Tag Archives: Economics

Seemingly terrific April jobs report poses strange puzzle

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“Let’s review. The U.S. added 288,000 jobs in April, the biggest spike since January 2012. The increase in employment is measured by the so-called establishment survey that quizzes private firms, government worksites and nonprofit institutions.  Yet the size of the labor force sank by 806,000. That’s the biggest drop since a 848,000 plunge in October and you have to go all the way back to 1981 to find another 800,000-plus decline. Labor-force changes are measured by the ‘household’ survey that interviews Americans directly.  ‘You have drastically different messages offered by the establishment and household surveys,’ said Stephen Stanley, chief economist of Pierpont Securities.”

http://blogs.marketwatch.com/capitolreport/2014/05/02/seemingly-terrific-april-jobs-report-poses-strange-puzzle/

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Bill Bonner: Is Capitalism Doomed?

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“Capitalism has so few real aficionados they could all probably be rounded up and shot in an afternoon.  The poor don’t like it because they think it – rather than their own bad luck or bad habits – keeps them from getting rich. The rich don’t like it because it threatens to ruin them with crashes and bankruptcies. Businessmen don’t like it because its process of ‘creative destruction’ threatens to make their industries obsolete. Intellectuals don’t like it because it is inherently unpredictable and uncontrollable. The media doesn’t like it because it gives no press conferences and provides no ‘talking points’ for lazy journalists. Investors don’t like it because it punishes their mistakes.”

http://www.bonnerandpartners.com/is-capitalism-doomed/

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Bill Bonner: What You NEED to Know about Wealth Inequality

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“After the 1970s, real capital played a smaller and smaller role. It was replaced by credit and its sinister twin: debt.  The r in Piketty’s now famous annotation r > g is supposed to represent the return on capital investment.  But where did the wad come from?  Savings rates went down. Real earnings went down. Growth rates went down. So how could there be more capital available and how could it produce higher rates of return (compared to economic growth)?   The whole thing is a headache for a thoughtful man. Capital investments with no real capital behind them. Profits that outstrip the economic growth from which they must come.  What to make of it?”

http://www.bonnerandpartners.com/what-you-need-to-know-about-the-wealth-inequality-debate/

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Fed taper to cause ‘severe recession’: Economist

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“The Federal Reserve’s move to eliminate its monthly asset purchasing program will cause a ‘collapse in asset prices and a severe recession,’ according to economist Michael Pento.  It will be all part of the end of the so-called wealth effect touted by former central bank Chairman Ben Bernanke, who asserted that rising asset prices in the stock market and elsewhere would help boost confidence and generate economic activity, Pento charged in a blog post Monday.  The longtime Fed critic said the withdrawal of quantitative easing will cause a sharp decrease in housing prices and stocks despite consensus predictions that the effects will be minimal.”

http://www.cnbc.com/id/101620798

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Fed Tapers Another $10 Billion, Expecting Rebound From Grim Q1

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“The U.S. economy stalled out in Q1, as GDP rose at a 0.1% annual rate, the Commerce Department said Wednesday. But with other data showing rebounding growth in the spring, the Federal Reserve voted to taper its bond-buys by another $10 billion.  The Fed’s decision, widely expected, cited ongoing improvement in the economy. But as previously signaled, the central bank left interest rates untouched and pledged to keep policy easy as long as the economy remained shaky.  Residential investment fell hard for a second straight quarter, and business fixed investment declined at a 5.5% rate. Both sectors were expected to help lead the economy in 2014.”

http://news.investors.com/economy/043014-699061-fed-tapers-expecting-better-growth-after-q1-gdp.htm?p=full

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Five+ Years of Fed Futility Laid Bare for All to See

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“It has been five-and-a-half years since Lehman Brothers, AIG, Fannie Mae, Freddie Mac, and other casualties of the credit crisis imploded! We’ve been subjected to more than a half-decade of the Fed’s supposedly useful and appropriate medicine … Unlimited money printing.  Zero percent interest rates.  Gargantuan bank bailouts.  Deliberate attempts to inflate stock and house prices.  And for what?  More than $3 TRILLION in extra padding on the Fed balance sheet doesn’t look like it’s done much for the broad economy.  GDP grew just 0.1 percent in the first quarter.   Even that dismal reading was propped up by a massive surge of $43.3 billion in health care spending tied to the Obamacare rollout.”

http://www.moneyandmarkets.com/five-years-of-fed-futility-laid-bare-for-all-to-see-60708

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Europe: Cliff Ahead?

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“Over the last two years we had opposing trends—booming European stock markets and weak underlying real economies. This conflicting mix was mainly fostered by easy money that drove down interest rates to historic low levels. Plowing money into stocks, despite the poor fundamentals, was the only solution for most investors.  At their current elevated levels European stock markets appear vulnerable, and it seems reasonable to doubt that we will see a continuation of booming stock markets. Of course, such a decoupling can continue for some time, but the longer it continues, the closer we will get to a correction of this anomaly.”

http://www.caseyresearch.com/cdd/forgotten-sadomonetarists

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India’s pain is UAE’s gain – Indian expats buy up gold jewellery

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“If any nation is happy about India’ gold import curbs it is the UAE, where bullion traders are registering brisk sales given the restrictions on the import of the precious metal in India.  The curbs on gold in India have raised demand for gold and diamond studded gold jewellery among expatriate Indians and visitors from India to the UAE.  ‘The UAE’s gold trade has become the de facto beneficiary of the Indian government’s tough stance on domestic consumption. There is almost a 16% difference on a per gram basis, in buying gold ornaments in the UAE as compared to buying gold in India,’ said an official at a store in Dubai’s gold souk.”

http://www.mineweb.com/mineweb/content/en/mineweb-gold-news?oid=237886&sn=Detail

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When in Rome

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“In 193 AD, the denarius enjoyed a similar position to that of the US dollar today. Yet, having been devalued, it never regained its worth—in fact, not to this very day, even as a relic. The denarius pictured above was recently offered on eBay for the ‘Buy Now’ price of $28.80. Not a very impressive increase in value for a coin that has survived for 1700 years.  We would like to think that, even though some current governments are following the Roman road to ruin with remarkable similarity, the outcome will somehow be brighter—that we will not witness the Fall of the Empire in our modern world. Surely, this time around, political leaders will ‘do the right thing.'”

http://www.internationalman.com/articles/when-in-rome

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Stefan Molyneux on Shutting Down Government with Bitcoin

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“Stefan Molyneux and David Seaman talk about making the present incomprehensible to the future, the elimination of fiat currency, using Bitcoin to end war, and why you can’t buy votes with Bitcoin.”

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