Analysis Topic: Economic Trends Analysis
The analysis published under this topic are as follows.Sunday, July 25, 2010
Thoughts on the Economy / Economics / Economic Theory
Marcus Eduardo de Oliveira writes: "… the ideas of Economists and political philosophers, BOTH right when they are and when they are wrong, are more powerful than is commonly understood." -John Maynard Keynes
Nobody can ignore the economy for only two reasons: the first is that not enough resources for everyone, since desires are unlimited. The shortage, understood as market failure, is an incontestable truth. The second reason is that we are all part of the economy. The latest issues involving the economy also involve us in every moment. Thus, regardless of the evolutionary stage of each company, we always affect situations involving the generation of employment, income, combating poverty, hunger, resource transfers, taxation, purchase and sale of goods.
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Saturday, July 24, 2010
Wages and Subsistence / Economics / Employment
The life of primitive man was an unceasing struggle against the scantiness of the nature-given means for his sustenance. In this desperate effort to secure bare survival, many individuals and whole families, tribes, and races succumbed. Primitive man was always haunted by the specter of death from starvation. Civilization has freed us from these perils. Human life is menaced day and night by innumerable dangers; it can be destroyed at any instant by natural forces which are beyond control or at least cannot be controlled at the present stage of our knowledge and our potentialities. But the horror of starvation no longer terrifies people living in a capitalist society. He who is able to work earns much more than is needed for bare sustenance.
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Saturday, July 24, 2010
Elements of Deflation and the Super-Trend Puzzle / Economics / Deflation
Some Thoughts on Deflation
The Super-Trend Puzzle
The Elements of Deflation
The debate over whether we are in for inflation or deflation was alive and well at the Agora Symposium in Vancouver this this week. It seems that not everyone is ready to join the deflation-first, then-inflation camp I am currently resident in. So in this week's letter we look at some of the causes of deflation, the elements of deflation, if you will, and see if they are in ascendancy. For equity investors, this is an important question because, historically, periods of deflation have not been kind to stock markets. Let's come at this week's letter from the side, and see if we can sneak up on some answers.
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Saturday, July 24, 2010
Making Sense of the Economic Puzzle / Economics / US Economy
You can tell a lot about the state of the economy by simply looking at the covers of national news magazines. Or perhaps a better way of saying it is that you can get a good sense of how most Americans perceive the state of the economy by perusing the mainstream magazines.Read full article... Read full article...
Saturday, July 24, 2010
U.S. Jobless Claims and Housing Market Data Point to Worsening Economy / Economics / Double Dip Recession
Reports issued Thursday on initial claims for unemployment benefits and sales of previously owned homes confirm that the US economy is slowing dramatically.
The Labor Department reported that initial jobless claims for the week ended July 17 rose by 37,000 to 464,000. The number was far higher than the consensus forecast of economists. It underscored the bleak prospects for any significant reduction in the unemployment rate, now officially at 9.5 percent.
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Saturday, July 24, 2010
U.S. Jobs Situation Worse Than Broadcast / Economics / Recession 2008 - 2010
The unemployment numbers for June 2010 were worse than articulated. The headline number said 83,000 private sector jobs were created and the unemployment rate slipped to 9.5% from 9.7%. Sounds like things are looking up. But, as you might expect, the devil is in the details and the details tell a different story.
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Friday, July 23, 2010
Europe Is Jumping the Gun By Removing Stimulus! / Economics / Economic Austerity
Last winter, global central banks were in agreement, assuring markets that stimulative policies would remain in place until a durable global economic recovery is secured, that “pre-mature withdrawal of stimulus would be avoided, and when the time arrived the withdrawal will be globally co-operative and undertaken in a coordinated way.”Read full article... Read full article...
Friday, July 23, 2010
UK Stealth Economic Boom, GDP 1.1% Growth Catches Press and Academic Economists By Surprise / Economics / UK Economy
The UK registered strong GDP growth during the second quarter of 2010 of 1.1%, annualised to 4.4%, which caught the mainstream press, academic economists and even the City by surprise who had typically penciled in growth expectations of between 0.3% and 0.5% from just the day before let alone longer term actionable forecasts, much of the recent mainstream press commentary has been focused on the risks of a double dip recession as illustrated below:
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Friday, July 23, 2010
Hungary Could Trigger Next Sovereign Debt and Credit Crisis Event / Economics / Credit Crisis 2010
Jack Barnes writes: The biggest financial news story out of the Europe this summer is getting very little play in the U.S. mainstream press. However, it has the potential to torpedo the European Union (EU), and has disastrous implications for borrowing costs worldwide.
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Friday, July 23, 2010
Plan For America To Control Federal Deficit Spending / Economics / Government Spending
I’m sorry to be the bearer of bad news. There are no easy solutions. There are only painful, more painful, and really, really painful solutions. Both mainstream corrupted political parties have had the chance to put the country back on a prudent fiscal path. They have both failed miserably. One party will spend the country into oblivion and the other country will try to democratize the world with their military machine. There are no fresh ideas from either party. There are the same old stale ideas and rhetoric.
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Thursday, July 22, 2010
Quadrillion Dollar Debt: Deflation 'Day of Reckoning' Looms / Economics / US Debt
What Will Happen as $1,000,000,000,000,000 in Global Debt Winds Down?
The biggest balloon in the world is deflating.
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Thursday, July 22, 2010
The Double-Dip Recession, Four Reasons Why Its Not Going to Happen / Economics / Economic Recovery
Louis Basenese writes: The dreaded double-dip recession chatter is getting louder by the minute. And it’s clearly scaring the dickens out of most Americans.
How else do you interpret the five-fold increase in the number of Google searches for “double-dip recession” since May?
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Thursday, July 22, 2010
Job Creation versus Job Destruction / Economics / Employment
We all want to see more jobs. As soon as possible and for everyone that wants a job. And even though I have touched on this subject before, it is an important topic that needs further attention.
At both the public and private levels, the talk is about “jobs” and doing “everything we can to create jobs” but the great tragedy is that federal economic policy makers (and many state level economic policy makers) simply don’t understand how to create jobs and are in fact enacting policies that destroy jobs. The reason why these policy makers are harming job creation and spurring on job destruction is really quite simple:
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Thursday, July 22, 2010
Bernanke is "Unusually Uncertain" - Is that an Improvement? / Economics / US Economy
In response to Bernanke Says Economic Outlook is "Unusually Uncertain", Fed Prepared for "Actions as Needed" I received this comment from "Economics Teacher".
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Thursday, July 22, 2010
Unusually Uncertain Outlook Shows The Fed is Killing the Economy / Economics / Double Dip Recession
Fed Chairman Ben Bernanke yesterday that the outlook for the economy is "unusually uncertain".
That's not surprising.
Nothing has changed since I made the following points last December.
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Wednesday, July 21, 2010
China Has a Painful Debt Bubble Surprise for the Global Economy / Economics / China Economy
China implemented one of the world’s most aggressive economic stimulus programs to fight the recession of 2008. And the country went on something akin to a debt binge.
Credit growth surged as much 50 percent — an unprecedented peak. Such a policy can jump start an economy. But it lays the groundwork for imbalances and major bubbles.
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Wednesday, July 21, 2010
Raising Taxes to Combat Recession, The Ultimate Fiscal Folly / Economics / Double Dip Recession
When I saw that Illinois cleverly solved its budget crisis by just not paying its bills, I knew that the end is near, or would be, if we still had a dollar that was not a stupid fiat currency, because nowadays it would be child's play for the Federal Reserve to just create as money as any state wanted! And they can do it in less time than it takes to tell you about it, too!
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Wednesday, July 21, 2010
Canada’s Economy Casts a Long Shadow Over its U.S. Counterpart / Economics / Canada
Jason Simpkins writes: Canada's economy has consistently outperformed that of the United States since the beginning of the financial crisis. And while it's showing signs of slowing down, Canada's pending decline will be far shallower than that of the United States, and its rebound more dynamic.
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Wednesday, July 21, 2010
Four Stocks to Buy Ahead of Britain's Unexpected Economic Turnaround / Economics / UK Economy
Martin Hutchinson writes: I have been negative on Britain for a decade - and with good reason. The British economy was over-dependent on financial services, and government spending - at greater than 50% of gross domestic product (GDP) - was out of control.
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Wednesday, July 21, 2010
Japan, Land of the Rising Debt / Economics / Japan Economy
Investors are understandably scared of the sovereign debt crisis unfolding in Europe. Amid their angst, however, they are ignoring a more likely, and significantly larger, debt catastrophe that is about to hit the nation with the second-largest economy in the world — Japan. Two decades of stimulative, low-interest-rate fiscal policy have made Japan the most indebted nation in the developed world, and as new Prime Minister Naoto Kan recently said, in his first address to Parliament, that situation is not sustainable. Japan has little choice but to raise interest rates substantially, with dire consequences far beyond its shores.Read full article... Read full article...