Analysis Topic: Economic Trends Analysis
The analysis published under this topic are as follows.Wednesday, January 20, 2010
New Year New Economic Boom? Why 2010 Should Be One to Remember / Economics / Recession 2008 - 2010
Elliott Wave International's latest free report puts 2010 into perspective like no other. The Most Important Investment Report You'll Read in 2010 is a must-read for all independent-minded investors. The 13-page report is available for free download now. Learn more here.
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Wednesday, January 20, 2010
Krugman the Crazy Keynesian Does Not Have Clue / Economics / Economic Theory
Even when Paul Krugman gets it right, he still gets it wrong. Now, I am not someone who is a knee-jerk critic of the guy, although I generally expect Krugman to blame the wrong people and recommend the wrong "solutions."
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Tuesday, January 19, 2010
U.S. CPI Inflation Forecast 2010 Targets a Break Above 3% / Economics / Inflation
Whilst the United States has experienced real year on year price deflation during 2009 as illustrated by the comparative CPI indices below, however key elements of the in-depth analysis for UK CPI inflation of 27th December 09 can also be applied to U.S. inflation expectations that converge towards 2010 being a year of inflation for both countries with UK inflation to breaking above 3% early 2009 and staying above 3% for most of the year which was confirmed by today's UK Inflation data that showed CPI soar by 1% in one month to rise from 1.9% to 2.9% as the below graph illustrates.
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Tuesday, January 19, 2010
UK Inflation Rockets to CPI 2.9%, Sparking Panic at the Bank of England / Economics / Inflation
UK CPI Inflation bust through the 2% target, bust through the quickly revised academic economists consensus targets of 2.6% of just last night, onwards and upwards to 2.9%, registering a record rise of 1% and within touching distance of 3% a break of which would trigger the Bank of England Governor Mervyn King to write a letter to the Chancellor to explain why he is not competent at keeping inflation within the 1% to 3% target band, RPI's rise was even more spectacular by rising from just 0.3% to 2.4% in just one month. My earlier article explained the reasons behind today's anticipated surge (UK CPI Inflation Soars Above 2% Targeting a Break Above 3%) so I won't repeat here, instead leave the mainstream press to focus on this AFTER the event.
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Tuesday, January 19, 2010
Unions ask for "Universal Jobs Guarantee" Guaranteed Employment / Economics / Employment
Here's a solution for the unemployment problem from the UK that will likely have your head spinning: If you are out of work for an extended period of time, the government gives you a job. It's called "Universal Jobs Guarantee".
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Tuesday, January 19, 2010
Marc Faber Says Worry about Portugal, Ireland, Italy, Greece, and Spain Soverign Debt Defaults / Economics / Global Debt Crisis
After every financial crisis there's a sovereign debt crisis, Marc Faber says. Countries that borrowed too much during the boom times start struggling to pay their competitors back, and eventually some of them default.
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Tuesday, January 19, 2010
CNN Money Misses the Real Story on Small Business Lending / Economics / Credit Crisis 2010
Here are a pair of interesting article on CNN Money about Small Business lending.
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Tuesday, January 19, 2010
U.S. Economic Collapse, Foundations of the Economy have been Destroyed / Economics / US Economy
The vast majority of the talking heads on television are still speaking of the current economic collapse as if it is a temporary “recession” that will soon be over. So far, the vast majority of the American people seem to believe this as well, although for many Americans there is a very deep gnawing in the pit of their stomachs that is telling them that there is something very, very wrong this time around. The truth is that the foundations of the U.S. economy have been destroyed by an orgy of government, corporate and individual debt that has gone on for decades. It was the greatest party in the history of the world, but now the party is over.
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Tuesday, January 19, 2010
Marc Faber on Central Banks Blowing Ever Larger Debt Bubbles / Economics / Global Debt Crisis
Marc Faber lectures on the problem of central banks blowing bubbles that burst that creates volatility in the asset market and explosion of debt.
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Monday, January 18, 2010
UK CPI Inflation Soars Above 2% Targeting a Break Above 3% / Economics / Inflation
UK CPI inflation is expected to bust through 2% tomorrow (Tuesday 19th) towards a target of 2.6% which was set over 3 weeks ago in the in-depth analysis and UK inflation forecast for 2010, that forecast a rise in UK inflation to above 3% early 2010, spiking as high as 3.6% and staying above 3% for most of the year only dipping to 2.7% by the end of the year as illustrated by the below graph.
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Monday, January 18, 2010
Ernst and Young ITEM Club UK Inflation, Interest Rates and GDP Growth Forecasts 2010 / Economics / UK Economy
The Ernst & Young ITEM Club issued their forecasts for key UK economic indicators today including UK GDP growth, Interest rates and CPI inflation for 2010.
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Monday, January 18, 2010
In the United States Majority Rules, the Inflation Consensus / Economics / Inflation
Most people are oblivious for a correct justification for the perpetual rise in all that can be priced i.e., oil prices rising to ungodly digits. For Americans, oblivious would be an understatement, though some are waking up to meet reality face to face, but not enough. Over the longer term horizon the general consensus among the public is that the price of everything will continuously rise, and so my wage will rise with it. It’s practically hard wired into the uninformed American mind and time and time again they fall into a myth.
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Monday, January 18, 2010
Worst Debt Crisis Since the Great Depression to Claim 200 More U.S. Banks During 2010 / Economics / Credit Crisis 2010
Washington has so thoroughly botched its supervision of the banking industry that 200 banks are likely to fail this year — easily surpassing last year’s 140 bank failures … inevitably involving the greatest bank losses in history … and already costing the FDIC ten times more than the great S&L and banking crisis of the 1980s did.
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Monday, January 18, 2010
Monetary Base Expansion to Ignite Inflation Not Deflation / Economics / Inflation
There are two fundamental principles that govern all economic systems: (1) supply and demand; (2) high bid wins. What distinguishes one economic system from another is this: (1) who is allowed to supply, and who is allowed to demand; (2) the currency unit in which the high bid wins.
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Sunday, January 17, 2010
The American Economy, Weak Economic Recovery 2010 / Economics / Economic Recovery
A Introspect and Mull - In my continuing series of analyzing country data and macro balances, I present the American economy and the long term patterns. My previous post was on India: Why am I so Bullish on India?
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Saturday, January 16, 2010
Japan in a Permanent Deflation Trap A Myth! / Economics / Japan Economy
Japan is a perfect case study of how monetary policy can go awfully wrong and how the damage can be permanent. Japan, claims PIMCO’s Paul Mcculley, has entered into a disastrous self feeding deflationary spiral which is impossible to exit.
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Saturday, January 16, 2010
Marc Faber, Sovereign Debt Default Crisis Next to Hit Global Economies / Economics / Global Debt Crisis
After every financial crisis there's a sovereign debt crisis, Marc Faber says. Countries that borrowed too much during the boom times start struggling to pay and service their debt.
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Friday, January 15, 2010
Investment Opportunity or Economic Catastrophe? Coming Soon / Economics / Credit Crisis 2010
“…To put it bluntly, Faber says, ‘we are doomed’…
Faber, a long-time critic of U.S. policies, argues the private sector acted rationally after 2008 by deleveraging and increasing its savings. The government, on the other hand, added more debt and leverage. They can get away with it for now because interest rates are low. Eventually, interest rates will rise, causing the public sector debt bubble to burst under the weight of government entitlement programs like Medicare, Medicaid and Social Security…
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Friday, January 15, 2010
Poland's Economy Is No Joke / Economics / Euro-Zone
Watching the world's leaders stumble their way through the economic crisis, it often feels as if political success and economic understanding are mutually exclusive. Even the Chinese, who over the past generation have engineered a dramatic turnaround from their Maoist economic nightmare, show a remarkable willingness to pursue a monetary policy (a currency peg to the U.S. dollar) that yields no benefit to their citizens. Amid this morass of economic quackery, it is refreshing to see a clear ray of sanity emanating from one country: Poland.
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Friday, January 15, 2010
Howard Ruff Preparing for Rough Times By Hedging Against Inflation / Economics / Inflation
Howard Ruff, who has observed the markets, the economy and government through three serious recessions and witnessed the rise and fall of the dot-com and real estate bubbles, entered the world of precious metals when Robert Preston's How to Prepare for the Coming Crash caught his eye in the early '70s. Shortly thereafter, he founded The Ruff Times (a financial newsletter that has served some 600,000 subscribers over the years) and came out with his first book (a blockbuster that sold 2.6 million copies and made his name a household word).
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