Analysis Topic: Economic Trends Analysis
The analysis published under this topic are as follows.
Wednesday, January 26, 2011
Hidden Inflation Food Prices Flying Under the Fed's Radar / Economics / Inflation
By: Money_Morning
Jason Simpkins writes:
Soaring food prices have been, perhaps, the most pressing global issue of the past two years – yet the U.S. Federal Reserve has taken a "hear no evil, see no evil, speak no evil" approach to the global crisis.
Instead, the Fed has dutifully maintained its focus on so called "core inflation" in the United States – even as Americans suffer the consequences of the "hidden inflation" the government refuses to account for.
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Wednesday, January 26, 2011
U.S. Consumer Confidence Index Soars in January / Economics / US Economy
By: Asha_Bangalore
The Conference Board's Consumer Confidence Index rose to 60.6 in January from 53.3 in December. The January reading is the highest since May 2010. The Present Situation Index (31 vs. 24.9 in December) and Expectations Index (80.3 vs. 72.3 in December) advanced in January.
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Wednesday, January 26, 2011
Mervyn King Effectively Admits Bank of England Has Lost Control of Inflation and Economy / Economics / UK Economy
By: Nadeem_Walayat
Mervyn King along with Bank of England's Monetary Policy Committee having spent virtually the whole of 2010 pumping out temporarily high inflation propaganda so as to prevent a wage price spiral from taking hold, now on having looked at preliminary data for January 2011 inflation to be released in Mid Feb, effectively admits that the Bank of England has lost control of Inflation and the Economy as the latest GDP data shocked everyone by showing a disastrous contraction of -0.5% for Q4 2010 against expectations for +0.5% (1% difference).
Tuesday, January 25, 2011
Exponential Credit Growth Petri Dish; Steve Keen Responds to "World Economic Forum Endorses Fraud" / Economics / Credit Crisis 2011
By: Mike_Shedlock
In response to World Economic Forum Endorses Fraud; Steve Keen Mocks the WEF Report, So Do I; The Purported "Need to Double Credit in 10 Years" I received a nice email from Steve Keen.
Tuesday, January 25, 2011
The Financial Crisis, The Worst Is Behind Us / Economics / Global Economy
By: DailyWealth
Steve Sjuggerud writes: "It's unprecedented," you'll hear people say.
"It's the worst since the Great Depression," you'll also hear. "We've never experienced such bad times."
Tuesday, January 25, 2011
How Fast Has the Jobless Rate Declined After Prior Recessions? / Economics / Unemployment
By: Asha_Bangalore
The 9.4% unemployment rate in December 2010, an elevated reading, is down from a high of 10.1% in October 2009. The recent cycle low for the unemployment rate was 4.4% in May 2007. Although each business cycle is different, it is still worthwhile to recall how fast the jobless rate has declined in the past 60 years after each recession. Read full article... Read full article...
Monday, January 24, 2011
Response to Krugman on Austrian Business-Cycle Theory / Economics / Economic Theory
By: Robert_Murphy
As many readers already know, last week Paul Krugman linked to one of my Mises Daily articles explaining the importance of capital theory in any discussion of the business cycle. Although Krugman graciously described my fable about sushi-eating islanders as "the best exposition I've seen yet of the Austrian view that's sweeping the GOP," naturally he derided the approach as a "great leap backward" and a repudiation of 75 years of economic progress since the work of John Maynard Keynes. To bolster his rejection, Krugman listed several problems he saw with the Austrian understanding.
Monday, January 24, 2011
World Economic Forum Endorses Fraud, "Need to Double Credit in 10 Years" / Economics / Credit Crisis 2011
By: Mike_Shedlock
A few days ago I received an email from the World Economic Forum regarding a need to double credit over the next 10 years. Here is that email.
Read full article... Read full article...New York, USA, 18 January 2011 – Credit levels will need to double over the next 10 years, growing by US$ 103 trillion, to support consensus-projected economic growth. This doubling of credit could be achieved without increasing the risk of major crisis, finds More Credit with Fewer Crises: Responsibly Meeting the World’s Growing Demand for Credit, a report released by the World Economic Forum in collaboration with McKinsey & Company. The study develops a detailed global credit model using historical credit volumes and forecasting potential credit demand to 2020 across 79 countries, representing 99% of world credit volume. The study applies a sustainability methodology to the projected credit demand, using newly developed metrics to answer the following two questions: Will credit growth be sufficient to meet demand? Is there a risk of future credit crises and, if so, where?
Monday, January 24, 2011
UK Inflation Forecast 2011, Imminent Spike to Above CPI 4%, RPI 6% / Economics / Inflation
By: NewsLetter
The Market Oracle NewsletterJan 17th, 2011 Issue #1 Vol. 5
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Sunday, January 23, 2011
U.S. Economic Turmoil in 2011 / Economics / US Economy
By: Stephen_Lendman
Wall Street predicts blue skies. Economic recovery will continue. Stocks will deliver double-digit gains. On January 14, the Wall Street Journal's Economic Forecast Survey headlined, "Economists Optimistic on Growth," expecting in 2011:
Sunday, January 23, 2011
Great Depression, Debt and Economic Decline: Ireland, Portugal, Greece, US, UK / Economics / Great Depression II
By: Bob_Chapman
As of Wednesday we have seen the euro rise 7 straight days, which caused the USDX to fall to 78.14, this in spite of having 10-year rates in Spain, Portugal and Ireland rising 3 bps.
Both food and energy prices have risen at double-digit rates. This is an inflation reflection of 1979-80, 1996 and 2008. In the 1979 and 1980 and in the 2008 period our inflation gauge measured real inflation of 14-1/4%. Both occurred in recessions similar to today’s inflationary depression.
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Sunday, January 23, 2011
China vs. Inflation: A Love-30 Match So Far / Economics / Inflation
By: Dian_L_Chu
China released a slew of important economic data on the evening of Wednesday, Jan. 19, and markets were paying particular attention to China’s inflation. In order to put out the wild fire of inflation, China's central bank raised interest rates twice, and increased the reserve ratio for lenders four times in the span of just last two months.
Sunday, January 23, 2011
China Boom or Bust? / Economics / China Economy
By: Bryan_Rich
As China’s economy has continued to put up stellar economic growth in the midst of one of the worst global economic crises on record, it’s widely believed that China will lead the world out of its downturn and soon rise to global economic dominance.
So it’s no surprise that there was a lot of attention given to Chinese President Hu Jintao’s visit to Washington this week.
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Friday, January 21, 2011
China Monetary Policy: Inflation Won't Last – Growth Will / Economics / China Economy
By: Money_Morning
Jason Simpkins writes:
Investors yesterday (Thursday) were rattled by fears that China's economy is overheating after it was revealed that the country's gross domestic product (GDP) expanded by 10.3% in 2010.
However, the policy changes that will come as a result of the data ultimately will benefit both China and the United States.
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Friday, January 21, 2011
U.S. Jobless Claims Reverse Gains Posted Last Week / Economics / Unemployment
By: Asha_Bangalore
Initial jobless claims dropped 37,000 to 404,000 during the week ended January 15 after advancing 30,000 in the prior week. Additional weekly readings will be necessary to confirm if the reversal is not temporary.Read full article... Read full article...
Thursday, January 20, 2011
World is in the Early Stages of a Major Leg Up in Food Prices / Economics / Food Crisis
By: Michael_Pento
From all accounts it appears that the world is in the early stages of a major leg up in food prices. The major macroeconomic trend will likely drive economic policy and the investment outlook for years to come. Although mainstream pundits like to focus on cyclical drivers like the weather, the real force behind the move is secular. The U.S. is leading the world in a pandemic of monetary inflation that is helping to cause commodity prices, food in particular, to skyrocket across the globe.
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Thursday, January 20, 2011
Economic Collapse Scenarios That We Could Potentially See In 2011 / Economics / Great Depression II
By: Chris_Kitze
What could cause an economic collapse in 2011? Well, unfortunately there are quite a few "nightmare scenarios" that could plunge the entire globe into another massive financial crisis. The United States, Japan and most of the nations in Europe are absolutely drowning in debt. The Federal Reserve continues to play reckless games with the U.S. dollar. The price of oil is skyrocketing and the global price of food just hit a new record high. Food riots are already breaking out all over the world. Meanwhile, the rampant fraud and corruption going on in world financial markets is starting to be exposed and the whole house of cards could come crashing down at any time. Most Americans have no idea that a horrific economic collapse could happen at literally any time. There is no way that all of this debt and all of this financial corruption is sustainable. At some point we are going to reach a moment of "total system failure".
Thursday, January 20, 2011
Job-Killing Labor Costs and the Manufacturing Sector / Economics / Employment
By: MISES
Christopher Westley writes: If there is one issue that pops up again and again in my conversations about economics with interested noneconomists, it is manufacturing.
There's a genuine concern about the state of manufacturing in the United States, and I am not sure of the reason why. It could be that there is an inchoate sense that manufacturing is dying here, given that so many of our popular-consumption goods seem to be made overseas. Then there is the issue of the trade deficit, which is generally reported on in the mainstream media in a manner that is irresponsible, uninformed, or both.
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Thursday, January 20, 2011
Luxury Brands Are Back In Style as America's Wealthy Return to Their Wears / Economics / Economic Recovery
By: Money_Morning
Jason Simpkins writes:
The U.S. unemployment rate may still be high, but that hasn't stopped consumer spending from rallying. And in contrast to the darkest days of the financial crisis, when discount retailers like Family Dollar Stores Inc. (NYSE: FDO) and Wal-Mart Stores Inc. (NYSE: WMT) ruled the day, luxury brands have been doing the heavy lifting.
Indeed, bolstered by the extension of the Bush tax cuts and strong demand in Asia, luxury brands are coming back into style.
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Thursday, January 20, 2011
Trouble in Brazil or More Good Times Ahead? / Economics / Brazil
By: Mike_Stathis
Today, the Brazil's central bank is likely to raise its key interest rate, the SELIC as discussed in the January newsletter. Analysts estimate a 50 basis point hike. If this occurs, it will place short-term rates at 11.25%. The global inflation trend is driving this decision, as food and energy costs have hit Brazilian consumers particularly hard over the past several months.
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