Analysis Topic: Economic Trends Analysis
The analysis published under this topic are as follows.Tuesday, October 26, 2010
Should the Fed Be Concerned about Low Price Inflation? / Economics / Inflation
In its September 21 meeting, the Federal Reserve Open Market Committee expressed concern that the rate of inflation is far too low. According to the minutes some members of the FOMC have said,
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Tuesday, October 26, 2010
More U.S. Inflation Fears / Economics / Inflation
Inflation fears are heating up this week as Fed Chairman Ben Bernanke gave a speech in Boston on Friday, causing further frantic flight into gold by those fearful of the coming “quantitative easing” the Fed is set to deliver in November. Others who view gold as a short-term investment engaged in immediate profit-taking after Bernanke's speech.
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Tuesday, October 26, 2010
Debt Default or Hyperinflation, U.S's Only Two Options / Economics / US Debt
I thought I had seen and heard it all after the ludicrous Ben Bernanke, asinine chairman of the Federal Reserve, announced that the official (and thus a lie!) 2% inflation in prices was too, too low, and he wanted higher inflation because, somehow, in some weird little fantasy world that only he and other neo-Keynesian econometric cyber-nerds can see, higher inflation is “consistent with the mandate of the Fed” to achieve stable prices (zero inflation)! Hahahaha!
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Monday, October 25, 2010
Is Today's U.S. Unemployment Rate Higher than During 1930's Great Depression? / Economics / Great Depression II
Pulitzer Prize-winning historian David M. Kennedy notes in Freedom From Fear: The American People in Depression and War, 1929-1945 (Oxford, 1999) that - during Herbert Hoover's presidency, more than 13 million Americans lost their jobs. Of those, 62% found themselves out of work for longer than a year; 44% longer than two years; 24% longer than three years; and 11% longer than four years.
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Monday, October 25, 2010
U.S. Fed Setting the Stage for Hyperinflation? / Economics / HyperInflation
Don Miller writes: The U.S. government wants to stimulate growth in the moribund economy by stoking the fires of inflation. But by leaving interest rates low and buying up bonds - a policy known as quantitative easing (QE) - the U.S. Federal Reserve risks debasing the dollar, which could lead to a prolonged period of hyperinflation that would send prices skyrocketing.
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Sunday, October 24, 2010
The Paradox of Capitalism, The Relevance of John Maynard Keynes / Economics / Economic Theory
Prabhat Patnaik writes: John Maynard Keynes, though bourgeois in his outlook, was a remarkably insightful economist, whose book Economic Consequences of the Peace was copiously quoted by Lenin at the Second Congress of the Communist International to argue that conditions had ripened for the world revolution. But even Keynes' insights could not fully comprehend the paradox that is capitalism.
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Sunday, October 24, 2010
Iceland Inflation, Debt and New Mortgage Crisis, U.S. How Far Behind? / Economics / Global Debt Crisis
The Icelandic financial crisis has been ongoing since 2008 when all three of the country's major commercial banks collapsed after they failed to refinancing their short-term debt and a run on deposits in the U.K.
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Sunday, October 24, 2010
Should You Be Worried About Deflation? / Economics / Deflation
Last month, I followed up on a discussion I began in over a year ago as to why hyperinflation would be a very unlikely scenario in the U.S.
In summary, this devastating scenario is a virtual impossibility despite the printing frenzy by the Fed because the banks have held onto most of this newly printed currency, keeping it out of the hands of consumers. (1) I discussed this fact over a year ago when I first debunked the deflation myth. (2)
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Friday, October 22, 2010
Economic Depression Within the Great Depression / Economics / Great Depression II
By James Quinn, Contributor, The Casey Report : Regular Casey Report contributor James Quinn is the head of strategic planning for one of the world's most prestigious business schools and the host of TheBurningPlatform.com blog. In this article, he is presenting historical indicators that may tell us what’s in store for the U.S. economy.
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Friday, October 22, 2010
UK Public Sector Spending Cuts Impact on Deficit, Debt, Unemployment and Economy / Economics / UK Economy
The Coalition Government on Tuesday (21st Oct) translated it's proposed spending cuts total of £81 billion over the next 4 years into a break down of which public sector departments will bare the weight of the cuts, whilst at the same time trying to persuade the population that the austerity measures have been spread across all income groups.
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Friday, October 22, 2010
QE2 and the Alleged Deflation Threat / Economics / Quantitative Easing
The markets and financial pundits are all abuzz over the prospect of another round of quantitative easing — "QE2" — in which the Fed may start buying yet another trillion dollars in assets after the elections. The justification for this massive bout of new inflation is, of course, the threat of deflation.
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Friday, October 22, 2010
The U.S. Dollar is Doomed, High Inflation then Hyper-Inflation / Economics / Inflation
Austerity be damned, at this rate Mr. Bernanke will go down in the history books as one of the greatest money creators ever to have walked this planet!
Never mind sky-high deficits and a crushing debt overhang, at its most recent FOMC meeting, the Federal Reserve all but guaranteed another round of quantitative easing.
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Thursday, October 21, 2010
Global Economic Decoupling Alive and Well / Economics / Global Economy
While the US economy continues to weaken (see my recent commentary: Don't Doubt the Double-Dip), many foreign economies continue to experience solid -- even spectacular -- economic growth. When the global economic crisis began in 2008, many forecasters doubted that the world economy could return to growth without the US consumer. But the world is learning what Peter Schiff has long predicted: that the US consumer is a drag on the world economy, not an engine for growth. As "decoupling" becomes more apparent, emerging economies are forming trade links among themselves, accelerating the process of decline for the United States.
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Thursday, October 21, 2010
Joseph Stiglitz Nobel Prize Winning Economist is the High Priest of the Keynesianism / Economics / US Debt
Joseph Stiglitz is a Columbia University Professor and a Nobel Prize-winning economist. He extolled the wisdom of Keynesianism on Bloomberg yesterday (video):
"Just think about it. Right now the government can borrow at zero to...two and half percent. And there are so many investments yielding returns of 10, 15, 20% - if you don't make these investments you are really robbing your children."
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Thursday, October 21, 2010
Great Economic i-Depression 2.0, U.S. Jobs Reality / Economics / Great Depression II
As I listen to pundits, politicians and populists expound on the jobs situation in our country day after day, as if they knew what they were talking about, I'm reminded of the Seinfeld episode where George quits his job as a real estate agent. He sits in Jerry's apartment and ponders whether he could become the general manager of the Yankees, a sportscaster, getting paid to watch movies, or a talk show host. After the discussion with Jerry, he realizes that he has absolutely no skills that are transferable to another career. Everyone in America would like to be the General Manager of the Yankees or get paid for watching movies, but that isn't how it works in the real world.
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Wednesday, October 20, 2010
Foreclosure Madness, Securitization Meltdown, U.S. Great Depression Written into Law / Economics / Great Depression II
The US economy is being SHUTDOWN at a rapid rate by the radical Marxists in the beltway, whom having never met a businessman that they like other than those who pay political tolls -- known as campaign contributions – consider the rest of the WEALTH generating private sector to be the proverbial red headed step child. Ripe for abuse…
As the denizens of the beltway do a Jack-the-RIPPER on the economy to SAVE you, runaway regulation and taxation have now killed wealth creation in the G7.
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Tuesday, October 19, 2010
Huge Rise in U.S. Unemployment Expected After Mid-Term Elections / Economics / US Economy
Earlier this month Gallup released a survey that showed unemployment rose .8% to 10.1%
Read full article... Read full article...Unemployment, as measured by Gallup without seasonal adjustment, increased to 10.1% in September -- up sharply from 9.3% in August and 8.9% in July. Much of this increase came during the second half of the month -- the unemployment rate was 9.4% in mid-September -- and therefore is unlikely to be picked up in the government's unemployment report on Friday.
Tuesday, October 19, 2010
U.S. Debt and Deficits, Learning from Canada's Experience / Economics / Economic Austerity
There are those who say the US is doomed, that there is no way out from our problems with deficits, future entitlement promises, and a dysfunctional political system. And in my darker moments I worry that they are right.
I get the problems, probably more than most. But there is a way out. Hopefully, it does not entail collapse first, as some suggest. But it will require a lot of hard decisions. Some will be very hard.
Monday, October 18, 2010
Financial Markets Expect QE2 to Result in Higher Inflation / Economics / Inflation
Inflation expectations, measured as the difference between nominal 10-year Treasury note yield and yield on the 10-year inflation protected security, has moved from a low of 1.49% on August 24, just prior to the August 27 Bernanke speech, to 2.09% as of October 15. The upward trend of inflation expectations is a vote of confidence about the success of QE2. Actual inflation, based on personal consumption expenditure price index, the Fed's preferred measure, moved up 1.47% in August on a year-to-year basis (see chart 2).
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Monday, October 18, 2010
U.S. Industrial Production Unexpectedly Drops; Where to From Here? / Economics / US Economy
In yet another sign of a weakening economy, Production in U.S. Unexpectedly Dropped in September
Read full article... Read full article...Output at factories, mines and utilities fell 0.2 percent, the first decline since the recession ended in June 2009, figures from the Federal Reserve showed today. Factory production also decreased 0.2 percent, reflecting declines in consumer durable goods, like appliances and furniture.