Analysis Topic: Economic Trends Analysis
The analysis published under this topic are as follows.
Friday, December 11, 2009
Thanks to the Fed We Live in a Crystal Meth Economy / Economics / Fiat Currency
By: David_Calderwood
As I see it, booms and busts are a natural part of human social behavior. Cycles appear throughout history and are part of the dynamism of humanity of which Butler Shaffer so eloquently writes. If this is so, then what role do central banks play in the modern world?
Thursday, December 10, 2009
Bernanke Blamed, U.S. Economy Lost Revenues and Inflation /Deflation Fears / Economics / Economic Recovery
By: Paul_L_Kasriel
In the words of one of my favorite singer-song writers, Willie Nelson (another one of my favorites is Marisa Kasriel), I am on the road again. Forthwith are some thoughts that came to me as I listened to Willie on recent flights.
Did Bernanke Get Grilled for the Sins of Others?
Before hitting the "send" button on the hate email, let me tell you that Ben Bernanke is not an indispensable Fed chairman. I have no doubt that there are many people who could do a better job than he (but no one has called). Having said that, I was amused by some of the haranguing he was subjected to at his Senate confirmation hearing last week. Okay, now you can hit the "send" button.
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Thursday, December 10, 2009
The Power of The Theory of Money and Credit / Economics / Elliott Wave Theory
By: Douglas_French
With the great bursting of the real-estate bubble in 2008, the federal government is reforming and expanding its regulatory oversight in hopes of legislating away booms and busts. Recent decades have featured a series of speculative manias followed by harrowing financial busts, with central banks applying the same tonic — a flood of monetary stimulus — to salve the nation's financial wounds.
Thursday, December 10, 2009
European Monetary System Crisis, Debt Show Down in Athens / Economics / Global Debt Crisis
By: Mike_Whitney
Greek Finance Minister George Papaconstantinou has the European Central Bank over a barrel and doesn't even know it. If he had a handle on the situation, he'd thumb his nose at the ECB's austerity measures, and demand a no-strings-attached loan package to help his country get through the current rough patch. Instead, he's carrying on like a faint-hearted schoolboy.
Thursday, December 10, 2009
Leave Free Markets to Themselves, Nothing Else Will Work / Economics / Economic Theory
By: Don_Cooper
A market is the voluntary coming together of two groups of people: those that have something to sell and those that want to buy what is being sold at the price it is being offered. The former group is called producers and the latter consumers.
Wednesday, December 09, 2009
Larry Summers is Steering U.S. Economy Towards Structural Adjustment / Economics / Economic Stimulus
By: Mike_Whitney
There's no fixed number of greenbacks in a vault at the Treasury which limit how much the federal government can spend. Since the US pays its debts in its own currency--it can print as many dollars as it pleases. Of course, if boosting the money supply triggers inflation, the Fed has to withdraw liquidity and raise interest rates. But that's not the problem at present. The problem is how to zap the economy back to life.
Wednesday, December 09, 2009
Socialist Debt Crisis Greece Puts Pressure on ECB For Bailout / Economics / Global Debt Crisis
By: Mike_Whitney
Greek Finance Minister George Papaconstantinou has the European Commission over a barrel and doesn't even know it. Instead of dragging the EC over the coals--like he should --he's carrying on like a blubbering crybaby. "Steady on there, Georgie". Treasury Secretary Hank Paulson didn't go wobbly when he stormed up Capital Hill and demanded a $700 billion TARP bailout, did he? Well, then, at least learn from history.
Wednesday, December 09, 2009
All Eyes Down for a UK Credit Debt Default / Economics / UK Debt
By: Adrian_Ash
Another small social pleasure done to death by the socialists...
WHAT BETTER WAY to mark New Labour's last budget in power than by granting a tax cut on bingo...?
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Wednesday, December 09, 2009
The Economic Curse of Good Government / Economics / Government Intervention
By: William_Anderson
As one who has made a career out of criticizing government and exposing the various predations of government, one would think I would be intelligent and wise enough not to expect that entity we know as "good government." In fact, given that I am quite familiar with the entire socialist calculation debate and have assigned numerous papers covering that subject to my MBA students, it should have dawned upon me by now that "good government" is an oxymoron at best and a delusional term at worst.
Wednesday, December 09, 2009
Aristophanes on Inflation / Economics / Inflation
By: Clifford_F_Thies
It used to be that every economist worth his salt knew Gresham's Law (or, if he was Polish, Copernicus's Law): "bad money drives out good." Narrowly understood, this rule says that when the government requires people to accept different forms of money at an exchange rate fixed by law, the form of money that is overvalued (the "bad money") will circulate, while the form of money that is undervalued (the "good money") won't.
Wednesday, December 09, 2009
Debt Deleveraging Is a Necessary Consequence of Deflation / Economics / Deflation
By: Chris_Galakoutis
A blinding affliction can be seen with the gold bugs. Make reference to a strong dollar and falling gold, and you must be a supporter of the central banks, as well as the powerful families with cross-border tentacles that stand behind them. In our case, nothing could be further from the truth. We must put politics and other biases aside if we are to understand the big picture, in order to avoid, and not be ruined by, what’s around the corner.
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Wednesday, December 09, 2009
Have We Avoided the Economic Depression Many Feared? / Economics / Great Depression II
By: Mac_Slavo
President Obama spoke about the economy at the Brookings Institution.
Read full article... Read full article...“We acted to get lending flowing again, so businesses could get loans to buy equipment and ordinary Americans could get financing to buy homes and cars, to go to college, and to start or run businesses. We enacted measures to stem the tide of foreclosures in our housing market, helping responsible home owners stay in their homes and helping to stop the broader decline in home values which was eating away at what tends to be a family’s largest asset.
Wednesday, December 09, 2009
Government Socialist Intervention and the Distortion of Capital / Economics / Economic Theory
By: Frederic_Bastiat
In all times, but more especially of late years, attempts have been made to extend wealth by the extension of credit.
I believe it is no exaggeration to say, that since the revolution of February, the Parisian presses have issued more than 10,000 pamphlets, crying up this solution of the social problem.
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Tuesday, December 08, 2009
Productive Debt versus Unproductive Debt / Economics / Economic Theory
By: Douglas_French
The credit crunch continues, with businesses large and small finding that their bankers remain exceedingly stingy in the wake of the 2008 financial debacle. "We need to see banks making more loans to their business customers," Federal Deposit Insurance Corporation (FDIC) Chairwoman Sheila Bair told reporters recently after the FDIC released figures showing that the amount of loans outstanding in the nation's banks fell $210.4 billion in the third quarter of 2008. That is the largest quarterly decline since the FDIC began tracking loans in 1984.
Tuesday, December 08, 2009
U.S. Unemployment Statistics Numbers, Official, Unofficial, Real / Economics / Recession 2008 - 2010
By: Nilus_Mattive
Last Friday we got word that the employment picture in the U.S. improved substantially over the month of November. According to the Labor Department, the nation shed 11,000 jobs, a mere fraction of the 130,000 economists were expecting.
Tuesday, December 08, 2009
U.S. Social Security Will Go Bankrupt in 2010 / Economics / US Debt
By: Gary_North
For the third time in my life, the Social Security System will go belly-up.
The first time was in 1977 – well, almost. To head off the bust, Jimmy Carter got Congress to pass a major FICA tax increase – sorry, "contribution" increase – in order to save Social Security. The rate would be hiked in phases from 2% to 6.15% (times two: employee and employer). He promised: "Now this legislation will guarantee that from 1980 to the year 2030, the Social Security funds will be sound." (http://tinyurl.com/ybksxs4)
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Tuesday, December 08, 2009
Email Exchange With The Cleveland Fed On U.S. Inflation Expectations / Economics / Inflation
By: Mike_Shedlock
A couple weeks ago I received an email from the Cleveland Fed on A New Approach to Gauging Inflation Expectations.
Monday, December 07, 2009
Bernanke Says He Cannot Guarantee Double-Dip Recession Won’t Happen / Economics / Recession 2008 - 2010
By: Mac_Slavo
Chairman of the Federal Reserve, Ben Bernanke, in a speech to the Economic Club of Washington, said that it is too early to declare a lasting recovery:
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Monday, December 07, 2009
Guide to Keynes's Dangerous and Destructive Economic Theory / Economics / Economic Theory
By: David_Gordon
Defenders of Keynes, such as the recent convert Bruce Bartlett, often claim that he supported capitalism. (Bartlett's The New American Economy has this as a primary theme.) His interventionist measures had as their aim not the replacement of capitalism by socialism or fascism. Rather, it is alleged, Keynes aimed to save the existing order.
Monday, December 07, 2009
Where Is the U.S. Economy Heading? / Economics / Economic Recovery
By: Frank_Shostak
Economists are currently divided on the issue of how strong the US economic recovery is going to be. Some are of the view that as a result of the stimulus policies of the Fed and the Federal government, the recovery is going to be quite strong. Some others are more pessimistic given still-rising unemployment, which they believe will keep consumer spending subdued. In October the unemployment rate jumped to 10.2% from 9.8% in the previous month and 6.6% in October last year.