Analysis Topic: Economic Trends Analysis
The analysis published under this topic are as follows.
Thursday, December 20, 2007
Global Inflation Surge Fueled by Explosive Money Supply Growth / Economics / Inflation
By: Gary_Dorsch
The worst is yet to come for the global banking system, which faces potential losses of more than half-trillion dollars from investments in toxic sub-prime US mortgage debt. “The problems in the financial sector remain with us,” said Bank of England chief Mervyn King on Nov 19 th . “A painful adjustment faces the global banking sector over the next few months as losses are revealed and new capital is raised to repair bank balance sheets,” he said.
To defuse the crisis, the Fed, the European Central Bank, and the Bank of England are pumping enormous sums of money into the banking system, at below market interest rates, to prevent a “credit crunch” from triggering a global stock market meltdown. “Central banks are working together to forestall any sharp tightening in credit conditions that might lead to a downturn around the world,” King declared.
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Thursday, December 20, 2007
Public Losing Confidence in Official Inflation Statistics - Inflation Brainwashing Starting to Backfire / Economics / Inflation
By: Money_and_Markets
Larry Edelson writes:On at least three occasions over the last couple of years I warned you that inflation was already running at about 7%-10%.
It was a no-brainer. Like you, I experienced rising prices every time I went to the gas pump ... to the grocery store ... paid an insurance bill ... wrote a check for my kids' college tuition ... or bought new clothes.
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Thursday, December 20, 2007
Australian Economy Heading Into Stormy Seas / Economics / Austrailia
By: Gerard_Jackson
The problem with Terry McCrann's economic opinions is not that they are terrible but that they are largely shared by the rest of our economic commentariat. For instance, McCrann cheerfully reports that over the year to October credit for business rapidly expanded. Now he did temper his enthusiasm with the observation that the trade deficit jumped from $1 billion in July to $1.8 billion in August before jumping to $3 billion in October. As he put it: "Import volumes are soaring, thanks to the high Aussie dollar."Read full article... Read full article...
Wednesday, December 19, 2007
US CPI Inflation Statistics Manipulation and Deception? / Economics / Inflation
By: Ronald_R_Cooke
CPI: Sophisticated Economic Theory, Terrible Ethics
Is Institutional Deception Embedded In Public Policy?
Introduction
In late November, 2007, the Commerce Department’s Bureau of Economic Analysis (BEA) announced the United States had achieved a third quarter real Gross Domestic Product (GDP) gain of 4.9 percent. The price index for gross domestic purchases, which (theoretically) measures prices paid by U.S. residents, increased 1.6 percent in the third quarter.
Tuesday, December 18, 2007
UK November Inflation Drifts Higher - CPI 2.1%, RPI 4.3% / Economics / Inflation
By: Nadeem_Walayat
Figures for November show that inflation remained steady in terms of the CPI at 2.1%, whilst the more widely recognised RPI measure rose to 4.3% from 4.2% last month. The ONS sited rising food prices offset by falling gas and electricity prices.The movements are inline with the Market Oracle forecast for inflation to drift higher into a January 2008 peak.Read full article... Read full article...
Tuesday, December 18, 2007
US Inflation Soars - Largest Rise in Producer Prices Since 1973! / Economics / Inflation
By: Money_and_Markets
Martin Weiss writes: Suddenly and without warning, price inflation — long ignored and forever understated — has burst onto the American scene with the force of a cat-5 hurricane.
The November jump in the U.S. Producer Price Index has exceeded the largest single-month rises of the Bush 2000s ... the Clinton '90s ... the Reagan '80s ... and even the Carter '70s. It's the worst bout of wholesale price inflation since the aftermath of the 1973 Arab oil embargo.
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Tuesday, December 18, 2007
"Reckless" Lending by Central Banks Risks US Recession / Economics / Recession
By: Jas_Jain
On Wednesday, December 12, 2007, leading Central Banks surprised the markets by promising to “rain money” on American and European banks. After years of Fed facilitating the pushing of debt on households by private financial institutions, including turning blind-eye to obvious abuses in the mortgage market, it suddenly is pushing debt on banks (ready money, or reserves, in exchange for questionable collateral) with the hope that they would continue lending to households. Would it work? Hell no.Read full article... Read full article...
Monday, December 17, 2007
America's Currency Problems are due to Bad Economics / Economics / US Economy
By: Gerard_Jackson
Bernanke has now cut rates three time in the last three months. Given Bernanke's Keynesian instincts it was always on the cards that he would go for cuts. The real question is how far will he go. Some commentators are urging him to cut rates further. The origin of this dangerous advice comes from the inverted treasury yield curve, with short term rates now at 4.25 per cent as against 4 per cent for long term rates. Now what these people are really saying is that Bernanke should force rates down below 4 per cent.Read full article... Read full article...
Monday, December 17, 2007
US Fed Inflationary Money Printing Intervention Does More Harm than Good / Economics / Money Supply
By: Michael_Pento
Crying All the Way to the Bank - The Fed has angered many and pleased few in its ongoing effort to unclog the credit markets. They have lowered the Fed Funds rate a total of 100bps to 4.25% in the last three meetings and have also taken the Discount rate down to 4.75%. Most market pundits clamor for the Fed to ease more aggressively in an attempt to bolster flagging market returns. Meantime, an increasingly rare strategist argues for a stable currency and low inflation. In light of the recent actions by our Central Bank, I thought it important to lay out the reasons why it would be better for our economy if the Fed allowed the free market to work.Read full article... Read full article...
Saturday, December 15, 2007
Sharp Rise in US CPI Inflation as Energy Prices Surged during November / Economics / Inflation
By: Tim_Iacono
The Labor Department reported sharply higher inflation in November as consumer prices rose 0.8 percent, the steepest increase in 26 months. From year-ago levels, inflation was a full 4.3 percent higher, the worst year-over-year reading since Hurricane Katrina.Read full article... Read full article...
Saturday, December 15, 2007
Academics at the Fed Have No Real Money Markets Experience - US In Stagflation / Economics / US Economy
By: John_Mauldin
In this issue:
- Things That Go Bump in the Night
- Foolish Investor of the Year?Really?
- Breaking the Buck at Bank of America
- Inflation Rears it Ugly Head
- Academics at the Fed
- 1% Growth plus 4.3% Inflation = Stagflation
- London, Switzerland, and Barcelona
From ghoulies and ghosties,
And long-leggedy beasties,
And things that go bump in the night,
Good Lord, deliver us!
-Traditional Scottish Prayer
It's been a long time since we have looked in my worry closet, but there are definitely bumping sounds coming from behind the door. While largely over-looked, Bank of America closed down an "enhanced cash" fund and did the unthinkable and broke the buck. But the real story is even worse. I make the suggestion that you look at your cash funds and see what is in its portfolio. You may want to redeem ahead of the crowd.
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Sunday, December 09, 2007
Why US Interest Rate Cuts if GDP is Growing by 5%? / Economics / US Interest Rates
By: Andy_Sutton
Overall, the Federal Reserve must be given decent marks for keeping up appearances in the wake of the onset of the largest credit crisis in US history. For the situation is now ubiquitous, wreaking havoc in virtually every market. True to form, the Fed has continued to modify its statements, perceptions all in an attempt to manage the public's confidence in the fact that yes, they are still in control of the economy. There have been, however, an increasing number of discrepancies and important issues emerging over the past several weeks and some startling but expected developments.Read full article... Read full article...
Saturday, December 08, 2007
Beating the Credit Cycle - The Battle Between Debt & Recession / Economics / US Debt
By: Adrian_Ash
"...The Fed & the White House will do whatever it takes. But will that be enough to defeat recession for ever and ever...?"
SO THERE IS TO BE no let up or truce in the war between debt and recession. The cannon-fodder of consumer credit – the battle-weary consumers themselves – must push ahead with the Christmas offensive. The United States , standing shoulder to shoulder with its partners in Britain , will stay in the trenches until the job is completed.
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Friday, December 07, 2007
Inevitable Demise of the Debt Based US Dollar / Economics / US Dollar
By: The_Big_Fisherman
From Fear to Horror - With the bi-polar behavior of the financial markets these past few months, it is sometimes best to remember back to when the unfolding of current events was seen only by the heretics. It is at this point in time where they had the least biased view of the history now being made. These mavens were few, and the ramifications of their insight were but distant theory. And perhaps only they properly recognize the extent of the horror now confronting those trapped inside the nanny-state bubble. Cooing pundits and those that soften the hard edges are not to be trusted.Read full article... Read full article...
Wednesday, December 05, 2007
US Consumer Confidence Heads South Signaling Recession / Economics / US Economy
By: John_Mauldin
In the second installment of our special two day Outside the Box letter, we have good friend Greg Weldon's giving us his thoughts in his regular "Weldon's Money Monitor." Consumer expenditures account for approximately 2/3rds of
U.S. GDP. A precursor to any underlying changes in consumer expenditures is consumer sentiment. Greg explains to us the state of the American consumer and how current federal and institutional initiatives will not help thwart the looming recession. You can read his work at www.weldononline.com . Read full article... Read full article...
Tuesday, December 04, 2007
Unbroken , Australia''s Voters “Fix” Her Anyway By Electing Kevin Rudd / Economics / Austrailia
By: Chip_Hanlon
Political challengers, you just saw a great example of how to run against an incumbent when things in your country are perfect, a seemingly impossible task: convince voters there is essentially no difference between your ideas and those of the incumbent. This strategy was just worked to perfection in Australia , where a week ago the liberal Labour Party's Kevin Rudd was elected as the country's new prime minister, unseating the long-ruling conservative, John Howard.Read full article... Read full article...
Tuesday, December 04, 2007
Importance of the Gold Standard - US Economy: Deficits, Foreign Debt and Monetary Policy / Economics / Money Supply
By: Gerard_Jackson
It seems that it was only yesterday that economic commentators were almost hysterical over the US economy's trade deficit. Added to that was the view that the country's growing foreign debt would bring the economy down. Now that the deficit is shrinking fewer people are drawing attention to it, though they still harp on about the foreign debtRead full article... Read full article...
Tuesday, December 04, 2007
Is the Fed Too Late to Head Off a US Recession? / Economics / US Economy
By: Donald_W_Dony
With the ongoing weakness of many of the key leading indicators spurred on by the subprime mortgage debacle, has the U.S. already started to slip into a recession? We know the housing and banking sectors remain in a free fall with no apparent evidence of a bottom and that consumer confidence has dramatically declined in recent months. But is that the signal of the start? And what is the definition of a recession? Read full article... Read full article...
Sunday, December 02, 2007
The Grand Sale of American Assets Such as 5% of Citicorp to Abdu Dhabi / Economics / US Economy
By: Andy_Sutton
Turn on the evening news in most cities recently and you will see images of rows of homes, many for sale, many with foreclosure signs in the front yards. On weekends the tables come out and are strategically placed in the driveway heavily laden with the possessions of the soon-to-be-prior occupants of the home. These are selling off anything they can muster to scrape together rent for the next roof over their heads, the next car payment, or the next VISA bill. Most observers look at this and have at least a pang of pity or perhaps take a moment to be thankful for their good fortune.Read full article... Read full article...
Saturday, December 01, 2007
Are We Heading for Hyperinflation or Deflation? - At Philosophical Crossroads / Economics / Global Financial System
By: Brian_Bloom
For some unfathomable reason, the human mind tends to think in terms of extremes. For example: “Death or Glory”, “Success or Failure”, “Accelerating growth or Collapse”.
Thus, the questions being asked in today's financial world seem to be revolving around whether we are facing “hyperinflation or depression”. All of which begs the questions: Why does it have to be at one or the other extreme? Why can't there be something in between? Alternatively, why can't there be a paradigm shift which renders the very question irrelevant?
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