Analysis Topic: Economic Trends Analysis
The analysis published under this topic are as follows.
Wednesday, August 31, 2011
Seven Ways Washington Can Spur Private Sector Economic Growth / Economics / Economic Stimulus
By: Money_Morning
Martin Hutchinson writes:
The U.S. economy is sputtering, and it's no secret why: The government is standing in the way of private sector growth.
Second-quarter gross domestic product (GDP) growth was revised down to 1.0%. That means the economy grew at an average rate of 0.7% in the first half. That's pathetic.
Read full article... Read full article...
Wednesday, August 31, 2011
Catastrophic Economic Crunch Will Be Oil Mastitis: Set to Hit USA Just Like 2008 / Economics / Crude Oil
By: Andrew_Butter
Everyone was waiting with baited breath for the news about QE-3. But perhaps the number to watch was Q-3 nominal GDP, coming soon!!
The important message Ben Bernanke had in Jackson Hole was that the Federal Reserve cannot, on its own, create economic growth in America (or jobs), simply by making it more or less attractive for banks to lend; and thus for Americans and foreigners to borrow. Or by printing money to buy over-priced toxic assets so the ATM’s still work, or to help the Treasury improve the structure of their debt, by buying long bonds real cheap from Bill Gross…Hey Bill, that was a patriotic thing to do!
Read full article... Read full article...
Tuesday, August 30, 2011
What's Going On With The U.S. Economy? / Economics / US Economy
By: Mike_Whitney
There's a very good post over at Mish's Global Economic Trend Analysis today. ("US in recession right here, right now") Blogger Mike Shedlock makes the case that the economy may already be in recession. It's all matter of whether if one uses the the consumer price index (CPI) or the the BEA's measure of price inflation to make their calculations. There's a fair amount of technical jargon to wade through in the article, but the charts are pretty persuasive and--if nothing else--they reinforce most people's suspicions that the economy is getting worse by the day.
Tuesday, August 30, 2011
U.S. Consumer Spending Pickup in July Lacks Durability / Economics / US Economy
By: Asha_Bangalore
Real consumer spending increased 0.5% in July after holding steady in May and June. Consumer outlays of durables (+2.0%) raised the overall reading; it was largely an increase in purchases of cars (12.2 million vs. 11.6 million in June). The 0.5% gain in service expenditures reflects a big increase in health care expenditures. Purchases of non-durables declined 0.3% in July vs. a 0.4% increase in the prior month.
Read full article... Read full article...
Monday, August 29, 2011
How Canada Escaped the Global Recession / Economics / Canada
By: MISES
David Lee writes: Four months ago, Canadians emphatically renewed the ruling party's conservative mandate, handing Stephen Harper and the Tories the country's first majority government in over a decade. This victory was underscored by the humiliating decline of the Liberals — the country's "natural governing party" — who were displaced by a radical fringe party in their office of Official Opposition in the Canadian House of Commons. Adding insult to injury, the leader of the Liberals, former Harvard professor Michael Ignatieff, failed to win his own seat and was sent unceremoniously into political retirement.
Monday, August 29, 2011
Fed Can't Fix U.S. Economy Without Washington's Help / Economics / US Economy
By: Money_Morning
David Zeiler writes:
The U.S. Federal Reserve has exhausted nearly all of its resources in trying to help the U.S. economy, Chairman Ben S. Bernanke said in a speech Friday at Jackson Hole, WY.
Now it's up to the federal government to do its part by fixing U.S. fiscal policy.
Read full article... Read full article...
Monday, August 29, 2011
US In Recession Right Here, Right Now / Economics / Double Dip Recession
By: Mike_Shedlock
I am amused by those who think a US recession will come within a year. Even more amusing are those who think a recession will not come at all.
The US is in a recession now. I am not the only one who thinks so.
Monday, August 29, 2011
Field Of U.S. Economic Dreams / Economics / US Economy
By: Tony_Pallotta
"If you build it he will come." - Field Of Dreams
"We built it and he did not show." - US economic reality
The consumer driven recession has begun. Keeping it very simple of the four GDP components (consumer, fixed investment, government and net trade) the consumer has simply rolled over. In Q1 2011 the consumer contributed 1.46% to the 0.4% total GDP. In other words if it was not for consumer growth or even if .5% of that growth was removed the economy contracted in Q1 2011.
Read full article... Read full article...
Saturday, August 27, 2011
Global Economic Growth Stalls Amidst Debt Crisis, Austerity / Economics / Global Economy
By: Global_Research
Andre Damon writes: A new batch of economic figures released this week confirms a renewed economic downturn, amidst an intensified assault on jobs and living conditions internationally.
The Organization for Economic Cooperation and Development (OECD) said the gross domestic product of its member countries grew by only 0.2 percent in the second quarter of this year, dropping from 0.3 percent in the first quarter.
Read full article... Read full article...
Saturday, August 27, 2011
Bernanke Keeps Door Open for Additional Stimulus on Weaker Economic Growth / Economics / US Economy
By: Asha_Bangalore
Chairman Bernanke stressed that the Fed “has a range of tools that can be used to provide additional stimulus” but he was silent on specifics. He mentioned that the costs and benefits of these options were discussed at the August 9 meeting. These details will be available when minutes of this meeting are published on August 30. He reiterated parts of the August 9 policy statement noting that “the Committee will continue to assess the economic outlook in light of incoming information and is prepared to employ its tools as appropriate to promote a stronger recovery in a context of price stability.”
Saturday, August 27, 2011
The Fed Will Allow Business Cycle To Play Out Longer This Time! / Economics / US Economy
By: Sy_Harding
The Federal Reserve played its part well, along with the Treasury Department, the White House, and Congress, in helping prevent the financial meltdown of 2008-2009 from turning the ‘Great Recession’ of 2007-2009 into the next Great Depression.
But its solo intervention with its QE2 quantitative easing program last year to boost the again faltering economy seems to have only delayed the business cycle.
Friday, August 26, 2011
Recession 2012 Recession is Probable / Economics / Double Dip Recession
By: Barry_Elias
A recession in 2012 is becoming more probable.
In an apparent attempt to camouflage the anticipated poor data, the United States Bureau of Economic Analysis (BEA) may employ a methodology that underestimates inflation and overestimates real Gross Domestic Product (GDP).
Read full article... Read full article...
Friday, August 26, 2011
U.S. Household Debt Deleveraging Metrics Raise Worrisome Questions / Economics / US Debt
By: Asha_Bangalore
Household debt outstanding hit a peak of $13.9 trillion in the first quarter of 2008. This staggering amount of household debt was close to 100% of GDP of the nation (see Chart 1). Home mortgages and consumer credit make up household debt, with home mortgages accounting for roughly 75% of household debt.
Wednesday, August 24, 2011
Keynesian Economic Solutions - After Total Failure –Try, Try Again / Economics / Economic Theory
By: James_Quinn
“Lenin is said to have declared that the best way to destroy the capitalist system was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some. The sight of this arbitrary rearrangement of riches strikes not only at security, but at confidence in the equity of the existing distribution of wealth.” – John Maynard Keynes – The Economic Consequences of the Peace
Wednesday, August 24, 2011
Can China Save The World? Towards A New Economic Model / Economics / Global Economy
By: DK_Matai
As the West contemplates a new phase in the global financial crisis, China -- the second biggest economy on Earth -- appears to some executive decision makers to be well placed to sail through the doldrums of the global financial markets or even use her wealth to come to the rescue of the rich world. Is this wishful thinking or is it grounded in facts? Despite its rising pre-eminence on the world stage, China is unlikely to save the world if the West slides back into recession. Why?
Tuesday, August 23, 2011
GDP Statistic Is a Lie, Time for a New Measure of Economic Growth / Economics / Economic Statistics
By: Money_Morning
Martin Hutchinson writes:
Gross domestic product (GDP) is the most commonly used measure of economic growth. But GDP isn't just inaccurate and misleading - it's the contrivance of Keynesian economists seeking to push their own, big-government agenda.
That's right. GDP is a financial ruse - the biggest of the past half-century. And it's time to move past it to another, more accurate measure of economic growth.
Read full article... Read full article...
Tuesday, August 23, 2011
The Great Recession and Dynamic Economic Decision Making / Economics / Economic Theory
By: John_Mauldin
This week’s Outside the Box is from my good friend John Silvia, the Chief Economist at Wells Fargo and fishing buddy in Maine. He has written a powerhouse book called Dynamic Economic Decision Making: Strategies for Financial Risk, Capital Markets, and Monetary Policy.
Tuesday, August 23, 2011
The "Great Depression" and the "Great Recession" FAQ / Economics / Economic Depression
By: Asha_Bangalore
There have been frequent questions from clients and partners about the “Great Depression” and the recent recession, which is often called the “Great Recession.” Here are five important aspects that should help to put the two periods in historical perspective.
Monday, August 22, 2011
Do The Maths, Worlds Developed Nations are Insolvent / Economics / Global Debt Crisis
By: Puru_Saxena
BIG PICTURE – Let’s face it; many of the world’s ‘developed’ nations are insolvent and the writing is on the wall. Either these indebted states will default or they will try and inflate their currencies into oblivion.
As far as the US is concerned, it still has the privilege of owning the world’s reserve currency and its central bank can always create more dollar bills out of thin air. Thus, it is unlikely that the US will ever default on its debt obligations.
Read full article... Read full article...
Sunday, August 21, 2011
The “Treasonous” Fed, Recession of 2011? / Economics / Double Dip Recession
By: John_Mauldin
The data this week was just ugly. Even the uptick in the leading economic indicators, seized upon by so many talking heads, must have a large asterisk beside it. This week we look at the increasing probability that we are headed for recession, and the follow-on implications. Then I take a perilous and speculative journey into the realm of the political, commenting on Texas (and my) Governor Rick Perry's rather interesting comments about the Fed and Ben Bernanke. There is a lot to cover, and lots of charts, so we will jump right in. But please read at the end about two events coming up in the next few months that you might be very interested in attending.