Keynes vs. Hayek

Freidrich Hayek and the Austrian school of economic policy argue for a laissez faire approach to the economy – emphasizing individual actions and criticizing government intervention. John Maynard Keynes acknowledged that economies could, over time, correct themselves, but argued that government had a responsibility to intervene and stimulate demand when the economy is in . . . → Read More: Keynes vs. Hayek

Doug Casey: Uranium, Rich People's Food Hold Value

Worldwide hysteria and the fear factor notwithstanding, Casey Research Chairman Doug Casey still considers nuclear power “by far the safest, cheapest and cleanest form of mass power generation.” Sharing his views in this Energy Report exclusive on the eve of a sold-out Casey Research Summit in Boca Raton, Florida, . . . → Read More: Doug Casey: Uranium, Rich People’s Food Hold Value

Rust Belt Ball

City… region….city…region….

See the USAToday with the most ill-conceived thesis ever in this article today: Indians, Tigers, Pirates and Reds fighting population loss in the Rust Belt.

Does anyone in the world really think Pirates’ attendance problems (worst in the NL according to the article) have anything at all to do with population loss . . . → Read More: Rust Belt Ball

Kicking the wheels of the new CPI

Inflation measurement is a critical component of macroeconomic policy. In a recent paper, Patnaik et. al. have argued that while the CPI-IW has many problems, these difficulties are not first order, and that the CPI-IW can yield a reasonable measure of inflation today.

On 18 February 2011, CSO released a new CPI with base . . . → Read More: Kicking the Wheels of the New CPI

Economic Events on April 29, 2011

At 8:30 AM EDT, the monthly Personal Income and Outlays report for March will be released. The consensus for Personal Income is an increase of 0.3% over the previous month and the consensus Consumer Spending index change is an increase of 0.5%.

Also at 8:30 AM EDT, the Employment Cost Index for the first . . . → Read More: Economic Events on April 29, 2011

Wonk trivia

Here is a trivia question.  What has been the average unemployment rate for the Pittsburgh region’s labor market over the last 40 years?

6.6%

That certainly includes some bad times averaged in there, but it also averages in some pretty good times as well.  The question was prompted by the quote in the paper . . . → Read More: Wonk Trivia

Bernanke an economic voice of reason

Reading this opening line from a Seeking Alpha article “Ben Bernanke continues to be one of the only economic voices of reason in the United States” my first thought was the article was humorous. Not so, he is actually serious! It continues:

Gold is economically irrelevant for the following reasons:

1. The pricing mechanism . . . → Read More: Bernanke an Economic Voice of Reason?

Geordie Mark: Growing Prices, Global Demand

How long until the window on rising iron-ore prices closes? Global demand is driving prices higher and shipping costs are at historic lows. But only companies poised to get into production quickly will be able to capitalize. In this exclusive interview with The Gold Report, Geordie Mark, an analyst . . . → Read More: Geordie Mark: Growing Prices, Global Demand

Economic Events on April 28, 2011

At 8:30 AM EDT, the advance GDP report for the first quarter of 2011 will be announced.  The consensus is an increase of 2.0% in real GDP and an increase of 2.2% in the GDP price index.  The real GDP estimate is 1.1% lower than the final value for the fourth quarter of 2010, and the . . . → Read More: Economic Events on April 28, 2011

The 20 million dollar decision

Speaking of pensions ever again. The last post on the vast ambiguity in the value of the City of Pittsburgh pension fund was mostly a reflection of the lack of hard numbers in this story from February. It all sounds like accounting by Ouija Board.

I was going to follow up with yet another rant . . . → Read More: The 20 Million Dollar Decision