A "weary client once defined a bubble to us: 'something I get fired for not owning.'" --Citi
So what's the deal with China? Is their economy really that unstable or are they just messing with us again?
They'd been pursuing a heavy growth strategy for a long time, by way of printing lots of renminbi, using that to buy and hold dollars indefinitely, as one of the means to constantly drive a trade surplus and drive job growth in their cheapo manufacturing sector.
When that started to look more inflationary than they were willing to accept, they had to start thinking about reining it in a bit, and playing other shell games that I don't have time to get into (because I haven't really adequately followed them, anyway.)
My impression is that the other shell games started to fall apart, witness the past month's devaluation and the ridiculousness of the "A shares." Also note that they don't have domestic oil reserves.
For one thing, it's possible that they've just switched from suck to blow (like Mega-Maid):
Note that when your whole government policy, from top down, is all about market manipulation, threatening to "punish those responsible" for "destabilizing the market" might be, umm, problematic:
Underscoring the point that I haven't been following stuff enough, this author seems to think like the balance of China's concerns may have shifted from inflationary to *de*flationary pressures (what goes up must come down?)
So it seems that the Fed has decided to keep the federal funds rate at 0%.
Some pundits are claiming [ http://tinyurl.com/o872tdm ] that they're stuck at 0% because the federal debt is now so high, raising the rate would cause a deep recession. I'm not sure I understand the relationship.
Raising the rate a bit would probably not hurt our debt sustainability to an unreasonable degree, in and of itself. Those pundits have got the tail wagging the dog, though: if raising rates hurts the ability of companies to finance themselves, and contributes to a recession, then the *recession* would be bad for our debt sustainability.
What I'm trying to understand is *why* raising the rate would hurt our debt.
Variable rate terms, but with a rate determined by government policy makers? More or less, yes. Not the worst situation in the world, regardless of what the permabears and the professional doomsayers will tell you.
[ https://goo.gl/ZbvrKs ]
Beginning with the assumption that there are actually *two* economies, a Wall Street economy and a Main Street economy, the effects of past policy and anticipated near-future policy are observed.
(Yes, it leads in with election talk, but quickly moves to economics.)
" UniParty"? Who would believe there is only one party?
Both of these parties act like ninnies to me.
I did forget the sarcasm tag.
[ https://goo.gl/ZbvrKs ]
The usual tinfoil-hat bullshit. Here are the correct numbers for real GDP: https://fred.stlouisfed.org/series/GDPC1/
But, article says "When you factor inflation, our GDP output is actually down over the same time period."
This has been debunked before. The economy did grow, since the recession. Absolute number of jobs is up (although employment-population ratio is down.)
Output (in terms of things like the number of widgets) is up.
So in order to believe that Real GDP is down, you have to close your eyes and ignore all the output data, and you also have to believe in the right-wing myth that inflation is a lot higher than the official figures.
My real world wallet tells me that inflation is significantly higher. Health care costs alone are skyrocketing. Not to mention food and education costs.
I found this old graphic joke, I realized what makes it funny now is all three anchor stores in that mall are probably closed.
A friend and I were saying that Sears should keep their Sears auto, the Kenmore appliances and the Craftsman line of tools. They should reduce the size of their stores to auto services, tools, and replacement items for Kenmore. Get rid of clothing, bedding, and everything else. Small stores and auto service.
Today they announced they are selling Craftsman to Black and Decker. Sears is done.