Economics

David Galland: Welcome to the Company Store

"Other than a small percentage of the population who have managed to build enough wealth to break the cycle through diversified investment and income sources, the vast majority of the population lives pretty much hand to mouth. Of the money you earn, close to a majority is now returned to the state in the form of taxes of all description (payroll, property, sales, income, etc., ad infinitum). Then, because it's a rigged game, just like the company store, the money you do manage is steadily debased. And while the situation is bad, it hasn't yet gotten desperate." Continue reading →

Continue ReadingDavid Galland: Welcome to the Company Store

U.S. Inflation Since 1775 And How It Took Off In 1933

"Yesterday at the American Economic Association's 2013 Annual Meeting, Carmen Reinhart and Ken Rogoff offered a paper titled Shifting Mandates: The Federal Reserve’s First Centennial. The paper included a cool chart of inflation since 1775. The authors argue that inflation didn't take off until the U.S. went off the gold standard in 1933." Continue reading →

Continue ReadingU.S. Inflation Since 1775 And How It Took Off In 1933

Krugman: Let’s Just Print Funny Money

"Don’t like the platinum coin option? Here’s a functionally equivalent alternative: have the Treasury sell pieces of paper labeled 'moral obligation coupons', which declare the intention of the government to redeem these coupons at face value in one year. It should be clearly stated on the coupons that the government has no, repeat no, legal obligation to pay anything at all; you see, they’re not debt, and therefore don’t count against the debt limit. But that shouldn’t keep them from having substantial market value." Continue reading →

Continue ReadingKrugman: Let’s Just Print Funny Money

Krugman Gives the Thumbs Up on the Minting of a Trillion Dollar Platinum Coin

"Should President Obama be willing to print a $1 trillion platinum coin if Republicans try to force America into default? Yes, absolutely.[...] So if the 14th amendment solution — simply declaring that the debt ceiling is unconstitutional — isn’t workable, go with the coin." Continue reading →

Continue ReadingKrugman Gives the Thumbs Up on the Minting of a Trillion Dollar Platinum Coin

Do You Live in a “Death Spiral” State?

"Eleven states make our list of danger spots for investors. They can look forward to a rising tax burden, deteriorating state finances and an exodus of employers. The list includes California, New York, Illinois and Ohio, along with some smaller states like New Mexico and Hawaii. …Two factors determine whether a state makes this elite list of fiscal hellholes. The first is whether it has more takers than makers. The second element in the death spiral list is large debts, an uncompetitive business climate, weak home prices and bad trends in employment." Continue reading →

Continue ReadingDo You Live in a “Death Spiral” State?

U.S. auto sales jump 13 percent in 2012

"US auto sales jumped 13.4 percent in 2012 to their best performance since the crash of 2008, as better economic times, hot new models and the need to replace ageing vehicles drew consumers to showrooms. It was the biggest yearly gain since 1984. Toyota, Honda and Chrysler outpaced their rivals with sales gains that blew past 20 percent while Ford and General Motors posted modest growth Thursday that led their market share to shrink significantly." Continue reading →

Continue ReadingU.S. auto sales jump 13 percent in 2012

ADP Jobs Number Blows Through the Roof

"The just released ADP jobs report shows a 215, 000 increase in private sector jobs in December. That's 50% higher than the 140,000 that was expected. Bernanke money printing manipulation of the economy upward. Unfortunately, because it is a manipulation, it will crash down the road, but not now, For now, happy days are here again. And most of the jobs gains are in the capital goods sector, as would be expected based on Austrian Business Cycle Theory." Continue reading →

Continue ReadingADP Jobs Number Blows Through the Roof

India’s finance minister says current account deficit worrying, eyes gold curbs

"India's record current account deficit is 'worrying,' Finance Minister P. Chidambaram said on Wednesday, and hinted at cutting gold imports to bolster weak external accounts that have brought back memories of a 1991 currency crisis. He said he was considering reining in imports of gold, used as an investment tool by Indians but which mean a drain on foreign currency reserves. 'We may be left with no choice but to make it a little more expensive to import gold,' Chidambaram said. Recently, Reserve Bank of India executive Director Deepak Mohanty urged investors to shift from physical gold as a hedge against rising prices to financial products like inflation-linked bonds." Continue reading →

Continue ReadingIndia’s finance minister says current account deficit worrying, eyes gold curbs

Health care law may mean less hiring in 2013

"Many businesses plan to bring on more part-time workers next year, trim the hours of full-time employees or curtail hiring because of the new health care law, human resource firms say. The so-called employer mandate to offer health coverage doesn't take effect until Jan. 1, 2014. But to determine whether employees work enough hours on average to receive benefits, employers must track their schedules for three to 12 months prior to 2014 — meaning many are restructuring payrolls now or will do so early next year. About a quarter of businesses surveyed by consulting firm Mercer don't offer health coverage to employees who work at least 30 hours a week." Continue reading →

Continue ReadingHealth care law may mean less hiring in 2013