Tag Archives: Economics

“Everything we are told about deflation is a lie”

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“Messrs Yellen, Draghi et al should be careful what they wish for. Inflation targeting is hardly a precise science. Achieving an entirely arbitrary 2% inflation level is bad enough for savers on fixed incomes when deposit rates are close enough to zero as to make no difference, but markets have a tendency to overshoot. Most government bond markets are clearly overbought – but in a QE world given fresh impetus by the looming arrival of the ECB, overbought markets can become even more overbought. When we don’t claim to understand the underlying dynamics (political) or the final destination (though we have our own fears), it’s much better simply not to play.”

http://www.cobdencentre.org/2014/04/everything-we-are-told-about-deflation-is-a-lie/

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The richest man in Asia is selling everything in China

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“Here’s a guy you want to bet on– Li Ka-Shing.  Li is reportedly the richest person in Asia with a net worth well in excess of $30 billion, much of which he made being a shrewd property investor.  Li Ka-Shing was investing in mainland China back in the early 90s, way back before it became the trendy thing to do. Now, Li wants out of China. All of it.  Since August of last year, he’s dumped billions of dollars worth of his Chinese holdings. The latest is the $928 million sale of the Pacific Place shopping center in Beijing– this deal was inked just days ago.  So what does he see that nobody else seems to be paying much attention to?  Simple. China’s credit crunch.”

http://www.sovereignman.com/trends/the-richest-man-in-asia-is-selling-everything-in-china-14208/

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The Housing Recovery that Never Was Is Over

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“The current housing ‘recovery’ has been characterized by low demand, artificially low interest rates, low new home construction, low new home sales, low existing home sales, low home ownership rate, low labor participation rate and low wages. It was true six months ago and is still true today. Yet against this back drop, home prices continued to rise.  Six months later it is more apparent that the housing recovery was in price alone. The housing price gains boosted by quantitative easing (QE) and low interest rates are in jeopardy as investors are leaving the market, inventory is increasing and interest rates are rising.”

http://smaulgld.com/housing-recovery-never-was-over/

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How Many Pounds of Marijuana Are Being Sold in Colorado A Month?

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“The crime rate in Denver, Colorado’s largest city, has gone down by 2.4%, with property crime falling by 14.6%, in the past year — all while enough ganja is being sold in the state to make Cheech and Chong blush.  The fear mongering that we always hear about marijuana is being exposed for exactly what it is. ‘If voters [legalize marijuana], I believe there will be many harmful consequences,’ said Sheriff David A. Weaver before the amendment was passed. ‘Expect more crime … I think our entire state will pay the price.’  Meanwhile, three months into the legalization experiment, consumers are buying over $14 million worth of product a month. That works out to approximately 1,683 pounds of pot.”

http://www.policymic.com/articles/87273/guess-how-many-pounds-of-marijuana-are-being-sold-in-colorado-every-month

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Bill Bonner: The Fed’s Childishly Naïve Theory of Credit

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Bill-Bonner2

“The $33 trillion spent by Americans over the last four decades or so did not come from savings. Instead, it came out of thin air – from the banking system, which contrary to the common belief that it requires some pre-existing money (in the form of cash deposits or reserves) to make loans, simply creates them out of nothing.  In other words, this credit creation did not represent resources that had been set aside – like seed corn – to prime future growth.  No one ever deprived himself of a single meal, or as much as a single beer, to save the money. No one troubled himself to work even a single hour to earn it. No one toiled or spun.”

http://www.bonnerandpartners.com/the-feds-childishly-naive-theory-of-credit/

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Bill Bonner: Debunking the Fed’s Credit Propaganda

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Bill-Bonner2

“We have no choice but to go ahead.  But to where? And how?  Hold on. One question at a time, please.  To where? Japan!   How? By using the same policy tools the Japanese used. It worked there, didn’t it?   The Fed is fully committed to staying the course. If credit deflation returns to the US, it will have to be over Janet Yellen’s dead body. Which is not a bad idea. But Yellen is not likely to let it happen… not if she can prevent it.  But there’s the rub. If credit is going to keep expanding, someone has to borrow more – a lot more.”

http://www.bonnerandpartners.com/debunking-the-feds-credit-propaganda/

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The Battle for Self-Ownership in Medical Care

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“We are working in systems where third parties call the game. This was initiated by Bismarck way back, we still have Bismarckian model which is overbearing in most of Europe. Bismarck is dead now and I think this model will probably die as well. It’s dead in Georgia, and it will die elsewhere. How can you reestablish the direct contract between patients and doctors? That’s one of the keys of achieving self-ownership for patients in so far as they can choose their doctor and also autonomy for doctors who can concentrate their work on their patients without third parties telling them what to do. That’s one way, and there’s several means of doing it.”

http://isil.org/the-battle-for-self-ownership-in-medical-care/

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Cheap Printing vs. Expensive Drilling

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“Yellen explained that the Fed helps people secure employment ‘by influencing interest rates.’ She followed, ‘Although we work through financial markets, our goal is to help Main Street, not Wall Street.’  Her predecessor used the same rhetoric in 2012. ‘This is a Main Street policy. Many people own stocks directly or indirectly. The issue here is whether or not improving asset prices generally will make people more willing to spend.’  Oil, unlike the Fed’s fiat dollars, can’t be created out of nothing. And, job or no job, people are driving.  Mrs. Yellen tells crowds, Don’t worry be happy, your job will be printed anytime now.  Let’s just say, for those with a job to go to, getting there will not be getting easier.”

http://www.caseyresearch.com/cdd/cheap-printing-vs.-expensive-drilling

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Obamacare Consequence Will Leave Many Americans Out of Luck

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“Americans thinking about buying health insurance on their own later this year, or maybe switching to a different insurer, are probably out of luck.  With limited exceptions, insurance companies have stopped selling until next year the sorts of individual plans that used to be available year-round. That locks out many of the young and healthy as well as the sick and injured, even those who can afford to buy without government subsidies.  The law, which requires nearly all Americans to be insured or pay a fine, bans insurers from rejecting customers because of poor health. The companies say that makes it too risky to sell to individuals year-round.”

http://www.theblaze.com/stories/2014/04/04/the-little-noticed-consequence-of-obamacare-that-will-leave-many-americans-out-of-luck/

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Connecticut enacts nation’s highest minimum wage at $10.10/hr

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“President Obama and congressional Democrats want to raise the federal minimum wage to $10.10 an hour.  Connecticut Gov Dannel Malloy, a Democrat, signed the legislation in New Britain, Conn. Thursday evening.  Malloy made the bill a law at the same diner Café Beauregard — where he had met with the president earlier this month to discuss hiking the minimum wage.  Malloy believes this move will revitalize the economic health of the city.  ‘This is just a step in moving people in the right direction,’ Malloy said while signing the bill. ‘We will be lifting people out of poverty in the state of Connecticut. Increasing the minimum wage is not just good for workers, it’s also good for business,’ he added.”

dailycaller.com/2014/03/28/connecticut-passes-nations-highest-minimum-wage/

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