Analysis Topic: Economic Trends Analysis
The analysis published under this topic are as follows.
Friday, August 03, 2012
Mr. Bernanke's Postponement Strategy? / Economics / US Economy
By: Ian_R_Campbell
On Wednesday, August 1 Chairman Bernanke provided an update on the Federal Reserve's position on the U.S. economy. He commented briefly in a negative tone on U.S. GDP growth, unemployment, consumer spending and the housing sector. He said the Fed's U.S. inflation expectations remained stable. He reconfirmed the Fed's policy of reinvesting in U.S. treasuries until December 2012.
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Friday, August 03, 2012
Deflationists' Wrong in Both Theory and Historical Fact / Economics / Deflation
By: Gary_North
An inflationist is someone who believes that price inflation is the result of two things: (1) monetary inflation and (2) central bank policy.
A deflationist is someone who believes that deflation is inevitable, despite (1) monetary inflation and (2) central bank policy.
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Thursday, August 02, 2012
Social-Economic Consequences of Malaysia's persistently High Income Inequality / Economics / Asian Economies
By: Sam_Chee_Kong
The Income Inequality have always been a thorny issue for the past few thousand years. During the middle ages in Europe, they have the bourgeois (higher class) and the proletariats (ordinary folds). In ancient China they too have different class like the Merchants, artisans, court officials, laborers and etc. Needless to say the bourgeois and the merchants controlled most of the wealth.
Wednesday, August 01, 2012
On the Road to Freedom From Fiat Money Economics / Economics / Fiat Currency
By: Gary_North
Yesterday was the 100th anniversary of Milton Friedman's day of birth. The Wall Street Journal ran a laudatory article on him.
This year is the 100th anniversary of Ludwig von Mises' Theory of Money and Credit. There has been no article in the Wall Street Journal. The Mises Institute took my advice and held several sessions on that book at its March week-long Austrian Scholars Conference. A book on that book will be published next year. Few people in academia and the financial media will notice.
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Wednesday, August 01, 2012
Was India's Worst Black Out in Human History Triggered by a Solar Flare? / Economics / Environmental Issues
By: DK_Matai
Asia's third-largest economy -- INDIA -- was hit by three more huge power grid failures, one day after a similar, but smaller power failure covered half the country -- leaving more than 650 million people without electricity in the world’s biggest blackout according to the ATCA Research & Analysis Wing. More than half the population of India has been affected, which is roughly 10% of the world's population and bigger than the entire population of the European Union or the United States, Russia and Brazil combined. In parallel, hours of power outage in the scorching summer sparked protest in most parts of Pakistan and angry protesters attacked offices of power supply departments in some areas.
Wednesday, August 01, 2012
Euro-zone Economy Enters Twilight Zone / Economics / Eurozone Debt Crisis
By: Michael_Pento
It is obvious to me that the world of economics has now fully entered the Twilight Zone. As evidence, last week, European Central Bank Head Mario Draghi pledged to quote, "Do whatever it takes preserve the Euro. And believe me, it will be enough." In this upside down world of phony Keynesian Economics, doing "whatever it takes to preserve the Euro" apparently now means promising to dilute the purchasing power of the currency into oblivion.
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Wednesday, August 01, 2012
U.S. Economy on Soft Trajectory as Consumer Spending Falls / Economics / US Economy
By: Asha_Bangalore
Real consumer spending declined 0.1% in June, after posting gains of 0.2% and 0.1% in April and May, respectively. Outlays of durable goods and services held steady in June, but that of non-durables fell 0.4%. We can discern the causes for a drop in consumer non-durables when the Commerce Department publishes complete details of consumer expenditures on Friday, August 3. More importantly, the level of real consumer spending in June ($9576 billion) is lower than the second quarter average ($9582 billion), which sets up the case of strong monthly gains in consumer spending in the third quarter if consumer spending has to make a noticeable contribution to real GDP. There are doubts about a strong trajectory of consumer spending in the second-half of the year, given the current worrisome labor market situation.
Monday, July 30, 2012
The Economics of War / Economics / Social Issues
By: Submissions
Will Dendy writes: War can end depressions, encourage the creation of new technologies and drive the human race forwards.
It is frightening to hear such complete fallacies as these becoming increasingly repeated by so-called intelligent and educated people. In the long term, war creates nothing more than destruction, despair and a retardation of the progress of the human race. In this essay, I will dispel the two biggest fallacies regarding war, and suggest far better ways to cure problems than blowing other people apart.
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Monday, July 30, 2012
The Multi-Trillion Dollar Black Hole That Could Undermine the U.S. Economy / Economics / US Economy
By: Money_Morning
Shah Gilani writes:
The difficulties facing retirees aren't just their problems. Underfunded pensions weigh down everyone's retirement expectations and America's future growth prospects.
Kicking the can down the road on this one has involved everything from outright lying to misrepresentation, bordering on fraud in the way pension plans calculate their liabilities.
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Sunday, July 29, 2012
Central Bankers Choice Between Deflationary or Hyperinflationary Depression / Economics / HyperInflation
By: Gary_North
What the Federal Reserve System can do and what it will do are two different things.
The Federal Reserve System can monetize anything. It can create digital money and buy any asset it chooses to buy. There are no legal restrictions on what it is allowed to monetize.
If it were to do this, and it continued to do this, the dollar would fall to zero value. This would produce hyperinflation. The result would be the destruction of all dollar-based creditors. Debtors could pay off their loans with the sale of an egg or a pack of cigarettes. This is what farmers did in 1923 in Germany and Austria.
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Saturday, July 28, 2012
U.S. Drought Disaster Depression Agricultural Commodities Crops Report / Economics / Economic Depression
By: Richard_Mills
Because of the worst drought since 1988 the U.S. Department of Agriculture declared a federal disaster area in almost one-third of all the counties in the United States - more than 1,300 counties covering 29 states, the largest disaster declaration ever made by the USDA. Only in the 1930s and 1950s has a drought covered more land.
Friday, July 27, 2012
Will US GDP Numbers Lead to QE3? / Economics / US Economy
By: GoldCore
Today's AM fix was USD 1,618.75, EUR 1,321.43, and GBP 1,031.51 per ounce.
Yesterday’s AM fix was USD 1,603.00, EUR 1,321.74and GBP 1,034.26 per ounce.
Silver is trading at $27.79/oz, €22.65/oz and £17.74/oz. Platinum is trading at $1,420.70/oz, palladium at $571.75/oz and rhodium at $1,150/oz.
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Thursday, July 26, 2012
Continuing UK Recession / Economics / Double Dip Recession
By: Ian_R_Campbell
Why Read: Because the United Kingdom is an important world economy, and because continuing recession in the UK does not bode well.
Commentary: It has been announced that:
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Thursday, July 26, 2012
America’s Competitive Spirit Driving Global Economic Growth / Economics / US Economy
By: Frank_Holmes
One of the few things that Barack Obama and Mitt Romney can agree on is that our economy is still struggling to regain its strength. Stubborn unemployment and sluggish growth at home combined with a slowing China and a dysfunctional eurozone have cast a dark shadow on America’s eternal optimism. The media favors negative news and the 24/7 cycle of gloom and doubt can be dispiriting.
We are always looking for the economic points of light around the globe and strive to provide a counterpoint to the pervasive pessimism. As Warren Buffett once said, “It’s never paid to bet against America. We come through things, but it’s not always a smooth ride.
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Wednesday, July 25, 2012
End is Near For U.S. Economic Rebound / Economics / Double Dip Recession
By: Clif_Droke
Since the start of the global economic recovery in 2009, the status of the U.S. economy has been a perplexing one. We’ve been bombarded with conflicting reports as to the economy’s strength or weakness at various times over the past 3+ years and at any given time it’s hard to get a good read on how well the domestic economy is performing overall. Read full article... Read full article...
Wednesday, July 25, 2012
Manufacturing Returning To U.S.? / Economics / US Economy
By: Ian_R_Campbell
There are increasing reports of repatriation of manufacturing to the U.S. from China and other low cost producer nations where product transportation costs are high, and where in some cases for 'high end products' (some furniture products for example) quality is seen to be better for 'made in America' products. That said:
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Tuesday, July 24, 2012
Encouraging Data Buried in Otherwise Gloomy Economic News / Economics / US Economy
By: Asha_Bangalore
The European debt crisis continues to make headline news with Spanish and Italian government bond yields marking new post summit highs. These events have intensified the downside risks of economic growth in the United States in the quarters ahead. Buried in the sea of glum economic headlines, the Chicago Fed National Activity Index (CFNAI) increased to -0.15 in June from -0.48 in May. This index has a reputation of identifying turning points of economic activity in the United States.
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Monday, July 23, 2012
Euro-zone Economic Crisis Black Swan or Hidden Lion? / Economics / Eurozone Debt Crisis
By: John_Mauldin
"In the economic sphere an act, a habit, an institution, a law produces not only one effect, but a series of effects. Of these effects, the first alone is immediate; it appears simultaneously with its cause; it is seen. The other effects emerge only subsequently; they are not seen; we are fortunate if we foresee them.
"There is only one difference between a bad economist and a good one: the bad economist confines himself to the visible effect; the good economist takes into account both the effect that can be seen and those effects that must be foreseen.
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Friday, July 20, 2012
The Spanish Inquisition 2012 / Economics / Eurozone Debt Crisis
By: Asha_Bangalore
Our daughter studied in Spain, and our whole family fell in love with the country when we visited. Ever since, we’ve cheered for La Furia Roja, the wonderful national soccer team. Unfortunately, Spain is dealing with a much less pleasant Furia at the moment.
As the crisis in peripheral Europe spreads from smaller countries to larger ones, the consequences grow commensurately. Spain’s economy is about five times larger than Greece’s, and its commercial and financial linkages are proportionately deeper. While Spain has many of the same structural challenges that other countries have, its plight has been deepened by a property market crash that rivals the one in the U.S.
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Friday, July 20, 2012
The Quantum of Quantitative Easing Inflation is Coming! / Economics / Inflation
By: Nadeem_Walayat
The City of London is Imploding as a consequence of ever escalating shockwave's mostly emanating from across the Atlantic as the United States goes into overdrive in attempts to wipe-out competition from London in terms of profiting from global financial market transactions.
First we saw the US dig out and focus on 4 year old LIBOR manipulation stories centred around the cesspit that goes by the name of Barclays Bank that looks set to devastate all of UK's biggest banks, with the UK tax payer ultimately footing the bailout bill. I have covered this story at length that illustrate that everyone knew about LIBOR manipulation but now pretend that they only found out relatively recently - more here - RBS Chaos and Barclays Libor Cesspit Prompts Slow Motion Run on British Banks
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