Greetings!
Our most recent Periscopes discussed inflation using the following formula:
Domestic currency plus
Foreign currency equals infinity
There is no limit on money. US government spending is not limited by any currency. Instead, Federal spending is limited by inflationary pressures. The US dollar value exists relative to other currencies; it does not exist in a vacuum. All of the hoopla surrounding cliffs, ceilings, and other catastrophes is fictional. The only limit to our Federal Government spending is inflation.
This is not the case in European countries. In Cyprus, Greece, Spain and Italy, where spending has outpaced income for years, if not since time immemorial, the countries are limited by their currency. They are not limited by inflation. This is the deep thought of the week.
The only difference between US debt and European debt is that USA Federal spending is, and can be, unlimited because we print our own currency. European countries cannot.
As long as the USA can tax its citizens, and as long as it demands taxes are paid in US dollars, the US government has infinite spending capacity.
Write me. Discuss this. Dwell on this. Next week, we'll look at why this deep thought changes the conversations we have with our colleagues, families and friends regarding whether or not our Federal Government has a spending problem, a taxing problem, or any problem at all. And, we just might see some insights into why this year, 2013, money is flooding US companies, the US dollar, and how it appears like the good old USA is leading the world (yet again) out of our malaise.
|
| Lunch and Learn | | We are excited to expand our popular Lunch & Learn client education events to a new venue! Please join us as we access fresh insights on opportunities in healthcare real estate.
Hosted by Griffin-American's Brandon Pacheco, this presentation will provide you with information on potential income-generating properties dedicated to medical offices, skilled nursing, assisted living, hospitals and more.
Griffin-American Healthcare REIT II Luncheon
Hosted by Brandon Pacheco
Regional Vice President for Griffin Capital Securities.
Date: Thursday, April 11, 2013
12:00 pm to 1:00 pm
Location: Maggiano's Little Italy Restaurant
7401 S. Clinton Street
Englewood, CO 80112
Lunch will be provided.
or call 303-690-5070
Please RSVP by Tuesday, April 9th. Seating is limited.
Friends and colleagues are welcome to attend!
 This announcement is neither an offer to sell nor a solicitation of an offer to buy any securities. Real Estate investments may be illiquid and therefore not suitable for all investors. There is no guarantee that the investment objective will be met. For more complete information, including investment objectives, leverage ratio, risks, charges and expenses, prospectuses will be available at the seminar. Please read the prospectus and consider it carefully before investing.
|
| Weekly Economic Update | |
JUST 88,000 NEW JOBS?
In the wake of the Labor Department's disappointing March employment report, puzzled analysts tried to figure out the reasons for such poor job growth. Did businesses fear the impact of the federal budget cuts in March and scale back hiring? Were there fewer food service, retail and temporary job openings? (More than 7% of Americans work in food service jobs, and temp work has made up a larger share of employment in recent years.) Was it seasonal, since hiring also declined in spring 2011 and spring 2012? Would the number later be revised upward? Whatever the cause(s), the message was troubling. The jobless rate dipped to 7.6%, but that was because of fewer jobseekers - the labor force participation rate was 63.3% in March, a 34-year low. (1)
ISM: BUSINESS ACTIVITY SLOWED IN MARCH
In another disconcerting development, the Institute for Supply Management's manufacturing and service sector PMIs both retreated last month. ISM's manufacturing PMI fell to 51.3 from the previous 54.2, while its non-manufacturing PMI dipped 1.6 points to 54.4. On the upside, the Commerce Department did note a 3.0% rise in factory orders in February. (2,3)
OIL & GOLD MOVE LOWER FOR THE WEEK
NYMEX crude settled at $92.70 a barrel Friday, representing a 4.7% five-day loss. COMEX gold gained 1.5% Friday to end the week at $1,575.90 an ounce but still slipped 1.2% last week. (4)
CAUTION ON WALL STREET
The jobs report and North Korea's ongoing threats gave investors pause last week, and so the Dow (-0.09% to 14,565.25), NASDAQ (-1.95% to 3,203.86) and S&P 500 (-1.01% to 1,553.28) all lost ground. Still, it was only the second down week in the past seven for the Dow. (5)
|
| Market Summary |
|
% Change |
Y-T-D |
1Yr Chg |
5-Year Avg | |
DJIA |
+11.25 |
+11.06 |
+3.87 | |
NASDAQ |
+8.21 |
+5.24 |
+8.90 | |
S&P 500 |
+10.03 |
+11.64 |
+3.86 |
(Source: cnbc.com, usatoday.com, treasury.gov, treasurydirect.gov -03/28/13). Past performance is no guarantee of future results. Indices are unmanaged, and investors cannot invest in them directly. |
|
Create a beautiful week!
Karl Frank, MBA, MSF
Certified Financial Planner (R)
A & I Financial Services LLC
303.690.5070
Citations:
1 - www.nytimes.com/2013/04/06/business/economy/us-adds-only-88000-jobs-jobless-rate-falls-to-7-6.html [4/5/13]
2 - www.ism.ws/ISMReport/NonMfgROB.cfm [4/3/13]
3 - www.reuters.com/article/2013/04/02/us-economy-factory-orders-idUSBRE9310HV20130402 [4/2/13]
4 - www.proactiveinvestors.com/companies/news/42403/oil-drops-gold-rises-on-us-jobs-report-42403.html [4/5/13]
5 - www.cnbc.com/id/100619132 [4/5/13]
Securities offered through Geneos Wealth Management, Inc., member FINRA/SIPC. Investment advisory services offered through A & I Financial Services LLC, registered investment advisor. |
|
|
|
|
| Words for Thought |
"It is better to offer no excuse than a bad one."
George Washington
|
|
Riddle of the Week
|
They have not flesh, nor feathers, nor scales, nor bone. Yet they have fingers and thumbs of their own. What are they?
Last week's riddle:
Which positive whole number can you add 1.5 to and get the same result as you do when you multiply it by 1.5?
Last week's answer:
3 |
|
|
