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Monday, 16 July, 2007

Within 24 hours the wires will glow with pseudo-informative statements that the DJIA hit a new all-time high, and the symbolically significant 14,000 mark. Please remember the DJIA merely a indicates the stock price of 30 top companies in their respective industries. Nonetheless, it is accepted by people who know more about this stuff than I care to know as the benchmark indicator of the overall US economy.

The previous all-time high, before the present bull run, was 11,723 in March 2000. After this we saw a correction to the red-hot, internet-boom market. Please remember such listed companies as Wal-Mart, Home Depot, Consolidated Stores (dba Big Lots) and other consumer-oriented stocks (read: enterprises) grew both in value and presence. That is, one notices indicators of the rise of the overall economy. Upon the ascent of the president of the rival party from the executive branch which promoted the seven-year boom, the index dropped to 8500, crashing to 7286 in October 2002, interestingly the month the US commenced the assault on Iraq,

Over the last five years, the market has crawled upward. In constant dollars, DJIA did not hit the Clinton-era all-time high until January 2006. Currently the index is at its all time high, but adjusted for inflation it is doing no better than the the previous rally peak observed in March 2000. We shall see where it goes from here.

In other news, the DPRK is shutting down their nuclear reactor in exchange for “energy assistance”. Talks are beginning about how to regulate incoming product from China. Talks are beginning about moving the transportation sector toward greater efficiency and utilizing sources beyond petroleum. In other words, aside from the general desperation, the cities finding new ways of tricking residents into fines and the 3000 dead in New York and the 4000 dead in Iraq alone …

we are pretty much where we would have been in June 2001 under President Gore.

And no, Nineleven™ would not have happened under a subsequent Democratic administration, because the people in place had proven they would not fall for the trap.

P.S.: Given the-Senator-from-ADM Bob Dole’s connections and loyalty to the corn industry, and had he somehow won in 1996, would we have moved the transportation sector toward ethanol and “bio-diesel” by now? You know, only Nixon could go to China.

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