by Charles Hugh-Smith
An independent, critical account of the American economy would soon raise questions about the structural causes of inequality.
That some sectors of the economy will be doing better than others is natural. If you’re a landlord or mobile-apps coding genius in San Francisco, the economy is excellent. Those working in the vast North American oil-patch are experiencing a boom economy. Realtors in resurgent markets such as Miami are having their [...]
It Is Not Just Your Imagination – American Families ARE Getting Poorer
Did you know that median household income in the United States is lower today than it was when the last recession supposedly ended? If we are in the middle of an “economic recovery”, how can this possibly be happening? Stunning new statistics compiled by Sentier Research show that the U.S. economy is not nearly as healthy as we have been [...]
From Bruce Krasting:
The Federal Reserve Bank of New York put out a research paper that must have pissed off Bernanke and the other Fed doves…
The report looks at the consequences of structural issues that have impeded the return to “full employment” in the economy. The analysis identifies structural impediments as “misalignments”:
“idle workers are seeking employment in sectors (occupations, industries, locations) different from those where the available jobs are. Such misalignment [...]
Government Employees, Teachers, Nurses Among At-Risk Workers
ARLINGTON, Va., July 16, 2012 /PRNewswire-USNewswire/ – Economist Dr. Stephen Fuller ofGeorge Mason University will unveil a new report detailing staggering American job losses in 2013 and beyond resulting from the Budget Control Act of 2011. The report, commissioned by the Aerospace Industries Association, will update previous projections of defense-dependent job losses, and provide the first comprehensive analysis of anticipated job losses in other sectors of the economy.
“This report shows [...]
via Washington Post:
Across the Washington area last week, young workers from Europe arrived in droves, heading for jobs at community swimming pools. Lugging duffel bags, they filled out forms, picked up safety gear and chatted in a variety of Slavic languages, eager to plunge into a summer experience of new friends, skills and culture.
“Now I can meet many people and see America,” gushed Anzhala Scherbina, 21, a petite student from [...]
Spain, Greece and The Union of Hopers
The evolving situation and growing uncertainty over Greece’s future and the recent fourth attempt to right the floundering ship of Spain’s banking industry predictably has markets on edge.
As to Spain’s banking plan, it is already ridiculed for the way too low cost estimates mentioned by finance minister Louis de Guindos, who opined that Less Than €15 Billion In Public Funds Will Be Required and that ‘no [...]
Australia will become the first major economy in the developed world to record a surplus since the start of the global financial crisis.
Julia Gillard, the prime minister, has pinned her political future on a “Robin Hood” budget which includes sweeping handouts worth more than £3 billion to reverse her dwindling public support.
Relying on extra revenues from mining companies, the Government has forecast a surplus of about £1 billion – the [...]
by Tyler Durden
We have been pounding the table that 2012 will be a replica of 2011 since before January 1: after all the central planners’ script book has only so many pages. Sure enough, here is yet another indicator. Job gains remain anchored in the low cost labor sectors of the economy – retail, temporary, leisure, and hospitality – a pattern, as Bloomberg Brief points out, that has characterized growth during [...]
BLOOMBERG TV EXCLUSIVE: Bloomberg Television’s economics editor Michael McKee spoke to Federal Reserve Bank of Philadelphia President Charles Plosser from the Banque de France in Paris. Plosser said that he sees no need for more stimulus as the U.S. economy recovers, and he has “cautious optimism” for economic improvement.
On whether the central banks have gone too far and may cause unintended consequences in the future:
“Those are difficult questions but [...]
To be delivered to: The United States House of Representatives, The United States Senate and President Barack Obama
“Forgiving the student loan debt of all Americans will have an immediate stimulative effect on our economy. With the stroke of the President’s pen, millions of Americans would suddenly have hundreds, or in some cases, thousands of extra dollars in their pockets each and every month [...]
President Obama arrived in North Carolina today, meeting with his Jobs and Competitiveness Council to discuss ways to promote U.S. job growth, bolster America’s global competitiveness and strengthen the economy.
Some sectors of the economy, according to market research company IBISWorld, could use strengthening: An IBISWorld report identifies 10 U.S. industries, which, if not actually dead, are headed that way fast.
Some, such as manufactured housing, theoretically could [...]
By Peter Raymond
Determining when the next great liquidation will occur is impossible to predict with any degree of certainty; nevertheless it is fair to say the sooner the better. Economic liquidation is a restorative process that corrects the harm done by inflationary policies. If accepting of this premise, then liquidations or deflationary depressions cannot be considered the disease in need of cure which unfortunately has [...]
by Farid A. Khavari, Ph.D. Economist
Usually corporate America is used to measuring the success of their CEOs by the amount they maximize profits of their respective corporation. Since there are no other yardsticks to quantify success, it can easily lead CEOs to become greedy and shortsighted, concentrating on using every possible ways and means for that success. This often leads to unethical, abusive and criminal [...]
They are unemployed, facing the loss of even unemployment benefits (they didn’t extend the time – it is still 99 weeks and only helps around 2.5 million unemployed) and they will still lose their home.
So, who foots the bill? We do. Home prices need to fall to 3 time earnings if we are to see a bottom in housing or earning need to rise to 1/3 home prices and other [...]
Spain’s needs a 35 % internal devaluation (wage cuts), or in leave the Euro zone. All the other options will not work quickly enough. Either Spain leaves, or , or Germany will inevitably have to go back to the Mark. The system won’t hold otherwise. Opinions on the subject have changed radically in Spain and around Europe in just six months, and nothing can be ruled out.
Following a decade long [...]
The Middle Class Financial Compact Being Washed Away Ã¢â‚¬â€œ Income Dilution and the Saving Disparity. 57 Million Households Live on $52,000 Per Year or Less.
The middle class is finding itself struggling to keep what was once seen as staples of a burgeoning working class in our country. Part of this battle has come from a system that has rewarded easy finance on the backs of the working class. Take for [...]