Happy Jobs Day! Ed’s Daily Notes for July 5th   4 comments

Will work for food

Bloomberg: European Stocks Rise Before U.S. Jobs Data

European stocks advanced for a second day, with the Stoxx Europe 600 Index heading for its biggest weekly rally in two months, as investors awaited data on the American labor market. U.S. index futures and Asian shares also climbed.

…U.S. data at 8:30 a.m. Washington time will probably show that employers added 165,000 jobs in June and the unemployment rate fell to 7.5 percent, matching the lowest level since 2008, according to economists surveyed by Bloomberg. A sustained improvement in the labor market may influence how quickly the Federal Reserve pares its $85 billion monthly asset purchases.

Remember, this is one of those “bad news is good” and vice versa for the markets.

Fox Business: Euro Takes a Hit as Reserve Currency

Bad news for Europe:

Countries around the world cut back on their holdings of euros as a percentage of foreign exchange reserves last year as the sovereign debt crisis kept investors wary, the European Central Bank said on Tuesday.

International Monetary Fund data shows the decrease continued in the first quarter of this year, although the euro remains the world’s second-most important reserve currency after the dollar.

In its annual review on the international role of the euro, the ECB, the 17-country bloc’s central bank, said the currency’s share of global central bank foreign exchange reserves declined by 1.2 percentage points, to 23.9 percent.

This made 2012 the third year in a row the euro has declined in popularity as a reserve currency, putting its share at the lowest level since 2000.

France 24: French intelligence spying on emails, phonecalls

Speaking of Europe:

French secret services intercept all communications in France, stocking telephone and computer data for years, daily newspaper Le Monde reported Thursday amid an international uproar over spying by the United States.

Government officials have not responded to AFP requests for comment on the Le Monde report, which said data from communications was being stored on a supercomputer at the headquarters of the DGSE intelligence service.

The DGSE “systematically collects electromagnetic signals emitted by computers in France, as well as the data feed between France and abroad: the entirety of our communications are being spied upon,” said the report.

Data collected from telephone conversations, emails, SMS, Facebook and Twitter are then stored “for years” on a supercomputer where other security services can access them.

I bring up this story not to insult France, but rather to point out how other countries are doing the same thing as America. As we celebrate America’s independence, remember what America’s Founding Fathers thought about government power:

“History has informed us that bodies of men, as well as individuals, are susceptible of the spirit of tyranny.”–Thomas Jefferson

“There is danger from all men. The only maxim of a free government ought to be to trust no man living with power to endanger the public liberty.”–John Adams

“Since the general civilization of mankind, I believe there are more instances of the abridgment of the freedom of the people by gradual and silent encroachments of those in power, than by violent and sudden usurpations…”–James Madison

“Show me that age and country where the rights and liberties of the people were placed on the sole chance of their rulers being good men, without a consequent loss of liberty?”–Patrick Henry

“Society is produced by our wants, and government by wickedness; the former promotes our happiness positively by uniting our affections, the latter negatively by restraining our vices. The one encourages intercourse, the other creates distinctions. The first is a patron, the last a punisher. Society in every state is a blessing, but government even in its best state is but a necessary evil.”–Thomas Paine

“…I think a general Government necessary for us, and there is no form of government but what may be a blessing to the people, if well administered; and I believe, farther, that this is likely to be well administered for a course of years, and can only end in despotism, as other forms have done before it, when the people shall become so corrupted as to need despotic government, being incapable of any other.”–Benjamin Franklin

And more importantly:

“They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety.”–Benjamin Franklin

It is easy to forget how our government can be every bit as dangerous as those who would seek to destroy us.

Since I started this talking about France, I will finish it with a quote from my favorite French economist:

“If the natural tendencies of mankind are so bad that it is not safe to permit people to be free, how is it that the tendencies of these organizers are always good? Do not the legislators and their appointed agents also belong to the human race? Or do they believe that they themselves are made of a finer clay than the rest of mankind?”–Frédéric Bastiat


Posted July 5, 2013 by edmcgon in Editorial/opinion, Forex/currencies, News, Politics

4 responses to “Happy Jobs Day! Ed’s Daily Notes for July 5th

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  1. > As we celebrate America’s independence, remember what America’s Founding Fathers thought about government power:

    This is all nice but what about Rich Men’s power which crystallizes itself in the form of Corporations’ power? Isn’t that evil too?

    Let’s all become Anarchists! 🙂

    • bsdgv,
      I think crony capitalism is just a symptom of the problem, whereby we have placed too much faith in the power of government to solve our problems. The corporations are just using their money to influence power, while the politicians are using their power to gain access to money. It’s a win-win for them, and a lose-lose for Americans.

      And I’m not advocating anarchy either. Just healthy skepticism when it comes to government. 😛

    • You know I find what Frédéric Bastiat said interesting, because when I look at the way people (the general population) act, it is no wonder that that these “organizers” have “big heads”. First off the kind of person that would want this kind of job, would naturally be full of themselves. But add to that, time and time again, I see people talk about what the “leaders” should do, and that is to act at a higher standard then what they would do themselves. In other words people seem to think that the people they elect have higher standards then themselves, as if they are in fact made from some kind of special “clay”.

      In fact I think if you really got to talk to the founding fathers, and you looked at the almost religious belief in them, would find that they would be quite sad to know this, because they clearly understood that they belonged to the same human race, with the same weaknesses.
      I find greatest in their understanding, that in fact constant self checking of the ego and weaknesses of all is needed.

  2. Bought 1/2 position in SAN. I’m just impressed with this bank. Making nice moves in No and So America.

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