Posted on 11/17/2015 5:44:38 AM PST by expat_panama
Economics: Japan is back in recession, the EU is again slumping, once fast-growing nations such as China and Brazil are slowing dramatically, and the U.S. "recovery" looks pretty threadbare. Why are our policymakers so clueless?
The second recession in three years for Prime Minister Shinzo Abe is bad news not just for his country, but for others as well. Not only is Japan a major world economy, but it has unfortunately recently served as a kind of model for what not to do in economic policy.
Following the same failed neo-Keynesian prescriptions of easy money, debt-fueled government spending and heavy regulation as it has for decades, Japan's economy has failed to ignite. It's never corrected its policy course, so it continues to suffer.
The trouble is, under President Obama, the U.S. replicated Japan's mistakes. So did the European Union, where third-quarter GDP growth "surprised" analysts by coming in at just 0.3% — with the possibility now that the fourth quarter will be even worse.
Doing the math...
[snip]
Meanwhile, with ObamaCare hitting small businesses, the EPA imposing a more than quarter-trillion-dollar regulatory burden on U.S. electricity production and high corporate taxes, U.S. businesses have largely stopped investing.
Couple all this with an ongoing political war against Wall Street, higher taxes and still-high federal spending, and it should be no surprise that U.S. growth is so mediocre.
(Excerpt) Read more at news.investors.com ...
The pic to the left is how the combined economies of the developed world have been doing --still growing (for now) and fading. World history shows that massive conflicts are won by the richest coalition, so what we got (imho) is that econ stupidity has become a security issue.
Naturally everyone's warmly invited to read the rest as only half can be posted here.
They aren’t. They do not want prosperous masses
It's that they can't focus on the growth of the general economy while they're also focused on the growth of their personal fortune and cushy retirements.
“De-growth”. “De-industrialization”.
Top 'o the morning and welcome to markets that have become curiouser and curiouser.
Yesterday's stocks shot up over a %, the S&P climbed up higher even than last Thurs close but IBD's calling the trend now at 'market under pressure'. Their point (which I got to agree w/ pretty much) is that we're now close to the 50-day moving averages plus the fact that today's rebound was is lower trade versus yesterday's hit in higher trade.
Metals are at least not down much more, tho still not going up either; gold/silver are now at $1,079.80/$14.29.
Another snag is the econ dump:
8:30 AM CPI
8:30 AM Core CPI
9:15 AM Industrial Production
9:15 AM Capacity Utilization
10:00 AM NAHB Housing Market Index
4:00 PM Net Long-Term TIC Flows
--and the CPI's already come out @ +0.2% when everyone expected half that. To me that means more reason to expect a Fed rate hike.
Success isn’t politically correct, it offends some people.
Well we can debate all day long if they have good intentions or not. Personally I don’t think they are clueless. They know good and well what they are doing.
What matters though is the final results. If they are leading us in the wrong direction, then they have to go.
The world’s governments are trying to mollify the mob with cash handouts stolen from working people.
And not only is it corrupt, it isn’t even working.
Growth requires governments to give up power.
“They aren’t. They do not want prosperous masses”
Exactly, they know what they are doing, it is all by design.
Exactly. The 'leaders' should read Friedman's "Capitalism and Freedom" instead of Marx.
Socialism has infected the entire world. So the need for growth is no longer a priority since there is no capitalist countries left to compare too.
FED rate hike: Some econo talking head put it at 75-25 against. I tend to agree.
Janet: Proposed Fed law would be “grave mistake.” Fed Chair Janet Yellen came out in strong opposition to a proposed Fed reform act...said she strongly opposes a legislative Fed reform act...
http://www.cnbc.com/2015/11/17/yellen-proposed-fed-law-would-be-grave-mistake.html
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