Wall Street Wiz Jim Rogers predicts worst recession since WW II

Wanted to share this portion of an article at CNNMoney (See original article here.) By Brian O’Keefe, senior editor, quoting Jim Rogers on the US economy right now:

“Conceivably we could have just had recession, hard times, sliding dollar, inflation, etc., but I’m afraid it’s going to be much worse,” he says. “Bernanke is printing huge amounts of money. He’s out of control and the Fed is out of control. We are probably going to have one of the worst recessions we’ve had since the Second World War. It’s not a good scene.”

(The central bank’s second interest rate cut in a week raises the risk of inflation and bails out the banks.)

(Interest rate cut=increased money supply=inflation=hard times for poor and working families)

Rogers looks at the Fed’s willingness to add liquidity to an already inflationary environment and sees the history of the 1970s repeating itself. Does that mean stagflation? “It is a real danger and, in fact, a probability.”

Procter&Gamble to drop Folgers coffee

Wanted to share this article by Ned Hunter from the Jackson Sun today for local people concerned with P&G:

(Original article here.)

“P&G drops Folgers coffee
Local workers should be OK, official says

Procter & Gamble’s decision to divest itself of the company’s Folgers Coffee division should have no impact on the local Pringles snack food plant, said Randy Kennedy, external relations manager at P&G’s Jackson plant on Thursday.”We do not manufacture Folgers here,” he said. “Every P&G brand is evaluated on its own, and I am not aware of any effect that it will have on Pringles.”

P&G’s Jackson plant on the U.S. 70 Bypass employs about 870, Kennedy said.

Procter & Gamble manufactures Folgers coffee at three plants in New Orleans, Sherman, Texas, and Kansas City, Mo., Kennedy said.On Thursday, company officials said they would spin-off or split-off the coffee company because earnings were not meeting P&G’s expectations.

“P&G’s stated growth range is 4 percent to 6 percent annually,” wrote Doug Shelton, company spokesperson, in an e-mail. ”Folgers is projected to grow at a slightly lower pace.”

Folgers made about $350 million in operating income last year from sales of $1.6 billion in 2007, Shelton wrote.

Details of the divestiture had not been completed on Thursday, Shelton wrote. P&G will not maintain any stock ownership in Folgers when the deal is complete, which is expected to occur in the second half of this year.

“In a spin-or-split off scenario, all shares of The Folgers Company must be distributed to P&G shareholders,” Shelton wrote.

Folgers has been a part of the Procter & Gamble family for about 45 years. The coffee company employs around 1,250. Both Folgers and P&G are based in Cincinnati.

P&G manufactures consumer staples such as Tide detergent, Crest toothpaste and Gillette shavers.”

The U.S. Economy in 2007

“I predict future happiness for Americans if they can prevent the government from wasting the labors of the people under the pretense of taking care of them.” –Thomas Jefferson

“We face a coming financial crisis. Our current account deficit is more than $600 billion annually. Our foreign debt is more than $3 trillion. Foreigners now own over $1.4 trillion of our Treasury and mortgage debt…We must borrow $3 billion from foreigners every business day to maintain our extravagant spending. Our national debt now is increasing $600 billion per year, and guess what, we print over $600 billion per year to keep the charade going. But there is a limit and I’m fearful we’re fast approaching it.” –Congressman Ron Paul, M.D., September 17, 2005

“Make no mistake, the problems faced by the American people are not caused by unscrupulous mortgage brokers or the rising price of oil; these are symptoms of an economic disease caused by a spendthrift Congress enabled by loose monetary policy.” –Congressman Ron Paul, M.D., November 3, 2007

“Now, the Democrats have released a report on the total costs of the military operations in Iraq and Afghanistan, including “hidden costs” such as interest on the money we’re borrowing, and long-term healthcare for vets…The bill comes to $3.5 trillion…If $3.5 trillion is the true cost of these military adventures, $11,500 is the amount every man, woman and child in this country pays. So, a family of four would pay $46,000 just for this war…In other words, war has cost more than an entire year’s worth of income from each middle class Texas family…Congress should not increase taxes by $3.5 trillion and the administration meeds to end the occupation of Iraq, with its costs of $3.5 trillion to taxpayers. Let the hardworking American taxpayers keep their money. Families need that $46,000 far more than government does.” –Congressman Ron Paul, M.D.

“Federal Spending, deficits, and Federal Reserve mischief hurt the poor while transferring wealth to the already rich. This is the real problem, and raising taxes on those who produce wealth will only make conditions worse. Borrowing money to cut the deficit is only marginally better than raising taxes. It may delay the pain for a while, but the cost of government eventually must be paid.

Federal borrowing means the cost of interest is added, shifting the burden to a different group than those who benefited and possibly even to another generation. Eventually borrowing is always paid for through taxation.” –Congressman Ron Paul M.D.