Analysis Topic: Economic Trends Analysis
The analysis published under this topic are as follows.
Friday, February 19, 2016
These 3 Factors Make a U.S. Recession 2016 Highly Probable / Economics / Recession 2016
By: EWI
Dear Investor,
I'm sure you noticed that the markets went off the rails since the start of this year. During this decline, there has been one persistent question market pundits have been trying to answer:
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Tuesday, February 16, 2016
Inflation Doesn't Come From Seasonally Adjusted Employment / Economics / Inflation
By: Michael_Pento
According to the Bureau of Labor Statistics (BLS), there were 151k, 000 net new jobs created in the month of January, and the unemployment rate fell to 4.9%. The continuing increase in new job creation and removal of slack in the labor market is causing the Phillips-curve-obsessed Fed to maintain a tightening stance on monetary policy.
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Tuesday, February 16, 2016
Steve Hanke On Hyperinflation Hype / Economics / HyperInflation
By: Steve_H_Hanke
The Great Recession of 2008-09 brought with it quantitative easing. This, in turn, spawned a cottage industry of books, articles and blog posts about hyperinflation. The burgeoning literature contains a great deal of hype, which validates the 95% Rule: 95% of what is written about economics and finance is either wrong or irrelevant.
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Tuesday, February 09, 2016
One Chart Depicts Economic Recovery 100% Fiction / Economics / Unemployment
By: Sol_Palha
Anything I've ever done that ultimately was worthwhile... initially scared me to death.Betty Bender
They say a picture is worth a thousand words and this chart is probably worth a lot more. It illustrates how the BLS has been lying through its teeth over the past seven years. Then again anyone with a grain of common sense could figure out that the retarded methodology the BLS employs is bound to create the illusion that all is well. They purposely discount individuals that have stopped looking for work in coming up with their unemployment numbers. Hence, the 5% figure is not an accurate reflection of the landscape. The chart below provides a more realistic view of the unemployed in the U.S and in some areas we believe that the numbers could be more than 30%
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Tuesday, February 09, 2016
Oil Price Collapse U.S. Recession Odds 2016 / Economics / Recession 2016
By: Mike_Shedlock
David Rosenberg, chief economist at money-management firm Gluskin Sheff & Associates, went way out on a limb today.
Even though oil broke $30 to the downside again today, bond yields have crashed, and the price of many commodities is below the cost of production, Rosenberg made this statement today as quoted by the Wall Street Journal :
Read full article... Read full article..."I put the odds of a U.S. recession in the next year as close to zero as anything could be close to zero."
Monday, February 08, 2016
Falling Oil Prices Not the Reason for U.S.’s Economic Woes / Economics / US Economy
By: Antonius_Aquinas
The dramatic fall in the global price of oil is being cited by the financial press, government officials, and academia as the catalyst for the recent abysmal U.S. economic data which shows that the economy is, in all likelihood, sliding into a recession or worse.
While falling oil prices sound like a plausible explanation for the abysmal financial numbers, anyone with a modicum of economic sense (which excludes much of the financial Establishment) can see that it is merely a smokescreen to obfuscate the real culprit.
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Friday, February 05, 2016
Illusory Economic Recovery Supported by Hot Money / Economics / Economic Recovery
By: Sol_Palha
Is this economic recovery real? Well if you base your observations on how far the Dow has risen since the financial crisis of 2008-2009 and on the B.S statistics the BLS puts out, the answer would be a yes. However, if you do just a little cursory digging, you will spot that this economic recovery is nothing but a grand illusion. The following factors clearly prove that this recovery is not real. Read full article... Read full article...
Friday, February 05, 2016
U.S. Recession 2016 has Arrived; Factory Orders Decline 2.9%, Inventories Rise / Economics / Recession 2016
By: Mike_Shedlock
Even though economists see a mere 20% chance of recession in 2016, I am increasingly confident a recession began in December 2015.
It was another disastrous factory orders report this month.
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Thursday, February 04, 2016
South Africa Economy from Hero to Zero / Economics / Africa
By: AnyOption
On 19 November 2015, the South African Reserve Bank’s Monetary Policy Committee (MPC) decided to hike interest rates by 25-basis points from 6% to 6.25%. The forecast for the next interest-rate meeting on 28 January 2016 was 25-basis points, for an overall interest rate of 6.5%. The SARB surprised everyone when it hiked interest rates by 0.5% to the prevailing interest rate of 6.75%. This bold initiative is one of the more drastic steps that can be taken by the authorities when currencies are depreciating rapidly. This is a way to arrest further declines in the value of the ZAR on the international stage.
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Thursday, February 04, 2016
Currency Wars and a Job Gain Recession? / Economics / Currency War
By: Mike_Shedlock
I am entertaining the notion of a "Job Gain Recession".
A chart of year-over-year nonfarm employment shows that's nearly what happened in the 1970 and 1980 recessions.
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Thursday, February 04, 2016
TPP is Economic Warfare, Trade Can Make Everyone Worse Off / Governments are Stupid / Economics / Economic Theory
By: Dylan_Waller
Professor Yoram Baumun’s comedic retake of the Principles of Economics appropriately translates “Trade can make everyone better off” to “Trade can make everyone worse off.” Moreover, he translates “Market are usually a good way to organize economic activity” to “Governments are Stupid”.
Tuesday, February 02, 2016
Europe: Why It's Going to Get a Lot Worse Before It Gets Better / Economics / European Union
By: EWI
New interview with our European markets expert
Brian Whitmer, the editor of our monthly European Financial Forecast, explains what indicators helped him anticipate market volatility.
You'll also learn what he's expecting for the year ahead in European stocks.
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Friday, January 29, 2016
BEA Estimates U.S. Economy 4th Quarter 2015 GDP Growth at 0.69% / Economics / US Economy
By: CMI
In their first "Preliminary" estimate of the US GDP for the fourth quarter of 2015, the Bureau of Economic Analysis (BEA) reported that the economy was growing at a +0.69% annualized rate, down -1.30% from the third quarter.
All of the key line items in this report showed meaningful deterioration relative to the third quarter. The reported growth in consumer spending was less than half of that recorded during the prior quarter. The growth in fixed investments nearly disappeared, as did growth in governmental spending. Exports continued to crater, showing outright contraction.
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Friday, January 29, 2016
Economic Headwinds: Big Players, Regime Uncertainty and the Misery Index / Economics / Global Economy
By: Steve_H_Hanke
Before we delve into the economic prospects for 2016, let’s take a look at the economies in the Americas, Asia, Europe and the Middle East/Africa to see how they fared in the 2014-15 period. A clear metric for doing this is the misery index. For any country, a misery index score is simply the sum of the unemployment, inflation, and bank lending rates, minus the percentage change in real GDP per capita. A higher misery index score reflects higher levels of “misery.”
Thursday, January 28, 2016
How The Fed is Suffocating The U.S. Economy / Economics / US Economy
By: Clif_Droke
Investors are worried over the prospects that the long-term momentum behind the stock market recovery of 2009-2015 may be in danger of complete dissipation this year. That would mean a certain date with an extended bear market and, potentially, an economic recession perhaps sometime later this year.
Normally, within the context of an established bull market, worry would be a good thing given that the bull tends to proceed along a "wall of worry." In view of recent actions undertaken by central banks, however, those worries are legitimate as I'll explain in this commentary.
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Saturday, January 23, 2016
Fourth Industrial Revolution: Robots, Artificial Intelligence Will Destroy 5.1 Million U.S. Jobs by 2020 / Economics / Technology
By: Mike_Shedlock
Fourth Industrial Revolution Coming
A new study on the "Future of Jobs " by the World Economic Forum at Davos claims a Fourth Industrial Revolution is Coming.
The Fourth Industrial Revolution includes developments artificial intelligence, robotics, nanotechnology, 3-D printing, genetics, and biotechnology.
Although no industrial revolution has ever destroyed jobs, the study concludes a net 5.1 million jobs will vanish in the world's 15 leading countries. Those countries account for roughly two-thirds of the global workforce.
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Saturday, January 23, 2016
Emerging Markets Running Scared with Capital Controls / Economics / Emerging Markets
By: EconMatters
This has not been a good year for emerging markets. Since many of the emerging economies are commodity-reliant (mainly crude oil), the oil price plunge has also crashed their currencies, which prompted money fear and flight.
WSJ quoted the Institute of International Finance that emerging markets suffered record net outflows of $732 billion in 2015, with China accounting for the bulk of that. The Russian ruble, Mexican peso and Colombian peso all hit record lows against the dollar. Overall, emerging-market currencies fell 3% in the first two weeks of 2016.
Thursday, January 21, 2016
Why We Need a Recession / Economics / Recession 2016
By: MISES
Ronald-Peter Stöferle writes: According to the National Bureau of Economic Research (NBER), a recession is defined as a “significant decline in economic activity spread across the economy, lasting more than a few months.” Often, this is understood as two consecutive quarters of negative economic growth as measured by a country’s GDP.
Tuesday, January 19, 2016
China Fake Economic Statistics - Everybody’s Doing It / Economics / Economic Statistics
By: John_Rubino
Yesterday’s post on the unreliability of China’s official numbers attracted comments that were mostly along the lines of “people who live in glass houses shouldn’t throw stones.” That is, where does an American get off criticizing the honesty of another government’s reporting practices? Some samples:
Read full article... Read full article...Not to put too fine a point on it but do you trust US GDP numbers? Unemployment numbers? Inflation numbers? Which country, if they posted totally true and accepted numbers, would have the larger impact on global markets? The biggest economy or the second biggest economy? Just saying….
Tuesday, January 19, 2016
Why Are We Still Paying Attention To Chinese Economic Numbers? / Economics / China Economy
By: John_Rubino
A few years ago, economist Nouriel Roubini was explaining to a reporter why Chinese economic data couldn’t be trusted. He noted that it takes the US weeks and sometimes months to pull together and process the information necessary to produce a complex stat like GDP, and wondered how China, with its far bigger, less developed (and therefore harder to measure) population was able to do it in considerably less time. He concluded that they’re just making up their numbers.
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