Analysis Topic: Economic Trends Analysis
The analysis published under this topic are as follows.
Friday, November 13, 2009
Krugman's Magic Solution to Budgetary Woes / Economics / Economic Theory
By: Robert_Murphy
Long-time readers know that I am second only to Bill Anderson in my constant criticism of Paul Krugman. Indeed, I quite recently defended the gold standard from Krugman's ridicule.
Given this context, I am very surprised to confess that Krugman has convinced me of the virtues of currency debasement. As I was reading his blog post on the tragic fate of Ecuador, I applied Krugman's lessons to my personal life, and suddenly everything became clear. In a flash, all of my household's financial stresses were solved.
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Friday, November 13, 2009
Is Mexico the “New” China? / Economics / Mexico
By: Money_Morning
Keith Fitz-Gerald writes: When it comes to global manufacturing, Mexico is quickly emerging as the “new” China.
According to corporate consultant AlixPartners, Mexico has leapfrogged China to be ranked as the cheapest country in the world for companies looking to manufacture products for the U.S. market. India is now No. 2, followed by China and then Brazil.
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Friday, November 13, 2009
Winds of Economic and Geopolitical Change / Economics / Emerging Markets
By: Puru_Saxena
The 19th century belonged to Britain, the 20th century belonged to America and in the 21st century, China will rule the business world. Whether you like it or not, this transition is already underway and it will intensify over the coming decades.
It is our observation that throughout history, no empire has managed to rule forever. If you look back in time, you will realise that various empires rose to power, they prospered and spread their influence. Thereafter, they over-extended themselves and then decayed. In fact, all the glorious empires had one thing in common – the spectacular collapse.
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Thursday, November 12, 2009
The State of the American Economy in One Chart / Economics / US Debt
By: Ceri_Shepherd
They say a picture paints a thousand words. Well this picture paints very clearly the American Economy for the last 30 years.
Ever decreasing Bond Yields which = EVER EXPANDING DEBT.
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Thursday, November 12, 2009
Securitization and Fractional Reserve Banking / Economics / Economic Theory
By: Nikolay_Gertchev
For good economists, the link between the operation of a fractional-reserve banking system and the recurrence of boom-bust cycles is of little doubt. One of the paramount figures who has contributed to the intellectual elaboration of this relationship and to its transmission to young economists, among which the present writer has had the pleasure to count himself, is Professor Hans-Hermann Hoppe.
Thursday, November 12, 2009
Mishkin's Bubblenomics and the Crash of 2008 / Economics / Market Manipulation
By: Mike_Whitney
The Fed's monetary stimulus is driving the market higher. What started as a trickle has turned into a torrent buoying stocks and commodities on a river of liquidity. Oil has more than doubled in the last 8 months while stock indexes have gained 50 percent or more in the same period. Even the shunned homebuilders and battered financials have staged a comeback. Meanwhile, consumer credit continues to shrivel and the "real" rate of unemployment climbs inexorably towards 20 percent.
Wednesday, November 11, 2009
Toxic Cocktail of Fiscal and Monetary Constraints on the U.S. Dollar / Economics / Quantitative Easing
By: John_Browne
Last week, the Fed extended its emergency economic powers, which include lending to the money center banks at zero interest. A few days later, the Fed's plan was reinforced by similar announcements from the rest of the G-20. The road map the authorities are providing for the near-term global economy can't be much clearer. There will be no cessation of the seemingly endless supply of cheap dollars being pumped into the financial system. With the world apparently in complete accord on the need for ever more liquidity, stock markets are staging an easy-money rally. The main line media is almost euphoric. But what should investors make of this seemingly good news?
Wednesday, November 11, 2009
Out of Control Government Budget Deficits in Eurozone, UK, USA and Japan / Economics / Recession 2008 - 2010
By: Mike_Shedlock
Budget deficits are soaring and printing presses are running at full steam everywhere you look including Germany and the Eurozone countries. Please consider Recession Upends German Zeal for Fiscal Prudence.
Wednesday, November 11, 2009
Failure of Economic Policy Blowing More Financial Bubbles and Next Crisis / Economics / Liquidity Bubble
By: Claus_Vogt
Since last year’s collapse of the banking system, hundreds of billions of dollars have been spent to bail out some of the major players. Additionally, governments all over the world, and their central banks, have implemented huge stimulus programs to combat the consequences of the burst real estate bubble.
Wednesday, November 11, 2009
Money, Inflation and Uncertainty / Economics / Fiat Currency
By: Gary_North
Three decades ago, I was visiting a friend. He was a graduate of the Harvard Business School. He was beginning a successful career as an entrepreneur. We were outside, watching his son play. His son was about five years old. "Robbie," he said, "why does daddy have to go to work every day?" "To buy money," Robbie replied. "No, Robbie. I go to work to earn money."
Tuesday, November 10, 2009
The Case For Jobless Economic Growth / Economics / Economic Recovery
By: Hans_Wagner
Jobless growth, a term that makes one pause. With an economy where the consumer comprises about 70% of the Gross Domestic Product (GDP), it is hard to imagine how it can grow without more people working. Yet that is what the U.S. faces as the economy recovers from the worst recession since the 1930’s.
Tuesday, November 10, 2009
Megacities Generate a Third of World’s GDP / Economics / Global Economy
By: Pravda
GDP of the world’s largest cities with emerging economies will experience rapid growth. In 2008 the largest 100 cities accounted for about 30% of global GDP and some have bigger economies than medium-sized countries like Sweden or Switzerland. Within the last three years, Moscow has leaped from the 25th to the 15th place in this rating.
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Tuesday, November 10, 2009
Should We Believe the GDP Economic Data? / Economics / Market Manipulation
By: Douglas_French
Third quarter Gross Domestic Product (GDP) figures were announced recently with that index rebounding to reflect that the US economy is growing again at a 3.5 percent rate. The financial talking heads rejoiced and investors continue to power the stock markets higher. Fed Chair Ben Bernanke even predicted that the recession was over when he told the Brookings Institute in mid-September, "From a technical perspective, the recession is very likely over at this point."
Tuesday, November 10, 2009
Inflation and Deflation; Inflationism and Deflationism / Economics / Economic Theory
By: MISES
The services money renders are conditioned by the height of its purchasing power. Nobody wants to have in his cash holding a definite number of pieces of money or a definite weight of money; he wants to keep a cash holding of a definite amount of purchasing power. As the operation of the market tends to determine the final state of money's purchasing power at a height at which the supply of and the demand for money coincide, there can never be an excess or a deficiency of money.
Tuesday, November 10, 2009
Global Economic Stimulus, The Surety Referee / Economics / Economic Stimulus
By: Michael_Pento
Our Treasury Secretary Timothy Geithner told us this weekend that global stimulus needs to be in place until a recovery is “assured.” This government--which has consistently displayed the foresight and navigation skills of a deaf bat—is now telling us that the wealth redistribution and inflationary policies of the Fed and Administration will be in effect until they have complete confidence this crisis has ended.
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Monday, November 09, 2009
What Is Inflation and How Does One Measure It? / Economics / Inflation
By: Mike_Shedlock
To understand inflation, one must first understand what money is and how to measure it. Please read What is Money and How Does One Measure It? before attempting to understand what follows.
Unfortunately there is no general agreement as to the definition of inflation. Here are some of the widely used definitions as noted in Inflation: What the heck is it?
Monday, November 09, 2009
U.S. Debt Explosion Sets in Motion Massive Revolutionary Changes / Economics / US Debt
By: Martin_D_Weiss
I’ve just returned from Munich, Germany, where Claus Vogt and I addressed the 8th Annual Conference of Sicheres Geld subscribers.
Here are the highlights of my side of the presentation. (Claus will give you his side in a future issue).
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Monday, November 09, 2009
Commodities Rich Australia Leads the West’s Economic Recovery / Economics / Austrailia
By: Money_Morning
Bob Blandeburgo writes: The Reserve Bank of Australia (RBA) last month became the first Western economy to raise its key interest rate since the financial crisis began almost two years ago. It proceeded to raise the rate for a second time in a month last week, just before it published its quarterly report on Friday, which says bottlenecks obstructing exports of its vast resources such as iron ore and coal are about to be relieved.
Monday, November 09, 2009
U.S. Real Unemployment Hits Depression Level Numbers of 17.5% / Economics / Recession 2008 - 2010
By: Mike_Whitney
This is bad. Double-digit unemployment. In October, unemployment soared to 10.2%. 16 million people are out of work. The average work week is down to 33 hours. Payrolls have contracted 22 months straight. The "real" jobless rate (underemployment) is now 17.5% and rising. These are Great Depression numbers. The country is in a Depression. So, why is there no talk of federal work programs? Why no WPA?
Sunday, November 08, 2009
U.S. U3 Unemployment Going To 13%, Link To Summers And The Russian Mafia? / Economics / Recession 2008 - 2010
By: Andrew_Butter
There is a theory that Government Stimulus can create jobs. There have been a lot of theories banded around recently; the more they are proven to be totally wrong, the faster they come.