Category: Economic Recovery
The analysis published under this category are as follows.Monday, August 22, 2016
Proof US Economic Recovery Has Ended / Economics / Economic Recovery
The primary data point that the perennial bulls on Wall Street claim as evidence for an improving economy is the monthly jobs number. The Non-farm Payroll Report claimed that 255,000 jobs were added in July on a seasonally adjusted bases. This number was well above the 12-month average of 190,000. And according to the Bureau of Labor Statistics (BLS), at total of 1.66 million additional people have been employed thus far in fiscal 2016, making this the one bright spot in the economy.
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Friday, February 05, 2016
Illusory Economic Recovery Supported by Hot Money / Economics / Economic Recovery
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, September 12, 2014
Illusioned by the Economic Recovery / Economics / Economic Recovery
Europe’s economy is at a standstill. This summer was full of critical developments in the Eurozone: In June, the European Central Bank (ECB) decided to move into the territory of negative real interest rates! The deposit rate, which already was at 0%, was cut to minus 0.10%. Additionally, its refinancing rate was cut from 0.25% to 0.15%, and its marginal lending facility dropped to 0.4%. This was one of a package of measures the ECB said it was considering to combat disinflation in the Eurozone and give the economy a push. Due to the continued dim outlook of the economy, the ECB further reduced the deposit rate to minus 0.20% and the refinancing rate to 0.05% in early September.
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Tuesday, August 19, 2014
This is Your Economic Recovery With and Without Drugs / Economics / Economic Recovery
“If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks…will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered…. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.” – Thomas Jefferson
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Wednesday, June 04, 2014
Why Central Bank Stimulus Cannot Bring Economic Recovery / Economics / Economic Recovery
Patrick Barron writes: Today every central bank on the planet is printing money by the bucket loads in an attempt to stimulate their economies to escape velocity and a sustainable recovery. They are following Keynesian dogma that increasing aggregate demand will spur an increase in employment and production. So far all that these central banks have managed to do is inflate their own balance sheets and saddle their governments with debt. But make no mistake, central banks are not about to cease their confidence in the concept of insufficient aggregate demand. In fact, European Central Bank (ECB) President Mario Draghi is considering imposing negative interest rates to force money out of savings accounts and into the spending stream. Such an action is fully consistent with Keynesian dogma, so other central bankers will be impelled by the failure of their previous actions to follow suit.
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Tuesday, May 06, 2014
Who’s Going To Help The Economic Recovery Recover? / Economics / Economic Recovery
Hey, say what you will, but I’m not one to dodge the more difficult questions. And in the case of this one, I have no idea what the answer would be either. I think calling what we’ve seen to date a recovery is far too much of a semantic stretch in the first place, but even then, even if we assume a hypothetical economic recovery has occurred in America, it’s just about literally in a world of trouble.
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Wednesday, April 02, 2014
Three Ways to Combat Economic Recovery That Even the Fed Says Feels Like a Recession / Economics / Economic Recovery
John Paul Whitefoot writes: Federal Reserve Chair Janet Yellen confirmed what we’ve been espousing in these pages for the last couple of years—that the so-called recovery feels an awful lot like a recession for most Americans.
Addressing a crowd in Chicago, the head of the Federal Reserve said the U.S. jobs market is still underperforming and will continue to need the help of an artificially low interest rate environment “for some time.”
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Monday, March 17, 2014
The Economic Recovery's New Clothes / Economics / Economic Recovery
I sometimes feel that the economy is living out the Hans Christian Andersen's fable called "The Emperor's New Clothes". He wrote the story back in 1837 about a vain emperor who hired a couple of charlatans that promise to make him the finest robes out of invisible thread. They convinced the Emperor that anyone not appreciating the sartorial splendor of the two swindlers should be deemed hopelessly stupid and unfit for their positions.
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Thursday, March 06, 2014
What Needs to Happen Before We See a Big Economic Recovery? / Economics / Economic Recovery
In a Bloomberg article last May, Caroline Baum summed up the economy nicely in a single question:
Four-and-a-half years of an overnight rate near zero and aggressive securities purchases by the Fed have succeeded in raising asset prices. The question is whether higher asset prices will deliver jobs and economic growth before they become destabilizing.
In other words, will the real economy mend before excessive financial risk-taking kills the patient?
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Wednesday, December 18, 2013
The Mirage Called a “U.S. Economic Recovery” / Economics / Economic Recovery
Mohammad Zulfiqar writes: “Just give up being so negative; there’s economic growth in the U.S. economy.”
These were the exact words of my good old friend, Mr. Speculator. Over the weekend, when I received a call from him, he added, “You see the average American is better off than before. There are jobs; and no matter where you look, you won’t find much negativity. Look at the stock markets; they probably will show a 30% increase for 2013.”
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Thursday, November 21, 2013
Trickle Down Economic Recovery: Monetary Expansion, Excess Bank Reserves, and Leftovers For Main Street / Economics / Economic Recovery
“Trickle-down theory - the less than elegant metaphor that if one feeds the horse enough oats, some will pass through to the road for the sparrows.” - John Kenneth Galbraith
"There are those who believe that if you just legislate to make the well-to-do prosperous, that their prosperity will leak through on those below." - William Jennings Bryant
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Tuesday, October 29, 2013
Four Years of Economic Recovery, So Why Don’t You Feel Richer? / Economics / Economic Recovery
Statistics can sometimes, as we all know, be very misleading. Take the unemployment report for example. If you examine the numbers out of context, you'd be forced to conclude that workforce participation has steadily increased over the last four years. A behind-the-scenes look at those numbers, however, reveals a startling discovery: most of those gains have occurred because job seekers have simply given up looking for a job.
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Saturday, July 20, 2013
IMF Economists Say The Economic Recovery Is A Fake / Economics / Economic Recovery
WE ALWAYS BELIEVE THE IMF
Yet another 'leaked report' this time tells us something we have suspected for a long time – not only concerning the IMF's underhand “plausible denial” way of communicating bad news. The story starts with an internal IMF report called 'confidential' which was 'leaked to a Wall St Journal contributor'. This is now standard practice for the IMF, growing rapidly, and easy to trace back to its handling, or mishandling of European bailouts starting with Greece. One example is this report http://online.wsj.com...? where the IMF 'concedes it made mistakes'. Original leakage of this report generated a mini-crisis among EU27 finance ministers, including harsh words from Economics Commissioner Olli Rehn.
Tuesday, June 04, 2013
If the Economic Recovery Is Strong, Why Are Lumber Prices Falling? / Economics / Economic Recovery
Sasha Cekerevac writes: As we all know, the stock market is in record-setting territory. One would think that this must mean the economic recovery engineered by the Federal Reserve is surely in place, but it’s not. I believe that the economic recovery is far from being assured.
The shocking thing to consider is how many trillions of dollars the Federal Reserve has pumped into the economy, and yet all we have to show for it is this very weak economic recovery. To me, this means that the underlying strength of the economic recovery without the Federal Reserve’s support would be much weaker.
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Saturday, May 11, 2013
The Phony Economic Recovery / Politics / Economic Recovery
Not much action following the new Dow high. Not much follow-through. But no big breakdown, either.
As near as we can tell, the Fed's EZ money has driven up stock prices. Investors expect more EZ money. So they think stocks will go up more.
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Sunday, April 28, 2013
Economic Recovery - Who Won? The 93% or the 7%? Why? / Politics / Economic Recovery
Economic trends since 2009 show A Rise in Wealth for the Wealthy; Declines for the Lower 93%
Read full article... Read full article...During the first two years of the nation's economic recovery, the mean net worth of households in the upper 7% of the wealth distribution rose by an estimated 28%, while the mean net worth of households in the lower 93% dropped by 4%, according to a Pew Research Center analysis of newly released Census Bureau data.
Thursday, April 25, 2013
The Secret to America’s Economic Recovery / Companies / Economic Recovery
David Fessler writes: It all started a few years ago with a handful of courageous companies. It has quietly gained momentum in the years since.
This phenomenon is so new, so off the beaten path, the mainstream press isn’t writing about it. There’s no government agency to track it.
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Thursday, April 25, 2013
U.S. Economic Recovery Explained in One Simple Chart / Economics / Economic Recovery
Ben Gersten writes: If you thought Americans were better off financially than a few years ago, the following chart shows that's not the case for most of us.
Instead, it looks like an economic recovery for the rich.
According to a new Pew Research Center study, the wealthiest 7% of Americans saw their net worth increase 28.2% from 2009-2011, while the net worth of the other 93% declined 4.3%.
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Wednesday, February 13, 2013
The Great American Economic Rebound Has Just Begun / Economics / Economic Recovery
Martin Hutchinson writes: The U.S. manufacturing renaissance is not just a fantasy - it is actually happening. Jobs that had been outsourced to China and elsewhere really are returning to the United States.
Believe it or not, this "reshoring" already has reversed the long, steady decline of manufacturing jobs in the U.S.
In fact, since 2010 America has added roughly 500,000 manufacturing jobs, an increase of 4.3%.
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Tuesday, December 04, 2012
Phony Global Economic Recovery is an Illusion / Economics / Economic Recovery
Many investors still hope that the global economy will experience a significant rebound in 2013. I guess it is human nature to assume the optimistic position that our economic fate will turn to the upside with each new calendar.
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