Analysis Topic: Economic Trends Analysis
The analysis published under this topic are as follows.Monday, December 13, 2010
Inflation, Deflation and the U.S. Economy Year Ahead / Economics / US Economy
The inflation versus deflation debate has raged for years but since the credit crisis the debate has become highly politicized. If the credit crisis taught us anything it is that the risk of deflation far outweighs that of inflation. Yet there is an entrenched view emerging in political circles that is actively opposed to the government’s attempts at re-inflating the economy following the deflationary collapse of 2008.Read full article... Read full article...
Sunday, December 12, 2010
Mike Shedlock Deflation Proponents Rebuttal of John WIlliams Hyperinflation Call / Economics / Deflation
Those looking for Sunday entertainment can pull out the popcorn and watch this video of John Williams calling for the "Great Hyperinflationary Great Depression", coming your way soon.
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Sunday, December 12, 2010
Brazil the Low-carbon Economy of the Future / Economics / Brazil
study by the British economist Nicholas Stern, who advises the UK government on climate change, has highlighted how Brazil can be a perfect example for the future, making the transition from being the fifth greatest polluter to becoming a leader for countries wishing to create low-carbon economies.
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Sunday, December 12, 2010
Russia's Central Bank Concerned About Price Inflation Tsunami / Economics / Inflation
Sergey Ignatyev, the head of the Russian Central Bank, did not exclude a possibility to raise the official bank rate next year to curb inflation. Ignatyev forecast the growth of crediting and the economy in 2011 by 20 and 5 percent respectively.
In November, the board of directors of the Central Bank (CB) decided to preserve the level of the official bank rate and interest rates on CB operations. The official bank rate was preserved on the level of 7.75 percent per annum on June 1, 2010.
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Saturday, December 11, 2010
Fudge Factor in U.S. Crude Oil Trade Data? / Economics / Crude Oil
For many years now this column has been periodically dedicated to the analysis of economic reports, and the exposure of ‘fudging’ that takes place in most macroeconomic data series. Immediately upon looking at this morning’s trade data it seemed that, once again, something was amiss. It probably jumped out at me because I had just finished a crude oil analysis report for December’s Centsible Investor and the information was still fresh in my mind. However, I am quite sure that I am not the only one who noticed this.
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Saturday, December 11, 2010
U.S. Trade Deficit Narrows in October, Provides Lift to Q4 GDP Growth / Economics / Economic Recovery
The trade deficit narrowed to $38.7 billion in October from a gap of $44.6 billion in the prior month. The 3.2% increase in exports of goods and services and a 0.5% decline in imports of goods and services brought about a narrowing of the trade gap in October. Overall, this reading is a big plus for real GDP growth in the fourth quarter.
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Saturday, December 11, 2010
John Williams of ShadowStats Warns Hyperinflation Will Start in the Next Couple Months! / Economics / HyperInflation
John Williams of Shadowstats has repeatedly warned that our economy is not doing as well as some would have you believe. From unemployment to GDP to current and future liabilities, there are fundamental problems that will not be resolved anytime soon - in fact, they’re likely to get worse.
The end result according to Williams?
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Friday, December 10, 2010
Economic Risk Leads to Financial Mistrust / Economics / Credit Crisis Bailouts
My Nov. 12 blog described how modern economists severely miscalculated the economic realities, which fueled the 2008 financial crisis.
Five days after this piece was published, the Institute for New Economic Thinking (INET) issued a grant to a team of experts: The mission is to derive a computational model that would represent the underlying dynamics of the financial crisis.
Friday, December 10, 2010
Fed QE2 Creates Rapidly Accelerating China Housing Bubbles and Price Inflation / Economics / China Economy
After QE2, analysts were looking for possible consequences of the Federal Reserve Bank’s actions. What has become apparent is that the Fed has created another bubble in China. Investors globally have transferred devalued U.S. dollars and Euros to buy Chinese property and equities. China has had to combat imported inflation with rapidly rising asset prices. An influx of capital has caused a real estate bubble, a rise in costs of basic goods and excessive speculation in the commodity markets. The Chinese Central Banks will be observing the inflation data which should be coming out this weekend and will be compelled to act aggressively to prevent China from a bust similar to the housing crisis which occurred in the United States in 2007. Yesterday’s IPO’s showed that irrational exuberance is here once again, none since I have witnessed since the late 90’s.
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Thursday, December 09, 2010
No U.S. Economic Exit Strategy, Only Wall Street Speculators Are Profiting / Economics / Great Depression II
Policy makers within the Treasury and the Fed are only interested in delaying and extending the timeline trying to find and extricate themselves from one of the most dangerous fiscal and monetary failures of all time. They know they and their controllers have no solution. QE1 and QE2 have temporally saved them financially, but have not saved any economy, especially the American economy. In addition it has added to the severity of the crisis.
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Thursday, December 09, 2010
Wealth Confiscation Through Inflation / Economics / Inflation
A monologue on currency devaluation through the process of inflation.
Greetings, I would like to talk about a subject of which I believe to be of great importance. It is to do with the devaluation of our currency.
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Wednesday, December 08, 2010
Fed’s QE2 Ponzi Scheme Sets HyperInflation Trend in Motion / Economics / HyperInflation
In a taped interview with CBS’ “60 Minutes” that aired on December 5th, Federal Reserve chief Ben “Bubbles” Bernanke tried to brainwash the American public, into believing that “Quantitative Easing” (QE), is absolutely necessary in order to prevent further losses of jobs, and tried to assure his listeners that he has the skills to keep inflation under control. The US-jobless rate would have risen far higher, “something like it was in the Depression, at 25%,” -- had the Fed not provided tens of trillions in loans to Wall Street banks and other financial companies, he said.
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Wednesday, December 08, 2010
Congress to Follow Fed to and Spend Money to Lift Economic Growth in 2011 / Economics / Economic Stimulus
The Fed's $600 billion purchase of Treasury securities, known as QE2, is the Fed's second chance to stimulate economic activity after the $1.725 trillion QE1 package expired in March 2010. Chairman Bernanke presented his case for the second package on "60 minutes" last Sunday. The Fed is focused on meeting its dual mandate of price stability and full-employment, both of which are not within the reach of the mandate at the present time.
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Wednesday, December 08, 2010
U.S. Jobs Off Shoring Tsunami Quantitative Easing 3, a Perfect Stagflation Storm / Economics / Unemployment
Whilst most of the recent economic data seem to demonstrate a steady, albeit slow recovery in the United States, the November employment figures from the Labor Dept. threw a curve ball into the mix as the unemployment rate unexpectedly jumped to 9.8% from 9.6% held since August.
That brought the jobless rate to its 19th straight month of 9% or more, which is the longest stretch since World War II, while the unemployment rate of people with a college degree (25 and older) also hit a 40-year high of 5.1%.
Wednesday, December 08, 2010
Debt Bubble Chronicles, Here’s Europes “Lehman Event” / Economics / Global Debt Crisis
Earlier this year, I noted that the European debt crisis was mimicking the US’s 2008 banking crisis almost to a T. Greece was the “Bear Stearns” issue: a minor player that was swallowed up in the drive to maintain the appearance of stability.
Then came the $1 trillion bailout, the equivalent of the Fannie/ Freddie “blank check”: a massive sum of money thrown at a problem meant to convey the illusion that the powers that be have everything under control and that systemic risk is non-existent.
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Tuesday, December 07, 2010
Bernanke On the U.S. Economy, Fact, Fiction and Finally the Fix / Economics / US Economy
Fiction: In this 60 Minutes clip Bernanke tells Scott Pelley, “The other concern I should mention is that inflation is very, very low…”
Fact: There is massive inflation!
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Tuesday, December 07, 2010
China Inflation Taking Off, Declares Price Controls on Walmart / Economics / Inflation
China's is overheating. Consumer prices in aggregate rose at an annual rate of 4.4% as of October. Food prices are up 10.1 percent according to China Financial Daily.
Moreover, accelerating inflation is hurting profit margins in China's service sector. China's non-manufacturing PMI fell to a nine-month low in November, with new orders in consumer service industries showing outright contraction.
Tuesday, December 07, 2010
Bernanke Is 100% Sure He Can Control Inflation / Economics / Inflation
I don't know about you, but I'm not 100% sure about anything. The older I get, the less sure I am about everything. I question things that I was sure were true when I was 25 years old. I'm not sure I'll wake up in the morning. I'm not sure I'll survive my commute to work. That is why I was flabbergasted last night as I watched Scott Pelley interview Ben Bernanke on 60 Minutes. As a side note, boy this show has gone downhill. In the old days of real journalism, Mike Wallace would have scorched Ben Bernanke, pointing out his phenomenal ability to be wrong or clueless on every financial issue the country has faced in the last 10 years. Today, Pelley under hands softball questions to Bernanke and never challenges him. It was a pathetic display of journalism.
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Monday, December 06, 2010
No Economic Recovery in Sight, Reasons Why Global Capitalism Can't Recover Anytime Soon / Economics / Great Depression II
As the recession grinds on, politicians in most industrial countries have an incentive to make exaggerated claims about the supposed coming economic recovery. Some say the recession is over. Obama is in the group that claims we're on "the road to recovery,” while other nations can only spot recovery "on the horizon.” Below are seven important social phenomena that point to a more realistic economic and political outlook.
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Monday, December 06, 2010
Gold, Keynesian Economics and Wall Street Journal Deflation Idiocy / Economics / Inflation
Friday’s Wall Street Journal was full of “optimistic” news for the U.S. economy. It reported:
“Retailers’ reports of robust November sales offered more evidence that the lackluster U.S. economy may finally be gaining momentum, despite stubbornly high unemployment.
“According to 27 retailers tracked by Thomson Reuters, sales at stores open a year or more rose 6% last month, sharply exceeding a year-earlier gain of just 0.5%. Online retailing also showed sizable gains.”
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