Economics

Wal-Mart walks away from plans for 3 D.C. stores after ‘living wage’ law passes

"Wal-Mart Stores Inc. said it was scrapping plans to build three stores in Washington, D.C., after the city council passed a bill late Wednesday that would require big retailers to pay starting wages that are 50% higher than the city’s minimum wage. The bill requires retailers with corporate sales of $1 billion or more and with stores of at least 75,000 square feet to pay workers starting salaries of no less than $12.50 an hour. The city’s minimum wage is $8.25. The measure includes an exemption for unionized businesses and gives existing big stores, which include Target Corp. and Macy’s Inc., four years to comply." Continue reading →

Continue ReadingWal-Mart walks away from plans for 3 D.C. stores after ‘living wage’ law passes

Bill Bonner: The End of the World As We Know It

"People become 'educators' and never teach a single student. They go on 'disability.' They turn whole industries – defense, health, finance – into vast wealth transfer schemes that produce little or no net benefit for the people they are supposed to serve. In short, zombies consume more than they produce; they are a net negative for society. But Hadas is right about the effects of lower birthrates. They also lower 'growth.' And without substantial growth, life as we have known it will come to an end. Stocks will fall, creditors (bondholders, for example) won't be paid, and governments must cut back on their expenses... or go broke." Continue reading →

Continue ReadingBill Bonner: The End of the World As We Know It

The astonishing collapse of work in America

"Both demand and supply factors are at play in this disheartening dynamic. On the demand side, it seems fairly clear that our contemporary economy is just not generating jobs and work as robustly as it did in the past---even the relatively recent past. This can be seen as a 'structural' problem. For on the supply side, it is apparent that there has been a major behavioral change in America, wherein a growing proportion of working-age Americans are checking out of paid labor altogether. Suffice it to say that not working at all is neither unthinkable nor unaffordable these days, even for adults in the prime of life." Continue reading →

Continue ReadingThe astonishing collapse of work in America

Parched Jordan to start pumping radium-laced water from 300,000-year-old aquifer

"The water ministry says Jordan, where 92 percent of the land is desert, will need 1.6 billion cubic metres of water a year to meet its requirements by 2015, while the population of 6.8 million is growing by almost 3.5 percent a year. Officials say the project has required 250,000 tonnes of steel and the digging of 55 wells to pump water from Disi to Amman, where the per capita daily consumption [is 42 gallons]. A 2008 study by Duke University, in the United States, shows that Disi’s water has 20 times more radiation than is considered safe, with radium content that could trigger cancers. But the government has brushed aside those concerns." Continue reading →

Continue ReadingParched Jordan to start pumping radium-laced water from 300,000-year-old aquifer

With Cigarettes Banned In Most Prisons, Gangs Shift From Drugs To Smokes

"With tobacco products now banned by the federal Bureau of Prisons and the majority of state prison systems, the price of a single Marlboro inside now reaches twenty dollars. A policy intended to produce health benefits and reduce fire risk has created a cash cow for prison gangs like the Mexican Mafia and Aryan Brotherhood, and the guards willing to work with them. Everyone involved in bringing the tobacco in gets paid by PayPal or Western Union. 'This one Sureño dude had shit on smash here. He literally made over $100,000 in a couple of years getting tobacco in like this. The homie came up. He was about his business,' the prisoner says." Continue reading →

Continue ReadingWith Cigarettes Banned In Most Prisons, Gangs Shift From Drugs To Smokes

John Williams: Pulling Back the Curtain on Phony Government Statistics

"The crux of the dollar-debasement and ultimate, severe-inflation/hyperinflation issues indeed is this political inability of the United States to cover its long-range obligations, other than by printing the money it needs. Based on the US Treasury's financial accounting of the federal government using generally accepted accounting principles (GAAP), the GAAP-based federal budget deficit was $6.6 trillion in fiscal-year 2012 (year ended September 30). Well beyond the simple cash-based deficit of $1.1 trillion in fiscal 2012, the GAAP-based annual deficits have been in the range of $4 to $5 trillion for the six years leading up to 2012." Continue reading →

Continue ReadingJohn Williams: Pulling Back the Curtain on Phony Government Statistics

French business leaders lash out at Francois Hollande

"The chief executives of top firms including Peugeot Citroën, EADS, Sanofi and Publicis signed a joint letter to Les Echos, complaining that France is being suffocated by high taxes and an over-regulated system that is no longer fit for purpose. The group called for a radical shake-up of labour markets to let each firm set its own working hours, and a 'coherent' energy policy to bring down costs from current ruinous levels. Gas prices are three times as high as in the US. Christophe de Margerie, head of the energy giant Total, said France’s outdated welfare model is draining the economy’s life-blood." Continue reading →

Continue ReadingFrench business leaders lash out at Francois Hollande

Japan Government To Change Inflation Calculation Ushering In Even More BOJ Liquidity

"The official explanation for this upcoming adoption of core-core-CPI which also excludes energy prices in addition to fresh food costs (as core CPI does everywhere else in the world) is to 'raise the bar' on Abe's inflation goal. In reality, it will simply grant the BOJ unlimited ammo to continue injecting liquidity indefinitely because absent exploding energy costs (as we have discussed), inflation in Japan is quite dormant. But what will really happen is that inflation will merely become just one more governmentally-determined and goalseeked economic indicator and policy tool, as it is in the US and China." Continue reading →

Continue ReadingJapan Government To Change Inflation Calculation Ushering In Even More BOJ Liquidity

Bill Bonner: Can the Fed’s “Credit Cure” Really Work?

"The US economy reached a turning point in the 1980s. Natural, healthy, sustainable growth gave way to credit-boosted phony growth. The 'growth' of the last 30 years was not like the growth of the 30 years before it. It was not based on rising productivity, increased wages and real capital formation. Wages stagnated. The only way people could increase their standards of living was by spending money they didn't have. That's where the credit came in, made possible by America's post-1971 flexible paper money system. Spending money you don't have is one of those things that economist Herb Stein had in mind when he said, 'When something can't go on forever, it will stop.'" Continue reading →

Continue ReadingBill Bonner: Can the Fed’s “Credit Cure” Really Work?

eEconomics Episode 10: Austerity

"David examines austerity and its effects on austerity and austerity austerity. Also, austerity is discussed briefly. A note on Reinhart-Rogoff: Who cares? The idea of fiscal responsibility wasn't created in a Harvard classroom three years ago. (a) we don't have austerity (b) two people messing up a spreadsheet doesn't somehow negate the laws of economics. Also, we've actually had deficit spending/stimulus. That's what demonstrably didn't work. But now that's seen as the solution once again because of a spreadsheet advocating a policy we don't follow? It's too insane to really think about." Continue reading →

Continue ReadingeEconomics Episode 10: Austerity