Analysis Topic: Economic Trends Analysis
The analysis published under this topic are as follows.Friday, April 09, 2010
Why the Fed Won’t Rescue America’s Plunging Savings Rate / Economics / US Economy
Martin Hutchinson writes: In the 1992 election campaign, H. Ross Perot predicted a "giant sucking sound" of U.S. jobs heading for Mexico if the North American Free Trade Agreement passed. Perot seems to have been wrong on that - wherever U.S. jobs have gone, it's not Mexico.
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Friday, April 09, 2010
U.S. Economy Shifting into Higher Gear / Economics / Economic Recovery
- Why Oil and the Dollar Are Going Up at the Same Time
- 4 Indicators Indicating the Economy Is Revving Up
- 3 Forces That Will Kick Energy Stocks into Overdrive
- How YOU Can Profit from This Trend
Friday, April 09, 2010
The Current Financial Crisis — and After / Economics / Credit Crisis 2010
Kevin Dowd writes: My main topic this morning is the resolution of the current financial crisis, and what might be done to fix the financial system and help avert another crisis in the future.
If this sounds like good news, it is indeed. But you should beware of economists bearing good news on a beautiful Sunday morning: economics isn't known as the dismal science for nothing.
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Friday, April 09, 2010
European Union Sinking into Economic Depression, The Coming Debt Wars / Economics / Great Depression II
Government debt in Greece is just the first in a series of European debt bombs that are set to explode. The mortgage debts in post-Soviet economies and Iceland are more explosive. Although these countries are not in the Eurozone, most of their debts are denominated in euros. Some 87% of Latvia’s debts are in euros or other foreign currencies, and are owed mainly to Swedish banks, while Hungary and Romania owe euro-debts mainly to Austrian banks. So their government borrowing by non-euro members has been to support exchange rates to pay these private-sector debts to foreign banks, not to finance a domestic budget deficit as in Greece.
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Friday, April 09, 2010
U.S. Consumers Are Back", Mish Says "Show Me The Money" / Economics / US Economy
MarketWatch is reporting March sales are fresh signal that U.S. consumers are back.
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Thursday, April 08, 2010
The Global Bubble Has Reflated / Economics / Global Economy
Back in the Spring of 2009, the World Bank forecast that the global economy would contract by 1.7% that year; the first global contraction since the Great Depression (yet another clear indicator we are in a depression).
As it turns out, they were quite conservative (as you would expect). Latest numbers from the World Bank show a decline in global GDP by 2.2% for 2009.
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Thursday, April 08, 2010
Consumer Balance Sheet and Consumer Spending in Perspective Economic Recovery Implications / Economics / US Economy
Here is an interesting chart on Consumer Balance Sheet, Savings Rate, and Debt Service Ratio posted by Barry Ritholtz.
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Thursday, April 08, 2010
China Economic Crisis, From Export Juggernaut to a Credit Addict / Economics / China Economy
There's no doubt that China manipulates its currency to gain an unfair advantage over its competitors. There's also no doubt that Treasury Secretary Timothy Geithner will do everything in his power to avoid a confrontation with China's President Hu Jintao when he arrives in Washington in two weeks. That's why Geithner has decided to shelve Treasury's mandated currency manipulation report for the time-being and diffuse a potential imbroglio with Hu.
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Thursday, April 08, 2010
The Bright Side of Hyperinflation / Economics / HyperInflation
Despite encouraging words from politicians and the establishment media’s talking heads, it is clear to me, and I believe most Americans who do not live in a regime ivory tower, that we are not coming out of the recession. In fact, things appear to be getting worse as unemployment continues to rise and businesses cut salaries or shut down. The fears that this recession could turn into another Great Depression are very real, as we have lost so much of our capacity to create wealth and the federal government seems determined to use up any remaining capital fighting endless wars, funding endless entitlement programs, and spending trillions of dollars on non-wealth-creating "stimulus" programs while handing out even more trillions to their bankster buddies and corporate cronies. However, another 1930s-style depression is not what keeps me up at night with worry.
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Wednesday, April 07, 2010
Economy and Inflation, Interview with Rick Davis of the Consumer Metrics Institute / Economics / Economic Theory
Introduction: Richard Davis, President of the Consumer Metrics Institute, measures real-time consumer transactions as an objective indicator of consumer demand and associated economic health. (For more about Richard’s data, please see “Contraction Tracked by the Consumer Metrics Institute Traces Unique Pattern.”)Read full article... Read full article...
Wednesday, April 07, 2010
How Long Will Emerging Markets Continue to Prosper From U.S. Debt Ills? / Economics / Global Debt Crisis
Don Miller writes: A surge in purchases of emerging market debt and a dip in buyers' appetite for U.S. Treasury bonds has sparked speculation that developing nations have become the next safe haven for bond investors. But the more likely scenario is a reversal of capital flows that will sustain Treasury debt for a little while longer.
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Wednesday, April 07, 2010
William Engdahl: U.S. Economy Won't Recover For at Least 15 Years / Economics / Recession 2008 - 2010
RT speaks to renowned economist William Engdahl, who shares his views on the recent Greek crisis, and the role American corporations played in it.
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Wednesday, April 07, 2010
Drowning in Debt Developed Economies Between Rock and a Hard Place / Economics / Global Debt Crisis
The developed nations are over-extended, their debt levels are ballooning and their governments are creating copious amounts of money. Put simply, most industrialised nations are now caught between a rock and a hard place.
After years of excesses, the developed world is slowly beginning to realise that you cannot continue to live beyond your means and spend your way to prosperity.
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Wednesday, April 07, 2010
Protectionism Didn’t Cause the Great Depression / Economics / Global Economy
The debate over free trade is riddled with myth after myth. One that keeps resurfacing again and again, no matter how many times it is discredited, is the idea that protectionism caused the Great Depression. One occasionally even hears that the same protectionism—specifically the Smoot-Hawley tariff of 1930— was responsible in significant part for World War Two! This is nonsense dreamed up for propaganda purposes by free traders, and can easily be debunked.Read full article... Read full article...
Tuesday, April 06, 2010
U.S. Debt Crisis Startling Facts / Economics / US Debt
This report contains 11 staggering facts that every American needs to know — and that every investor won’t be able to succeed without …
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Tuesday, April 06, 2010
Both Stock and Gold Markets Have Correctly Assessed the Keynesian Policies of Western Economies / Economics / Inflation
Did some of you feel safer this past weekend? Your wealth was certainly safer. For three days much of the Western world was closed for a religious holiday. Even Keynesians take the holiday. As the Keynesians were away from their government offices, their relentless attack on wealth was silent. As hard as they have been working to destroy wealth in the past year, a rest was probably needed.
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Tuesday, April 06, 2010
Government Stimulus Trillions In Borrowings, Just Say NO! / Economics / US Debt
Let me start out by asking a few questions. How many of you were pro-bailout? How many pro-healthcare? How many think borrowing trillions of dollars to “stimulate” will really have any long term effect what-so-ever on the economy? How many realize that borrowing and spending really isn’t the cure for a problem caused by too much debt and too much consumption?
Now let me ask another question. Aren’t our politicians supposed to represent the will of the people?
Tuesday, April 06, 2010
Dollar Yuan Exchange Rate Issues to Dominate China U.S. April Summit Visit / Economics / US Economy
Chinese President Hu Jintao will attend the Nuclear Security Summit in Washington, D.C. on April 12-13. One of the main agenda items of this summit is to fashion a multilateral strategy to deal with Iran's suspected nuclear weapons development program. But the announcement of President Hu's attendance at this summit has set off speculation that the Chinese government is prepared to let the yuan appreciate versus the U.S. dollar. From about July 2005 through June 2008, the yuan was allowed to slowly appreciate versus the dollar. But in July 2008 as the global financial crisis was intensifying, the Chinese government stabilized the yuan/dollar exchange rate. (See Chart 1.)
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Monday, April 05, 2010
Greece Debt Crisis Bailout, Europe Out of Time-Outs / Economics / Euro-Zone
In sports, if the opposition is on a roll and the momentum is squarely against you … you need a “time-out.” This interruption in action can break the rhythm of the opposing team and give your team a moment to re-evaluate and re-group.
In the euro zone, European officials called a time-out back in February hoping to stem the heavy wave of selling against the euro and the speculative pressures on sovereign debt risk.
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Monday, April 05, 2010
China Yuan Repegging and Other Non Free Market Trade Imbalance Solutions Are Doomed to Fail / Economics / Economic Theory
In spite of much yapping by economists, especially Paul Krugman, I strongly doubt a currency repeg by China would do much (if indeed anything at all) to cure any global imbalances.
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