Analysis Topic: Economic Trends Analysis
The analysis published under this topic are as follows.Saturday, May 29, 2010
China – The Next Economic Ill-Wind? / Economics / China Economy
It’s been one world economically, a global village, for years now.
The competition between major countries is no longer fought on the high seas, or on land with vast armies, but in board rooms and markets. That China is a communist country politically is no longer a concern. The competition is economic, for instance whether China’s semi-capitalistic economy, having already surpassed France and Germany, will soon surpass Japan to become the world’s second largest economy behind the U.S.
Friday, May 28, 2010
ECRI Leading Economic Indicators Pointing to a Double-Dip Recession Coming? / Economics / Double Dip Recession
Inquiring minds are investigating leading indicators of the Economic Cycle Research Institute (ECRI). Here are a couple of charts.
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Friday, May 28, 2010
Gerald Celente Clash of the Economists - What's Next For Our Economy? / Economics / US Economy
ABC6 News Anchor John DeLuca sat down with two prominent economists, with two drastically different outlooks for the nation's economy.
Gerald Celente, Director of the Trends Research Institute, sees a very bleak future for the United States, and a major collapse coming soon for the entire nation, maybe the entire world.
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Thursday, May 27, 2010
Greece, Portugal and Spain Are the Least of Our Economic, Financial Challenges / Economics / Global Economy
After hitting a cycle high of 1217.28 on April 23, 2010, the S&P 500 stock market index fell by 10.65% in the following 20 trading days. The media would have you believe that the ongoing "official" correction in the U.S. equities market is all about the southern member states of the Euro-zone - Greece, Portugal and Spain (GPS). Although concern about the economically-weak and highly-indebted Euro-zone states have played a role in the U.S. equities market correction, we think there is more to the correction than GPS. Moreover, we believe that the problems of these challenged Euro-zone members will not have a significant effect on U.S. or global economic activity in the foreseeable future. China might, but not Greece, Portugal and Spain.
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Thursday, May 27, 2010
The Deflationary Consequences of M3 Money Supply / Economics / Money Supply
Given the fact that we sit on the precipice of a holiday weekend, every attempt will be made to keep this short and to the point. M3 growth has collapsed. We had pointed this out several months ago and again more recently amidst a barrage of protest emails that the printing press always wins the battle with the deflationary black hole. To date, the black hole is winning hands down. The reasons are nebulous and complex, but the point is that our broadest monetary aggregate is now shrinking. This does not bode well for our economic prospects moving forward.
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Thursday, May 27, 2010
The Path to Hyperinflation / Economics / HyperInflation
As we’ve discussed recently, persistent deflationary forces do not augur for a repeat of Japan circa 1990s or the US in the 1930s. Instead, because of the inability of government’s to finance their current and future debt burden (there is a dearth of domestic savings and global capital), deflationary forces will ultimately lead to severe inflation or hyperinflation. In today’s missive, we explain how this will happen but in various stages.
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Thursday, May 27, 2010
Global Economic Recovery Gaining Momentum, but Obstacles Remain / Economics / Economic Recovery
Kerri Shannon writes: The Organization for Economic Cooperation and Development (OECD) announced yesterday (Wednesday) that it has lifted its economic growth outlook, but warned that governments must enforce strict fiscal policies to sustain the global recovery and balance global expansion.
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Thursday, May 27, 2010
Europe on the Verge of a Liquidity Crisis? / Economics / Euro-Zone
Jason Simpkins writes: The euro's recent struggles have done more than bring the currency's viability into question. They've put the European Central Bank (ECB) on a collision course with a liquidity crisis.
The ECB is running low on dollars, and that problem could escalate when the U.S. Federal Reserve closes swap lines that were temporarily reinstated as the Greek debt crisis escalated. Additionally, more deposits are being yanked from the central bank as holders question whether or not the ECB has enough juice to stop a classic bank panic.
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Wednesday, May 26, 2010
What is the Underground Economy? / Economics / Economic Theory
Danny LeRoy writes: What is the underground economy?
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Wednesday, May 26, 2010
U.S.A Drops From 1st to 3rd Most Competitive Country / Economics / US Economy
The United States of America has, for the first time in a decade, fallen from first place to third in the ranking of the Most Competitive Countries, according to the World Competitiveness Yearbook 2010, drawn up by the Institute for Management Development in Switzerland.
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Wednesday, May 26, 2010
U.S. Inflation Prospects / Economics / Inflation
Inflation in the United States is extremely low with the GDP deflator coming in at 0.4 percent and the Core Consumer Price Index measuring 1.1 percent year over year. For April 2010, the last month reported, the CPI declined 0.1 percent.
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Tuesday, May 25, 2010
The U.S. Economy Really is in Trouble / Economics / US Economy
Although industrial production has continued to grow manufacturing has started to slow. There were mass layoffs in April with manufacturing taking the lead. The Fed reported that that its index of manufacturing activity for New York, New Jersey and Connecticut had slowed significantly while the Philadelphia Fed reported that manufacturing growth had decelerated and that in May there was a significant drop in orders for manufactured goods. Adding to the woe was a report by The Conference Board that its index of leading economic indicators dropped in April, the first fall in about twelve months. What the devil is going on? Without a doubt this is the worst 'recovery' in post-war history.
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Sunday, May 23, 2010
How Hidden Pools of Government Money Could Help Save the U.S. Economy / Economics / Economic Recovery
For over a decade, accountant Walter Burien has been trying to rouse the public over what he contends is a massive conspiracy and cover-up, involving trillions of dollars squirreled away in funds maintained at every level of government. His numbers may be disputed, but these funds definitely exist, as evidenced by the Comprehensive Annual Financial Reports (CAFRs) required of every government agency. If they don’t represent a concerted government conspiracy, what are they for? And how can they be harnessed more efficiently to help allay the financial crises of state and local governments?
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Sunday, May 23, 2010
UK 300,000 Public Sector Job Cuts, Many Quangos to be Axed / Economics / UK Economy
Cheers to Austerity in the UK. Here is something the US needs to see twentyfold minimum: 300,000 jobs in public sector face the axe
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Sunday, May 23, 2010
Revisionist History: Violation of Economic Laws, Why You've Never Heard of the Great Depression of 1920 / Economics / Economic Theory
Lets take a look at what happens when economic laws are violated. Revisionist history is a useful, potent tool. The cats out of the bag and everyone knows Obama is a closet socialist, but lets take a look at a American favorite, Franklin D. Roosevelt.
Despite all his spending programs, public works, quick fix legislations, radio talks, etc., it solved nothing. Years after his programs were in full swing even his Treasury Secretary, Henry Morgenthau admitted, "We have tried spending money. We are spending more than we have ever spent before and it does not work ... After eight years of this Administration we have just as much unemployment as when we started ... And an enormous debt to boot!". To wit - at least back then a high government official payed lip service to the truth.
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Saturday, May 22, 2010
Will Germany Drag World Economy Into Another Great Depression? / Economics / Great Depression II
Deficits create demand. Demand generates spending. Spending generates economic activity. Economic activity generates growth. Growth generates jobs, increases government revenues, reduces deficits and ends recessions.
Simple, right?
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Saturday, May 22, 2010
European Union's Debt Crisis Stormy Seas on the Atlantic / Economics / Global Debt Crisis
The European Union's debt crisis, the threatened collapse of its fledgling 'euro' currency, and the uncertainties created by the UK elections may seem very far removed from the American ship of state, but, in reality, this turbulence threatens to capsize our fragile economy.Read full article... Read full article...
Saturday, May 22, 2010
The True State of Today’s U.S. Economy, Facts Vs Fiction / Economics / US Economy
By David Galland, Managing Editor, The Casey Report : There is a lot of “noise” being tossed out by the politicos and their preferred pundits about how the U.S. economy is on the mend. Thus it is important to try and separate fact from fiction about where things really stand.
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Friday, May 21, 2010
Brazil’s Infrastructure Plays Catch Up / Economics / Brazil
Brazil has become one of the globe’s beacons of growth but in terms of infrastructure investment it needs to catch up to its peers.
As you can see from the two charts below, Brazil’s investment in its infrastructure has lagged that of emerging market leaders India and China, but it’s also lagged other Latin American countries like Peru and Mexico. In terms of investment-to-GDP ratio, Brazil averaged 17 percent over the past five years, according to a Morgan Stanley report, far behind China (44 percent), India (38 percent) and Russia (24 percent).
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Friday, May 21, 2010
Dodge Possible Debt Debacle With These Economic Stimulus Plan Safety Plays / Economics / Economic Stimulus
Martin Hutchinson writes: U.S. President Barack Obama's $862 billion stimulus plan, passed in great haste after his inauguration, has now revealed its true costs and benefits. It didn't revive the U.S. economy - that bottomed about May 2009, before a dollar of it had been spent. Further, combined with the mad wave of similar "stimulus" outlays across the planet, it has destabilized global bond markets - which may end up being very expensive indeed.
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