A must-read message from the president – of Channellock
This post has been picked up by several bloggers so I thought I would pass it along. It is a commentary by William S. Dearment, president and CEO of Channellock. After reading this, I almost want to toss all my gripping tools and buy Channellock.
I recently wrote about the ongoing lack of leadership in our country.
Nothing new to report, yet…
We continue to be driven by unknowing, no “skin-in-the-game,” income-redistributing, progressive-spendthrift members of Congress and White House staff. They have no respect for the private sector, for manufacturing or for our country.
In my part of this world the good news is: ARLEN SPECTER IS GONE, and we have a very viable Republican Senatorial candidate in Pat Toomey.
Northwest Pennsylvania recently completed a very vigorous Congressional primary for the Republican position to run against our one-term Pelosi puppet, Kathy Dahlkemper, D-Erie, Pa.
Big hopes for November!
“THEY” (see above) say the economy is rebounding.
“THEY” say inflation is under control.
“THEY” say all is good in La-La land…
Here are some indicators:
- Increased supply chain price pressure. Crude goods/materials (defined as iron/scrap steel, non-ferrous metal ores and copper and aluminum scrap) up 28.8 percent year over year, with the core products up +49.5 percent, year over year.
- Public sector being pinched. Public transportation costs up 0.7 percent in April. Water, sewer and trash collection rates all up 0.6 percent for the month of April on a national basis. Local, county and state governments are all looking for ways to stop bleeding budgets.
- Intermediate Material Cost increases. In April, softwood lumber prices were up 4 percent, hardwood lumber prices were up 1.4 percent; plywood was up 8.7 percent; and gypsum products were up 2.4 percent. These increases continue to put upward pressure on pricing.
- Interest rates will start going up, yes, even though “THEY” say not. I look at the 30-day LIBOR rate, a true reflection of actual interest rate activity and the cost of capital. In April, 30-day LIBOR stood at 0.259 percent. Today (June 8), six weeks later, it stands at .35 and increase of 91 basis points, or 35 percent. Folks, that’s inflationary. In addition, the money supply (M2) velocity is increasing.
It seems obvious that there is serious, mounting pressure on supply-chain pricing. These pricing pressures cannot continue to be absorbed by existing profit margins and/or productivity improvements.
It seems obvious that all forms of government are bleeding severely – to include that giant, hemorrhaging federal budget – with no signs of let up. This means cost increases on public-provided services. (While not a “tax” increase, this certainly is a fee increase to local citizens.)
It seems obvious that inflation will heat up…
None of this bodes well for the embattled U.S. dollar and our balance of payment problems.
For the Obama administration to claim that all is well and the economy is improving seems farcical.
We need fiscal restraint.
We need a manufacturing-sector program to make U.S. manufacturers more competitive on a global basis. The Obama Administration doesn’t even consider this.
We need a true international game plan that makes sense.
We need to treat our service personnel with respect and dignity.
We need to quit sponsoring/apologizing to/subsidizing foreign governments that sponsor terrorist activity.
We need a real energy policy that will truly wean us off Middle East oil.
We need to cut federal government costs – not reduce the increase in their budgets, but CUT them at least 10 percent across the board…fiscal restraint.
We need control of our borders.
We need LEADERSHIP and true statesmen.
If you have any candidates in your part of the world that represent these thoughts: Support them! Help them! Put a sign in your yard! DO SOMETHING for them!
Regaining control of our country starts with this November’s elections. I hope you will be there.
This is a guy from the real world – not some f**king space alien like we have in our government. This guy is a doer, a creator of jobs and wealth. These are the types who we should listen to.