Analysis Topic: Economic Trends Analysis
The analysis published under this topic are as follows.
Thursday, October 04, 2012
Economic Reforms in India Likely To Stick This Time / Economics / India
By: Benjamin_Shepherd
India has always taken a protectionist approach to managing its economy, initially out of a certain necessity and more recently as a result of populist politics.The initial necessity arose out of a desire to develop a stronger internal economy by fostering small businesses that cater to indigenous tastes and demands. That’s no surprise, given the huge cultural disparities within the country’s regions, especially between the more cosmopolitan and richer south and the poorer north.
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Wednesday, October 03, 2012
China and Global Economic Recovery / Economics / China Economy
By: Ian_R_Campbell
Why read: To test the contemporaneous views I expressed four years ago, to observe similarities and differences then and now, and to determine if you agree with my current views.
Commentary then: On July 31, 2009 I commented as follows:
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Wednesday, October 03, 2012
What Parenting Teaches us About Economics / Economics / Economic Theory
By: William_Bancroft
Recent BBC documentaries on the great economists have created quite a buzz in the UK. No doubt the shows are proving popular on the BBC’s international channels too. The sorry state of the global economy and withered trust in economics today prompts another look at the giants of this social science. The usual names are re-examined, including John Maynard Keynes and Friedrich Hayek.
Wednesday, October 03, 2012
Mounting Evidence for Econcomic Recession 2013 / Economics / Recession 2013
By: Money_Morning
David Zeiler writes:
Don't worry about scanning headlines every day to determine the U.S. economy's chances of entering a recession in 2013.
We already know the answer.
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Sunday, September 30, 2012
U.S. Counting Down to Hyperinflation / Economics / HyperInflation
By: GoldSilverWorlds
John Williams, who is the founder of ShadowStats.com, stated during a recent interview that the US is on track to become victim of hyperinflation the latest in 2014. He believes that “open ended QE” (which is nothing more than monetizing debt) is the key problem. He explains there is an annual deficit of 5 trillion dollar per year in the US, which includes the unfunded liabilities. He declares the situation “beyond containment”. Central planners are responding to the current economic problems by simply increasing the amount of printed money. John Williams his expectations are that we’ll soon see a heavy sell off in the dollar, quickly followed by a significant first spike in inflation. That will ultimately lead to hyperinflation the latest somewhere in 2014. We are just before the kick off of inflation.
Sunday, September 30, 2012
China Painful Economic Rebalancing Act Ahead? / Economics / China Economy
By: Mike_Shedlock
HSBC China Manufacturing PMI™ shows Output falls at fastest pace since March .
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New export orders fall at fastest rate in 42 months
Friday, September 28, 2012
Quadrillion Dollar Derivatives Market 20 Times Total Global Economy GDP / Economics / Derivatives
By: John_Rolls
John Rolls Submits: The Derivatives market was only 500 trillion in 2008 when it almost blew up in all our faces. Now it is 3 times that size, what a monster balloon! when it blows no one survives that has money in the banks or in the mattress. You better start investing in silver and gold which is real money not fiat. Financial hell is coming if you put your faith in the banks! .Yes it’s about capitalism but notice he also uses the politically incorrect word MORAL, no system of any type is worth using without basic ethical and moral principles as the basis of it. Needless to say, GREED runs this system and has for quite a while and unless and until honor and virtue replace it…the system will continue to increase unpayable debt and bring the economic system to a tragic and very messy ruin.
Wednesday, September 26, 2012
Balancing Lenders and Borrowers is the Most Economically Stimulating / Economics / Economic Stimulus
By: John_Handbury
Keeping interest rates low has always been perceived to be stimulating. This is based on the premise that borrowers are more inclined to borrow when rates are low. This is undeniably true, however, this simplification totally removes the lenders from the equation, which have an equal role in stimulation.
By definition the maximum activity (thereby stimulation) occurs when the number of borrowers is the same as the number of lenders. By definition this occurs at the MARKET PRICE. To artificially move rates either way from the market price suppresses either one group or the other and thereby de-stimulates.
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Monday, September 24, 2012
Keynsian Animal Spirits / Economics / Economic Theory
By: Alasdair_Macleod
The BBC is running a three-part series on notable economists, starting with Keynes. There were a number of errors made, but I shall ignore those and address two Keynesian fallacies. The first was that Keynes correctly anticipated the economic and political consequences of the Versailles Treaty, which inflicted punitive reparations on Germany: this was true. It was bizarrely extrapolated to the current situation, concluding that Germany must reduce its prosperity and economic power to a level closer to that of the other Eurozone countries in the interests of economic balance.
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Saturday, September 22, 2012
Why QE3 Won’t Jumpstart the Economy and What Would / Economics / Quantitative Easing
By: Ellen_Brown
The economy could use a good dose of “aggregate demand”—new spending money in the pockets of consumers—but QE3 won’t do it. Neither will it trigger the dreaded hyperinflation. In fact, it won’t do much at all. There are better alternatives.
The Fed’s announcement on September 13, 2012, that it was embarking on a third round of quantitative easing has brought the “sound money” crew out in force, pumping out articles with frighting titles such as “QE3 Will Unleash’ Economic Horror’ On The Human Race.” The Fed calls QE an asset swap, swapping Fed-created dollars for other assets on the banks’ balance sheets. But critics call it “reckless money printing” and say it will inevitably produce hyperinflation. Too much money will be chasing too few goods, forcing prices up and the value of the dollar down.
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Saturday, September 22, 2012
Inflation and Inflation Expectations Analysis / Economics / Inflation
By: Asha_Bangalore
Since the Federal Reserve initiated its third round of quantitative easing (QE3) last week, critics have expressed concern that the policy would ultimately be inflationary. Investors also seemed to sense a higher risk in this area; gold and other commodities have rallied as portfolios seek to hedge against this outcome. In response, several Federal Reserve officials have been out defending the central bank’s action.
Friday, September 21, 2012
Do Trade Deficits and Surpluses Matter? / Economics / Economic Theory
By: Ian_R_Campbell
Why read: Because I believe that where a country runs continuous net trade deficits and increasing net cumulative trade deficits that is a bad thing in the context of the economic well-being of that country. Others disagree, and in the current economic environment where the United States - still the world's most important economy - continuously:
Friday, September 21, 2012
Today’s Global Economic Crisis Worse than the Great Depression? / Economics / Great Depression 2010's
By: Washingtons_Blog
What Do Economic Indicators Say?
We’ve repeatedly pointed out that there are many indicators which show that the last 5 years have been worse than the Great Depression of the 1930s, including:
Friday, September 21, 2012
Eurozone Panic! Steepest Economic Contraction Since June 2009, Global Recession / Economics / Recession 2012
By: Mike_Shedlock
The global recession which started in Europe, is strengthening led by further declines in the eurozone. Markit reports Eurozone sees steepest contraction since June 2009 despite downturn easing in Germany.
Friday, September 21, 2012
Forget About QE… I’m Worried About UC / Economics / Inflation
By: Graham_Summers
Let’s just be blunt here.
Inflation is back in a big way. It’s not going to show up in the official numbers, but if you’ve paid for gas or food or healthcare recently, you’ve no doubt noticed that:
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Thursday, September 20, 2012
Money Printing Stimulus, Is this the world’s most important debate? / Economics / Quantitative Easing
By: William_Bancroft
Last week the Bernanke Fed recommenced its interventionist tendencies and announced QE3. The world’s most important central bank will be able to buy its previously targeted range of securities to the tune of $40bn a month.
The Fed probably felt newly empowered by the ECB’s recent promises to action, and the deliberately awe inspiring words of ‘Super’ Mario Draghi. The world’s most systemically important central banks are building their balance sheets and with it an even bigger hand in the world’s most important financial game of poker.
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Wednesday, September 19, 2012
Why You Should Prepare for Econcomic Catastrophe / Economics / Inflation
By: Gary_North
It is not often that readers get a clear-cut choice between two forecasts. Most forecasts have wiggle room. Not the following.
1. The United States government will default.
2. The United States government will not default.
I hold the first position. John T. Harvey holds the second. He wrote a piece for Forbes defending his position: "It Is Impossible For The US To Default".
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Tuesday, September 18, 2012
Mexico, the “Forgotten” Emerging Market / Economics / Mexico
By: Benjamin_Shepherd
Mexico is the closest emerging market to the US, after all, it’s right next door but it hasn’t been getting much attention from American investors.A major reason is Mexico’s close linkage to the economic behemoth to its north. Mexico doesn’t just catch cold when America sneezes; it comes down with a nasty case of pneumonia.
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Monday, September 17, 2012
Slow Painful Economic Death Spiral of Debasement and Despair / Economics / Great Depression II
By: James_Quinn
ARE YOU SEEING WHAT I’M SEEING?
Is it just me, or are the signs of consumer collapse as clear as a Lowes parking lot on a Saturday afternoon? Sometimes I wonder if I'm just seeing the world through my pessimistic lens, skewing my point of view. My daily commute through West Philadelphia is not very enlightening, as the squalor, filth and lack of legal commerce remain consistent from year to year. This community is sustained by taxpayer subsidized low income housing, taxpayer subsidized food stamps, welfare payments, and illegal drug dealing. The dependency attitude, lifestyles of slothfulness and total lack of commerce has remained constant for decades in West Philly. It is on the weekends, cruising around a once thriving suburbia, where you perceive the persistent deterioration and decay of our debt fixated consumer spending based society.
Sunday, September 16, 2012
Is the "Fiscal Cliff" a Threat to the U.S. Economy? / Economics / Taxes
By: Frank_Shostak
The US Congressional Budget Office (CBO) said on August 22, 2012, that scheduled tax increases and spending cuts in 2013 would reverse the current modest economic recovery. The CBO and other experts are of the view that large government spending cuts and tax hikes will cause severe economic slump.