Author Archives: Admin

Trends suggest “Greatest Depression”

Gerald Celente, Director of Trends Research Institute

Analysis:  The wealth of plain, hard facts belies lofty promises made by President Obama’s first address to Congress.

"We will rebuild, we will recover, and the United States of America will emerge stronger than before," said President Obama.

Not anytime soon.  The government has yet to fix the levees in New Orleans.  There is still a hole in the ground where the World Trade Center once stood.  Washington has started two wars it can’t win and doesn’t know how to finish.  The massive bank, brokerage, auto and insurance company bailouts have done nothing to resuscitate the sinking economy.  The Troubled Assets Relief Program (TARP) that candidate Obama championed has not "relieved."  President Obama’s $787 billion American Recovery and Reinvestment Act will not lead to recovery and the nation will not ’emerge stronger than before.
Distinguished Men and Women

With only a succession of past Executive and Congressional failures to point to, and with the same people responsible for those failures still holding high office, the belief that this time around it will be miraculously different is nothing less than willful delusion.

Tuesday’s episode of The Presidential Reality Show was a prime time exercise in human debasement and self-humiliation.  Some low lights: Congressman Eliot Engel (D-NY) arrived at 8:30 a.m. to secure a prized spot on the House floor for a chance to shake the President’s hand on his way to the stage.  "It’s a special treat for me to do it this year," Engel said, adding, "It’s the office, it’s the aura … but it’s also the man."

Shiny Cabinet members and august Supreme Court justices were announced in stentorian tones by a pair of Sergeants-at-Arms with all the exaggerated pomp of a Groucho Marx send-up of British royalty.

And, to punctuate the performance, there was the geriatric pom-pom girl, Nancy Pelosi, Speaker of the House, repeatedly jumping from her seat, leading her pack of Democratic trained seals in whoops of applause at every repetition of the magic juju words: "Jobs!" "Prosperity!" "Confidence!"

Across the aisle, Republicans smirked, mugged and scowled darkly, in their new roles as minority villains.  Few GOP hands clapped.

That the public as well as the press should take this three-ring spectacle seriously is as depressing an indication of the state of the nation as the empty rhetoric of the speech itself.

Meanwhile, back on the planet, in the midst of a global economic crisis, the public continues to pin its hopes on a President, Senators and Congressmen willingly participating in such obviously orchestrated buffoonery.  How is this even possible?  How is such behavior tolerated?  Why would anyone look up to these people?

In one sense it is understandable: President Obama’s big show was just another typical political performance.  From the excesses of Democratic and Republican nominating conventions, to photo ops of candidates sitting on bales of hay pretending they’re just plain folks, to staging whistle stops from vintage trains dragged out of storage especially for the occasion, to contrived Town Hall meetings, to the slick and vicious marketing campaigns … the public has come to accept such antics as "normal."

These political rituals, carefully staged, time-tested and proven, create an illusion of superiority.  President Obama made the distinction clear in Tuesday’s speech:  "I have come here tonight not only to address the distinguished men and women of this great chamber, but to speak frankly and directly to the men and women who sent us here."

"Distinguished?"  Distinguished for what?  Having the skills to do whatever they have to do – no matter how ruthless or degrading – to win elections?  Yet, the honorific is accepted without question while the implicit patronization of the citizenry slips by unperceived.  They are "distinguished" and the rest are merely the "men and women who sent them there."
Con Game

This is a confidence game.  The elaborate staging is designed to inspire the nation’s people with "confidence" that their distinguished leaders have the skills to save them from an economic disaster that both political parties were instrumental in creating.

Days earlier, former President Bill Clinton urged the new President to play the confidence game.  "I just want the American people to know that he’s confident that we are gonna get out of this and he feels good about the long run," and that President Obama "… is hopeful and completely convinced we’re gonna come through this," Clinton said on national TV.

"Completely convinced" or not, in his speech, the newly elected President pitched "confidence," repeating the word seven times.  It worked.  Post speech polls, the pundits and the press gave the President high marks for his performance.  And President Obama, the most distinguished among all those "distinguished men and women of this great chamber," established his credentials as America’s Confidence-Man-in-Chief.

Trendpost: What is a Confidence Man and what makes us say President Obama is conning the public?  A con man succeeds by gaining the confidence of the victim.  In this case the victim is the taxpayer who is being shaken down for trillions to bail out "too big to fail" businesses.  The con lies in Obama’s assurance "… while the cost of action will be great, I can assure you that the cost of inaction will be far greater."

The trillions already spent on bailouts and buyouts make it clear "the cost of action will be great."  It is already great, and it has failed miserably.  Why should anyone believe that pouring still more trillions into the same bottomless pit will now, somehow, prove effective?

And why should anyone believe Obama’s assurance that the "cost of inaction will be far greater"?  He doesn’t know that.  Why believe the assurance of the man who failed to recognize the country was in recession until eight months after the recession began?

We forecast the recession well before it happened.  We are forecasting "The Greatest Depression."  And having analyzed Mr. Obama’s speech, promises and plans, we can forecast, with assurance of our own, that the cost of action will prove far greater than the cost of inaction.

While the public, both at home and abroad, express high hopes and great optimism, the global financial markets remain un-assured by assurances and continue to reach new lows.

Trendpost: President Obama’s $3.6 trillion budget and the additional trillions earmarked for stimulus packages and further bailouts may provide temporary relief, but will ultimately destroy the value of the US dollar.  The global financial system is in collapse.  And neither stimulus nor spending packages will reverse it.  We remain bullish on gold and stand by our prediction of gold at $2000 per ounce.  

About the author:
Gerald Celente, a Close Combat practitioner and black belt trainer, well understands the importance of proacting rather than reacting: "The first rule of Close Combat is to attack the attacker. Action is faster than reaction. The same holds true for the future. You know the future is coming … attack it before it attacks you."

Founder of The Trends Research Institute in 1980, Gerald Celente is a pioneer trend strategist. He is author of the national bestseller Trends 2000 and Trend Tracking (Warner Books) – "Far better than Megatrends," and publisher of the internationally circulated Trends Journal newsletter.

Celente is a political atheist. Unencumbered by political dogma, rigid ideology or conventional wisdom, his motto is "think for yourself," observes and analyzes the current events forming future trends for what they are – not for the way he wants them to be.

Like a doctor giving a diagnosis after gathering the facts, whether or not you like the prognosis doesn’t alter the outcome, make him an optimist or pessimist – it’s simply what is.  And while Celente holds a US passport, he considers himself a citizen of the world. Celente has earned his reputation as "The most trusted name in trends" by accurately forecasting hundreds of social, business, consumer, environmental, economic, political, entertainment, technology trends, etc. Among them:
*  Celente coined the term "clean foods," in 1993 and predicted sustained growth in organic products in 1988.
*  When gold was at $275 per ounce in 2002, Celente said the price had bottomed and in 2004 forecast the beginning of the "Gold Bull Run." Since that time, with pinpoint accuracy, he said when, why – and how high – gold would go.
Years before Starbucks was a household name, Celente forecast the popularity of gourmet coffee and decades before Pepsi and Coke got into the water business he predicted the "Big Boom in Bottled Water."
*  On the geopolitical and economic fronts, Celente and The Trends Research Institute are credited with forecasting many major trends, including the collapse of the Soviet Union, the last two recessions, the dot-com meltdown, the 1997 Asian currency crisis, the 1987 world stock market crash, increased terrorism against America, "Crusades 2000," and Iraq … before war began.

Frankoma Pottery acquires Paschal Studios

Staff Report

Frankoma Pottery, one of Oklahoma’s oldest companies, celebrates its 75th anniversary by expanding into the decorative tile business.  According to owner, Joe Ragosta, the addition of tiles builds on Frankoma’s long-term presence in Oklahoma kitchens.

Frankoma purchased the assets of Paschal Studios (Tulsa, OK) to quickly build a tile portfolio.  Initially, Frankoma will produce the products designed by Paschal, but will also add their own products in the coming months, including products designed to more closely match Frankoma dinnerware.  Frankoma tile products now appear on the Frankoma web site (http://www.frankoma.com/) and the Frankoma retail factory store.

Paschal Studios products are distributed by high end decorators and tile stores. These tiles are hand-made in Oklahoma as are other Frankoma products. As with other Frankoma products, Frankoma will offer custom tiles for corporate, non-profit, and private customers. In addition to the tile products, Frankoma has released a number of other new products in honor of its anniversary.
The new products include a series of limited edition anniversary vases. The vases stand 17” tall and were designed by noted Native American Artist, Murv Jacobs. The vases are available in Sky Blue, Black Cherry, New Prairie Green, and Dark Sapphire and are available either unsigned or signed by the artist. The design includes hummingbirds and trumpet flowers on a conical background.

At the same time, Frankoma announces "Traditions" its first new product line in several years based on a return to Frankoma’s rich heritage of using colors based on local nature and variegated coloring such as the colors which made Frankoma famous – Prairie Green and Woodland Moss. The new line of dinnerware and accessories is available in Moss Green, Stormy Gray, and Black Cherry and is available immediately.

Finally, Frankoma announces a variety of Easter and Spring time products including hearts, Easter bunnies, planters, Easter eggs, Mother’s Day and Father’s Day mugs and Frankoma’s first Passover Seder plate.

Frankoma continues to offer a wide range of Made in Oklahoma products for shoppers and visitors from throughout the State.   The new owner of Frankoma Pottery, Joe Ragosta, is enthusiastic about Frankoma’s anniversary and new products. He recently remarked, “We’re very proud to be offering a range of new products that will please our loyal friends and new customers alike. After a number of years of getting away from our historical appeal, we wanted to return to where we came from”. With these new products, we’re launching Frankoma on its next 75 years.

John Frank launched Frankoma Pottery in the middle of the Great Depression in 1933 and Frankoma has been an Oklahoma institution since then. It remains one of the last remaining potteries manufacturing 100% of its products in the United States and mines its clay just a few miles from the Sapulpa factory.  Its products have been praised by celebrities like Martha Stewart and Paula Deen and are consistently rated as the top in their category on www.cooking.com.

The recently renovated show room facilities and Ray and Sherry Stoll Frankoma museum made their debut as part of Frankoma’s 75th Anniversary celebration, and along with Factory tours have already demonstrated their appeal as visitor attractions  and established the Pottery as one of the State’s most popular tourist destinations.

Frankoma’s factory store is open from 9 am to 5 pm Monday through Saturday at the Frankoma factory at 9549 Frankoma Road, Sapulpa, OK, 74066.  Frankoma products are also available from retailers across the nation.

Spending spree to continue at the expense of American families

Staff Report

U.S. Senator Jim Inhofe (R-Okla.) made the following statement Thursday regarding President Obama’s proposed $3.9 trillion budget:
 
“The American people know what we should do when times get tough,” Senator Inhofe said. “We should prudently examine every dollar we spend, spend those dollars modestly, and make sure small businesses, which create 80% of the jobs in this country, are not overly burdened so they can create more jobs.  President Obama’s budget, by contrast, proposes a lavish, big-government agenda by borrowing yet more money and taxing small businesses. 
 
“President Obama’ budget is the most radical and partisan budget we have ever seen and includes $4.4 trillion in additional deficits, $3.5 trillion total spending for 2010 alone, $1 trillion in taxes on individuals and business, a $634 billion “down-payment” for government-run health insurance, $650 billion in energy taxes for climate change, and $750 billion is set aside for more Wall Street bailouts. I’m very concerned about the direction in which President Obama proposes to take us, and anyone who works hard, plays by the rules, pays taxes, drives a car, turns on their lights, saves, invests, donates to charity, or plans to be successful in this country should be too. 
“We should reject a $645 billion energy tax increase on the American people. Energy companies will pass these costs on to consumers, in addition to the capital costs they need to reduce their emissions. The total burden on American families from cap and trade schemes will be at least $300 billion per year according to the Wharton School of Business. The budget covers the years from 2010 to 2019. The cap and trade auctions are set to begin in 2012 and raise approximately between $78 and 83 billion per year for a total of $645 billion.  Unlike Lieberman Warner, the bill does not spend any of the proceeds. All allowances are auctioned. The budget assumes an 83 percent emissions cut from 2005 levels by 2050, which is steeper than Lieberman Warner so in our view these costs will be higher, especially in the near term. 

“President Barrack Obama’s unprecedented $31 billion proposal in new oil and gas taxes will potentially eliminate tens of thousands of America’s own home grown jobs in the oil and gas industry, painfully increase fuel costs for consumers and businesses, and undoubtedly make our nation more dependent on foreign oil.  In the United States, there are nearly 6 million Americans directly and indirectly employed as a result of the oil and natural gas industry. Tax increases of this magnitude will significantly curtail the operating budgets of all exploration and production companies big and small. 
 
“Every marginal well operator in the country should be gravely concerned that these proposals will force the premature plugging of low production marginal wells.  And, despite the rhetoric, America’s oil companies are already paying taxes at the highest rates.” 
 

Figures from the Energy Information Agency indicate that America’s major oil producers already pay on average more than a 40% income tax rate.  After President Jimmy Carter imposed a similar Windfall Profits Tax [WPT] on the oil and gas industry back in 1980, the nonpartisan Congressional Research Service later determined that its results were hugely counterproductive:  ‘The WPT reduced domestic oil production between 3 and 6 percent, and increased oil imports from between 8 and 16 percent… This made the U.S. more dependent upon imported oil.’ For American jobs, for the international competitiveness of American companies, and for the consumers at the pump, Congress must reject Obama’s energy tax increases.

 

OK Senate Review

Senator Mike Mazzei

In the early 1990’s, Oklahoma was still recovering from the economic devastation of the oil bust.  During the worst point of the bust, businesses were closing their doors, people were losing jobs, and the need for state services far outweighed the available resources.  It was clear that the state needed to diversify its economy and develop new polices that would result in the creation of new jobs which would fuel Oklahoma’s economic recovery. 

Legislators worked to create and pass an innovative program called Quality Jobs, which used tax incentives as a way to encourage existing businesses to expand and attract new businesses to the state.  Since 1993, the program has created more than 400 thousand new jobs in Oklahoma, with an average wage of $31,739 a year.  The program was hailed as a great success and other states sought to duplicate our accomplishments with similar programs based on our model.

Now it is 2009, and I see many parallels between the economic turbulence we are experiencing today and the difficulties we faced during the years of the oil bust and subsequent recovery.  But just as we sought to creative innovative ways to enhance our economic environment nearly two decades ago, we again have the opportunity to develop programs that will create jobs and help Oklahoma become the envy of the nation. 
That is exactly why I have authored Senate Bill 938, which would create the 21st Century Quality Jobs program.  This legislation would build on the successes of the original legislation, but would take into account the changing businesses models and areas of economic development in the new century.  As our economy increasingly moves towards knowledge-based employment opportunities, our incentives programs must be in sync.  That means helping to diversify our economy by promoting growth in professional, scientific and technical services; finance and insurance; information; health care; and utilities, including alternative energy sources such as wind production. 
Not only will these jobs strengthen and diversify our economy, they are also jobs in high-salary fields, boosting individual as well as per capita income. The average salary in these fields is estimated at more than $100,000 a year.  SB 938 truly represents a bold step forward that will ultimately benefit individuals, families, and our entire state. 
Please contact me if I can be of any assistance.  At the State Senate, I can be reached by writing to Senator Mike Mazzei, Room 413, State Capitol, 2300 N. Lincoln Blvd, Oklahoma City, OK 73105, or by calling (405) 521-5675, or email at mazzei@oksenate.gov.

Lawmakers file discrimination complaint against ODOT

Staff Report

Senators Constance N. Johnson, Judy Eason McIntyre and other members of the Oklahoma Legislative Black Caucus announced at the state Capitol on Wednesday that the group has filed a complaint of discrimination against the Oklahoma Department of Transportation. 

The group’s letter to the U.S. Secretary of Transportation cites substantial evidence of past and continuing discrimination against racial and ethnic minority owned, and socially and economically disadvantaged businesses and contractors. 

Johnson said ODOT has awarded no bids to black contractors in the Disadvantaged Business Enterprise Program since October, 2007.

“It is incumbent upon the Department of Transportation to remove barriers to minority participation in the contracting process, and the agency has simply failed in this regard,” said Johnson, D-Oklahoma City.  “The agency lacks an effective, enforceable non-discrimination program.  In order to genuinely level the playing field, ODOT must make a firm commitment to utilizing minority businesses.”

Johnson said the lawmakers have requested that all federal funding targeted for public sector projects in Oklahoma be withheld until either a disparity study is completed, or an independent body is appointed to oversee ODOT’s selection and contract awards processes. 

“ODOT’s contracting process has long been dominated by a business-as-usual attitude, which makes it difficult for minority businesses to successfully participate,” Johnson said.  “It’s time for us to establish accountability for what has been a continuing pattern of failure on the part of ODOT to utilize minority contractors.  The agency must ensure fairness in the process by researching and adopting measures to improve minority access in contracting.”

Rep. Shumate said he hoped the lawmakers and ODOT could reach common ground on the issue.

“I am disappointed with the lack of transparency in ODOT’s process for awarding contracts,” said Shumate, D-Tulsa.  “It is my hope that we can find common ground on this issue and ultimately develop a system that meets compliance standards.”