Analysis Topic: Economic Trends Analysis
The analysis published under this topic are as follows.
Friday, May 21, 2010
The Eurozone Stimulus Package and Economic Fundamentals / Economics / Global Debt Crisis
By: Frank_Shostak
On Monday, May 10, eurozone officials presented a stimulus plan involving $1 trillion. The main reason for the package, as stated by officials, is to prevent European economies from falling into an economic black hole on account of the economic crisis in Greece.
Friday, May 21, 2010
Sovereign Debt Crisis, Have We Crossed the Point of No Return? / Economics / Global Debt Crisis
By: Philipp_Bagus
A specter is haunting the world, and especially Europe: the specter of a sovereign insolvency. The acute sovereign-debt crisis is largely the result of government interventions in response to the financial crisis.
As Austrian business-cycle theory explains, the credit expansion of the fractional-reserve-banking system had caused an unsustainable boom. At artificially low interest rates, additional investment projects were undertaken even though there was no corresponding increase in real savings.
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Thursday, May 20, 2010
New Zealand Said No to Economic Death by Debt, Why Can't We? / Economics / Global Debt Crisis
By: LewRockwell
Floy Lilley writes: Anyone reading news feeds on the global financial crisis is painfully aware that the world as we know it is rapidly destabilizing. Bottomless debt is gaping open in unfamiliar terrain like crevasses in Ruth Glacier near the end of June.
Europe debt woes have pummeled the euro and Asian shares. Eurozone taxpayers are now extremely exposed to high credit risk, leading to a panic in the world markets, as foreign holders of Greek and Portuguese debt have seized on emergency intervention by the European Central Bank to scamper out of their positions. The chief executive of Deutsche Bank said it would require “incredible efforts” by Greece for its debt to ever be repaid in full.
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Wednesday, May 19, 2010
Eurozone Crisis at Point of Maximum Danger, Great Depression II? / Economics / Euro-Zone
By: Mike_Whitney
Debt woes in Greece have sent bond yields soaring and increased the prospect of sovereign default. A restructuring of Greek debt will deal a blow to lenders in Germany and France that are insufficiently capitalized to manage the losses. Finance ministers, EU heads-of-state and the European Central Bank (ECB) have responded forcefully to try to avert another banking meltdown that could plunge the world back into recession.
Wednesday, May 19, 2010
Economic Meltdown, Only Entrepreneurs Can Save Us / Economics / Recession 2008 - 2010
By: LewRockwell
Jim Davies writes: As the absurd machinery of government staggers daily towards total breakdown, to be "rescued" however temporarily by this or that stimulus of printed money, I'm hearing the view that the end is near, that freedom is just around the corner, that the collapse of the statist paradigm is almost upon us. Please, not so fast!
Wednesday, May 19, 2010
Cold Reality of the State of the World Economy / Economics / Global Economy
By: Brian_Bloom
For those who are still in denial regarding the extent of the economic/financial issues we are facing, the table below should put things into perspective.
Source: http://blogs.telegraph.co.uk/f.. What this table reflects is the percentage of GDP that will need to be applied by the various countries – during the year 2010 – to meet this year’s sovereign debt repayment obligations and to finance this year’s forecast budget deficits.
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Wednesday, May 19, 2010
George Osbourne's Full Reply to Mervyn King's UK Inflation Letter / Economics / Inflation
By: Nadeem_Walayat
The following is the full text of George Osbourne's letter to Mervyn King in response to his Inflation excuses letter on the failure of the Bank of England to target CPI inflation at 2% and keep it below the 3% limit in yesterdays released data which saw UK inflation rise from 3.4% to 3.7% with the more publically recognised RPI inflation measure literally soaring to a 19 year high of 5.3% from 4.4% as detailed in yesterdays analysis (18 May 2010 - UK Inflation Hits New High of CPI 3.7%, RPI 5.3%).
Wednesday, May 19, 2010
Bank of England Governor Mervyn King's UK Inflation Letter Full Text / Economics / Inflation
By: Nadeem_Walayat
The following is the full text of Mervyn Kings Inflation excuses letter written to the new Chancellor, George Osbourne in response to the failure of the Bank of England to target CPI inflation at 2% and keep it below 3%, as a consequence of which UK inflation rose from 3.4% to 3.7% with the more publically recognised RPI inflation measure literally soaring to a 19 year high of 5.3% from 4.4% as detailed in yesterdays analysis (18 May 2010 - UK Inflation Hits New High of CPI 3.7%, RPI 5.3%)
Tuesday, May 18, 2010
HyperInflation Threat Real or Not? / Economics / HyperInflation
By: Sol_Palha
"Try not to become a man of success but rather to become a man of value." ~ Albert Einstein
Higher Gold and Petrol prices are one of the clearest signs that inflationary forces are gathering steam. Do not confuse inflationary forces with inflation; inflation is defined as an increase in the supply of money.
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Tuesday, May 18, 2010
The "Eurozone Coup d’Etat", Trend Towards Global Systemic Economic Crisis / Economics / Euro-Zone
By: Global_Research
Just as anticipated by LEAP/E2020 in issues N°40 (December 2009) and N°42 (February 2010), spring 2010 really marks a tipping point of the global systemic crisis, characterized by a sudden expansion due to the intolerable size of public deficits (see issue N° 39, November 2009) and the inexistence of the recovery, so often announced (see issue N°37, September 2009). Besides, the dramatic social and political consequences of this development clearly reflect the beginning of the process of global geopolitical dislocation as anticipated in issue N°32 (February 2009).
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Tuesday, May 18, 2010
Inflation Destroys Savings / Economics / Inflation
By: MISES
Everything that is done by a government against the purchasing power of the monetary unit is, under present conditions, done against the middle classes and the working classes of the population. Only these people don't know it. And this is the tragedy. The tragedy is that the unions and all these people are supporting a policy that makes all their savings valueless. And this is the great danger of the whole situation.
Tuesday, May 18, 2010
Rationality and the Free Market Economy / Economics / Economic Theory
By: Douglas_French
People seem to do the craziest things when it comes to money. Whether it's chasing stock-market bubbles or paying good money after bad on a home that's hopelessly underwater, the idea of individuals acting as homo economicus seems far-fetched. Only in the ivory-tower world of rational-expectations theory does one find perfectly rational humans making judgments using all available information to satisfy their subjective ends.
Tuesday, May 18, 2010
UK Inflation Hits New High of CPI 3.7%, RPI 5.3%, Mervyn King Writes Another Excuses Letter / Economics / Inflation
By: Nadeem_Walayat
UK Inflation has yet again hit a new high of CPI 3.7% up from last months inflation peak of 3.4%, with RPI rocketing even higher to an eye watering 5.3%, a level not seen since 1991. The academic economists were again taken by surprise. The Bank of England's failure in its primary duty of targeting inflation has prompted the Governor Mervyn King to write another letter to this time the new Chancellor George Osbourne that will again state for the fifth time this year that the rise in inflation above 3% was temporary and not to worry, it should come down, eventually (fingers crossed).
Monday, May 17, 2010
U.S. Economic Recovery is Strengthening the Global Economy Against Europe’s Debt Turmoil / Economics / Economic Recovery
By: Money_Morning
Jon D. Markman writes: Stocks scattered across the capital markets last week like the unwanted children of a terrible divorce, as a blunted rally following a global margin call put a hex on every sector and most commodities - but a U.S. recovery marched on.
So far in the ten sessions of May, the Dow Jones Industrial Average is down 3.6%, the Nasdaq 100 is -4.7%, the S&P SmallCap 600 is -3.1% and overseas large-caps are down 8.6%.
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Monday, May 17, 2010
The World Has No Money, And The Emperor Has No Clothes / Economics / Global Economy
By: Pravda
Most of us are aware of the very old fairly tale by Hans Christian Andersen in which two weavers promise an emperor the finest suit of clothes imaginable, but from a fabric invisible to anyone who is unfit for his position or "just hopelessly stupid". Well, in the fairy tale it turns out that nobody wants to admit that they are "unfit" or "stupid", so when the emperor parades before his subjects in his imaginary new suit of clothes, it takes a child to cry out: "But he isn't wearing anything at all!" Read full article... Read full article...
Sunday, May 16, 2010
The Driving Force of the Market / Economics / Elliott Wave Theory
By: Peter_G_Klein
Entrepreneurship is one of the fastest growing fields within economics, management, finance, and even law. It's also becoming a popular subject at colleges and universities. Entrepreneurship courses, programs, and activities are springing up not only in business schools, but also in colleges of arts and sciences, engineering, education, social work, and even fine arts.Read full article... Read full article...
Friday, May 14, 2010
Signs of Economic Deflation You Might Not be Able to See Clearly / Economics / Deflation
By: EWI
Signs of Deflation You Might Not be Able to See Clearly
The following market analysis is courtesy of Bob Prechter's Elliott Wave International. Elliott Wave International is currently offering Bob's recent Elliott Wave Theorist, free.
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Friday, May 14, 2010
Max Keiser Report: Can China Save Western Economies From Collapse? / Economics / China Economy
By: Submissions
This week Max Keiser and co-host Stacy Herbert look at whether or not, as Western economies collapse under the weight of all their debt, China can save the world economy. In the second half of the show, Max interviews Paul Midler, author of "Poorly Made in China", about China's $300 billion rail projects; how restricting liquidity in a command and control economy actually accentuates misallocation of resources; and about having to hire lawyers to find out what is in his shampoo.
Thursday, May 13, 2010
India's Future Is In Its Mega Cities Signally Huge Economic Growth Potential / Economics / India
By: Frank_Holmes
McKinsey Global Institute (MGI) believes India is on the verge of the second-greatest urban migration the world has ever seen. In their new report India’s Urban Awakening, MGI says India’s urban population could balloon to 590 million—nearly twice the size of the United States—by 2030.
Thursday, May 13, 2010
Crisis Economics In USSR: Roubini Keeps His Dead Cat In The Bag / Economics / Stock Markets 2010
By: Andrew_Butter
I noticed two links to Professor Roubini today. The first one was from February when he said that the S&P 500 will drift sideways for most of 2010 which is a marked change from his opinion fourteen months ago when he was saying that the nascent rally in March 2009 was a dead-cat bounce sucker rally.