Wolf was early to point out the disconnect between declining rig counts, which the mainstream media has touted as proof that the oil bust was about to end, and rising production. That pattern has not abated.
Read more...This RT interview with Michael Hudson focuses on the appalling state of the Ukraine economy and the role of the IMF, both in its policy-violating rescue package there and on a more general basis.
Read more...Some economic sightings from house skeptics.
Read more...It’s become routine to expose some of the supposedly organic proposals that come out of the Tea Party as actually sponsored by the Koch Brothers and other big corporate interests. We didn’t want to leave Democrats out in the cold in the astroturfing game. Gaius Publius discusses one ecosystem: a consulting firm, “270 Strategies” and one of its phony creations, the Progressive Coalition for American Jobs.
Read more...The job market has allegedly disconnected in the last few months from retail spending. But is there really a divergence?
Read more...Offshore banking and tax haven expert Nicholas Shaxson has launched a new blog, Fools’ Gold, to look at issues of ‘competitiveness’ and so-called ‘competition’ between nations. We’ve often taken issue with that policy goal, since it gives precedence to crushing labor as a way of lowering product prices to stoke exports. This approach is dubious for anything other than small economies, since all countries cannot be net exporters. Undue focus on exports as a driver of growth results in increasing international friction, such as the currency wars that are underway now. Moreover, as we have discussed separately, trade liberalization has gone hand in hand with liberalization of capital flows, in no small measure due to US efforts to make the world safe for what were then US investment banks. Yet Carmen Reinhardt and Ken Rogoff pointed out in their study of financial crises, higher levels of international capital flows are associated with more frequent and severe financial crises.
In addition, lowering wage rates reduces domestic demand. In countries like the US, where the domestic economy is much larger than the export sector, lowering internal demand to stoke exports is misguided.
Here we look at a first case study, the real reasons behind the growth and meltdown of the famed Celtic tiger, Ireland.
Read more...Tverberg argues that low oil prices likely to be with us for a long time, due to the fact that demand will remain relatively weak. Given the reluctance of governments to engage in aggressive enough spending measures, the idea of that more economies will become mired in a Japan-like slump or weak demand is entirely plausible. And that’s before you get to the wild card of a Eurozone unraveling.
Read more...Bernie Sanders gave a forceful, if sobering, assessment of the state of the economy from the perspective of working men and women, as well as retirees, and focused on the hypocrisy of corporations and the wealthy that poor-mouth as a way to extract even more subsidies and tax breaks.
Read more...Michael Hudson recaps the theory, or perhaps more accurately, political justifications for quantitative easing, as opposed to how it works in practice.
Read more...I am at a complete loss as to why the Federal Reserve might think that now is the moment to begin raising interest rates. I cannot see a scintilla of hard evidence in support, and potent evidence against.
Read more...Lambert here: For people who like to “connect the dots,” there is actually a mathematically grounded discipline that studies such networks (or graphs) formally.
Read more...The Troika and Eurogroup look to be working towards the Greek government to start having similar thoughts. However, given the high level of popular support for Syriza, and press reports that Greek citizens fully expect that the new government to at best only be able to deliver on a small portion of its campaign promises, the end game for Greece is looking more and more likely to be a failed state rather than a more neoliberal-friendly government.
Read more...How the dubious “maximize shareholder value” thesis, an economic theory, and not a legal requirement, hurts investment and undermines growth.
Read more...Why New Keynesians look a lot like Friedmaniacs.
Read more...Who has won and lost from the Western sanctions against Russia?
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