Analysis Topic: Economic Trends Analysis
The analysis published under this topic are as follows.
Sunday, May 03, 2020
No, the Economy Isn’t Re-Opening Soon / Economics / Coronavirus Depression
By: Patrick_Watson
“America will be open for business very soon,” said President Trump on March 23, just a week after local authorities began issuing stay-at-home orders.
At that point, the novel coronavirus had killed a total of 689 Americans. Now, a little over a month later, 689 deaths would be a really good day. And America still isn’t open for business. But the president and some governors think it should be and are trying to make it so.
Unfortunately, politicians can’t order the economy open again because they didn’t close it. Consumers and businesses began shutting down long before they were forced to, and they won’t re-open just because they legally can.
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Thursday, April 30, 2020
The Coronavirus Greatest Economic Depression in History? / Economics / Coronavirus Depression
By: Nadeem_Walayat
It looks like the history books will need to be rewritten for if the noises emanating out of every nick and economic cranny are to be believed for the global economy is heading for an economic contraction WORSE than that of the Great Depression! Which will make the Financial Crisis of 2008 look like a walk in the park. And this is not from the usual perma doom merchants who like a broken clock will eventually be right.
However, even the UK governments Office for State Economic Propaganda (OBR) has warned to expect UK GDP to plunge by an unprecedented 35% in Q2!
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Saturday, April 25, 2020
Deflationary Psychology Versus the Fed: Here’s the Likely Winner / Economics / Deflation
By: EWI
Weeks before the February top in the DJIA, the January Elliott Wave Theorist (Elliott Wave International President Robert Prechter's monthly publication about financial markets and social trends since 1979) said:
Most economists believe the Fed can prevent financial crises and depressions. [EWI's analysts] disagree. Socionomic theory proposes that naturally fluctuating waves of social mood regulate financial optimism and the economy. They are unconscious and cannot be managed. [emphasis added]
In case you're unfamiliar with socionomic theory, socionomics is the study of how society's changes in mood motivate social actions in realms that include the economy, political preferences, financial markets, actions of peace and war, and the fads and fashions of popular culture. Robert Prechter began formulating socionomic theory in 1976.
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Wednesday, April 22, 2020
The Coming Impact of Coronavirus Economic Contraction in ASEAN Countries / Economics / Coronavirus Depression
By: Dan_Steinbock
After the COVID-19 earthquake and a historical contraction, China is rebounding, whereas advanced economies face a depression-like plunge. The consequent tsunami is about to hit Southeast Asia.
As the total number of confirmed cases may exceed 3 million and deaths will surpass 200,000 in a matter of days, the U.S. and Europe account for more than 80% % of both. What was an epidemic in China at the turn of January and February grew into a pandemic in the 1st quarter, thanks to the belated mobilizations in Europe and the US.
As I predicted in a mid-March briefing (TMT, March 23), what is about to follow is the great coronavirus contraction. Its economic impact will be comparable to the 1930s Great Depression. With more data available today, we have a better idea what’s about to happen, despite extraordinary uncertainty.
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Wednesday, April 22, 2020
Coronavirus Burning Down the House / Economics / Coronavirus Depression
By: James_Quinn
Watch out you might get what you’re after
Hold tight wait till the party’s over
Hold tight We’re in for nasty weather
There has got to be a way
Burning down the house
Talking Heads – Burning Down the House
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Tuesday, April 21, 2020
Bending the Inflation Curve / Economics / Inflation
By: John_Mauldin
Our responses to the coronavirus threat, necessary though they may be, are creating massive supply and demand shocks, the rapidity of which is like nothing seen in centuries, if ever.
The Federal Reserve and other central banks are doing unprecedented things. Some think inflation will be the result. While that may happen eventually, I believe we will first go through the most massive deflationary shock of all time.
Milton Friedman famously said, “… inflation is always and everywhere a monetary phenomenon.” During the timeframe in which he and his colleague Anna Schwartz did their famous study, there was clearly a correlation between money supply and inflation. What is not often noted is that the velocity of money (i.e., the rate at which money changes hands) was stable during that time.
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Monday, April 20, 2020
COVID-19 and the Greater Recession / Depression of 2020-2021 / Economics / Coronavirus Depression
By: Christopher_Quigley
In February2012, utilising the chart below, I published an essay courtesy of Market Oracle outlining how, based on Kondratieff wave theory, the world economy could head into a depression between 2013 and 2020. We are now entering that depression, or at least great recession, in my humble opinion. This long wave analysis was developed by Nikolai Kondratiev, a Russian economist. He was shot by firing squad on the orders of Stalin in 1938. His execution was ordered because his academic work propounded that the capitalist system would not collapse as a result of the great depression of 1929. He saw recessions and depressions as normal cycles of the capitalist system due to its reliance on debt. He explained that:
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Sunday, April 19, 2020
Why the Coronavirus Could Raise Wages / Economics / Coronavirus Depression
By: Patrick_Watson
US unemployment shot higher in the last month, thanks to coronavirus closures. Some 17 million people filed new jobless benefit claims.
But it’s actually even worse.
Overwhelmed web sites and bureaucratic snafus kept many from applying. Others, while still nominally “employed,” saw their wages or hours cut. It’s terrible and will keep getting worse until the shutdowns ease and people believe they can circulate safely again.
But while the immediate outlook is dire, these events could ultimately mean higher wages for many workers. To see why, we have to think a few steps ahead.
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Sunday, April 19, 2020
An Alternative to the Lockdown Strategy in the Fight Against Coronavirus / Economics / Coronavirus Depression
By: Frank_Hollenbeck
The current coronavirus strategy of most governments is a recipe for a worldwide economic disaster. In many countries, the strategy of confinement and forcing shops to close is a sure-fire path to large-scale business failures. The cascade of economic and financial repercussions to come is likely to lead to another Great Depression.
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Saturday, April 18, 2020
SILVER AND COVID-19, CAPITALISM’S BLACK SWAN / Economics / Coronavirus Depression
By: Darryl_R_Schoon
Regarding today’s markets and gold and silver, on April 15th, Sandeep Jaitly wrote:
COURSE OF THE EXCHANGE
♦♦♦♦♦♦♦
Metals update: backwardation or not?
Over the past few weeks and months, there have been seismic changes in the way people are thinking of markets – and the concept of markets – generally.
As evidenced by movements in the Federal Reserve’s sale and repurchase facility from last September, which has resulted in the TARP balance sheet reaching a record of $6,000bn and at a record rate of over $630bn/month since the year began, there are ‘issues’ with all markets – in as much as markets are markets with ‘monetary’ fiat.
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Saturday, April 18, 2020
If Stock Investors Crunched Economic Data Like This Their Expectations Would Change Dramatically / Economics / Coronavirus Depression
By: Chris_Vermeulen
New economic data being released as earnings start to hit may alter how investors perceive the recent price recovery in the US and global markets. Many institutional analysts began suggesting “the bottom is in” and recently began to issue stronger forward guidance. The new data suggests we are seeing an economic contraction that, in some cases, maybe 2x or 3x the contraction that took place in the 2008-09 Credit Crisis.
The US stock markets reacted to this news and earnings data by collapsing over -2% in early trading. Gold and Silver are both lower as we write this article which would indicate weakness across the broader market. We continue to believe a deeper price low will set up in the near future with the US and global stock prices attempting to retest recent price lows – possibly falling below these levels. We believe the collateral damage to consumer engagement, manufacturing, transportation, retail/leisure, real estate and other sectors of the economy is just now starting to become evident. What the economy may look like near Mid-May is anyone’s guess.
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Thursday, April 16, 2020
Fed Caught Off Guard by Coronavirus Economic Shock. And Gold? / Economics / Coronavirus Depression
By: Arkadiusz_Sieron
Another week passed, and the number of jobless claims increased further. That was clearly not expected by the Fed, as the recent minutes shows. What does it all mean for the gold market?
Unemployment Claims Rose Further
Initial jobless claims have become one the most important data about the US economy these days. So, let’s take a look at the chart below, which offers the updated graph revealing the number of new claims for unemployment benefits.
Wednesday, April 15, 2020
All of the Coronavirus Depression Economic Recovery Models Will Be Wrong Too / Economics / Coronavirus Depression
By: MoneyMetals
“All of the projection models were wrong. All of them,” admitted New York Governor Andrew Cuomo in an interview last week with MSNBC.
Governor Cuomo had been issuing frantic demands for tens of thousands of ventilators... that turned out not to be needed as the rate of new hospitalizations for COVID-19 infections in New York plunged with surprising speed.
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Wednesday, April 15, 2020
Saudi Arabia Releases Ambitious Plan To Diversify Economy / Economics / Saudi Arabia
By: OilPrice_Com
On Monday, Saudi Arabia released a blueprint for the future, a plan for the Kingdom that could alter the course of its history. The “Vision for the Kingdom of Saudi Arabia” could radically transform Saudi Aramco, the Saudi economy, and the country’s social structure.
The plan has been pioneered by the 30-year-old Deputy Crown Prince Mohammed bin Salman, the second in line to the King, who has emerged as one of the most powerful figures in the Saudi government. Just a week ago his influence was on display; while it is difficult to know exactly what went on behind the scenes, all signs point to the Deputy Crown Prince overruling the long-standing and respected oil minister Ali al-Naimi to kill off the OPEC deal in Doha.
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Monday, April 13, 2020
Global Trade: The War of the Throne / Economics / Global Economy
By: Stephen_Merrill
Now scribers, hear the tale of the mightiest battle of humankind. It is the war over the throne of global trade. The ongoing duel between the Rightful King and the Irresistible Force.With the Joker in the mix now, too.
Five Millenia of Global Trade
What tamed the tribalistic human into a more civilized state long ago was the logic and obvious benefits of trade and travel. From its very beginning, the global means-of -exchange facilitating trade was ultimately gold and its monetary stepchild silver. Even when Western Europeans traded with China, India and many others, the primacy of gold and silver was easily adopted by both sides based on their separate tradition.
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Sunday, April 12, 2020
Will Fed and Trump Save the US Economy And Sink Gold? / Economics / Coronavirus Depression
By: Arkadiusz_Sieron
The Trump administration will seek an additional $250 billion to support small businesses hurt by the widespread economic shutdown and slowdown. Will the government and the Fed save the US economy? What would be the consequences for the gold market?US Epidemiological Update
As of April 7, more than 360,000 people were confirmed to be infected by the coronavirus in the US, and more than 10,000 out of them died because of the COVID-19, as the chart below shows. Actually, the US is entering the worst period of the epidemic, as hospitals are struggling to maintain and expand capacity to care for infected patients.
Saturday, April 11, 2020
The Invisible Hand of Capitalism / Economics / Economic Theory
By: Jared_Dillian
The Fed is more or less doing modern monentary theory (MMT) as we speak.
But rather than giving printed dollars to the Treasury, it’s using the bond market as a conduit. Trillions in bond issuance, financed by trillions of dollars of printed money.
Don’t get me started on the pathetic levels of assistance we are offering American citizens in favor of financially irresponsible corporations.
What we are practicing here is not capitalism. In order for capitalism to work, we must allow corporations to fail. The bankruptcy process works just fine. Sure, shareholders and creditors would experience losses, and this would teach them to be more careful next time.
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Thursday, April 09, 2020
Redefining Political Economy, Globalization & Business Models Consequent on Corona Virus Pandemics / Economics / Economic Theory
By: Dr_R_M_Mathew
Corona Virus Pandemics, spread across the world, necessitates the redefining of Economics & Political Economy, Globalization, Business, Enterprises, Business Models, Education and Technology associated with Business, especially Information Technology. All our concepts of the Economy, Development, Business Enterprises, Globalization, Education, Healthcare, Science and Technology have become meaningless along with the wisdom of the great masters, including Nobel Laureates overnight. UN, World Bank, IMF and WEF have been struggling hard to find a justification for their very identity, existence and relevance./p>
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Monday, April 06, 2020
Coronavirus Crisis Exposes Consequences of Fed Policy: Americans Have No Savings / Economics / Coronavirus Depression
By: MoneyMetals
Two weeks ago, during a March 17 address to the nation in response to the COVID-19 outbreak, President Donald Trump asked that Americans work from home, postpone unnecessary travel, and limit social gatherings to no more than 10 people.
And last week, on March 27, Trump signed a stimulus package of over $2 trillion dollars to provide relief to an economy on the precipice of collapse.
The aid package includes handouts and loans to individuals, small businesses, and other distressed industries.
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Saturday, April 04, 2020
Concerned That Asia Could Blow A Hole In Future Economic Recovery / Economics / Coronavirus Depression
By: Chris_Vermeulen
Thinking somewhat far off into the future, our researchers believe China/Asia could become the next Black Hole in the global economy. China recently released its March PMI number which came in at 52.0 – showing moderate expansion in Chinese manufacturing. The February Chinese PMI level was 35.7. We strongly believe China wants to show some strength in their perceived economic recovery and that these PMI numbers are somewhat “manufactured for effect”.
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