Analysis Topic: Economic Trends Analysis
The analysis published under this topic are as follows.Friday, March 26, 2010
Healthcare’s Double-Dip Recession / Economics / Government Spending
One of the most interesting terms to come out of the past two years is the ‘double dip recession’. This is Newspeak for depression as far as I am concerned, but it fits with the new nomenclature we have used in an attempt to paint a crisis as not really being one. After all, what fun is it to admit that we’re in a morass that we have no hope of getting out of, or even a cogent, sensible plan for exiting? It is much easier to conjure up new terms in an attempt to move the boundaries into more palatable territory. This week, in the wake of the biggest nation-killing bill to pass out of the halls of Congress to date, I’m going to tell you exactly why we are now guaranteed a second dip (to use the nomenclature du jour), and how this is going to hit small businesses, which are the backbone of the real economy.
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Thursday, March 25, 2010
U.S. Debt Reaches Tipping Point / Economics / US Debt
Even the most statist economists can understand that a country’s debt has reached its saturation point once the change in Gross Domestic Product is less than the change in the federal debt. However, now the metrics of the American economy look even worse than the picture painted above. For each new dollar in federal debt, with productivity as measured by an increase or decrease in the GDP, 45 cents of wealth is destroyed.
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Thursday, March 25, 2010
The Fable of the Krugman / Economics / Economic Theory
While Paul Krugman likes to present himself as being a Keynesian, in reality, his intellectual roots run back a few centuries to the mercantilists. If you wish to see the Krugman of 300 years ago, read Bernard Mandeville's The Fable of the Bees, first published in 1705, to see all of the same economic (and logical) fallacies that haunt Keynesianism and Krugman's columns.
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Thursday, March 25, 2010
The Paradox of Keynesianism, Paul Krugman and the Consumption Myth / Economics / Elliott Wave Theory
Jonathan Finegold Catalán writes: In "China's Water Pistol," Paul Krugman turned commentary on China into a general attack on those who remain wary of the United States' large public debt. In it, he sums up the Keynesian views on saving, consumption, and government spending. Whatever his intentions, all Krugman does is underscore his own lack of understanding of economic theory.
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Thursday, March 25, 2010
U.S. Policies Will Fail to Avert Hyperinflation / Economics / HyperInflation
The United States send weak economic signals insufficient for a meaningful and sustainable economic expansion required to gain back confidence of national and foreign investors, futureofdollar.com finds in the present research. Political decision-making process is paralyzed by numerous disabilities, while external market constraints obstruct economic recovery. Stagflation is an imminent danger.
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Thursday, March 25, 2010
The US is at a Precipice / Economics / US Debt
Tim Gatto writes: We are at a precipice. This is the end of one era and the beginning of another. The “real” world that so many people believe in, here in America is not the world you see on your TV sets, that is the world that the government and the media want you to believe in. We are so accustomed to believing in our own American ideology that we can’t understand the ramifications of what we have done.
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Thursday, March 25, 2010
Should California Get a Bail Out? / Economics / Credit Crisis Bailouts
As some readers might recall, without budget solutions from the Governor and Legislature, the California State Controller was forced to issue IOUs to several State payees last July in order to prevent a $2.8 billion cash shortage.
IOUs began printing July 2, and ended September 3 of last year.
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Wednesday, March 24, 2010
Growing Gap between Government and Private Sector Benefits / Economics / US Economy
Michael Mandel, former chief economist for BusinessWeek, is now writing on his own blog. Please consider his latest post on The Growing Gap between Govt and Private Sector Benefits.
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Wednesday, March 24, 2010
Sex and Trade Surplus in China / Economics / China Economy
Concerns over the global imbalance resulting from large Chinese current account surplus and large U.S. current account deficits has many economists and politicians locked in heated debates. Some experts, including Paul Krugman, propose measures focusing on changing China’s exchange-rate policy and trade barriers.
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Wednesday, March 24, 2010
China, The Coming Costs of a Super Bubble / Economics / China Economy
China may seem to have defied the recession and the laws of economics. It hasn't. When China's bubble bursts, the global impact will be severe, spiking US interest rates.
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Tuesday, March 23, 2010
U.S. Debt Crisis, Battle for the Budget / Economics / US Debt
Bud Conrad, Editor, The Casey Report writes: Recently the Congressional Budget Office (CBO) published its scoring of President Obama's budget for the next 10 years. It shows a budget deficit of $9.8 trillion. That is just shy of $4 trillion worse than the CBO’s baseline budget, a budget that includes only the laws as currently enacted, with no estimates of any new programs lawmakers may add that worsen future projections.
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Tuesday, March 23, 2010
UK CPI Inflation Falls to 3%, RPI Remains at 3.7% / Economics / Inflation
UK CPI inflation fell back unexpectedly for academic economists to 3% from 3.5% the month before, the Bank of England's forecast for UK inflation by the end of 2010 is 1% not 3% which continues to illustrate the Bank of England is failing in its primary role of accurately targeting an inflation rate of 2%.
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Monday, March 22, 2010
Inflation Bond Issuance Hits Record $200 Billion ahead of Deflation / Economics / Deflation
Concerns about global inflation are once again picking up. Please consider the Financial Times article Inflation-linked issuance to hit record $200bn
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Monday, March 22, 2010
Krugman's Hoover History, Very Misleading Analysis of Deficit Spending / Economics / Government Spending
At his popular New York Times blog, Paul Krugman is at it again, offering a very misleading analysis of deficit spending. Without technically lying, Krugman perpetuates the myth that Herbert Hoover insisted on budget austerity in the midst of the Great Depression. Then Krugman interprets a chart with adjectives that show his eyes can only see what his Keynesian theory will allow.
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Monday, March 22, 2010
The Second Austrian Monetary and Business Cycle Theory Revival / Economics / Economic Theory
Joseph T. Salerno and Jeffrey A. Tucker write: [This article is adapted from introductory remarks delivered by the first coauthor at the Austrian Scholars Conference, March 11–13, 2010, Auburn, Alabama. Both the oral remarks and the written article are joint products of both coauthors.]
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Monday, March 22, 2010
Predator States Consuming Our Capital / Economics / US Debt
It must be admitted that there is a degree of instability which is inconsistent with civilization. But, on the whole, the great ages have been unstable ones. ~ Alfred North Whitehead
A sure-fire sign of a business enterprise in decline is when it begins using its invested capital to pay operating expenses. Such signs of ill-health are not confined to the world of commerce and industry, but can exhibit themselves in the life of any system. We are witnessing the practice in the collapse of Western Civilization, as we scurry to meet short-term demands by sacrificing the foundations upon which our culture has long been grounded.
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Saturday, March 20, 2010
Russian Economy Growing Stronger than Expected / Economics / Russia
The growth of the GDP of the Russian Federation will reach the level of 4-4.5 percent in 2010 and may further increase to 6 percent. Putin said in December of 2009 that the nation’s GDP would grow by approximately three percent in 2010. The bailout measures taken by the Russian government produced a positive effect, the prime minister added.
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Saturday, March 20, 2010
China Currency Dispute Threat to U.S. Muddle Through Economic Growth / Economics / US Economy
O Canada
The Threat to Muddle Through
Back to 1971
The fault, dear Brutus, is not in our stars
GDP = C + I + G + Net Exports
If the Chinese allowed the renminbi to rise, would that make the USA better off? That is the contention of a cabal of critics from Senators to Nobel laureates. Paul Krugman wants to see a 25% tariff on Chinese goods. Today we examine that idea, and look at the real problems that we face. If only it were so easy. The numbers just don't add up. The fault, dear Brutus...
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Saturday, March 20, 2010
Jim Rogers Says 2012 Recession Will be Worse / Economics / Recession
Central Banks printing money are driving stocks higher, but has not bought any shares since November 2008. Does not pay any attention to the Fed because they do not know what's going on. Expects U.S. Economy to have a worse recession than 2008-09 which will be worse because of the huge debt burden.
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Friday, March 19, 2010
The Economic Impossibility of John Maynard Keynes / Economics / Economic Theory
What shall we do with those people deprived of work by wealth and technology...?
HOW TO FILL the days, hours and minutes? It's now seven decades since John Maynard Keynes peered into the future and declared that, one day, trying to scratch a living would cease being "the permanent problem of mankind."
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