I Miss the Colbert Report

Stephen Colbert

The Colbert Report and the Daily Show has been of the air for almost two weeks now because of the writers’ strike. The problem seems to be the fact that studios aren’t willing to compensate the writers for publishing their work over non-traditional media such as the internet. This is just absolutely ridiculous, I applaud the studios for willing to explore new territory and make entertainment more available through sites such as ComedyCentral.com but there’s also a lot in it for the studios.

They get to boost their ratings since the audience of their shows will expand far beyond the normal prime time TV audience, and gain a new source of revenue through the ads hosted on their sites. When the YouTube and TiVo generation matures, they will have much higher expectations regarding the availability of TV media. These Hollywood studios are not going to let YouTube and TiVo profit off of this trend(see Youtube v Viacom), the studios have less flattering motives behind setting up video sharing sites similar to YouTube such as iFilm.com and ComedyCentral.com(owned by Viacom).

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US Trade Deficit Declines Again

World Currencies

Saw this article today on Yahoo finance, exactly inline with what I mentioned two days ago. Not very suprising that the deficit with China is getting better anytime soon since the yuan is fixed to the dollar by the Chinese government(yes governments are capable of manipulating exchange rates if they have enough reserves!) which is why the US government is so desperately trying to persuade China to increase its exchange rate for the yuan.

Increasing the exchange rate for the yuan has potentially positives and negatives. The primary negative for China is that it will make Chinese goods more expensive to the world and China has become heavily dependent on exports. The US argues that it’s not fair that China gets to sell its goods at much cheaper prices, but the benefits of a more valuable yuan also have mixed affects on the US economy. It will decrease the trade deficit but will also have a negative impact on corporate profits.

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Why A Weaker Dollar Is GOOD

Dollar Plunging

Headline on yahoo finance today:
http://biz.yahoo.com/ap/071107/wall_street.html

This has been no doubt one of the most discussed topics regarding our economy and is usually looked upon as a negative. Keep in mind that the feds do have the power to influence exchange rates, if they chose to put positive pressure on the exchange rate all they would have to do is decrease supply of the dollar on the world market. I believe the feds may be purposely lowering the value of the dollar. Here’s why: Read More »

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