American Economy
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I've been trying to figure out the steady growth in oil prices that we've seen, particularly since August 2010. There is no getting around it, the oil price bubble, which would likely have collapsed in November last year, has continued on. The reason? QE II & American growth. QE II has kept a lot of money floating in the market. Easy money gets easily bet on, easy bets carry high risks, this is t...
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The Senate considers a procedural motion on the Tax Cuts Deal today. Tomorrow, it is likely to hold a final vote on the existing Tax Cuts Deal. The bond market has already pronounced its judgment. Ups and downs last week, in yields, have followed media reports about the likelihood of the Tax Cuts Deal passing. The bond market does not approve. Very few economic commentators have put 2+2 together...
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Soon after launching an ill-advised plan of quantitative easing, the Fed's Chairman, Ben Bernanke, had actually gone ahead and asked for another fiscal stimulus on November 19 . An article in Huffington Post has highlighted that this November 19 speech actually contained a statement to the effect that now, the Fed Chairman saw the risk of unemployment becoming"intractable long term structural une...
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Ben Bernanke, the chief of America's Central Bank, the Federal Reserve, is on a roll. So, we have the ill advised round of QE II. China & Germany came down hard on the US after QE II was announced earlier this month, complaining that the US sought to devalue the Dollar, by another name. Now, China has taken contractionist measures , including raising interest rates, and asking it's commercial ban...
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They're really coming fast and thick out of the woodwork today. On November 16, the Wall Street Journal reported that several Republican representatives to the American Congress wanted to ban the dual role of the American Central Bank, and force it to focus solely on managing inflation . Currently, the Fed also keeps an eye out on using the supply of money to manage unemployment levels. Republica...
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Forbes.com published an article on November 11, suggesting that changes to the American property taxation regime, would get more money invested in property. The argument went that if only landlords were allowed to depreciate property faster, to write off losses from property better, it would make it easier for investors to consider property . Such thinking is seductive. However, the property mark...
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I've just done watching a video that turned my economic optimism, such as it was, to dust. The Huffington Post has kindly put up a presentation by a member of Obama's Council of Economic Advisors, which explains the administration's promise to double exports . I watched it eagerly, to find out how Obama plans to double exports. It's worse that we thought. The administration thinks that if markets...
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Credit Rating Agencies are pretty much a law unto themselves. Moody's recent intervention in the evaluation of Ireland's debt, projecting numbers on the higher side of the worst case scenario, was particularly pernicious . The Americans remain vary of regulating them. The Financial Reform Act passed into law in July 2010 imposed a higher measure of liability on them, but provided an escape route....
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Paul Krugman has written an analytical article in the New York Times on November 7, criticizing the spirit behind the latest round of easing by the Fed, dubbed QE II. Krugman has been in favor of QE II, in fact, he has strongly advocated the stronger measure of Stimulus II. QE, or quantitative easing, is when the central bank pumps in money into the economy. This money then gets pumped on forward...
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Two articles contribute to this post. One, published in the New York Times on November 2, credits Obama with having saved Capitalism . No less. The other, published in the Huffington Post on November 6, casts the blame for the lagging recovery firmly on Obama. They are both well researched, well presented articles. How to reconcile the two? It boils down to Obama's agenda. He has consistently dis...
1 year ago
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