Analysis Topic: Economic Trends Analysis
The analysis published under this topic are as follows.Wednesday, August 25, 2010
Inflation Follows the Economic Stimulus Boom / Economics / Inflation
Peter Schiff of Euro Pacific Capital notes that the Federal Reserve, and the idiots like Paul Krugman who genuflect at the altar of Keynes, is not done with destroying the economy, but that “Bernanke and his supporters have said that their stimulus will be withdrawn as soon as the recovery takes hold in earnest.” Hahaha!
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Tuesday, August 24, 2010
The Importance of Business Start-ups and When Did Thrift Become Bad? / Economics / US Economy
This weekend I wrote about the problems of being an entrepreneur in our Muddle Through Economy. I would like to follow that up with two brief (but somewhat controversial) essays on two aspects of starting up small businesses. The first, by Vivek Wadhwa, points out that start-ups account for all of the net new jobs, and is a summary of a paper from the Kaufman Foundation. (You can read the 12 page paper at www.kauffman.org/..)
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Monday, August 23, 2010
Why Hasn't the U.S. Economic Stimulus Been More Stimulative? / Economics / Economic Stimulus
Talk of the economy slipping back into a recession is rampant. The American Recovery and Reconstruction Act (ARRA) of 2009, aka the stimulus package of approximately $790 billion, was, as its title suggests, supposed to put the economy firmly into a recovery trajectory. But as Obama administration economic guru has said, the economy is having trouble reaching recession-escape velocity. Why hasn't the 2009 stimulus package been more stimulative?
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Monday, August 23, 2010
Mainstream Economists Fail to Make Arrive at Logical Conclusions on U.S. Debt and Consumer Spending / Economics / US Economy
In a CNBC debate last week, former Labor Secretary Robert Reich presented a set of contradictory beliefs that unfortunately reflect the conventional wisdom of modern economists. In a discussion with Wall Street Journal columnist Stephen Moore, Reich correctly and comprehensively listed the reasons why American consumers could spend so lavishly before the crash of 2008 and why they can no longer keep up the pace. But instead of making the logical conclusion that former levels of spending were unsustainable and that spending should now reflect current conditions, he advocated that government take on additional debt so that tapped out consumers can spend like they used to.
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Monday, August 23, 2010
Hyperinflation is a Fiscal, not Monetary Phenomenon / Economics / HyperInflation
Months ago we wrote about the true causes of hyperinflation. We proceed to expand upon our views as we disagree with the views put forth by John Mauldin, Mike Shedlock and now Jim Rickards who all focus on velocity and/or bank lending as important causes of hyperinflation.
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Monday, August 23, 2010
U.S. 3rd Quarter GDP Likely Negative, Recession Never Ended / Economics / Recession 2008 - 2010
While some people still think the odds of a double dip recession are close to zero, ironically, the only reason they may be right is if the first dip never ended.
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Monday, August 23, 2010
Obama's Economic Recovery Hits a Snag / Economics / Economic Recovery
Barack Obama's "Recovery Summer" tour has turned into a public relations disaster. The whole idea of claiming "mission accomplished" over the recession was wacky from the very beginning. It just shows how out of touch with reality Obama's economics team really is. These guys need to stop pouring over their own rosy projections and get out more. The recovery hasn't reached "escape velocity" as economics czar, Lawrence Summers boasted earlier in the year. That's baloney. The economy is headed for the shi**er and the prospects of a another slump loom larger than ever.
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Sunday, August 22, 2010
Economic Hard Times Getting Harder / Economics / Great Depression II
We know we live in hard times that are on the verge of getting harder with 500,000 new claims for unemployment last week, a recent record.
The stock market may be over for now as fear and panic drives small investors out. Big corporations hoard stashes of cash rather then hire workers. The D-Word (depression) is back in play.
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Sunday, August 22, 2010
U.S. Recession Never Ended, Where is My V Shaped Economic Recovery? / Economics / Recession 2008 - 2010
How We Get Through
"Where Is My V-Shaped Recovery?"
We Have Met the Enemy, and He Is Us
So Where's the Good News?
This week I spoke to a small group of businessmen/entrepreneurs about the current economic environment, and after my presentation one asked me whether I didn't have any good news for them, with a kind of gallows humor laugh. And I tried. But upon reflection there is more I could have said, so this week's letter will be what I should have said to be a little more encouraging.
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Sunday, August 22, 2010
This Is Why There Are No Jobs in America / Economics / Employment
Porter Stansberry writes: I'd like to make you a business offer.
Seriously. This is a real offer. In fact, you really can't turn me down, as you'll come to understand in a moment...
Saturday, August 21, 2010
Obama's Economic Team Frozen in the Headlights, U.S. Economy is in Big Trouble / Economics / Great Depression II
The personal savings rate has risen to 6.4%. When households save, consumer spending declines and GDP shrinks. The reduction in economic activity can have serious knock-on effects. It can lead to more layoffs as investment sputters as aggregate demand flags. If the downturn persists, asset prices and wages fall leading to tighter credit, deflation and a deepening slump. The good news is that the problem can be fixed.
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Saturday, August 21, 2010
The Myth of the Engineered Recession / Economics / Recession 2008 - 2010
There are lots of myths out there, but of all the recent financial myths that afflict the conservative movement, this one is the most preposterous: "The bankers engineered the 2008 financial crisis."On first glance, the theory seems nutty. How did these people benefit from enormous financial losses? But when you examine it in depth, it seems even more nutty.
Friday, August 20, 2010
The Economic Recovery Was An Illusion – And That’s A Good Thing! / Economics / Recession 2008 - 2010
In July, I wrote an article titled ‘Is The Recovery An Illusion?’ With the additional evidence that has come in since there really is no doubt about it.
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Friday, August 20, 2010
Germany’s Export Reliant Economic Recovery Edges Out European Neighbors / Economics / Euro-Zone
Kerri Shannon writes: By relying on exports and not promoting domestic demand, Germany is creating a lopsided recovery that is hurting retailers and foreign exporters.
While Germany's exports continue to surge, its consumers are refusing to spend. The government has failed to raise wages or encourage consumption and says it has few plans to do so.
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Friday, August 20, 2010
Small Businesses are Not Hiring - Why Should They? / Economics / Employment
In response to Creating Jobs Carries a Punishing Price, an article about Mr. Fleischer, president of Bogen Communications Inc. and why he is not hiring, I received an interesting email from "David" a reader who disagrees with Mr. Fleischer's stated reasons for not hiring.
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Thursday, August 19, 2010
Economists Are Behind the Curve of Economic Realities! / Economics / Economic Theory
Concerns about the U.S. economy began as a ripple when economic growth unexpectedly began slowing in the 2nd quarter. The continuing waves of negative economic reports in May, June, July, and now into August have had economists scrambling to revise their growth forecasts downward. But they have not been quick enough to keep up with the downward pace of the reports.
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Thursday, August 19, 2010
U.S. Weekly Unemployment Claims Hit 500,000 Bearing Every Economist's Forecast / Economics / US Economy
Once again the pile of overoptimistic economist estimates continues to mount. Today, weekly unemployment claims hit 500,000 exceeding every forecast. This is (at minimum) the 4th time since March every economist was overly optimistic regarding unemployment claims. Nicely done guys.
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Thursday, August 19, 2010
Protection From a Double-Dip Economic Recession Going Global / Economics / Double Dip Recession
Jason Simpkins writes: The last time the U.S. economy suffered through a double-dip recession, this country was struggling to overcome the fallout from an Arab oil embargo, Vietnam War-era deficits, and an inflationary spiral that just wouldn't let go.
That 1981-82 double-dip downturn - the result of an economic "shock treatment" aimed at curing those ills - consisted of two recessions that were separated by a single quarter of growth.
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Thursday, August 19, 2010
How to Protect Your Wealth From U.S. Debt Economic Stagnation Japan Style / Economics / US Economy
Martin Hutchinson writes: Grim unemployment figures, growing worries about crushing debt loads and the apparent absence of any inflation are causing many investors to ask a tough question: Is the U.S. economy catching the "Japan disease," the dreaded and dreadful malaise that has left the onetime Asian powerhouse in a stagnant state since 1990?
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Thursday, August 19, 2010
Tea, Tramadol and Today's Great Depression / Economics / Inflation
"Even at home there is generally a cup of tea going – a 'nice cup of tea' – and Father, who has been out of work since 1929, is temporarily happy because he has a sure tip for the Cesarewitch..."
- George Orwell, The Road to Wigan Pier (London, 1936)