What happened to all of the doom and gloom economic threads?

[Adre]

Then put me on ignore and enjoy the company of merc, U_D and Throb where your creative economic juices can be properly simmered...

I really do not care.

I'm the one who has consistently pointed out since the inception of this thread that we were just treading water.

I have no one on ignore, that's not how I roll. Your arguments seem to be consistently partisan, and generally fall back on Obama and his socialist state, cell phones and food stamps. Almost all of the economic damage we are trying to repair occurred under another President. Was he a European style Socialist as well?

 

[4est_4est_Gump]

I have no one on ignore, that's not how I roll. Your arguments seem to be consistently partisan, and generally fall back on Obama and his socialist state, cell phones and food stamps. Almost all of the economic damage we are trying to repair occurred under another President. Was he a European style Socialist as well?

My arguments are partisan.*

I used to be a Socialist-leaning Democrat.

But like Mises, Hayek and Bradbury, I kept an open mind, kept studying and am now a ROTHBARDIAN...

So sue me if you only want the Obama opinion.

I don't care.




* Partisan does not mean WRONG or inflexible! I've been here for ten (wow, actually a dozen now) fucking years pointing out the dangers of following Europe's path and for nine (eleven) of those years all I heard was, Europe is fine!

Now, I'm told, the private sector is FINE!

But it's on FIRE!!!

 

[busybody..]

I have no one on ignore, that's not how I roll. Your arguments seem to be consistently partisan, and generally fall back on Obama and his socialist state, cell phones and food stamps. Almost all of the economic damage we are trying to repair occurred under another President. Was he a European style Socialist as well?

YOU ARE A DRECK

 

[Adre]

YOU ARE A DRECK

Hi Petunia, care to join a conversation or just continue your moronic commentary?

 

[4est_4est_Gump]

I talked about the dangers of acceleration!

In the process of recovery, however, the resumption of inventory and capital investment might have been enough to pull the economy into a self-sustaining mode had this been a simple, cyclical economic progression. The same logic went into the "stimulus" bill and each dose of monetary intervention, that a burst of economic activity would "ignite" animal spirits and get the sustainable circulation of money flowing through the economy again. But in the context of economic activity as it was constituted during the asset bubbles, household incomes augmented by both asset inflation and easy credit will not simply be restored by temporary and limited boosts to economic activity. That "wealth effect" is gone, not to return anytime soon.

So all these temporary lifts to activity created a relatively shallow, uninspiring recovery that largely ended in the middle of 2010. Since then, we may have seen slight growth that has been continually eroded by commodity price pressures. As the temporary effects of inventory building and capital investment resumption wind down (outside of an enlarged inventory boost in Q4 2011), the marginal source of economic activity has shifted to household spending. But that spending, as noted above, has not been based on a healthy growth in disposable income, but rather a noticeable and unhealthy decline in the savings rate.

It is not coincidence that the household savings rate peaked at exactly the same time as the recovery's peak - mid-2010. In a true cyclical recovery, we would expect to see a rising savings rate concurrent to an increase in nominal spending levels. In other words, household income grows fast enough to allow for some increase in both saving and spending. We did see that, but only briefly. After reaching 5.6% in the middle quarters of 2010, the savings rate has steadily declined, slowly at first - to 5.0% by the first quarter of 2011, then hastening down to 3.6% in the first quarter of 2012. Whatever promise of a real recovery really ended in the middle of 2010.

The implications of this speak to the optimistic view that the U.S. economy will simply "muddle through" on a trajectory of slow, stable growth. Conventional economic thought turns on the idea that a dislocation or economic contraction is the product of some kind of shock. There is no question or thought given to the default assumption that an economy's basic state is growth, it is just naturally assumed that a growing population plus some increase in productivity produces a natural growth trajectory.

At the margins, we know that so much of the economic activity that defined the asset bubble periods was based on asset inflation and the offshoot drive to "cash in" asset wealth through debt accumulation. Post-2008, household wealth continues to suffer, and credit is scarce. In the real economy, the marginal path of monetary circulation continues to be heavily dependent on government transfers and extraordinary items (such as the "beneficial" effects on disposable income of not paying mortgage loan installments), rather than the more stable and growth-friendly wages

Given the structural constraints that remain in place, unfortunately augmented by the misguided attempt at inflation-expectation engineering, I continue to believe that the natural path of the global economy is further contraction. In other words, the artificial activity that formed the backbone of economic growth for more than two decades was in such high proportion that absent extraordinary measures there is no way to achieve anything better than temporary pockets of uneven growth. If there exists a tendency of reversion to the mean in economic terms, this is it. The artificial credit/asset inflation growth kept the economic trajectory far too high for far too long. This is particularly true given the massive imbalance of the financial economy which hid the very real effects and shifts of productive capacity in this country (off-shoring). Both monetary and fiscal policy have responded by trying to replay the financial/artificial economy playbook, rather than examine the very real productive deficit - the current account deficit is the scorecard of productive capacity that no longer exists domestically.

That is where the real economic bind comes from, since productivity in the post-2008 period has been limited to the capacity of business to squeeze production inputs (in both manufacturing and service businesses). There has been little productivity that can be counted as true innovation, certainly nothing approaching the level of innovation from the computer and internet revolutions. That kind of productive advancement forms the true backbone of the positive natural growth trajectory - innovation and development that spawns entire new industries and raises products and services to the level of non-discretionary; the kind of process evolution that drives the real (read: non-monetary) standard of living higher, that often results in modest and beneficial price deflation (which central banks resist at all costs). That kind of innovation has been noticeably and maddeningly absent during the artificial/bubble periods.

Perhaps it is a coincidence that the monetary bubbles took place during this ebb in innovation, but given the amount of resources and energy devoted to asset prices and credit production, I think there is enough evidence and logic here to at least consider a causal link. I have beat the drum against stock repurchases for a long time as I consider them to be a tremendous waste of resources (especially on the scale that occurred not only in the bubble periods, but in the three years since the nadir of the Great Recession), a malignant malinvestment that actually hastens the decline of productive capacity (through opportunity cost). The natural growth tendency of an economic system is dependent on the advancement of that productive capacity expressed through rising standards of living and the offshoot, concurrent rising levels of employment and labor specialization to efficiently circulate goods and services. Getting money to circulate through financial means cannot, under any circumstances, replace this process of true wealth creation. Not all economic activity is equal (the notion of aggregate demand is one of the biggest mistakes of modern economics).

Had the economy not been artificially boosted by monetary means, it is plausible that this more difficult path to the natural growth trajectory would have forced businesses to "value" financial resources far differently. If the only way to achieve monetary success is through actual and successful productive capacity, rather than pure asset price inflation, then it is certainly plausible that an increased devotion to productive capacity might have continued the trend in revolutionary innovation. If nothing else, financial resources that were squandered on stock repurchases might have been put to better use in the real economy as true productive potential, the very element that is missing right now.

http://www.realclearmarkets.com/art...ery_pushed_further_into_the_future_99720.html

 

[richard_daily]

My arguments are partisan.*

I used to be a Socialist-leaning Democrat.

But like Mises, Hayek and Bradbury, I kept an open mind, kept studying and am now a ROTHBARDIAN...

So sue me if you only want the Obama opinion.

I don't care.




* Partisan does not mean WRONG or inflexible! I've been here for ten (wow, actually a dozen now) fucking years pointing out the dangers of following Europe's path and for nine (eleven) of those years all I heard was, Europe is fine!

Now, I'm told, the private sector is FINE!

But it's on FIRE!!!

Why bother quoting him, and then completely ignore his question?

 

[Adre]

My arguments are partisan.*

I used to be a Socialist-leaning Democrat.

But like Mises, Hayek and Bradbury, I kept an open mind, kept studying and am now a ROTHBARDIAN...

So sue me if you only want the Obama opinion.

I don't care.


Call yourself whatever you like. I'm not the one with "the Obama opinion." you seem to bring his name up all the time. I want informed opinion, devoid of blatant political bias. That's all.

 

[RobDownSouth]

Then put me on ignore and enjoy the company of merc, U_D and Throb where your creative economic juices can be properly simmered...

I really do not care.

I'm the one who has consistently pointed out since the inception of this thread that we were just treading water.

Yes, you've consistently pointed out that we're just treading water.
You've also consistently pointed out that we're on the cusp of hyperinflation.
You've also consistently pointed out that we're doomed to deflation.
You've also consistently pointed out that the stock market will crash.
You've also consistently pointed out that you're out of the market and invested in gold.
You've also consistently pointed out that you're totally invested in the market and reaping record returns.

As the noted philosopher Freddie Mercury once opined..."Any way the wind blows, doesn't really matter..."

Bottom line: All you care about is trashing the Obama adminstration. Everything, literally EVERYTHING, else is secondary.

psst...If you assfucked your RentaGook last night without lube, use our special code and tell me I'm "winning"

 

[phrodeau]

Your condescending responses are becoming more transparent and boring.

That happens when he runs out of things to c&p, and has to post his own words.

 

[Adre]

That happens when he runs out of things to c&p, and has to post his own words.

Yeah, Hayek and Mises only wrote so much.

 

[busybody..]

A DRECK...NIGGERPOONZANDI....NIGGERPOOP....AN NIGGERUD

and of course, CHIEF NIGGER say

ALL IS OK


WASHINGTON (MarketWatch) - The Empire State manufacturing index declined sharply to 2.3 in June, the New York Federal Reserve Bank said Friday. The decline was larger than expected. Economists polled by MarketWatch expected the index to pull back to 12.8 in June. The index had rebounded in May to 17.1 after having fallen sharply in April. In June, underlying conditions were also poor. The new orders and shipment indices decreased. Two readings on employment were weaker. The index for prices paid pulled back. A reading of expected conditions in six-months retreated to 23.1 in June from 29.3 in May, the fifth straight monthly decline.

 

[busybody..]

Hi Petunia, care to join a conversation or just continue your moronic commentary?

STFU, A DRECK, you closed minded stooge

Kill Hussein Soetoro's pussy again

 

[richard_daily]

Busybody needs to get laid... by some BBC.

 

[Adre]

Busybody needs to get laid... by some BBC.

Careful, he'll need to go jerk off if you say things like that

 

[busybody..]

DRECK....have done that already,

18 times

To my SIG PIC


When YOU show yourself to be a CREDIBLE DEBATE worthy "person", I will engage you

To date, you are the same as NIGGERPOONZAND and NIGGERPOOP and NIGGER UD, without the NIGGER part

 

[busybody..]

Careful, he'll need to go jerk off if you say things like that

19 times, to this>>>>>http://itsbigfurhat.com/main/wp-content/uploads/2012/06/HANGO.jpg

 

[mercury14]

Yes, you've consistently pointed out that we're just treading water.
You've also consistently pointed out that we're on the cusp of hyperinflation.
You've also consistently pointed out that we're doomed to deflation.
You've also consistently pointed out that the stock market will crash.
You've also consistently pointed out that you're out of the market and invested in gold.
You've also consistently pointed out that you're totally invested in the market and reaping record returns.

As the noted philosopher Freddie Mercury once opined..."Any way the wind blows, doesn't really matter..."

Bottom line: All you care about is trashing the Obama adminstration. Everything, literally EVERYTHING, else is secondary.

psst...If you assfucked your RentaGook last night without lube, use our special code and tell me I'm "winning"

You neglected to mention his prediction of stagflation. It's hard to keep track of this volume of crap though.

 

[busybody..]

Everyone loves NIGGER



Bulletin

Consumer sentiment falls more than forecast in June: University of Michigan-Reuters survey



STFU, NIGGERPOONZANDI and NIGGERPOOP

 

[richard_daily]

Everyone loves NIGGER

Yes, it's quite clear that you want BBC.

Just go for it, you'll be a happier person.

 

[Disgustipated]

Most battleground states post May unemployment rates below national average

Looking good going into the election!

 

[phrodeau]

Most battleground states post May unemployment rates below national average

Looking good going into the election!

I'll bet you cheered when the Columbia exploded.

 

[Beco]

Looking good? It sure is!!!!

Most battleground states post May unemployment rates below national average

Looking good going into the election!

http://www.washingtonpost.com/busin...ins-sluggish/2012/06/14/gJQAIV9DcV_story.html

 

[Beco]

“It is very, very slow growth, but don’t expect that to change anytime soon,” said James Bohnaker, an associate economist for Moody’s Analytics. “As we get closer to the election and the so-called Fiscal Cliff, businesses are going to stay pretty conservative in their hiring.”

 

[IrezumiKiss]

http://25.media.tumblr.com/tumblr_m5nkzkjVLY1qc8jh0o1_250.gifhttp://24.media.tumblr.com/tumblr_m5nkzkjVLY1qc8jh0o2_250.gif
http://25.media.tumblr.com/tumblr_m5nkzkjVLY1qc8jh0o3_250.gifhttp://24.media.tumblr.com/tumblr_m5nkzkjVLY1qc8jh0o4_250.gif

 

[koalabear]

The automaker's stock closed Tuesday at $22.17 a share, up 25 cents in a similarly "up" overall stock market. A sale of government stock is not expected until after November's presidential election.

If the government were to sell its stake now, it would lose billions on its $49.5 billion bailout.

From The Detroit News: http://www.detroitnews.com/article/20120613/AUTO0103/206130321#ixzz1xpXu0SEj

Some morons believe Government Motors stock is profitable.