A Welcome Definition

Foseti provides one for “austerity”:

I’ve complained a few times that opponents of austerity refuse to define what they’re opposed to. Naively, I’d assumed that austerity meant that governments were cutting spending. Actually, it turns out governments continue to spend more money during period of austerity and even periods of “crippling austerity.” I’ve done . . . → Read More: A Welcome Definition

The Eurozone Doomsday Machine of Austerity

Interesting perspective on the effect of fiscal contraction in the eurozone by Econbrowser. I guess it makes sense. If the multiplier at the zero bound is high for positive spending it should be equally high (with a negative sign) if fiscal spending is cut back. The only issue is obviously that most of the . . . → Read More: The Eurozone Doomsday Machine of Austerity

The Abstract and the Concrete

Vanity of vanities, all is vanity:

This chart basically shows that Republicans are really no different than the mainstream when it comes to specific spending cuts (which, incidentally, is why Rep. Ryan’s budget is a joke). Now, it is true that Republicans are more supportive of spending cuts in general. However, once you start . . . → Read More: The Abstract and the Concrete

Other Alpha Sources

1. Variant Perception’s blog is up and running and while I realise there has been little or no macroeconomic analysis here for a while, there is plenty of top notch analysis over at VP’s blog. The three latest entries take a look at inflation in the UK, the divergence between Spain and Italy in sticking . . . → Read More: Other Alpha Sources

Austerity and Reality

Paul Krugman still doesn’t get it:

Watching Europe sink into recession – and Greece plunge into the abyss – I found myself wondering what it would take to convince the chattering classes that austerity in the face of an already depressed economy is a terrible idea.

After all, all it took was the predictable . . . → Read More: Austerity and Reality

Keynesian Tautologies

From Paul Krugman:

Watching Europe sink into recession – and Greece plunge into the abyss – I found myself wondering what it would take to convince the chattering classes that austerity in the face of an already depressed economy is a terrible idea.

After all, all it took was the predictable and predicted failure . . . → Read More: Keynesian Tautologies

Gold Prices Driven Higher by Europe and China: Greg Weldon and Grant Williams

Preserving wealth in a volatile political and financial world is a job for gold. Greg Weldon, publisher of Weldon’s Money Monitor newsletter and Grant Williams, a portfolio advisor at Vulpes Investment Management in Singapore, will share their insights at the Cambridge House California Investment Conference Feb. 11–12. In this exclusive interview with The . . . → Read More: Gold Prices Driven Higher by Europe and China: Greg Weldon and Grant Williams

'Mania' in Junior Mining Stocks Predicted: Fayyaz Alimohamed

Fayyaz Alimohamed, CEO of Altair Ventures Inc. and publisher of the Acamar Journal, offers historical perspective and predictions on the global economic crisis. In this exclusive Gold Report interview, he foresees a “mania” in junior mining stocks and recommends holding physical gold outside the banking system as a safety net.

The Gold . . . → Read More: ‘Mania’ in Junior Mining Stocks Predicted: Fayyaz Alimohamed

Market Analysis: How to Prepare for "Economic Depression"

The week of August 15 was one of the most volatile stock market performances in years. Negative news about the global economy, gloomy forecasts and mixed signals on the jobs front battered stocks and sent gold repeatedly above $1,800/ounce. The Gold Report asked an analyst, two newsletter writers and an economist the following: What . . . → Read More: Market Analysis: How to Prepare for Economic Depression

Louis James: Crisis Creates Opportunity with Junior Miners

Good rocks and good people are the core building blocks of successful junior miners. Casey Research Senior Editor and Mining Strategist Louis James wants to see the mineralization close up and talk to geologists to verify the powerful upside potential that may be in these stocks, which are also vulnerable to staggering corrections. In . . . → Read More: Louis James: Crisis Creates Opportunity with Junior Miners