One of the prime unintended consequences of the new unlimited QE3 announced by the Fed is that it is difficult to know when to reverse course without sending the economy into another, deeper recession?
Every September 11 the people of Catalonia, an independent region in northeast Spain, celebrate their “national day” — Diada — by taking the day off and parading through the streets of Barcelona. In past years the celebration was a festival used by some citizens as an excuse to get some fresh air, make some noise, and have some fun. This year, nearly one-quarter of the region’s seven million citizens used the celebration as an excuse to swarm into Barcelona to protest Spain’s austerity measures, which have raised unemployment in Catalonia — referred to locally as Catalan — to nearly 25 percent.
A preview of the upcoming Census Bureau's upbeat analysis of the economy was met with little enthusiasm and contrasted sharply with reports from FedEx and elsewhere.
When the Federal Reserve announced last week its plan to buy more treasury securities, only a few read the fine print. Many observers envisioned sugar plums dancing in their heads as the Fed’s plan would lead, no doubt, to more economic growth, more jobs, more profits, and more stocks to sell on Wall Street. But in fact, unemployment not only hasn’t fallen significantly since the start of the Fed’s rollouts of Quantitative Easings, but it has remained higher longer than any time since the early 1980s.
If the Fed decides to extend its Operation Twist program beyond the end of the year and into the year 2015, then the math is irrefutable: 40 months of purchases totaling $85 billion a month is $3.4 trillion. The Fed’s balance sheet is currently at $2.7 trillion. That brings the Fed’s balance sheet, if nothing changes, to a mind-bending $6.1 trillion.
Dr. Thomas Szasz's passing leaves a legacy in the fight for freedom on an uncommon battleground: psychiatry and its use of force and coercion in its treatments of those diagnosed with various forms of mental illness.
The decision on Wednesday by Germany’s Federal Constitutional Court that clears the way for the European Stability Mechanism (ESM) to extend its power over the national sovereignty of the Eurozone’s member states was celebrated as a victory to save the euro.
Keynesian policies allegedly designed (and sold to the American people) to stimulate the economy are actually having the perverse effect of stimulating government spending and putting off the inevitable day of reckoning when interest rates inevitably begin to rise.
The unintended consequence of low interest rates is the transfer of wealth from savers to the government.
A study by two University of Colorado professors released last month predicts that President Obama will win just 218 Electoral College votes in November, far short of the 270 that he needs for reelection. Said political science professor Kenneth Bickers: “Based on our forecasting model, it becomes clear that the president is in electoral trouble.”
On the other hand, Intrade, an Internet wagering site located in Ireland, has consistently shown President Obama leading Republican candidate Romney in the upcoming elections. Intrade allows individuals to invest in future outcomes — in that sense it is a “futures” market — and if they are correct, they profit from their predictions. So it’s more than a telephone poll, but a serious financial bet on an outcome.
Increasing gun sales are driving revenues and profits at Smith & Wesson and Sturm, Ruger & Company, thanks to Obama, "preppers" — and even "zombies."
Republican presidential candidate Mitt Romney promised August 30 to create millions of jobs — 12 million of them, in fact — if he is elected president in November. He said: "What America needs is jobs. Lots of jobs.... I am running for president to help create a better future … a future where everyone who wants a job can find a job.…"
His five-point plan consists of attaining energy independence by the year 2020, strengthening the educational system, forging new trade agreements with foreign countries, cutting the deficit with the ultimate goal of balancing the budget, helping small businesses, and repealing ObamaCare. With the possible exception of “helping small businesses” — whatever that means — nothing in his plan addresses the issue of job creation.