center.
On the ballot is a statewide measure to ban all abortions. It does
not, however, look likely to be approved, principally because, as
the polls shows, there is no exception for rape and incest. Today
there is a rally at Mount Rushmore with speakers such as James
Dobson and Alan Keyes. Supporters of the measure have been
taking out full-page ads quoting the figures chiseled on
Rushmore.
Without saying anything about my own opinion on the topic, let
me just note that supporters quoting George Washington thusly
need their head examined.
“The fate of unborn millions will now depend, under God, on the
courage and conduct of this army.”
And the topic is? By using something like this you make a
mockery of an otherwise serious issue. Stick to the Bible and
keep the Father of our country out of it.
–Speaking of South Dakota, in Friday’s USA Today an advisor
to the National Museum of the American Indian in Washington,
Helen Maynor Scheirbeck, lists ten places to honor American
Indian life. One of them is “Pine Ridge Reservation of the
Oglala Lakota (Sioux)” in Pine Ridge, S.D.
Now I’ve been to Pine Ridge. I just went through a second time
last Saturday, as a matter of fact, and this is far from a “great
place,” as the article was titled. As I commented elsewhere on
the site, I thought I was in the midst of a shooting for “Night of
the Living Dead” (only it was daytime) when I went through the
town of Whiteclay. Drugs and alcohol, that’s Pine Ridge. Skip
it. Let me go back every few years just to give you a report. As
I told our own Dr. Bortrum, some people do roller coasters for a
thrill, I do Pine Ridge.
–Incidentally, on the drug front, crystal meth is still a huge issue
in these parts as it is now over much of America, including
wealthy suburbs (see Ted Haggard). Trucks that have been
stopped on Interstate 80 in Nebraska, for example, often turn out
to be carrying meth from the Southwest that then transits through
the entire region. Much of this trade is now originating in
Mexico.
–In 2008 we’ll be in the midst of an ugly presidential election,
but at least NASA will provide us a respite in the space shuttle
mission to repair the Hubble telescope.
–Remember Chief Charles Moose of Montgomery County /
2002 sniper killings fame? He passed his test to become a beat
patrolman in Honolulu. Just as long as he doesn’t get elevated to
detective, know what I’m sayin’?
–With the new red wine finding that it can slow the aging
process, at least in mice, some of the more entrepreneurial rats
have gotten together and formed Mickey Mouse Vineyards.
–Every Hispanic girl I saw working at McDonald’s during my
trip was sporting a tattoo on her wrist or hand. Just stupid. [No
MS-13s that I could see, however.]
–Congratulations to Bob Barker, as he announced his retirement
(next June) after 50 years in television, 35 hosting “The Price Is
Right.” What a career he’s had, surrounded by Playboy Bunnies.
–Movie producer David Geffen sold a Jackson Pollock for a
world record $140 million to Mexican financier David Martinez;
thus proving that Pollock’s drip-and-pour style wasn’t as crazy as
it seemed. [Or Senor Martinez is doing meth.]
–Finally, some further thoughts on my trip the past few weeks.
I’ve now been to the Black Hills region three times in the last
five years. Obviously I love it, and have even begun looking at
real estate here (Spearfish, specifically). I also travel out of
season, October, when it comes to this part of the country. No
one on the fun roads…just you and nature and some great
history.
I always go to Mount Rushmore, of course, and it never ceases to
inspire. The Indians remain none too happy about the place, but
to me it’s not just about the monument itself, it’s about the words
of both those celebrated and those who’ve honored it.
I know I’ve offered some of this before from past trips, but in
light of this awful political season of 2006, they’re worth
repeating.
Teddy Roosevelt:
“The first requisite of a good citizen in this Republic of ours is
that he shall be able and willing to pull his weight – that he shall
not be a mere passenger.”
President Franklin D. Roosevelt, at a dedication to Mount
Rushmore in 1936, wondered what people will think 10,000
years from now as they gaze up at the figures carved in stone.
“Let us hope that they will believe in our destiny…to preserve
for our descendants a decent land to live in and a decent form of
government to operate under.”
It’s more than a decent land we have today, but as to our elected
officials, and the un-elected lackeys who wield far too much
power of their own, combined they are threatening the “decent
form of government” both FDR and our Founding Fathers
sought. We have only ourselves to blame.
—
Pray for the men and women of our armed forces.
God bless America.
—
Gold closed at $628…highest since Sept. 1
Oil, $59.14
Returns for the week 10/30-11/3
Dow Jones -0.9% [11986]
S&P 500 -1.0% [1364]
S&P MidCap -1.4%
Russell 2000 -1.7%
Nasdaq -0.8% [2330]
Returns for the period 1/1/06-11/3/06
Dow Jones +11.8%
S&P 500 +9.3%
S&P MidCap +5.2%
Russell 2000 +11.8%
Nasdaq +5.7%
Bulls 53.7
Bears 28.4 [Source: Chartcraft / Investors Intelligence]
Have a great week. I appreciate your support.
Brian Trumbore
