By The Doc
*Fed hints at more QE as economic recovery paused due to Hurricane Sandy
*QE to continue as long as unemployment remains above 6.5%
*Federal funds rate will remain at zero-.25% as long as unemployment remains above 6.5%
*The Committee will closely monitor incoming information on economic and financial developments in coming months. If the outlook for the labor market does not improve substantially, the Committee will continue its purchases of Treasury and [...]
BLOOMBERG ECONOMIC OUTLOOK: U.S. REMAINS IN SLOW GROWTH TRAP, FISCAL CLIFF REAL THREAT
Commentary by economist Joseph Brusuelas
In today’s “Bloomberg Economics BRIEF,” Bloomberg senior economist Joe Brusuelas writes that with the U.S. economy growing only 1.5 percent in the fourth quarter, America remains in a “slow growth trap” and faces a “substantial risk” of recession due to the looming fiscal cliff.
**WRITE FOR ACCESS TO MORE BLOOMBERG DATA AND [...]
From Zero Hedge:
As America’s mania with cell phones as an aspirational status fad hits new records every day, this borderline addiction to “thinner, longer” mobility and a sub-1 year upgrade cycle, is starting to extract its pound of flesh: average cell phone bills that have risen by over 10% in one year (from $1,110 to $1,226), even as total household spending rose by half, or $67.
In a word: iNflation.
It gets [...]
As America’s mania with cell phones as an aspirational status fad hits new records every day, this borderline addiction to “thinner, longer” mobility and a sub-1 year upgrade cycle, is starting to extract its pound of flesh: average cell phone bills that have risen by over 10% in one year (from $1,110 to $1,226), even as total household spending rose by half, or $67. In a word: iNflation. It gets worse. [...]
Today’s advance retail sales for June was simply abysmal, printing at -0.5% on the headline, and -0.4% ex autos. Expectations were for a print of +0.2% on the headline and unchanged less autos. Gas was not the culprit either as ex autos and gas the miss was -0.2%, on expectations of a +0.2% print. This was the third consecutive drop in a row: the longest since December 2008, when the [...]
by John Galt
June 7, 2012 05:15 ET
So what keeps an academic figurehead for the world’s elite banksters up at night?
A repeat of the 2008 debacle. Thus far they think they have avoided it in the United States however that creeping feeling that the disaster de jour in Europe will not be avoided is starting to permeate the thought processes of our bankers and that means the U.S. taxpayer must be [...]
- German state CPIs
- German May Prelim CPI
- US Redbook
- US S&P/Case-Shiller Home Price Index
- US Consumer Confidence
- Bank of Portugal financial stability report
- Italian 6-month BOT auction
- ECB’s 7 day refi
- Switzerland UBS Consumption Indicator (Apr)
- United Kingdom CBI Distributive Trades Survey – Realized (MoM) (May)
- Japan Nomura/ JMMA Manufacturing Purchasing Manager Index (May)
- Japan Overall Household Spending (YoY) (Apr)
- Japan Unemployment Rate (Apr)
- Japan Large Retailer’s Sales
A smaller than forecast addition of 120,000 jobs last month broke a pattern that was giving U.S. voters a growing sense of security and boosting President Barack Obama as Republican Mitt Romney attacked his economic record.
The Labor Department reported today that employers added 120,000 jobs in March, after an increase of 227,000 the previous month. It was the fewest jobs added in five months. Unemployment fell to 8.2 percent, the lowest since January [...]
The number of Americans filing first-time claims for jobless benefits last week held at a four- year low and consumers became more confident, indicating an improving labor market may boost household spending.
Applications (INJCJC) for unemployment insurance benefits were unchanged in the week ended Feb. 18 at 351,000, the fewest since March 2008, Labor Department figures showed today. The Bloomberg Consumer Comfort Index rose to minus 38.4 in the week [...]
The slowdown in consumer spending is hitting Spanish retailers
From BBC News:
The Spanish economy has shrunk for the first time in two years, increasing fears the country could be heading for a recession.
The country’s economy shrank by 0.3% in the three months to December, after stagnating in the previous quarter.
Household spending fell by 1.1% from the previous quarter, while spending by public bodies dropped by 3.6%.
The country has the highest [...]
The budget has to be the outcome of an overall goal setting process. I know many folks who use budgets to try and control their spending, but they almost always commit the terrible mistake of setting their spending budgets based on past spending habits. This only institutionalizes the bad habits that have developed over the years.
I recommend that folks start the budgeting process by defining the goal. Is it to save $xxx [...]
The key element in this statement is “significant downside risk to the economic outlook” followed by “introduction of operation Twist, an ineffective strategy that will lead back to QE.” This is basically pro-gold, anti-dollar regardless of how the market has reacted. That is an undeniable reality as the accordion shaped chop in the price of gold continues.
The third skier illustration is the final result [...]
The Jackson Hole Conference was a dud. To the astute student observer, something happened never seen before. The US central bank chief admitted failure, if only people could properly interpret and translate his words of helplessness and disappointment. A more apt description was that USFed Chairman Bernanke used the forum to announce on stage that the central bank failed and is powerless to react to [...]
By Greg Robb, MarketWatch
IMF managing director Christine Lagarde.
JACKSON HOLE, Wyo. (MarketWatch) — The U.S. and the euro-zone must take radical steps to get their economies and the global recovery out of the “dangerous phase,” Christine Lagarde, the new chief of the International Monetary Fund, said Saturday.
“The stakes are clear: we risk seeing the fragile recovery derailed. So we must act now,” Lagarde said in remarks [...]
Goldman demanded it, Goldman ordered it, Goldman got it.
Fed Returns to Monetary Easing
BOTTOM LINE: Despite three dissents–the largest number since 1992–the committee adopted an even easier policy stance than expected: first, the committee now anticipates that rates will stay on hold “at least through mid-2013.” Second, the committee effectively signaled an easing bias saying that it is prepared to employ additional easing steps as [...]
Release Date: August 9, 2011
For immediate release
Information received since the Federal Open Market Committee met in June indicates that economic growth so far this year has been considerably slower than the Committee had expected. Indicators suggest a deterioration in overall labor market conditions in recent months, and the unemployment rate has moved up. Household spending has flattened out, investment in nonresidential structures is still [...]
Consumers in the U.S. are increasingly using credit cards to pay for basic necessities as income gains fail to keep pace with rising food and fuel prices.
The dollar volume of purchases charged grew 10.7 percent in June from a year ago, while the number of transactions rose 6.8 percent, according to First Data Corp.’s SpendTrend report issued this month. The difference probably represents the increasing cost of gasoline, said Silvio [...]
We have trimmed our current quarter growth estimate further based on the most recent economic data which showed higher inflation in the current quarter as well as preliminary evidence that the soft patch is extending into June. The May consumer price index topped expectations in both the headline (+0.2% vs. +0.4% previously) and core (+0.3% vs. +0.2%). While CPI energy declined (-1.0% vs. +2.2%) for [...]
From Reuters: “Manufacturing activity grew more weakly than expected in April, at its slowest pace in 7 months, and a sharp slowdown in new orders cast a cloud over a sector that has been a rare bright spot in the UK economy. The Markit/CIPS manufacturing PMI headline index, published on Tuesday, fell to 54.6 in April, its lowest since September, from a downwardly [...]
Baltimore, MD — April 27, 2011 Federal Reserve Chairman Ben Bernanke held the line, vowing to maintain the target range for the federal funds rate at zero and 1/4 percent for an for an ‘extended period.’ The Fed chairman noted that growth in household spending remains constrained by high unemployment, modest (or non existent) income growth, lower housing wealth, and tight credit conditions.
Charles M. Blow, one of my favorite “number crunchers”, and op-ed columnist at the NY Times, has a good article today on what causes a revolution. He turns the lens on Egypt and Tunisia, as well as other countries that might be poised for revolution, and looks at what factors can contribute to people rising up and overthrowing their government.
Though agitating factors like unemployment and age have featured in many articles on the situation in Egypt [...]
I wonder when the rest of the world will realize that the revolutions around the globe (that are spreading) are a result of his monetary policies.
One day, we’ll have zero friends left. Thanks a lot, Ben!
Bernanke: More Jobs Needed for Real Recovery
“Federal Reserve Chairman Ben Bernanke says the U.S. can’t fully recover from the worst recession in decades until hiring improves.
Bernanke says the economy is strengthening, [...]
(Reuters) – Three numbers should suffice to give Chinese economic policymakers a sleepless night: 65.4 million, $28.7 billion and $2.45 trillion.
In order, they are the estimate by a government researcher of how many apartments stand vacant in China, many of them bought as speculative investments; the country’s trade surplus in July; and the international reserves the central bank has accumulated by buying dollars to hold down the yuan.
Together, they encapsulate [...]
Measuring the size of the economy, or household after tax income or household spending or household net worth in terms of dollars is a cruel fraud and a Regime Lie. The dollar is not a true metric because its value keeps falling versus true metrics such as gold or oil or nuclear technology or rare earths.
The dollar is a false metric because it is a shrinking measure. A yard that [...]