Weather Report: Updates and Sources

OIL PRICES : Crude oil prices have dropped to nearly $115/barrel. This is further good news for the American consumer as it promises lower gas prices at the pump. However , this price drop appears to be the result of a slowing world economy , the results of which have yet to be determined.

U.S. ECONOMY : money news.newsmax.com/street talk/.credit comments on some of Oppenheimer analyst Meredith Whitney’s observations that the rich are feeling the effects of a worsening U.S. economy. They appear to be cutting back on discretionary spending along the other segments of the consuming public and this bodes ill for U.S. spending during the coming 12-18 months.

In The Daily Reckoning of 8/7/08, Bill Bonner observes that the U.S. economy of the last generation was built on “ excess consumer consumption “ and that our savings rate went from 9% to zero ( actually to less than zero ) over that period of time. While excess consumer spending helped to get us in this economic mess , Mr. Bonner also points out that a drop in consumer spending could cause the worst recession since the 1930’s.

UPDATE ON “ THE SCARY “ : In comments here on 8/5/08 concerning the flash point between Israel and Iran, we indicated that we thought that friction between these two countries would probably result in military confrontation. Here’s what we’ve read since then.

According to foxnews.com on 8/07/08, Israel has purchased 90 F-16I fighter planes with long range operational ability ( eleven more to be delivered in ‘09’ ), is looking to acquire bunker-busting bombs, and has purchased two new (and additional ) submarines that have nuclear warhead firing abilities.

Iran has upgraded its air-defense capabilities with TOR-M1 Russian made air defense systems and is seeking the even more advanced Russian S-300 surface-to-air missiles.

SOURCES : LEHMAN’S ( a non-electric equipment & appliance & products catalog of GREAT VALUE )

SEED’S of CHANGE ( an organic seeds catalog w/equipment, products & help )

BOUNTIFUL GARDENS ( a seed ,equipment, book/literature,& products catalog – GREAT !! )

Our family has done business with the sources above and found them to be excellent.

Meanwhile, keep your eyes on the horizon.