Analysis Topic: Economic Trends Analysis
The analysis published under this topic are as follows.
Friday, September 03, 2010
Bad Monetary Policy Is Redundant / Economics / Economic Theory
By: MISES
George F. Smith writes: A great thinker once wrote that "all things useful are of such a nature that where there is too much of them they must either do harm, or at any rate be of no use, to their possessors."[1]
Having experienced the harmful results of a paper currency manufactured at will, early US statesmen tried to forbid it from ever happening again. Article I, Section 10 of the Constitution specified that no state shall "make any Thing but gold and silver Coin a Tender in Payment of Debts," while the
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Friday, September 03, 2010
If a Pure Market Economy Is So Good, Why Doesn't It Exist? / Economics / Economic Theory
By: MISES
Edward Stringham and Jeffrey Rogers Hummel writes: If a pure market economy is so good, why does it not already exist? If governments are so bad, why are they dominant throughout the world today? Indeed, is the widespread adoption of free markets ever likely to occur?
Many recent authors, including Tyler Cowen,[1] Cowen and Daniel Sutter,[2] Randall G. Holcombe,[3] and Andrew Rutten[4] question the feasibility of a pure libertarian society.[5] They maintain that such a system cannot arise or persist because some people will always have both the incentive and the ability to use force against others. These authors offer several reasons why, even if society starts out in a perfect libertarian world without any states (as Murray Rothbard and others advocate),[6] competing groups will eventually form a coercive government.
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Friday, September 03, 2010
Neo-Keynesian's, Signs of an Evil Economy / Economics / Economic Theory
By: Richard_Daughty
I am standing on the corner of the street, doing my duty to "give back" to society, in this case by yelling at morons passing by in the cars, "We're freaking doomed, you moron! Your own stupid government has destroyed you by letting the foul, fetid, festering Federal Reserve create too much money that they stupidly, stupidly, stupidly did as part of the stupid neo-Keynesian econometric theoretical lunacy that has mesmerized them, so that a shiny computer in front of a neo-Keynesian econometric economist is like a shiny toy in front of a monkey, and which has mesmerized the Fed and the government for similar reasons, and with similar results, in that the toy is now broken, the monkey cut its hand on the broken toy, the cut is infected, and there is a good chance that the monkey will die a horrible, painful death! Hahaha! How do you like them apples? Horrible, painful death! We're freaking doomed, including you and your hotshot car with the radio turned up real loud, trying to drown me out! And stop honking at me! I have rights, you moron!"
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Thursday, September 02, 2010
Is Asia’s Economic Rebound Sustainable? / Economics / Asian Economies
By: Investment_U
Tony Daltorio writes: The United States is fretting about the possibility of a double-dip recession. Europe is looking for signs of the next sovereign debt default crisis. And Asia…
Well, Asia has no such worries. This year, economies from the Indian subcontinent to Australia – though not Japan – will expand by 8.6%, their fastest pace in 20 years!
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Thursday, September 02, 2010
U.S. Economic Recovery Collapses / Economics / Great Depression II
By: Barry_Grey
Recent weeks have seen a collapse in US home sales, a weakening of manufacturing activity, an upward trend in jobless benefit claims and, on Friday, a downward revision of second-quarter gross domestic product growth from 2.4 percent to 1.6 percent.
The latter figure is far below the rate of economic expansion needed to bring down unemployment, now at its highest levels since the Great Depression. On the contrary, the sharp slowdown in economic growth heralds a further rise in the jobless rate.
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Thursday, September 02, 2010
Fed Engineering a Delebrate State of Slow Economic Collapse / Economics / Great Depression II
By: Bob_Chapman
Almost two years ago the US Treasury was selling large amounts of short-term Treasury bills to fund bailouts and stimulus. That caused a major increase in debt. Most of that paper was 2-year bills and it is coming due for rollover shortly. While that transpires, October will report the annual fiscal deficit of 9/30/10 of about $1.5 trillion, a figure thought impossible just 1-1/2 to 2 years ago.
Thursday, September 02, 2010
I Renounce Monetarism, That Money Supply is a Leading Indicator for Aggregate Demand / Economics / Money Supply
By: Paul_L_Kasriel
Monetarism, the notion that the behavior of some definition of the money supply is a leading indicator of aggregate demand, is akin to malaria. Once it is in your "system," it is very difficult to totally purge it from your system. Early in my career, I was strongly sympathetic toward monetarism. In the late 1990s, I was introduced to the Austrian school of economics, in particular, the Austrian theory of the business cycle (ATBC). I was immediately sympathetic to the ATBC because bank credit played such an important role in it.
Wednesday, September 01, 2010
Quantitative Easing, Money Velocity Inflationary Armageddon / Economics / Inflation
By: DeepCaster_LLC
“The crucial passage comes in Chapter 17 entitled "Velocity". Each big inflation -- whether the early 1920s in Germany, or the Korean and Vietnam wars in the US -- starts with a passive expansion of the quantity of money. This sits inert for a surprisingly long time. Asset prices may go up, but latent price inflation is disguised. The effect is much like lighter fuel on a camp fire before the match is struck.
Wednesday, September 01, 2010
Inflation, Rounding Up the Culprits of Rising Prices / Economics / Inflation
By: Richard_Daughty
From Bloomberg.com we get the bad news that "Bank of England Governor Mervyn King said inflation is likely to exceed the UK government's upper 3% limit in coming months as higher sales taxes drive gains in consumer prices," which "rose 3.1% in July from a year earlier after climbing 3.2% in June."
Wednesday, September 01, 2010
Hyperinflation vs. Inflation: Understand the Difference / Economics / HyperInflation
By: Dr_Jeff_Lewis
Hyperinflation and inflation may share the same root, but they're two entirely different trees. While many assume that hyperinflation is just inflation's oversized cousin, there is much more to hyperinflation than most are aware.
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Wednesday, September 01, 2010
Economic Death By Globalism, Economists Haven’t a Clue / Economics / Great Depression II
By: Paul_Craig_Roberts
Have economists made themselves irrelevant? If you have any doubts, have a look at the current issue of the magazine, International Economy, a slick endorsed by former Federal Reserve chairmen Paul Volcker and Alan Greenspan, by Jean-Claude Trichet, president of the European Central Bank, by former Secretary of State George Shultz, and by the New York Times and Washington Post, both of which declare the magazine to be “ahead of the curve.”
Tuesday, August 31, 2010
The Economic Dark Darkside of the M&A Boom / Economics / Mergers & Acquisitions
By: Money_Morning
Martin Hutchinson writes:
With its $39 billion hostile bid for Canada's Potash Corp. (NYSE: POT), mining giant BHP Billiton Ltd. (NYSE ADR: BHP) capped an active August in the mergers-and-acquisitions market.
With the moribund growth prospects of the U.S. economy, there would seem to be no great urgency for companies to go on an M&A spree, yet the total value of announced buyout deals for August alone has topped $175 billion.
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Tuesday, August 31, 2010
The Backward Slide into Recession / Economics / Double Dip Recession
By: Mike_Whitney
Ongoing deleveraging has slowed personal consumption and trimmed 2nd quarter GDP to a revised 1.6%. The economy is sliding backwards into recession. As Obama's fiscal stimulus dries up and the private sector slashes spending, demand will continue to collapse pushing more businesses and households into default. The economy is now caught in a reinforcing downward cycle in which dwindling fiscal and monetary support is shrinking the money supply triggering a slowdown in activity in the broader economy.
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Monday, August 30, 2010
All Major Banks Oppose Honest Reporting To Hide Huge Loan Losses / Economics / Credit Crisis 2010
By: Mike_Shedlock
Reader "Henry" has a question on the loan loss provision chart I posted in Former Fed Vice Chairman vs. Mish: Is the Fed Out of Ammo?
Monday, August 30, 2010
Partial Equilibrium Economic Analysis, Part I / Economics / Economic Theory
By: Andy_Sutton
One of the many tools available to economists and analysts in determining the suitability of fiscal or economic policy is partial equilibrium (PE) analysis. However, many scoff at the notion of using partial equilibrium simply because many of its assumptions are deemed to be too unrealistic. However, for taking a look at the potential benefits (or costs) of a policy such as a tax on a single good, PE is a very valid construct. One of the biggest hot button topics these days in nearly every state is how to raise revenue (rather than cutting costs). One of the traditional cash cows for states is in the form of gasoline taxes. The same goes for the Federal government in this regard. However, as we all know, simply arbitrarily and capriciously taxing a product is not necessarily efficient. In fact it usually isn’t.
Sunday, August 29, 2010
Strong GDP Growth For German Economy, Weak for U.S. Economy / Economics / Global Economy
By: EconGrapher
This week we take a look at GDP stats from the robust German economy, and the less than robust US economy. Then we look closer at the US situation; reviewing the existing home sales data, and consumer sentiment data. We then wrap up with a review of the July trade figures from Japan.
Sunday, August 29, 2010
U.S. Grim Economic Realities, GDP Report Confirms Worst Economic Crisis since the Great Depression / Economics / Great Depression II
By: Barry_Grey
The Commerce Department on Friday sharply cut its estimate of US economic growth in the second quarter of 2010. The department revised downward its initial estimate, issued July 30, of a 2.4 percent increase in the gross domestic product (GDP) to the even more anemic figure of 1.6 percent.
Sunday, August 29, 2010
Rumours of the Death of the U.S. Economy are Premature, Sovereign Debt Exchange For Equity / Economics / US Debt
By: Brian_Bloom
Conventional wisdom states that levels of Public Debt – in particular in the USA – are too high and there are only three possible outcomes:
- Helicopter Ben’s so-called Quantitative Easing leading to hyperinflation in the USA
- Debt default leading to Depression
- A sideways moving economy for 10-15 years accompanied by churning markets as income is used to repay debt. (A side-effect of this approach will be that tax rates will likely rise significantly even as standards of living decline).
Saturday, August 28, 2010
South Africa Wants to Join BRICs Club / Economics / Emerging Markets
By: Global_Research
Boris Volkhonsky writes: [I]f and when South Africa joins BRIC (and there is no reason to believe the prospect is unreal), the new grouping (whether it will be called BRICSA or SABRIC) will acquire a really global character representing all major continents.
On Tuesday South African President Jacob Zuma, while on a state visit to China, expressed the desire and willingness of his country to join the informal club of four developing nations, namely Brazil, Russia, India and China, known as BRIC.
Saturday, August 28, 2010
Depression Next Down Leg Unfolding, The Financial and Economic Crisis No Spin Zone / Economics / Great Depression II
By: Ty_Andros
As the next leg down in the unfolding depression and global, financial crisis intensifies we all sit on a keg of dynamite known as the developed world's economies and financial systems and wait for some fool in government to light a match. In April I spoke about black swans taking flight, now they are about to land. An explosive event is unfolding as we speak. What you are about to read is the embodiment of the Cloward-Piven strategy -- economic collapse written into law, on purpose, by radical Marxist Socialist progressives inside the Capital of the United States: Washington DC.