Analysis Topic: Economic Trends Analysis
The analysis published under this topic are as follows.
Monday, September 01, 2014
Marx And The Capitalist Cancer Of Overproduction / Economics / Economic Theory
By: Andrew_McKillop
Thomas Piketty Tried
Unremarked by most reviewers of Piketty's book “Capital” earlier this year, he also tried to “square the circle” on this longstanding subject. Marx argued that capitalist blind faith in ever-growing markets on the back of ever-growing populations in ever-growing economies could and would try to increase industrial production “until the last moment”. To do this, not only would they need more credit at lower interest rates – harming their pure financial banker brethren – but they would have to pay ever-lower real wages to their slavish workers. With lower real incomes, unsurprisingly, their workers would buy less - but the capitalists “could not understand”. So crisis was hard-wired into the system.
Sunday, August 31, 2014
If U.S. Consumers are so Confident Why aren't They Spending? / Economics / US Economy
By: James_Quinn
The sheep have been told their confidence is at a 7 year high by the propaganda peddlers working at the behest of the oligarchy. The sheep are also told that 10 million jobs have been added since the GOTUS played his first round back in 2009. The sheep have been told the record highs in the stock market prove that all is well. If the .1% are doing fantastic, some of the wealth must be trickling down.
Friday, August 29, 2014
Rethinking Japan’s “Lost Decades” / Economics / Japan Economy
By: MISES
Peter St. Onge writes: One of the great economic myths of our time is Japan’s “lost decades.” As Japan doubles-down on inflationary stimulus, it’s worth reviewing the facts.
The truth is that the Japanese and US economies have performed in lock-step since 2000, and their performances have matched each other going as far back as 1980.
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Friday, August 29, 2014
The Eurozone is a Growing Problem for U.S. Economy / Economics / US Economy
By: Sy_Harding
· The 18-nation euro-zone is the largest economy in the world, eclipsing that of the U.S.
· The euro-zone is the largest trading partner of the U.S. (the largest importer of U.S. goods, the largest exporter of goods to the U.S.).
· The euro-zone is in an economic crisis.
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Thursday, August 28, 2014
U.S. Economic Contraction - Blaming That Cold Weather Culprit / Economics / US Economy
By: MISES
Devin Leary-Hanebrink writes: In February, the Federal Reserve made a cursory observation that the unusually severe winter was partly to blame for the stagnant pace of the US economy. The news media, ranging from liberal to conservative, all highlighted the Fed’s report and provided their respective “spin” on how the weather damages the economy. But soon enough, focus turned back to the brutally cold temperatures and not winter’s economic impact.
Thursday, August 28, 2014
A Lesson in Economic Analysis from the Minimum Wage Debate / Economics / Wages
By: MISES
Kenneth A. Zahringer writes: In the ebb and flow of interventionist politics, there are some issues that surface periodically regardless of how many times and how completely they are proven to be harmful to the very people they are purported to help. Currently the tide is once again carrying the minimum wage to the forefront of collective attention. Supporters of this and similar measures often use straw-man arguments, like the one in the picture below.
Thursday, August 28, 2014
Employers Aren’t Just Whining: The “Skills Gap” Is Real / Economics / Employment
By: John_Mauldin
Paul Krugman and other notables dismiss the notion of a skills gap, though employers continue to claim they’re having trouble finding workers with the skills they need. And if you look at the evidence one way, Krugman et al. are right. But this week an interesting post on the Harvard Business Review Blog Network by guest columnist James Bessen suggests that employers may not just be whining, they may really have a problem filling some kinds of jobs.
Wednesday, August 27, 2014
A Look at the Coming 30-year Inflation Cycle / Economics / Inflation
By: Clif_Droke
The upcoming bottom of the 60-year cycle will drastically alter the U.S. economic landscape. The ending of the long-term disinflationary/deflationary undercurrent will soon give way to a new long-term cycle of re-inflation/inflation, bringing with it both challenges and opportunities.
As we begin a new 60-year cycle, the main challenge for the Federal Reserve will be to resist the temptation to stimulate the economy during periods of sub-par growth. The saying, "Old generals fight the old wars" applies here as the Fed has always had difficulty in discerning the dominant economic undercurrent.
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Wednesday, August 27, 2014
Europe’s Depressing Economy Dog Days of Summer / Economics / Euro-Zone
By: Steve_H_Hanke
As we entered the dog days of summer, a flurry of negative economic news surfaced. The news from Continental Europe was worse than anticipated, catching most observers by surprise. Those who were caught off guard failed to keep their eyes focused on money and credit. In addition, they neglected to gauge geopolitical events and the state of economic confidence. Read full article... Read full article...
Tuesday, August 26, 2014
A Nation of Shopkeepers - Supply-Side (Voodoo) Economics? / Economics / Economic Theory
By: John_Mauldin
“To found a great empire for the sole purpose of raising up a people of customers may at first sight appear a project fit only for a nation of shopkeepers. It is, however, a project altogether unfit for a nation of shopkeepers; but extremely fit for a nation whose government is influenced by shopkeepers.”
– Adam Smith, The Wealth of Nations
Tuesday, August 26, 2014
65,000 U.S. Marines Hold up a Mirror to the Economy / Economics / US Economy
By: Don_Miller
I was 18 years old when I left boot camp for Camp Lejeune, North Carolina, where the Marine Corps stationed 65,000 troops. When my unit got our first weekend pass and could actually leave the base in civilian clothes, something I hadn’t worn in several months, I put on a brand new pair of Levis, no belt, penny loafers, white socks, and a collared, buttoned shirt. I had no hair to comb—the Marine Corps saw to that.
Monday, August 25, 2014
Go Forth Multiply And Replenish The Earth / Economics / Demographics
By: Andrew_McKillop
And Inherit The Debt of your Parents
A supposedly alarming national population simulation commissioned by South Korea's National Assembly and published this week says that by 2750 (perhaps that was a typo for 2075) the country's population would be extinct. The report said that South Korea's extreme low fertility rate (about 1.25 children per female in her reproductive life) is outpacing the decline of neighboring Japan's population but the report admitted that Hong Kong, Taiwan, Macau and Singapore have even lower fertility rates. Several EU28 countries, including former “big family” Italy and Spain have fertility rates close to Japan's 1.40 children per female, far below the 2.2 to 2.3 needed to simply maintain the present population.
Monday, August 25, 2014
Why Isn’t Fed Monetary Pumping Helping the U.S. Economy? / Economics / US Economy
By: Frank_Shostak
Despite all the massive monetary pumping over the past six years and the lowering of interest rates to almost zero most commentators have expressed disappointment with the pace of economic growth. For instance, the yearly rate of growth of the European Monetary Unit (EMU) real GDP fell to 0.7 percent in Q2 from 0.9 percent in the previous quarter. In Q1 2007 the yearly rate of growth stood at 3.7 percent. In Japan the yearly rate of growth of real GDP fell to 0 percent in Q2 from 2.7 percent in Q1 and 5.8 percent in Q3 2010.
Saturday, August 23, 2014
Inflation vs the Deflationary Straw Man / Economics / Inflation
By: Gary_Tanashian
No matter the debates over inflation vs. deflation, increasing employment vs. sound monetary policy or systemic health vs. fragility (and whatever else is flying around in Jackson Hole this week), the CPI marches onward and upward. That is the system and it is predicated on creating enough money out of thin air while inflation signals are (somehow) held at bay.
The Straw Man* in this argument lives in the idea that inflation is not always destructive, that inflation can be used for good and honed, massaged and targeted just right to achieve positive ends to defeat the curse of deflation that is surely just around the next corner. Currently, the Straw Man is supported by the reality of the moment, which includes long-term Treasury yields remaining in their long-term secular down trend.
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Friday, August 22, 2014
The Mega Debt and Sustainable Capitalism / Economics / Credit Crisis Bailouts
By: Submissions
Tom Naysburn writes: Accepted thought acknowledges the financial crisis of 2008 was a near apocalyptic event which needed the citizens of the Anglo American dominated financial world to bailout the banking system to the conservative tune of $10 trillion in the US, and at least £1 trillion by UK taxpayers. For perspective, the entire cumulative national government debt in the UK stood at £350bn at the turn of the century.
Friday, August 22, 2014
Deflation's Final Curtain Call - Part II / Economics / Deflation
By: Clif_Droke
As the 60-year cycle enters its final few weeks of descent, a few conclusions can be made. We can also make some projections as to what the foreseeable future might hold based on the upcoming bottom of this important economic cycle.
Since the 60-year cycle is the primary cycle governing inflation and deflation, it makes sense that its impact will be most strongly felt in the prices of inflation-sensitive commodities. Its force is also evident in wages, interest rates, and other factors which influence the general course of the economy. One of the biggest areas affected by the cycle is in earnings and income growth.
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Friday, August 22, 2014
A World Economy Made of BRICS? / Economics / Emerging Markets
By: Submissions
Rodney Johnson writes: Brazil, Russia, India, China and South Africa (BRICS) recently announced the formation of a Contingent Reserve Arrangement (CRA), which will provide loans to member countries if their foreign exchange reserves run dangerously low.
This fund is supposed to show the world that the BRICS can survive without the International Monetary Fund (IMF) and its main patron, the U.S., and that countries are taking concrete steps to shake their reliance on the U.S. dollar.
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Wednesday, August 20, 2014
AI, Robotics, and the Future of Jobs / Economics / Employment
By: John_Mauldin
This past week several reports came across my desk highlighting both the good news and the bad news about the future of automation and robotics. There are those who think that automation and robotics are going to be a massive destroyer of jobs and others who think that in general humans respond to shifts in employment opportunities by creating new opportunities.
As I’ve noted more than once, in the 1970s (as it seemed that our jobs were disappearing, never to return), the correct answer to the question, “Where will the jobs come from?” was “I don’t know, but they will.” That was more a faith-based statement than a fact-based one, but whole new categories of jobs did in fact get created in the ’80s and ’90s.
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Wednesday, August 20, 2014
Dawn of the Planet of the Apes and Austrian Capital Theory / Economics / Economic Theory
By: MISES
Mark Tovey writes: During an early scene of Dawn of the Planet of the Apes, in which the hyper-intelligent apes were depicted hunting for deer in the forestsurrounding their settlement, someone behind me interjected “if those apes are so smart, how come they’re hunter-gatherers?” While a decent question, he received nothing but a shush from his more etiquette-conscious companion for raising it. While there are many factors other than intelligence that are relevant to a society’s choice of an agricultural or hunter-gather economy, Austrian capital theory can go a long way in helping to explain why the apes featured in the film can be both highly-intelligent and hunter-gatherers.
Wednesday, August 20, 2014
Inflation Watch: $245,000 to Raise a Child in United States / Economics / Inflation
By: EconMatters
Welcome to Middle-Income Family American Style
Yesterday the USDA`s annual report laid out another 2% increase in the cost to raise a child in the United States, and this only includes the costs associated with the age of 18, which any modern family realizes doesn`t include college, and the fact that many kids either live at home, or require financial help long after the age of 18.
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