The world suffers from a leadership vacuum which will be all too evident at this weekend's G-20, William Pesek writes. "There’s a sense that the world’s problems are too formidable to fix... What we need is an adult or two in the room to make sure leaders tackle the big challenges of our day. Good luck finding any." [View news story]
Europe's Pain Is America's Gain, Not Bane [View article]
"The Spanish example, amongst other issues no doubt, shows that the ability to live off of gained wealth isn't necessarily sustainable."
That's is one possible conclusion, though I thought of it more of an example that it is possible to build up enough wealth to coast for a hundred years or more.
The Roman Empire did pretty well for itself for at least 300 years or so, and I believe the Ming Dynasty had a very good run as well.
I guess I'd prefer to see the cup to continue running over, and not to assume that all good things must end badly and to execute a smooth hand off at some point to the successors.
The Soft Bigotry Of Low Expectations [View article]
"Regarding the value of money, at root the only thing that gives it any value in the first place is that we need it to pay tax."
Mind you, this is not an ideological response, but for me the value of money is that in the unlikely event my plastic credits do not generate a sales receipt within 12 seconds I can dig out an old tired Portrait of a President and expedite my exit.
Otherwise, I may be forced to engage in tedious barter with a Sales Clerks Supervisor who as an employee of a public company and unless a sole proprietor is likely not authorized to accept commodities goods or promises of services in lieu of cash, though if he were a good horse trader his asset base would perhaps increase, albeit slowly and inefficiently.
Europe's Pain Is America's Gain, Not Bane [View article]
Nice post, hoop.
There is in fact some historical precedent for what you have described.
The best example that comes to mind is Spain in the hundred years or so after colonizing much of America and living off the profits of their conquests.
They experienced an unprecedented standard of living with their accumulated wealth that impacted their culture in many ways, both positive and negative that carry forward to today; A review of Don Quixote offers some insight into the issues of the time which coincidentally provided the thematic background for "The Lone Ranger", a popular and yet mysterious version of role play which allowed the successful consumers of this century to digest the internal bipolar nature of conflicts of cultures of production vs consumption.
The Soft Bigotry Of Low Expectations [View article]
I'm glad someone is interested. I've noticed these sorts of studies though not so much recently. As I recall among the most comprehensive was one was done for the Dallas Fed back in the '03 timeframe. While there are still some comments about I am unable to trace to the original document at this time. Here is another one that I had not seen until now.
The Soft Bigotry Of Low Expectations [View article]
While the concern regarding the possible relationship of the number of dollars vs goods is valid within certain contexts, the reality today is a surplus of manufacturing capability relative to aggregate demand.
The problem we have now is the opposite of demand exceeding supply; we, have plenty of fuel in the tank but not enough getting through the carburetor.
Contrary to the conventional wisdom, there is a case that low interest rates are associated with strength of currency and thus a low risk premium, IOW cash is its own reward in today's low inflation environment.
Europe's Pain Is America's Gain, Not Bane [View article]
Neal, your point is well taken regarding the potential macroeconomic effects of Interest Rates and Commodity Prices.
However, Main Street continues to feel the squeeze of reduced buying power and as another author here termed it, "The Inflation is in the Poverty", and many feel strongly that they are increasingly being left on the sidelines while others prosper.
I get it regarding the macro benefits, but too many are simply missing out at the micro level.
While I strongly believe it would be foolish to destroy the tremendously productive economic engine we have created, we have failed to educate our leaders, let alone the public the importance of creatively addressing the paucity of aggregate demand at the street level that continues to plague us.
For too many fellow citizen's, its ever increasingly become a "water, water everywhere, but not a drop to drink" scenario.
Any thoughts would be appreciated on how best to address this from a basis of reason, and the prospects for positive results over the horizon with respect to this ongoing dilemma would be appreciated, as the traditional "jobs" are not coming back in a way that will be adequate, at least that is the conclusion that I find most compelling.
The next economic boom, writes Daniel Gross, will be created by the efficiencies unleashed by America's transition from an Ownership Society to a Rentership Society. It's not just housing - citizens are getting used to the flexibility of renting across a whole range of goods. "The U.S. economy needs the dynamism that renting enables as much as - if not more than - it needs the stability that ownership engenders." [View news story]
Regarding De Toqueville, while many are familiar with "Democracy in America", don't miss "Ancien Regime", his assessment of his home country, France, the next domino to fall to Revolution.
The next economic boom, writes Daniel Gross, will be created by the efficiencies unleashed by America's transition from an Ownership Society to a Rentership Society. It's not just housing - citizens are getting used to the flexibility of renting across a whole range of goods. "The U.S. economy needs the dynamism that renting enables as much as - if not more than - it needs the stability that ownership engenders." [View news story]
In the disappointing jobs report, the most important statistic may have been the 63.6% labor participation rate, a 30-year low. Critics of the Obama administration are quick to seize on this as the “real” reason for the falling unemployment rate, but the downward trend has been happening for more than a decade as baby boomers have been retiring. [View news story]
One possible factor in the increase in numbers of folks working past 65 is the fact that there are more folks in the just over 65 group now as the first Baby Boomers enter that age group and they are the ones at the front of the demographic curve who are most likely to still have jobs.
Perhaps of more concern should be those in the 2nd half of the Baby Boomers, born after the peak in '52 for whom the rules of the road changed in the early '70's who are still waiting in line behind the first half of the Boomers who got pretty much the same deal as their parents.
The folks who are 45-55 who have been behind the power curve their entire working life and are past the typical peak earning years and still have a decade or more to go in what is a persistently difficult job market.
The folks in the younger Boomers as a group are faced with what are possibly greater challenges that will persist for years to come.
The Soft Bigotry Of Low Expectations [View article]
"The strategy for eliminating the zero bound, therefore, is to make money pay a negative nominal interest rate, by imposing some type of ‘carry tax’ on currency and deposits."
"It’s easy to envision such a system with regard to deposits at the Federal Reserve or transactions deposits at banks; for the most part, the technology to implement such a system is already in place. A tax or fee on Reserve deposits of 1% per month, for example, would mean that those deposits, in effect, pay a nominal interest rate of roughly minus 12%."
This a quote from a paper written for the Fed back in "03.
More detailed studies exist, though they don't show up on my limited google search this AM.
The world suffers from a leadership vacuum which will be all too evident at this weekend's G-20, William Pesek writes. "There’s a sense that the world’s problems are too formidable to fix... What we need is an adult or two in the room to make sure leaders tackle the big challenges of our day. Good luck finding any." [View news story]
Europe's Pain Is America's Gain, Not Bane [View article]
That's is one possible conclusion, though I thought of it more of an example that it is possible to build up enough wealth to coast for a hundred years or more.
The Roman Empire did pretty well for itself for at least 300 years or so, and I believe the Ming Dynasty had a very good run as well.
I guess I'd prefer to see the cup to continue running over, and not to assume that all good things must end badly and to execute a smooth hand off at some point to the successors.
The Soft Bigotry Of Low Expectations [View article]
Mind you, this is not an ideological response, but for me the value of money is that in the unlikely event my plastic credits do not generate a sales receipt within 12 seconds I can dig out an old tired Portrait of a President and expedite my exit.
Otherwise, I may be forced to engage in tedious barter with a Sales Clerks Supervisor who as an employee of a public company and unless a sole proprietor is likely not authorized to accept commodities goods or promises of services in lieu of cash, though if he were a good horse trader his asset base would perhaps increase, albeit slowly and inefficiently.
Europe's Pain Is America's Gain, Not Bane [View article]
There is in fact some historical precedent for what you have described.
The best example that comes to mind is Spain in the hundred years or so after colonizing much of America and living off the profits of their conquests.
They experienced an unprecedented standard of living with their accumulated wealth that impacted their culture in many ways, both positive and negative that carry forward to today; A review of Don Quixote offers some insight into the issues of the time which coincidentally provided the thematic background for "The Lone Ranger", a popular and yet mysterious version of role play which allowed the successful consumers of this century to digest the internal bipolar nature of conflicts of cultures of production vs consumption.
The Soft Bigotry Of Low Expectations [View article]
http://bit.ly/JryfdF
The Soft Bigotry Of Low Expectations [View article]
The problem we have now is the opposite of demand exceeding supply; we, have plenty of fuel in the tank but not enough getting through the carburetor.
Contrary to the conventional wisdom, there is a case that low interest rates are associated with strength of currency and thus a low risk premium, IOW cash is its own reward in today's low inflation environment.
http://bit.ly/Ko7btH
Europe's Pain Is America's Gain, Not Bane [View article]
However, Main Street continues to feel the squeeze of reduced buying power and as another author here termed it, "The Inflation is in the Poverty", and many feel strongly that they are increasingly being left on the sidelines while others prosper.
I get it regarding the macro benefits, but too many are simply missing out at the micro level.
While I strongly believe it would be foolish to destroy the tremendously productive economic engine we have created, we have failed to educate our leaders, let alone the public the importance of creatively addressing the paucity of aggregate demand at the street level that continues to plague us.
For too many fellow citizen's, its ever increasingly become a "water, water everywhere, but not a drop to drink" scenario.
Any thoughts would be appreciated on how best to address this from a basis of reason, and the prospects for positive results over the horizon with respect to this ongoing dilemma would be appreciated, as the traditional "jobs" are not coming back in a way that will be adequate, at least that is the conclusion that I find most compelling.
Not So Golden Years: How An Aging Society Can Impact The Markets [View article]
Sure, but some would still prefer measures to delay the inevitable.
The next economic boom, writes Daniel Gross, will be created by the efficiencies unleashed by America's transition from an Ownership Society to a Rentership Society. It's not just housing - citizens are getting used to the flexibility of renting across a whole range of goods. "The U.S. economy needs the dynamism that renting enables as much as - if not more than - it needs the stability that ownership engenders." [View news story]
The next economic boom, writes Daniel Gross, will be created by the efficiencies unleashed by America's transition from an Ownership Society to a Rentership Society. It's not just housing - citizens are getting used to the flexibility of renting across a whole range of goods. "The U.S. economy needs the dynamism that renting enables as much as - if not more than - it needs the stability that ownership engenders." [View news story]
In the disappointing jobs report, the most important statistic may have been the 63.6% labor participation rate, a 30-year low. Critics of the Obama administration are quick to seize on this as the “real” reason for the falling unemployment rate, but the downward trend has been happening for more than a decade as baby boomers have been retiring. [View news story]
One possible factor in the increase in numbers of folks working past 65 is the fact that there are more folks in the just over 65 group now as the first Baby Boomers enter that age group and they are the ones at the front of the demographic curve who are most likely to still have jobs.
Perhaps of more concern should be those in the 2nd half of the Baby Boomers, born after the peak in '52 for whom the rules of the road changed in the early '70's who are still waiting in line behind the first half of the Boomers who got pretty much the same deal as their parents.
The folks who are 45-55 who have been behind the power curve their entire working life and are past the typical peak earning years and still have a decade or more to go in what is a persistently difficult job market.
The folks in the younger Boomers as a group are faced with what are possibly greater challenges that will persist for years to come.
Europe's Pain Is America's Gain, Not Bane [View article]
Wall Street Breakfast: Must-Know News [View article]
A higher purpose perhaps. Use it or lose it.
A Return To The Gold Standard Could Destroy The Modern Economy [View article]
The Soft Bigotry Of Low Expectations [View article]
"It’s easy to envision such a system with regard to deposits at the Federal Reserve or transactions deposits at banks; for the most part, the technology to implement such a system is already in place. A tax or fee on Reserve deposits of 1% per month, for example, would mean that those deposits, in effect, pay a nominal interest rate of roughly minus 12%."
This a quote from a paper written for the Fed back in "03.
More detailed studies exist, though they don't show up on my limited google search this AM.
http://bit.ly/JFBr01