Economics

ObamaCare Dropping Full-Timers at Schools, Local Governments

"School districts in states like Pennsylvania, North Carolina, Utah, Nebraska, and Indiana are dropping to part-time status school workers such as teacher aides, administrators, secretaries, bus drivers, gym teachers, coaches and cafeteria workers. Cities or counties in states like California, Indiana, Kansas, Texas, Michigan and Iowa are dropping to part-time status government workers such as librarians, secretaries, administrators, parks and recreation officials and public works officials. The federal law forces employers with at least 50 full-time workers to cover at least 60% of health-care costs for employees who work 30 hours or more per week." Continue reading →

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The Blindness of Modern Economists

"The economic establishment blames today's evils on free markets, a lack of government intervention, and banks for being reluctant to lend. It blames government deficits on cheats who don't pay their taxes. There are four horsemen of the global economic apocalypse, all interlinked: the overburdened economy; broken banks; expensive interventionist governments; and a developing welfare and pension crisis. As a politician aptly described to me when I interviewed him a few months ago in Brussels, trying to squeeze out economic growth under these conditions is like trying to fly a plane with concrete wings." Continue reading →

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The Pretense of Knowledge Is Alive & Well

"The Federal Reserve itself is a tool of the banks. It's a banking cartel. Trying to separate the banks from The Fed is an error. It's one big happy thieving family. Any (and all) government regulations that are put in place (or removed) are done for the benefit of the entire system. The best way to picture it is to think of a giant octopus. The head is The Federal Reserve and the sprawling arms are the banks. 'Regulations' and 'Deregulations' are just fodder for the masses out there to think that 'government is doing something'. To think that The Fed is some kind of 'regulator' is the same as thinking that the arsonist 'regulates' the fire." Continue reading →

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You Don’t Need a Weatherman to Know Which Way the Wind Blows

"There appears to be a tendency for market observers to follow the same news stories. The result of this phenomenon is that entire sectors are ignored or understudied for long periods of time. When the attention shifts, large swings can occur as the mob draws similar conclusions and takes action. Here are two phrases to wrap up the point: The first is: 'Liquidity only matters when it’s the only thing that matters.' This is a comment from the 2007-08 crisis, when otherwise functioning firms disappeared overnight because funding became impossible to find. Think Bear Stearns or Lehman Bros. The second is: 'Borrowing is cheap until it isn’t.'" Continue reading →

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New EPA chief: Can we stop talking about regulations killing jobs, please?

"'Can we stop talking about environmental regulations killing jobs, please?' McCarthy said in a speech at Harvard Law School in Cambridge, Massachusetts. Embracing the need to cut carbon emissions should be seen not as a threat but as a 'way to spark business innovation,' she said. At the heart of Obama’s plan will be new EPA regulations that will target carbon emissions from existing power plants, which account for more than one-third of U.S. greenhouse gases and in many cases are fired by coal. McCarthy said the agency will try to replicate the success it had with the U.S. automotive industry." Continue reading →

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Bill Bonner: Price does not tell you all you need to know

"Economists measure quantity. Alas, life is not all quantifiable. What really matters is quality. Right now, the Fed tries to control prices. But prices are only a part of the picture. When it comes to art, architecture, music, puppies and women - it's what strikes the senses that matters...what you see, hear, and feel. But when it comes to your money, what you see is not exactly what you get. Price tells you something. But it doesn't tell you all you need to know. Why? We're so glad you asked..." Continue reading →

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Large Depositors in Cyprus Lose 47.5% of Their Deposits. Good!

"If the principle of 'depositor beware' were allowed to spread across the world and down to every dollar or euro deposited, the world would then have something resembling a free market in banking. Every banker would know that a bank run on his bank could wipe it out at any time. Bankers would become far more careful with depositors’ money. Banking would become less inflationary. The world would be better off. The bankers in the rest of Europe are terrified that the 'Cyprus solution' will spread to their nations. That would place final authority in the hands of depositors. This thought terrifies bankers." Continue reading →

Continue ReadingLarge Depositors in Cyprus Lose 47.5% of Their Deposits. Good!

Overpicking threatens Greek herbs

"Forestry officials on the Greek island of Crete have slapped a five-year ban on the collection of a variety of wild herbs snipped to near-extinction, the state-run ANA agency said. The forestry department of Hania, one of the island’s main towns, placed restrictions on picking sage, marjoram, oregano and sideritis, better known as Cretan mountain tea, in protected areas. Special permission is required for commercial collection, and an allowance of up to 500 grammes is made 'for personal use'. And Cretan dittany, a therapeutic plant prized since antiquity that is exclusive to the island, is off the table altogether." Continue reading →

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Challenging a Long-Held Assumption about Commodities

"When it comes to oil demand, 17 years ago, China was a net exporter. Today, it is the second-largest importer, transporting 5.4 million barrels of oil into the country every day. That’s why it is widely accepted that the Asian giant spurred higher commodity prices in the past decade. And if the country was the force behind the boom, then the assumption is that China’s lower, but still healthy growth will be a drag on commodity prices. But recent research challenges this assumption. According to BCA Research’s Chen Zhao, what is initially an 'outrageous proposition' may not actually be." Continue reading →

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Marc Faber on shadow banking, market psychology, & the global impact of American monetary policy

"Marc Faber is an economic authority on global macroeconomics, capital markets, and investment and the Editor & Publisher of 'The Gloom Boom & Doom Report'. He spoke with The Prospect Group about easy monetary policy and credit growth, asset price volatility, and the Fed." Continue reading →

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