Analysis Topic: Economic Trends Analysis
The analysis published under this topic are as follows.Tuesday, June 23, 2009
A Tale of Two Economic Depressions / Economics / Economic Depression
This week's Outside the box looks at some very interesting research done by two economic historians, Barry Eichengreen of the University of California at Berkeley and Kevin O'Rourke of Trinity College, Dublin They give us comparisons between the Great Depression and today's downturn. They continue to update their data from time to time, the link to their work is at http://www.voxeu.org/index.php?q=node/3421. I have not previously heard of www.voxeu.org, but it is a collection of the work of well regarded international economists that seems quite interesting for those who enjoy readings in the dismal science.
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Monday, June 22, 2009
The Big Inflationist Scare / Economics / Deflation
Inquiring minds are reading Pushing on a String by Gary North.
Gary always writes an interesting column. Indeed, there is too much to excerpt that I suggest reading it. Gary has many of his facts correct, yet still manages to come to the wrong conclusion.
Monday, June 22, 2009
California's Economy Collapsing / Economics / Recession 2008 - 2010
Martin Weiss writes: Washington and Wall Street seem to be treating California as if it were a sideshow in the financial circus of these turbulent times.
It’s not.
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Monday, June 22, 2009
A High Unemployment Rate Correlates to a High Rate of Inflation / Economics / Inflation
It absolutely amazes me how sanguine the Fed, Treasury and Administration are about the prospects for subdued inflation. What they and many economists like to point to as the source of their optimism is the high rate of unemployment, which is currently 9.4%.
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Monday, June 22, 2009
The US Economy: Recession, Depression and Monetary Mismanagement / Economics / US Economy
The Institute for Supply Management reports that May was the "16th consecutive month of contraction in the manufacturing sector". Even though the contraction appears to be slowing the demand for capital goods continues to drop with no sign of a reversal in sight as of yet. Of course, this fall in demand has hit the producers of capital goods. In the meantime unemployment continues to rise with some commentators expecting it to reach 11 per cent before the year is out and maybe even climb to 12 per cent next year. Therefore the current signs suggest the US could be sliding into an actual depression, if it isn't there already.
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Monday, June 22, 2009
Deflation vs Hyperinflation, Déjà Vu All Over Again. Once More / Economics / Economic Stimulus
Bill Bonner writes: Rarely have we been criticized for understating trouble. But trouble keeps getting ahead of us. We can barely keep up with it. So often have we anticipated “disaster” or “catastrophe” that the words now fall like empty shells. We light the fuses; they don’t go off. Alas, we have become alarmists with no bell or siren. We break the glass and pull the lever every week, but no sound is heard…except the familiar words whispered with in a hoarse, weary voice…watch out!
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Monday, June 22, 2009
Is the Economic Rebound For Real? / Economics / Recession 2008 - 2010
William Patalon III writes: U.S. stocks suffered their first weekly loss since May last week, further exacerbating trader concern that the bullish surge that sent share prices up as much as 40% from their March lows may have been overdone.
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Monday, June 22, 2009
No Green Shoots of Economic Recovery with US Debt at 700% of GDP / Economics / US Debt
What have we learned in 2,000 years?
"The budget should be balanced, the Treasury should be refilled, public debt should be reduced, the arrogance of officialdom should be tempered and controlled, and the assistance to foreign lands should be curtailed lest Rome become bankrupt. People must again learn to work, instead of living on public assistance." -Cicero - 55 BC
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Sunday, June 21, 2009
Inflation or Deflation, Which is More Likely? / Economics / Deflation
“Hyperinflation” in the USA is a concept which has been freely bandied about in recent weeks, and a friend – who lives in Switzerland – recently queried this analyst’s view that deflation is the more likely eventual outcome for the world economy as a whole. In the conversation which ensued, what finally emerged was that communication on the subject is fraught with definitional issues.
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Sunday, June 21, 2009
Mass Deflation or Inflation? / Economics / Inflation
Gary North writes: Back in 1973, gold standard advocate John Exter made a phrase famous in hard-money circles: "Pushing on a string." Exter argued that prices of all assets except gold (he ignored silver) would someday collapse because of the pyramiding of debt. Banks would eventually cease to lend, out of fear of default. That would cause the default.
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Saturday, June 20, 2009
U.S. Economy Trending Towards an Inflationary Depression / Economics / Great Depression II
Bob Chapman writes: As Emperor Obama (Romulus the Usurper) fires GM's CEO, steals money from Chrysler's bondholders, puts together Public-Private Investment Partnerships (PPIP's) that will privatize gains and socialize losses in an attempt to stabilize derivative prices by having banks buy their toxic waste from one another in the usual "smoke and mirror" tradition of Wall Street, and creates what currently is an annualized 1.8 trillion dollar federal budget deficit that will grow exponentially over time to finance zombie banker bailouts, to fascistically nationalize the financial, insurance and auto manufacturing industries, and to provide inane, flash-in-the-pan, socialistic spending programs (euphemistically called "stimulus packages" that will do little or nothing to stimulate production or to create permanent jobs).
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Saturday, June 20, 2009
The Great Reflation Continues Amidst a Tsunami of Debt / Economics / US Debt
In This Issue: Fingers of Instability, Part IV
Tsunami of Death, er….Debt
Banks, the New Healthy!
Character Assassination!
Green Shoots
Fall of Babylon
Capital Flight
Lessons from 55 BC
Friday, June 19, 2009
Economic Deflation hard Evidence from Flow of Funds Report / Economics / Deflation
I am not sure if this was his intent, but recent analysis of the Flow of Funds Report by Martin Weiss eloquently makes the case for deflation.
In New, Hard Evidence of Continuing Debt Collapse! Martin Weiss Writes ...
Friday, June 19, 2009
Four Key Reasons the U.S. Economy is Facing a ‘Jobless Recovery’ / Economics / Recession 2008 - 2010
Martin Hutchinson writes: When the Labor Department recently reported that U.S. payrolls fell by 345,000 jobs in May - the lowest total in eight months - commentators were suddenly spotting “green shoots” of economic recovery virtually everywhere they looked.
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Friday, June 19, 2009
Russia and China Sign $100 Billion Trade Deal / Economics / Emerging Markets
A new deal between Russia and China in the sum of about $100 billion became the largest deal that has ever been signed between the two countries, Russian President Dmitry Medvedev said as a result of the meeting with his Chinese counterpart Hu Jintao.
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Thursday, June 18, 2009
U.S. Doubling Unemployment Pay Checks to Stimulate Economy / Economics / Financial Markets 2009
What if the Fed had a sale and no one came?
The Federal Reserve received no requests from investors for loans to buy new commercial mortgage-backed securities under an emergency program aimed at reducing borrowing costs and reviving U.S. economic growth.
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Thursday, June 18, 2009
Credit Contraction as Shadow Lenders Retreat Means Deflation Not Inflation / Economics / Credit Crisis 2009
Ellen Brown writes: While contrarians are screaming “hyperinflation!”, the money supply is actually shrinking. This is because most money today comes into existence as bank loans, and lending has shrunk substantially. That means the Fed needs to “monetize” debt just to fill the breach.
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Thursday, June 18, 2009
Towards a Sound Economy / Economics / Credit Crisis 2009
Sometimes money is compared with the blood of the economy. The credit crisis painfully demonstrated, that the economy depends on a permanent infusion of credits. As soon as the banks deliver a bit less credit, enterprises fail and the mass dismissals succeed each other.
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Thursday, June 18, 2009
U.S. Recession Over by End of Summer 2009 / Economics / Recession 2008 - 2010
The American economy will begin growing again in the third quarter, but the rebound will be meek as a battered housing sector and ailing banks stem any progress in other areas, according to a Reuters poll.
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Wednesday, June 17, 2009
U.S. Deflation CPI Drops 1.3% in Past Year, Biggest Drop in 59 Years; Where To From Here? / Economics / Deflation
MarketWatch is reporting Consumer prices inch 0.1% higher in May.
U.S. consumer prices increased a seasonally adjusted 0.1% in May as falling food prices largely offset higher gasoline prices, the Labor Department reported Wednesday.
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