The second half of 2012 saw a significant shift in US monetary policy from calendar-based guidance to outcome-based guidance and the adoption of a 6.5% unemployment rate as a threshold for ‘tapering’.
With Friday’s better-than-expected payrolls data and another tick lower in the critical-to-liquidity unemployment rate, it seems Goldman Sachs (and others) are waking up to the facts that we have been vociferous about: the shift of jobless individuals from unemployment into [...]
Tehran tells president to ‘take care of your business’ after Israeli air strike, Israeli TV says; analyst worries about new rash of Syrian TV interviews demanding attacks on the Golan.
If it does not act in response to Israeli aggression, it will be quite embarrassing for the regime to justify the use of fighter jets and helicopter gunships in its internal conflict (for purposes of regime preservation), but not for [...]
Jos. A Bank is facing a horrible dilemma as its business model shows signs of cracking.
One sentence from the company’s Friday release reveals just how bad Jos. A Bank’s problems are.
“Historically, we have had strength with these types of items, but our customers (specifically at our stores) didn’t respond as well to our promotional offers as they had in the past,” the company said.
Jos. A Bank’s business model is centered around promotions, particularly [...]
Having solved its urgent problem, the eurozone needs to deal with a new dilemma: that of an appreciating currency. There is a growing number of countries seeking to weaken their own currencies. Indeed, in the last six months, the euro has appreciated by 11 per cent against the US dollar and by 8 per cent in nominal trade weighted terms. It has appreciated by a lot more against the [...]
On the day that California’s Governor Jerry Brown asks federal judges to lift an order to release prisoners to reduce overcrowding, this brief clip seemed extremely appropriate when considering just why it is that the US prison population is so high (as we noted most recently here). Professor Daniel D’Amico provides some insightful color, noting that fully 24 percent of inmates in U.S. prisons are non-violent drug offenders. The drug war has been [...]
Dilemma: You have $1000.00. What’s the best deal? Buy online at Apmex or instore at Louisville Numismatic Coin store? I asked myself this question and “did what I do” and put the notes here for anyone else who might have the same question.
Current price of silver: $29.92
Calculator says we can get 33.42245989304813oz for $1000.
Goal: Buy 33oz for $1000.00
Silver – Rounds – 1oz – Sort: Price Low to High
As low as [...]
October 8, 2012
Excerpted from PIMCO Viewpoints: What’s Your Number at the Zero Bound?
The math of what happens when assumed rates of return go down, driven by a pro-active ZIRP from the Fed, is pretty straightforward. To make up for this, PIMCO notes that those approaching retirement have three choices: a) save more, b) work longer, or c) tighten their belts in retirement. Each of these are clear, individual family choices, but what happens [...]
ALARMING! Washington’s Dilemma!. Soaring debt and a budget Congress can’t balance. This VIDEO explains WHY. Every person in AMERICA should watch this video! Over 3 million VIEWS!http://www.whitehouse.gov/omb/budget
In the face of the European debt and financial crisis, Hamburg-based economist Dirk Meyer has a “third way”: a system of parallel currencies.
A professor at the Helmut Schmidt University of the armed forces, Meyer is convinced that in its present form the euro zone is simply not sustainable in the long term.
He used an address to the Berlin Freie Wähler (free voter) association earlier this week to describe a standing European dilemma: on the one hand, the [...]
Title: Visiting the end of the world
Source: Australian Broadcasting Corporation
Author: Senator Scott Ludlam, Australian Greens Senator for Western Australia
Date: Aug 24, 2012
Flash forward to August 2012, with 150,000 people evacuated from places like Iitate. The mood in the region is dark. A young high school teacher downloads the unvarnished truth in a loungeroom in Fukushima City the night before our trip down to the coast.
“I’m lying to a room full of [...]
So, the big question is – how do you solve the Spanish crisis? In fact, how do you solve the whole euro crisis?
The simple answer is, first, I don’t think there is anything much more Spain can do. Second, the solution to Spain’s dilemma is, I believe, the solution to the euro problem.
Unfortunately, it still appears as though Europe’s top policymakers – that is, the Germans – are trying to “muddle [...]
BERLIN (AP) — Germany’s finance minister is rejecting talk of a possible application from Spain for the eurozone’s bailout fund to buy the struggling country’s bonds, a newspaper reported Saturday.
This week, European Central Bank head Mario Draghi promised to do ‘‘whatever it takes’’ to preserve the euro. The German and French leaders then said that they were ‘‘determined to do everything to protect the eurozone.’’
Neither mentioned any specific action. But [...]
We discussed the use of Game Theory as a useful tool for analyzing Europe’s predicament in February and noted that it was far from optimal for any (peripheral or core) sovereign to pre-emptively ‘agree’ to austerity or Eurobonds respectively (even though that would make both better off). This Prisoner’s Dilemma left the ugly Nash-Equilibrium game swinging from a catastrophic break-up to a long, painful (and volatile) continuation of the crisis. Recent work by BofAML’s [...]
July 24, 2012
Israel could face a large-scale conflict in the aftermath of an attack against Syria’s chemical weapons, Chief of Staff Lt.-Gen. Benny Gantz said Tuesday, while stressing that the weapons were still under President Bashar Assad’s control.
Speaking to the Knesset’s Foreign Affairs and Defense Committee, Gantz said that the dilemma for Israel was identifying the correct moment to take action, if needed, to destroy the chemical weapons and [...]
To teach a robot how much pain humans can withstand, robotics experts at the University of Ljubljana in Slovenia are experimenting with robotic limbs that punch them in the arm.
A robot doesn’t know how much pressure or force stands between touching a human and injuring them, so when trying to adhere toIsaac Asimov’s First Law of Robotics, it might shy away from humans entirely.
So now a powerful, industrial robot, borrowed from Japanese production firm [...]
Marc Faber brought his typical sense of reality and truthfulness to CNBC’s Squawk Box this morning and in doing so managed to stop Jeremy Siegel saying long-term-buy-and-hold for more than 7 minutes. Siegel represented the ‘new-hopers’ with his insight that if the ECB would just guarantee all euro-wide deposits then all would be well in the world. Faber comes over-the-top in his gentle European accent reminding the academic that “it is [...]
The U.S. economy is facing a dire fiscal dilemma this year that will aggravate an inbound recession, says international investor Jim Rogers, CEO and chairman of Rogers Holdings.
At the end of this year, tax cuts are set to expire while automatic spending cuts are set to kick in at the same time, a combination dubbed by Wall Street as a “fiscal cliff.”
Failure to stop it now could see the [...]
A third of parents regret giving their children games consoles, mobile phones and computers, a study has found.
Fears about the damage to youngsters’ patience, creative and social skills as well as to quality time mean 34 per cent of parents yearn to take the gadgets back.
And 67 per cent are annoyed about the amount of time their children spend in front of a computer or watching TV instead of enjoying [...]
PETER VICTOR is an economist who has been asking a heretical question: Can the Earth support endless growth?
Traditionally, economists have argued that the answer is “yes.” In the 1960s when Victor was earning his various degrees, a steady rise in gross domestic product (GDP)—the combined value of our paid work and the things we produce—was seen as crucial for raising living standards and keeping the masses out of poverty. We [...]
Published on May 25, 2012 by RussiaToday
A game of brinkmanship’s playing out in the dilemma over Greece staying or quitting the euro. Economists see Europe’s money power-brokers offering Athens nothing new but to do as its told and keep cutting – even though Greek voters are increasingly likely to reject that next month. RT’s Peter Oliver has the story.
Published on Mar 14, 2012 by hemason67
Alarming! Washington’s Dilemma!. Soaring debt and a budget Congress can’t balance. This VIDEO explains WHY. Every person in AMERICA should watch this video! Over 626,000 VIEWS!
The current crisis of the Eurozone is a result of the imbalance of economic power between the core and the periphery but once one understands the non-economic and completely political strategy that is occurring, comprehending the at-times-incredible decision-making (or lack thereof) is at least easier to digest. Stratfor’s Adriano Bosoni provides a very succinct description of everything you wanted to know about Europe’s ‘situation’ but were afraid to ask in under 240 [...]
As Spanish CDS surge and bonds shrug off the very recent gloss of a ‘successful’ Italian debt auction, the sad reality we pointed out this morning is the increasing dependence between Spanish banks, the sovereign’s ability to borrow, and the ECB. As ING rates strategist Padhraic Garvey notes this morning, the bulk of the LTRO2 proceeds were taken down by Italian (26%) and Spanish (36% of the total) and the latter is even more [...]
Last year thirteen eurozone countries surpassed the deficit to gross domestic product ratio of three per cent. The latest forecasts by the European Commission suggest the region is slipping into a mild recession this year. As a consequence, in the absence of further policy measures, most of these countries risk missing their budgetary targets. This especially applies to Spain, where last year’s deficit was eight per cent of GDP. [...]
“The fact that we’re here today to debate raising America’s debt limit is a sign of leadership failure. Leadership means ‘The buck stops here.’ Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better. I therefore intend to oppose the effort to increase America’s debt limit.”
–Sen. Barack Obama, D-Ill.
Students arrive at Miramonte Elementary on Thursday, when the school reopened after a two-day closure. New teachers, administrators and others were brought in after two teachers were accused of sexually abusing students. (Irfan Khan / Los Angeles Times / February 9, 2012)
By Howard Blume, Angel Jennings and Richard Winton, Los Angeles TimesFebruary 10, 2012
The Los Angeles Unified School District paid Mark Berndt, the teacher at the center of the Miramonte Elementary child abuse scandal, $40,000 to [...]