News
National Journal | Don't Panic
Disappointing GDP growth isn't a sign of another slowdown ... yet.
Market Watch | More Than Half Still Say U.S. Is in Recession or Depression
Democrats rate the economy better than Republicans or Tea Party supporters.
Fox Business | http://www.foxbusiness.com/markets/2011/04/29/consumer-mood-edges/
The final reading on the overall index came in at 69.8, up from 67.5 in March and up a hair from the preliminary reading of 69.6.
Washington Times | High gas, food costs grind back growth
State budget cuts also nick recovery.
Fox Business | Personal Spending, Incomes Rise in March
U.S. consumer spending rose as households stretched to cover the higher cost for food and gasoline as inflation posted its biggest year-on-year rise in 10 months.
CNN: Money | Gas spending and prices by state
How much you actually pay for gas is affected by your income and local economy, not just what price is at the pump. Mississippi residents spend a whopping 13.2% of their income on gas.
Bloomberg | Treasuries Poised for Best Monthly Returns Since August on Slowing Economy
Two-year note yields headed for their biggest monthly drop since January 2010 as business activity in the U.S. grew less than forecast and growth slowed in consumer spending. The Fed said this week it will finish $600 billion of debt purchases in June, as planned, while holding interest rates near zero, where they’ve been since December 2008.
The Economist | What's wrong with America's economy?
Its politicians are failing to tackle the country’s real problems. Believe it or not, they could learn from Europe.
Econ Comments
Washington Times | Admit it, Obamanomics has failed
Forecasts predict no economic improvement in 2011.
WSJ | The Keynesian Growth Discount
The results of our three-year economic experiment are in.
National Journal | Ryan Says Oil Subsidies May Need to Go
House Budget Chairman Paul Ryan, R-Wis., said on Thursday he would support rolling back the billions of dollars in tax breaks and subsidies now enjoyed by the oil industry – a huge shift from the views held by most of his party.
WSJ | Bipartisan Target: Oil-Sector Tax Breaks
Soaring oil company profits and yawning federal deficits are making long-protected industry tax breaks a bipartisan target in Washington. Democrats have rebranded $4 billion a year in oil-industry tax incentives as a subsidy big oil companies don't deserve.
Minyanville | Brazil Economy Booming But Delicate
The interest rate rise to 12% highlights the fragile nature of Brazil's fast-growing economy.
Blogs
WSJ: Real Time Economics | Economists React: First-Quarter GDP ‘Stutter’ Likely Temporary
Economists and others weigh in on the 1.8% increase in first-quarter gross domestic product at a seasonally adjusted annual rate.
NRO: The Corner | American Income Inequality in Perspective
Debate over the data aside, the most striking point on this chart is that even the poorest 5 percent of Americans are among the richest people in the world — richer than nearly 70 percent of the world’s population.
The Economist: Free exchange | Slower growth, for now
America's recovery slowed in the first quarter of 2011. At a seasonally adjusted annual rate, real GDP grew by 1.8% in the first three months of the year, down from the 3.1% growth performance in the fourth quarter of 2010, according to the advance estimate of output released this morning. This deceleration came as no surprise; indeed, some recent forecasts projected an even slower rate of growth.
Reports
NBER | When Fast Growing Economies Slow Down: International Evidence and Implications for China
The evidence suggests that rapidly growing economies slow down significantly, in the sense that the growth rate downshifts by at least 2 percentage points, when their per capita incomes reach around $17,000 US in year-2005 constant international prices, a level that China should achieve by or soon after 2015. Among our more provocative findings is that growth slowdowns are more likely in countries that maintain undervalued real exchange rates.
RCM: Wells Fargo | GDP Growth Sputters at the Start of 2011
Rising at a slower-than-expected pace, real GDP grew 1.8 percent in the first quarter. Weather disruptions, higher food and energy prices and a sizeable decline in government outlays weighed on economic growth.
Friday, April 29, 2011
Health Care
News
National Journal | Berwick: Health Care Reform Provides Best Way to Fix Medicare
The way to reform Medicare isn’t shifting costs to seniors and people with disabilities -- it's improving the quality of care provided, Centers for Medicare and Medicaid Services Administrator Donald Berwick writes in a Wall Street Journal editorial published on Friday.
National Journal | Berwick: Health Care Reform Provides Best Way to Fix Medicare
The way to reform Medicare isn’t shifting costs to seniors and people with disabilities -- it's improving the quality of care provided, Centers for Medicare and Medicaid Services Administrator Donald Berwick writes in a Wall Street Journal editorial published on Friday.
Taxes
News
Bloomberg | Geithner Says Tax System Must Be Overhauled to Curb Debt, Spur Growth
He has said that Congress needs to act in June, before the Treasury exhausts its techniques for maintaining borrowing room.
Econ Comments
Fortune | Bring on the corporate tax holiday!
Giving companies a tax break on repatriated profits may not lead directly to new jobs, but it would likely boost the economy by propping up the dollar and fueling stocks.
Washington Times | ENLOW: School Choice: Alive and well
More states join as tax credits and vouchers mean large savings.
Cato Institute | WSJ-NBC Poll: Making the False Case for Tax Increases
We profess to worry about the burden we are leaving to future generations. At the same time, we insist that no current Social Security recipients should be affected by cutbacks. We cannot have it both ways.
Reason Foundation | “If you focus on the deficit, then tax increases are on the table.”
Americans for Tax Reform’s Grover Norquist on why deficits are a distraction, why Republicans shouldn’t compromise on the budget, and why low taxes are the key to cutting spending.
Reports
CRS | A Breakdown or "Receipt" of How Individuals' Federal Taxes Are Spent
Similar to a consumer's itemized receipt for the goods purchased in a store, a taxpayer receipt would provide information about what government goods and services their tax dollars pay for.
Bloomberg | Geithner Says Tax System Must Be Overhauled to Curb Debt, Spur Growth
He has said that Congress needs to act in June, before the Treasury exhausts its techniques for maintaining borrowing room.
Econ Comments
Fortune | Bring on the corporate tax holiday!
Giving companies a tax break on repatriated profits may not lead directly to new jobs, but it would likely boost the economy by propping up the dollar and fueling stocks.
Washington Times | ENLOW: School Choice: Alive and well
More states join as tax credits and vouchers mean large savings.
Cato Institute | WSJ-NBC Poll: Making the False Case for Tax Increases
We profess to worry about the burden we are leaving to future generations. At the same time, we insist that no current Social Security recipients should be affected by cutbacks. We cannot have it both ways.
Reason Foundation | “If you focus on the deficit, then tax increases are on the table.”
Americans for Tax Reform’s Grover Norquist on why deficits are a distraction, why Republicans shouldn’t compromise on the budget, and why low taxes are the key to cutting spending.
Reports
CRS | A Breakdown or "Receipt" of How Individuals' Federal Taxes Are Spent
Similar to a consumer's itemized receipt for the goods purchased in a store, a taxpayer receipt would provide information about what government goods and services their tax dollars pay for.
Monetary
News
WSJ | Officials Unfazed by Dollar Slide
In recent days, the nation's top two economic policy makers—Federal Reserve Chairman Ben Bernanke and Treasury Secretary Tim Geithner—have publicly expressed their desire for a strong dollar. But there is little indication of a change in policy from either the Fed or Treasury—or in underlying economic conditions—that would alter the currency's downward course.
Econ Comments
Minyanville | Fall of the Dollar Mirrors Financial Collapse of 2008
As the US Dollar collapses against hard assets, those trying to "catch a falling knife" may want to reconsider.
NYT | The Intimidated Fed
Last month more than 14 million Americans were unemployed by the official definition — that is, seeking work but unable to find it. Millions more were stuck in part-time work because they couldn’t find full-time jobs. And we’re not talking about temporary hardship. Long-term unemployment, once rare in this country, has become all too normal: More than four million Americans have been out of work for a year or more.
Minyanville | Five Things You Need to Know: US Dollar Collapse Intensifies
Also, a look at Yum! Brands' emerging markets exposure, how investors herd, and Wal-Mart shoppers running out of money!
WSJ | Officials Unfazed by Dollar Slide
In recent days, the nation's top two economic policy makers—Federal Reserve Chairman Ben Bernanke and Treasury Secretary Tim Geithner—have publicly expressed their desire for a strong dollar. But there is little indication of a change in policy from either the Fed or Treasury—or in underlying economic conditions—that would alter the currency's downward course.
Econ Comments
Minyanville | Fall of the Dollar Mirrors Financial Collapse of 2008
As the US Dollar collapses against hard assets, those trying to "catch a falling knife" may want to reconsider.
NYT | The Intimidated Fed
Last month more than 14 million Americans were unemployed by the official definition — that is, seeking work but unable to find it. Millions more were stuck in part-time work because they couldn’t find full-time jobs. And we’re not talking about temporary hardship. Long-term unemployment, once rare in this country, has become all too normal: More than four million Americans have been out of work for a year or more.
Minyanville | Five Things You Need to Know: US Dollar Collapse Intensifies
Also, a look at Yum! Brands' emerging markets exposure, how investors herd, and Wal-Mart shoppers running out of money!
Employment
Blogs
WSJ: Real Time Economics | Rise in Jobless Claims Bears Watching
New filings for jobless benefits unexpectedly jumped 25,000 in the April 23 week. The increase could hint that businesses are cutting labor costs to offset the prolonged surge in raw-material costs. But the strength of the U.S. recovery — which slowed in the first quarter — is highly dependent on stronger job growth.
Cato@Liberty | Good Jobs for Everyone!
In my quest to downsize the government, I’ve been looking at the Department of Labor budget recently. My vision is to cut federal spending to create a freer and more prosperous society. James Madison’s vision was for a federal government of “few and defined” powers.
WSJ: Real Time Economics | Rise in Jobless Claims Bears Watching
New filings for jobless benefits unexpectedly jumped 25,000 in the April 23 week. The increase could hint that businesses are cutting labor costs to offset the prolonged surge in raw-material costs. But the strength of the U.S. recovery — which slowed in the first quarter — is highly dependent on stronger job growth.
Cato@Liberty | Good Jobs for Everyone!
In my quest to downsize the government, I’ve been looking at the Department of Labor budget recently. My vision is to cut federal spending to create a freer and more prosperous society. James Madison’s vision was for a federal government of “few and defined” powers.
Budget
News
National Journal | Gallup: Americans Prefer GOP on Budget
Republicans have a 12-point advantage over Democrats on budget issues, with 48 percent of Americans saying Republicans are better suited to handle the issue.
Econ Comments
Washington Post | How to add teeth to Obama’s plan for a debt fail-safe
The president’s debt fail-safe would mandate cuts to government spending and tax breaks if by 2014 — notably, not until after the election — deficits were not projected to be declining as a share of the economy.
Washington Times | DELL: What fiscal pain?
Fundamental reforms necessary to resolve the nation’s long-term fiscal gap equitably and efficiently would produce large gains for little pain.
Cato Institute | Budget-cutting Like It's 1995
The takeaway is that cuts are inferior to terminating entire agencies and programs.
Reports
Mercatus Center | The Debt Ceiling: What is at Stake
The United States should not consider defaulting on its debt, nor should it put itself in a position where it has to postpone payment to contractors or “manage” other non-debt obligations. Neither, however, should Congress be forced to raise the debt ceiling under false pretenses.
National Journal | Gallup: Americans Prefer GOP on Budget
Republicans have a 12-point advantage over Democrats on budget issues, with 48 percent of Americans saying Republicans are better suited to handle the issue.
Econ Comments
Washington Post | How to add teeth to Obama’s plan for a debt fail-safe
The president’s debt fail-safe would mandate cuts to government spending and tax breaks if by 2014 — notably, not until after the election — deficits were not projected to be declining as a share of the economy.
Washington Times | DELL: What fiscal pain?
Fundamental reforms necessary to resolve the nation’s long-term fiscal gap equitably and efficiently would produce large gains for little pain.
Cato Institute | Budget-cutting Like It's 1995
The takeaway is that cuts are inferior to terminating entire agencies and programs.
Reports
Mercatus Center | The Debt Ceiling: What is at Stake
The United States should not consider defaulting on its debt, nor should it put itself in a position where it has to postpone payment to contractors or “manage” other non-debt obligations. Neither, however, should Congress be forced to raise the debt ceiling under false pretenses.
Thursday, April 28, 2011
General Economics
News
Market Watch | First-quarter U.S. economic growth slows to 1.8%
The U.S. economy slowed markedly in the first quarter and inflation accelerated, clear evidence of the double whammy on the economy from higher gasoline prices.
Bloomberg | Oil Drops From 31-Month High on Speculation of Slower U.S. Economic Growth
Crude futures earlier climbed to a new 31-month high after Fed Chairman Ben S. Bernanke said yesterday that it will keep record low interest rates in place and stop buying bonds in June. The gains were trimmed after the U.S. said its economy grew at a slower pace than the last quarter of 2010.
Washington Time | Start ups seek new form of microfinance
‘Crowd funding’ of small businesses faces hurdle in decades-old SEC rules.
WSJ | Drivers Cut Back on $4 Gas
Economy Won't Get a Lift as Overseas Demand Is Expected to Keep Prices High.
CNN: Money | Exxon hits back at gas price anger
In an attempt to deflect rising anger among American drivers and political leaders, Exxon Mobil said Thursday that it makes relatively little money producing and selling gasoline, even as the oil company reported a nearly $11 billion quarterly profit.
National Journal | Record Gas Prices Will Put Obama's Reelection Chances, Big Oil's Tax Breaks on the Line
Gasoline prices already dominate the political debate, as the national average for a gallon of regular on Thursday reached $3.89. That number is climbing at the rate of one-half to one-tenth of a cent per day. And with each ratchet higher, the partisan sniping gets more heated and consumers' anger at politicians—particularly the president—grows.
Econ Comments
WSJ | Obama's Millionaire Obsession
The president has no understanding of the unique role wealth plays in American life.
RCM | Let's Sunset the Ethanol Subsidy
Unfortunately, the lawmakers heard not a word from the president about the $6 billion a year in ethanol subsidies that are paid to corn growers and ethanol producers. For corn farmers, federal support for ethanol is a windfall that lifts corn prices and makes it profitable to plant additional acres.
NYT | Pain at the Pump? We Need More
Our trade deficit arises in large measure from the hundreds of billions of dollars we pay for foreign oil. The imbalances threaten America’s economic stability and national security.
AEI | Tap Natural Gas for Energy
The American economy prospers on the new and the ingenious. A technology that's being used to reach vast quantities of clean burning natural gas has given us both.
Blogs
Café Hayek | The Fight of the Century
My second rap video with John Papola is now live. Please spread it wide and far.
Econlog | A Misconception Worth Emphasizing
Back at the top of the bubble, the middle class had $6 trillion more assets on the books. Considering the Mortgaged Middle Class now owns about $6 trillion in net assets, then the bursting of the housing bubble caused their net worth to drop by 50%.
Daily Capitalist | American Exceptionalism And Standard & Poor’s
America, the world’s greatest country, whose financial strength and dollar were supreme for the past 100 years, has been put on notice by Standard & Poor’s that it is on the road to second rate status.
Heritage Foundation | China’s Bullet Train Fiasco: A Warning to America
Well, the Chinese finally have a green-energy idea worth stealing: arrest government officials who foist overpriced, under performing, debt-ballooning, money-losing projects on taxpayers.
Market Watch | First-quarter U.S. economic growth slows to 1.8%
The U.S. economy slowed markedly in the first quarter and inflation accelerated, clear evidence of the double whammy on the economy from higher gasoline prices.
Bloomberg | Oil Drops From 31-Month High on Speculation of Slower U.S. Economic Growth
Crude futures earlier climbed to a new 31-month high after Fed Chairman Ben S. Bernanke said yesterday that it will keep record low interest rates in place and stop buying bonds in June. The gains were trimmed after the U.S. said its economy grew at a slower pace than the last quarter of 2010.
Washington Time | Start ups seek new form of microfinance
‘Crowd funding’ of small businesses faces hurdle in decades-old SEC rules.
WSJ | Drivers Cut Back on $4 Gas
Economy Won't Get a Lift as Overseas Demand Is Expected to Keep Prices High.
CNN: Money | Exxon hits back at gas price anger
In an attempt to deflect rising anger among American drivers and political leaders, Exxon Mobil said Thursday that it makes relatively little money producing and selling gasoline, even as the oil company reported a nearly $11 billion quarterly profit.
National Journal | Record Gas Prices Will Put Obama's Reelection Chances, Big Oil's Tax Breaks on the Line
Gasoline prices already dominate the political debate, as the national average for a gallon of regular on Thursday reached $3.89. That number is climbing at the rate of one-half to one-tenth of a cent per day. And with each ratchet higher, the partisan sniping gets more heated and consumers' anger at politicians—particularly the president—grows.
Econ Comments
WSJ | Obama's Millionaire Obsession
The president has no understanding of the unique role wealth plays in American life.
RCM | Let's Sunset the Ethanol Subsidy
Unfortunately, the lawmakers heard not a word from the president about the $6 billion a year in ethanol subsidies that are paid to corn growers and ethanol producers. For corn farmers, federal support for ethanol is a windfall that lifts corn prices and makes it profitable to plant additional acres.
NYT | Pain at the Pump? We Need More
Our trade deficit arises in large measure from the hundreds of billions of dollars we pay for foreign oil. The imbalances threaten America’s economic stability and national security.
AEI | Tap Natural Gas for Energy
The American economy prospers on the new and the ingenious. A technology that's being used to reach vast quantities of clean burning natural gas has given us both.
Blogs
Café Hayek | The Fight of the Century
My second rap video with John Papola is now live. Please spread it wide and far.
Econlog | A Misconception Worth Emphasizing
Back at the top of the bubble, the middle class had $6 trillion more assets on the books. Considering the Mortgaged Middle Class now owns about $6 trillion in net assets, then the bursting of the housing bubble caused their net worth to drop by 50%.
Daily Capitalist | American Exceptionalism And Standard & Poor’s
America, the world’s greatest country, whose financial strength and dollar were supreme for the past 100 years, has been put on notice by Standard & Poor’s that it is on the road to second rate status.
Heritage Foundation | China’s Bullet Train Fiasco: A Warning to America
Well, the Chinese finally have a green-energy idea worth stealing: arrest government officials who foist overpriced, under performing, debt-ballooning, money-losing projects on taxpayers.
Health Care
News
National Journal | Reassuring Republicans Claim Precedents for Medicare Plan, but Comparisons Reveal Skimpy Coverage
As Republican members of Congress face questions from constituents over their near-unanimous support for a fiscal year 2012 budget that calls for the overhaul and privatization of the Medicare program, they cite two comparisons to disarm their critics: Their plan is nearly the same as the health care coverage provided to members of Congress, and to exchanges created by the new health care law.
Blogs
Heritage Foundation | Pay-for-Performance in Medicare Could Do More Harm Than Good
Liberals’ solution to rising health care costs has consistently been to take control of health care decisions away from patients and their doctors and to place it in the hands of government.
National Journal | Reassuring Republicans Claim Precedents for Medicare Plan, but Comparisons Reveal Skimpy Coverage
As Republican members of Congress face questions from constituents over their near-unanimous support for a fiscal year 2012 budget that calls for the overhaul and privatization of the Medicare program, they cite two comparisons to disarm their critics: Their plan is nearly the same as the health care coverage provided to members of Congress, and to exchanges created by the new health care law.
Blogs
Heritage Foundation | Pay-for-Performance in Medicare Could Do More Harm Than Good
Liberals’ solution to rising health care costs has consistently been to take control of health care decisions away from patients and their doctors and to place it in the hands of government.
Taxes
News
NYT | Most States Seen Raising Jobless Tax on Businesses
As persistently high unemployment has drained the funds that are used to pay jobless benefits, more than two-thirds of the states expect to raise taxes on businesses this year to replenish them, according to a survey of labor agencies released Wednesday.
Blogs
Cato@Liberty | White House to Propose 26 Percent Corporate Tax Rate?!? Look before You Leap
The Obama administration is preparing to inject an unpredictable new variable into its economic policy clash with Republicans: a plan to overhaul corporate taxes. Economic advisers have nearly completed the process initiated in January by the Treasury secretary, Timothy F. Geithner, at President Obama’s behest.
NYT | Most States Seen Raising Jobless Tax on Businesses
As persistently high unemployment has drained the funds that are used to pay jobless benefits, more than two-thirds of the states expect to raise taxes on businesses this year to replenish them, according to a survey of labor agencies released Wednesday.
Blogs
Cato@Liberty | White House to Propose 26 Percent Corporate Tax Rate?!? Look before You Leap
The Obama administration is preparing to inject an unpredictable new variable into its economic policy clash with Republicans: a plan to overhaul corporate taxes. Economic advisers have nearly completed the process initiated in January by the Treasury secretary, Timothy F. Geithner, at President Obama’s behest.
Monetary
News
Market Watch | Bernanke pledges continued easy policy
Federal Reserve Chairman Ben Bernanke on Wednesday used his first-ever press conference to tell an uncertain global market that he’s quite comfortable with the current policy stance and is not contemplating any quick policy moves to combat higher inflation or slower growth.
Bloomberg | Bernanke Begins Public Dialogue With Pledge to Maintain Record Stimulus
Ben S. Bernanke, at the first press conference by a Federal Reserve Chairman following a policy meeting, said the economy still requires monetary support while the need to contain inflation means further easing is unlikely.
WSJ | Fed Takes Foot Off the Gas
The Federal Reserve used its first-ever news conference to signal it will phase out a controversial bond-buying program—and to reassure a skeptical public that the central bank is doing everything it can to control inflation and expand an uneven recovery that has yet to reach many Americans.
Bloomberg | Thailand Says Inflation Risks Exceed Threats to Growth as Output Tumbles
Thailand’s borrowing costs are inappropriate as inflation risks exceed threats to growth, the central bank said as the government predicted industrial output will revive from the worst slide since 2009 after Japan’s quake.
Market Watch | Bank of Japan holds steady, details quake loans
The Bank of Japan on Thursday held policy steady, rejected a proposal to increase the size of its asset-buying program and detailed a lending program for banks in disaster-struck areas.
Econ Comments
Minyanville | Did Ben Bernanke Hint at QE3 During Historic Fed Press Conference?
Bernanke did not indicate there would be a third round of quantitative easing, but many traders feel the central bank is headed in that direction. Here's why.
RCM | The Fed's Low Rates Are Restraining Recovery
The prevailing view among economists, policymakers and Federal Reserve Board governors -- and the conventional Washington wisdom more broadly -- remains that zero or near-zero short-term interest rates (negative 2% in real terms) have some unavoidable adverse side effects, but unquestionably stimulate the economy. Put more simply, the lower the rate, the more economic stimulation.
WSJ | Bernanke Meets the Press
He favors a 'strong' dollar as the dollar falls.
CNN: Money | The coming commodity price nightmare
Here's another sign we have much bigger inflation problems than Ben Bernanke.
Minyanville | The Fed's Dilemma and the Straw Man Economy
This week's podcast discusses economic growth signals, the end of QE2, and more.
AEI | Jobs, Inflation, and What Bernanke Said
Did the Fed chairman come clean in his first press conference?
Blogs
The Economist: Free exchange | Diced dollars
The current denizens of Washington, DC have been accused of doing many things to the once mighty dollar: debauching it, devaluing it, even dropping it from helicopters. But for the moment they seem behind the curve on dicing it.
WSJ: Real Time Economics | Parsing the Fed: How the Statement Changed
The Fed’s statement following the April meeting noted no change in policy, as the central bank signaled it will complete its bond-buying program this quarter as planned. (Read the full April statement.)
The Economist: Free exchange | Is the Fed satisfied?
So, the big question: is this the right policy path? Just listening to Mr Bernanke, one might be excused for thinking that it actually is not. The chairman said that the FOMC is confident that its purchases supported growth and job creation, and he said that the FOMC was confident that it could tighten effectively when it needed to, and it projected that employment would remain above target and inflation below target.
Market Watch | Bernanke pledges continued easy policy
Federal Reserve Chairman Ben Bernanke on Wednesday used his first-ever press conference to tell an uncertain global market that he’s quite comfortable with the current policy stance and is not contemplating any quick policy moves to combat higher inflation or slower growth.
Bloomberg | Bernanke Begins Public Dialogue With Pledge to Maintain Record Stimulus
Ben S. Bernanke, at the first press conference by a Federal Reserve Chairman following a policy meeting, said the economy still requires monetary support while the need to contain inflation means further easing is unlikely.
WSJ | Fed Takes Foot Off the Gas
The Federal Reserve used its first-ever news conference to signal it will phase out a controversial bond-buying program—and to reassure a skeptical public that the central bank is doing everything it can to control inflation and expand an uneven recovery that has yet to reach many Americans.
Bloomberg | Thailand Says Inflation Risks Exceed Threats to Growth as Output Tumbles
Thailand’s borrowing costs are inappropriate as inflation risks exceed threats to growth, the central bank said as the government predicted industrial output will revive from the worst slide since 2009 after Japan’s quake.
Market Watch | Bank of Japan holds steady, details quake loans
The Bank of Japan on Thursday held policy steady, rejected a proposal to increase the size of its asset-buying program and detailed a lending program for banks in disaster-struck areas.
Econ Comments
Minyanville | Did Ben Bernanke Hint at QE3 During Historic Fed Press Conference?
Bernanke did not indicate there would be a third round of quantitative easing, but many traders feel the central bank is headed in that direction. Here's why.
RCM | The Fed's Low Rates Are Restraining Recovery
The prevailing view among economists, policymakers and Federal Reserve Board governors -- and the conventional Washington wisdom more broadly -- remains that zero or near-zero short-term interest rates (negative 2% in real terms) have some unavoidable adverse side effects, but unquestionably stimulate the economy. Put more simply, the lower the rate, the more economic stimulation.
WSJ | Bernanke Meets the Press
He favors a 'strong' dollar as the dollar falls.
CNN: Money | The coming commodity price nightmare
Here's another sign we have much bigger inflation problems than Ben Bernanke.
Minyanville | The Fed's Dilemma and the Straw Man Economy
This week's podcast discusses economic growth signals, the end of QE2, and more.
AEI | Jobs, Inflation, and What Bernanke Said
Did the Fed chairman come clean in his first press conference?
Blogs
The Economist: Free exchange | Diced dollars
The current denizens of Washington, DC have been accused of doing many things to the once mighty dollar: debauching it, devaluing it, even dropping it from helicopters. But for the moment they seem behind the curve on dicing it.
WSJ: Real Time Economics | Parsing the Fed: How the Statement Changed
The Fed’s statement following the April meeting noted no change in policy, as the central bank signaled it will complete its bond-buying program this quarter as planned. (Read the full April statement.)
The Economist: Free exchange | Is the Fed satisfied?
So, the big question: is this the right policy path? Just listening to Mr Bernanke, one might be excused for thinking that it actually is not. The chairman said that the FOMC is confident that its purchases supported growth and job creation, and he said that the FOMC was confident that it could tighten effectively when it needed to, and it projected that employment would remain above target and inflation below target.
Budget
News
Washington Times | Fed sees mounting debt as biggest challenge
Federal Reserve chairman Ben S. Bernanke on Wednesday called the mounting federal debt the biggest economic challenge facing the country and said the threat that it will tarnish the nation’s top credit rating should prompt Congress to address it.
Fox News | Reid: Add deficit 'cap' to debt legislation
The leader of the Democratic-controlled Senate said Wednesday that any legislation increasing the government's ability to borrow more money to meet its obligations should contain a cap on how big the deficit can be in any given year.
Source | Harry Reid to force Senate vote on Paul Ryan's Budget
As Congress hurtles toward its late spring deadline to raise the nation's debt limit, Reid says he wants to force GOP senators to take a stand on the Ryan plan, which would overhaul Medicare and Medicaid, and cut trillions over the next decade.
Econ Comments
WSJ | The Debt Ceiling: Myths and Facts
Default won't happen, since we're collecting plenty in taxes to pay our interest obligations.
WSJ | Why the 2025 Budget Matters Today
Governments with no plausible plan to meet their obligations risk a run by investors. It's happened abroad, and it can happen here.
Washington Post | How serious are we really about the deficit?
House Republican leaders have passed the test, supporting a politically risky budget that changes Medicare into a premium-support program and eventually returns federal spending to sustainable levels.
Blogs
Econlog | 10-year Budget Projections
Tell me what you think about the usefulness/uselessness of 10 year budget/ deficit projections.
Heritage Foundation | Gen Xers, Baby Boomers and Seniors Prefer Ryan’s Budget Over Obama’s Plan
A surprising USA Today/Gallup poll today revealed that a plurality of Americans over the age of 30 — including Gen Xers, Baby Boomers and seniors — support Ryan’s proposal to reduce the deficit over President Obama’s plan.
Washington Times | Fed sees mounting debt as biggest challenge
Federal Reserve chairman Ben S. Bernanke on Wednesday called the mounting federal debt the biggest economic challenge facing the country and said the threat that it will tarnish the nation’s top credit rating should prompt Congress to address it.
Fox News | Reid: Add deficit 'cap' to debt legislation
The leader of the Democratic-controlled Senate said Wednesday that any legislation increasing the government's ability to borrow more money to meet its obligations should contain a cap on how big the deficit can be in any given year.
Source | Harry Reid to force Senate vote on Paul Ryan's Budget
As Congress hurtles toward its late spring deadline to raise the nation's debt limit, Reid says he wants to force GOP senators to take a stand on the Ryan plan, which would overhaul Medicare and Medicaid, and cut trillions over the next decade.
Econ Comments
WSJ | The Debt Ceiling: Myths and Facts
Default won't happen, since we're collecting plenty in taxes to pay our interest obligations.
WSJ | Why the 2025 Budget Matters Today
Governments with no plausible plan to meet their obligations risk a run by investors. It's happened abroad, and it can happen here.
Washington Post | How serious are we really about the deficit?
House Republican leaders have passed the test, supporting a politically risky budget that changes Medicare into a premium-support program and eventually returns federal spending to sustainable levels.
Blogs
Econlog | 10-year Budget Projections
Tell me what you think about the usefulness/uselessness of 10 year budget/ deficit projections.
Heritage Foundation | Gen Xers, Baby Boomers and Seniors Prefer Ryan’s Budget Over Obama’s Plan
A surprising USA Today/Gallup poll today revealed that a plurality of Americans over the age of 30 — including Gen Xers, Baby Boomers and seniors — support Ryan’s proposal to reduce the deficit over President Obama’s plan.
Employment
News
Bloomberg | Jobless Claims in U.S. Unexpectedly Rise to Three-Month High
Jobless claims increased by 25,000 to 429,000 in the week ended April 23, the most since late January, Labor Department figures showed today in Washington. The government anticipates a drop in unadjusted applications during the Good Friday holiday week, something that didn’t happen this year, a Labor Department spokesman said.
Blogs
The Economist | The unemployment trap
America is unusual, though not unique, in the extent of its long-term unemployment problem:
Bloomberg | Jobless Claims in U.S. Unexpectedly Rise to Three-Month High
Jobless claims increased by 25,000 to 429,000 in the week ended April 23, the most since late January, Labor Department figures showed today in Washington. The government anticipates a drop in unadjusted applications during the Good Friday holiday week, something that didn’t happen this year, a Labor Department spokesman said.
Blogs
The Economist | The unemployment trap
America is unusual, though not unique, in the extent of its long-term unemployment problem:
Wednesday, April 27, 2011
General Economics
News
Market Watch | U.S. home prices fall 1.1% in February
U.S. home prices fell in February for the seventh straight month, according to a closely followed index released Tuesday, with the beleaguered housing market approaching a double-dip recession.
NYT | Government, Too, Has Trouble Selling Buildings
The government owns or manages more than 900,000 buildings or other structures across the country — office buildings, courthouses, warehouses and other property types — making it the nation’s largest landlord. But like the former N.I.H. building, about 14,000 are no longer needed and are costly to maintain. An additional 55,000 are regarded as underutilized.
Market Watch | Orders for durable goods rise 2.5% in March
Orders for long-lasting U.S. goods bounced back in March, spurred by higher demand for transportation equipment, computers and defense-related products.
Fox News | A look at economic developments around the globe
A look at economic developments and activity in major stock markets around the world Tuesday:
WSJ | Dow Rises 115.49, New 3-Year High
The Dow Jones Industrial Average soared 115.49 points, or 0.9%, to finish at 12595.37, a fresh three-year high. The Standard & Poor's 500-stock index rose 11.99 points, or 0.9%, to 1347.24, while the Nasdaq Composite added 21.66 points, or 0.8%, to 2847.54.
Econ Comments
Fox News | A snapshot of the AP Economy Survey results
The quarterly AP Economy Survey drew upon forecasts from 42 economists. Here are their average predictions:
FP | More Than 1 Billion People Are Hungry in the World
For many in the West, poverty is almost synonymous with hunger. Indeed, the announcement by the United Nations Food and Agriculture Organization in 2009 that more than 1 billion people are suffering from hunger grabbed headlines in a way that any number of World Bank estimates of how many poor people live on less than a dollar a day never did.
Politico | George W. Bush: Drill more to lower gas prices
"I would suggest Americans understand how supply and demand works. And if you restrict supplies of crude, the price of oil is going to go up and it affects gasoline".
Washington Times | EDITORIAL: EPA suburban sprawl brawl
Global-warming agency’s carbon footprint deepens in greener pastures.
AEI | Can the Dodd-Frank Act Defeat Financial Crises?
This natural cyclic laity is far more powerful than the thousands or tens of thousands of pages of regulations, which will be the principal memorial of the act.
Heritage Foundation | Time to Face Economic Reality
The first step to recovery, they say, is accepting that you have a problem. In that case, it’s welcome news to hear more and more politicians talking about the problems being brought on by our runaway spending.
Blogs
The Economist: Free excahnge | First-quarter GDP in line with forecasts
For once, the soothsayers were right. Britain's GDP rose by 0.5% in the first quarter compared with the previous three months, in line with forecasts. Most of the economy had a decent enough start to the year: services output was up by 0.9% and manufacturing grew by 1%.
Cato@Liberty | Obama’s Economic Policies Create Misery
The public has finally started to give President Obama’s economic policies a big “thumbs down”. This shouldn’t surprise anyone who is familiar with the Misery Index.
The Economist: Free exchange | Bad housing news still isn't that bad
The latest Case-Shiller home price data, for the month of February, are now out, and headlines are sure to be gloomy. Year-on-year, the 20-city index dropped 3.3% in February, down slightly more than in the previous month.
Cato@Liberty | Tina Brown and the Economics of Recession
Talking about royal weddings on NPR, Tina Brown says that there’s high unemployment in Britain, as there was in 1981, because of Conservative governments’ budget cuts (transcript edited to match broadcast):
Reports
Heritage Foundation | Ten Economic Lessons from Europe for the U.S. President
As the U.S. tackles its own fiscal situation, here are 10 lessons that it can learn from the European experience.
RCM: Wells Fargo | Consumers Less Despondent in April
U.S. consumer confidence picked up slightly to 65.4 in April from an upwardly revised reading of 63.8 in March. The low reading comes as little surprise given stubbornly high unemployment and rising gas prices.
Market Watch | U.S. home prices fall 1.1% in February
U.S. home prices fell in February for the seventh straight month, according to a closely followed index released Tuesday, with the beleaguered housing market approaching a double-dip recession.
NYT | Government, Too, Has Trouble Selling Buildings
The government owns or manages more than 900,000 buildings or other structures across the country — office buildings, courthouses, warehouses and other property types — making it the nation’s largest landlord. But like the former N.I.H. building, about 14,000 are no longer needed and are costly to maintain. An additional 55,000 are regarded as underutilized.
Market Watch | Orders for durable goods rise 2.5% in March
Orders for long-lasting U.S. goods bounced back in March, spurred by higher demand for transportation equipment, computers and defense-related products.
Fox News | A look at economic developments around the globe
A look at economic developments and activity in major stock markets around the world Tuesday:
WSJ | Dow Rises 115.49, New 3-Year High
The Dow Jones Industrial Average soared 115.49 points, or 0.9%, to finish at 12595.37, a fresh three-year high. The Standard & Poor's 500-stock index rose 11.99 points, or 0.9%, to 1347.24, while the Nasdaq Composite added 21.66 points, or 0.8%, to 2847.54.
Econ Comments
Fox News | A snapshot of the AP Economy Survey results
The quarterly AP Economy Survey drew upon forecasts from 42 economists. Here are their average predictions:
FP | More Than 1 Billion People Are Hungry in the World
For many in the West, poverty is almost synonymous with hunger. Indeed, the announcement by the United Nations Food and Agriculture Organization in 2009 that more than 1 billion people are suffering from hunger grabbed headlines in a way that any number of World Bank estimates of how many poor people live on less than a dollar a day never did.
Politico | George W. Bush: Drill more to lower gas prices
"I would suggest Americans understand how supply and demand works. And if you restrict supplies of crude, the price of oil is going to go up and it affects gasoline".
Washington Times | EDITORIAL: EPA suburban sprawl brawl
Global-warming agency’s carbon footprint deepens in greener pastures.
AEI | Can the Dodd-Frank Act Defeat Financial Crises?
This natural cyclic laity is far more powerful than the thousands or tens of thousands of pages of regulations, which will be the principal memorial of the act.
Heritage Foundation | Time to Face Economic Reality
The first step to recovery, they say, is accepting that you have a problem. In that case, it’s welcome news to hear more and more politicians talking about the problems being brought on by our runaway spending.
Blogs
The Economist: Free excahnge | First-quarter GDP in line with forecasts
For once, the soothsayers were right. Britain's GDP rose by 0.5% in the first quarter compared with the previous three months, in line with forecasts. Most of the economy had a decent enough start to the year: services output was up by 0.9% and manufacturing grew by 1%.
Cato@Liberty | Obama’s Economic Policies Create Misery
The public has finally started to give President Obama’s economic policies a big “thumbs down”. This shouldn’t surprise anyone who is familiar with the Misery Index.
The Economist: Free exchange | Bad housing news still isn't that bad
The latest Case-Shiller home price data, for the month of February, are now out, and headlines are sure to be gloomy. Year-on-year, the 20-city index dropped 3.3% in February, down slightly more than in the previous month.
Cato@Liberty | Tina Brown and the Economics of Recession
Talking about royal weddings on NPR, Tina Brown says that there’s high unemployment in Britain, as there was in 1981, because of Conservative governments’ budget cuts (transcript edited to match broadcast):
Reports
Heritage Foundation | Ten Economic Lessons from Europe for the U.S. President
As the U.S. tackles its own fiscal situation, here are 10 lessons that it can learn from the European experience.
RCM: Wells Fargo | Consumers Less Despondent in April
U.S. consumer confidence picked up slightly to 65.4 in April from an upwardly revised reading of 63.8 in March. The low reading comes as little surprise given stubbornly high unemployment and rising gas prices.
Health Care
News
National Journal | Oregon Advances Health Exchange Grant
Republicans in Oregon's House reached a last-minute deal with Democrats on Tuesday to push forward a bill that would allow the state to accept a $48 million federal grant for the technology to set up a health insurance exchange, the Associated Press reports.
National Journal | Most Families Can Afford Coverage Under Health Law, but Poor Still Lag
Federal assistance available under the health reform law will make private insurance affordable to 90 percent of Americans living above the poverty line even though poorer people may end up struggling more to pay out-of-pocket costs, a new report by the Commonwealth Fund found.
Econ Comments
WSJ | Medicare As We've Known It Isn't an Option
Paul Ryan's premium support plan is preferable to Obama's rationing panel.
Reports
NBER | The Demand for Health Insurance Among Uninsured Americans: Results of a Survey Experiment and Implications for Policy
Most existing work on the price elasticity of demand for health insurance focuses on employees’ decisions to enroll in employer-provided plans. Yet any attempt to achieve universal coverage must focus on the uninsured, the vast majority of whom are not offered employer-sponsored insurance.
National Journal | Oregon Advances Health Exchange Grant
Republicans in Oregon's House reached a last-minute deal with Democrats on Tuesday to push forward a bill that would allow the state to accept a $48 million federal grant for the technology to set up a health insurance exchange, the Associated Press reports.
National Journal | Most Families Can Afford Coverage Under Health Law, but Poor Still Lag
Federal assistance available under the health reform law will make private insurance affordable to 90 percent of Americans living above the poverty line even though poorer people may end up struggling more to pay out-of-pocket costs, a new report by the Commonwealth Fund found.
Econ Comments
WSJ | Medicare As We've Known It Isn't an Option
Paul Ryan's premium support plan is preferable to Obama's rationing panel.
Reports
NBER | The Demand for Health Insurance Among Uninsured Americans: Results of a Survey Experiment and Implications for Policy
Most existing work on the price elasticity of demand for health insurance focuses on employees’ decisions to enroll in employer-provided plans. Yet any attempt to achieve universal coverage must focus on the uninsured, the vast majority of whom are not offered employer-sponsored insurance.
Taxes
News
National Journal | New Tools Calculate Your Tax Dollars at Work
The moment is probably still etched in your mind. After hours of reading, factoring and figuring, you filed your 2010 tax return.
CNN: Money | Big Oil's $4 billion tax break in doubt
President Obama repeated his call Tuesday for an end to $4 billion in oil industry tax breaks as gas prices approach $4 a gallon and after a top lawmaker indicated a possible shift in Republican policy.
National Journal | Cutting Tax Expenditures Could Burden Middle-Class Taxpayers
Most of the biggest tax breaks benefit people making less than $200,000.
Econ Comments
FT | Tax Reform: No Magic Bullet for Fiscal Crisis
Every deficit reduction plan includes tax reform as a key ingredient of the plan.
Cato Institute | Cutting Expenditure Is A Good Thing
The U.S. faces a fiscal meltdown because government undertakes activities that are not necessary or useful functions of government.
National Journal | New Tools Calculate Your Tax Dollars at Work
The moment is probably still etched in your mind. After hours of reading, factoring and figuring, you filed your 2010 tax return.
CNN: Money | Big Oil's $4 billion tax break in doubt
President Obama repeated his call Tuesday for an end to $4 billion in oil industry tax breaks as gas prices approach $4 a gallon and after a top lawmaker indicated a possible shift in Republican policy.
National Journal | Cutting Tax Expenditures Could Burden Middle-Class Taxpayers
Most of the biggest tax breaks benefit people making less than $200,000.
Econ Comments
FT | Tax Reform: No Magic Bullet for Fiscal Crisis
Every deficit reduction plan includes tax reform as a key ingredient of the plan.
Cato Institute | Cutting Expenditure Is A Good Thing
The U.S. faces a fiscal meltdown because government undertakes activities that are not necessary or useful functions of government.
Monetary
News
Market Watch | Post-QE2 plans the focus of Bernanke conference
For good reason, Federal Reserve Chairman Ben Bernanke has been studying videotapes of foreign central bankers and having staffers pepper him with questions ahead of his first-ever press conference Wednesday to discuss an interest rate decision.
Bloomberg | Dollar Weakens to 16-Month Low Versus Euro Before Fed; Yen Slides on S&P
The dollar dropped to a 16-month low versus the euro on speculation the Federal Reserve will signal today it will hold interest rates steady to support the U.S. economy after its bond-buying program expires in June.
Market Watch | Geithner talks tough on U.S. dollar
Treasury Secretary Timothy Geithner talked tough on the U.S. dollar Tuesday, saying that the United States will never attempt to lower the value of the greenback to gain an advantage in global trade.
CNN: Money | What's really driving inflation
When Federal Reserve policymakers get together to talk about inflation, they focus on the "core" number, which takes out food and energy.
WSJ | Bernanke's Code: a Guide to Fed Chairman's First Q&A
When Federal Reserve Chairman Ben Bernanke makes his debut press conference Wednesday, his every word will be parsed for signs of where he hopes to take U.S. monetary policy.
Washington Times | Fed likely to quit buying bonds, putting Congress in debt corner
Bernanke seeks to allay criticism at news conference.
Econ Comments
Minyanville | Is US Inflation Nearing A Cyclical Peak?
Why the CPI inflation rate may surprise financial markets on the upside and lend further support to inflation hedges such as gold and silver.
Bloomberg | Fed’s ‘Extended Period’ Pledge May End in 2011, Economists Say
Federal Reserve officials will probably prepare to pull back from record stimulus by dropping a pledge this year to hold the main interest rate near zero for an “extended period,” according to a Bloomberg News survey.
CNN: Money | Critics Say Fed Policies Devalue the U.S. Dollar
"One of the fundamental problems with the U.S. economy right now is the Federal Reserve thinks the answer to all our economic problems is printing money,"
RCM | Let's Be Truthful, Inflation Is Already Here
The rising price of energy, broad-based increases in the price of other commodities, as well as the negative S&P outlook for U.S. debt puts the country in a rapidly changing environment for expected inflation.
AEI: American The Fed vs. the FDIC on Lehman’s Failure
A recent FDIC report on Lehman Brothers’s financial condition before its failure puts in doubt the Federal Reserve’s account of its decision- making, and raises significant questions about the nature of the financial crisis.
Minyanville | High-Risk Bonds and Inflation Expectations
High-risk bonds could benefit from rising inflation expectations until short-term interest rates begin to rise. But have we reached that point when too much of a good thing turns ugly?
Blogs
WSJ: MarketBeat | Don’t Expect ‘Few Good Men’ Moment from Fed
I just want to go on the record here: tomorrow’s heavily publicized, much ballyhooed Ben Bernanke press conference will ultimately be a nonevent.
Market Watch | Post-QE2 plans the focus of Bernanke conference
For good reason, Federal Reserve Chairman Ben Bernanke has been studying videotapes of foreign central bankers and having staffers pepper him with questions ahead of his first-ever press conference Wednesday to discuss an interest rate decision.
Bloomberg | Dollar Weakens to 16-Month Low Versus Euro Before Fed; Yen Slides on S&P
The dollar dropped to a 16-month low versus the euro on speculation the Federal Reserve will signal today it will hold interest rates steady to support the U.S. economy after its bond-buying program expires in June.
Market Watch | Geithner talks tough on U.S. dollar
Treasury Secretary Timothy Geithner talked tough on the U.S. dollar Tuesday, saying that the United States will never attempt to lower the value of the greenback to gain an advantage in global trade.
CNN: Money | What's really driving inflation
When Federal Reserve policymakers get together to talk about inflation, they focus on the "core" number, which takes out food and energy.
WSJ | Bernanke's Code: a Guide to Fed Chairman's First Q&A
When Federal Reserve Chairman Ben Bernanke makes his debut press conference Wednesday, his every word will be parsed for signs of where he hopes to take U.S. monetary policy.
Washington Times | Fed likely to quit buying bonds, putting Congress in debt corner
Bernanke seeks to allay criticism at news conference.
Econ Comments
Minyanville | Is US Inflation Nearing A Cyclical Peak?
Why the CPI inflation rate may surprise financial markets on the upside and lend further support to inflation hedges such as gold and silver.
Bloomberg | Fed’s ‘Extended Period’ Pledge May End in 2011, Economists Say
Federal Reserve officials will probably prepare to pull back from record stimulus by dropping a pledge this year to hold the main interest rate near zero for an “extended period,” according to a Bloomberg News survey.
CNN: Money | Critics Say Fed Policies Devalue the U.S. Dollar
"One of the fundamental problems with the U.S. economy right now is the Federal Reserve thinks the answer to all our economic problems is printing money,"
RCM | Let's Be Truthful, Inflation Is Already Here
The rising price of energy, broad-based increases in the price of other commodities, as well as the negative S&P outlook for U.S. debt puts the country in a rapidly changing environment for expected inflation.
AEI: American The Fed vs. the FDIC on Lehman’s Failure
A recent FDIC report on Lehman Brothers’s financial condition before its failure puts in doubt the Federal Reserve’s account of its decision- making, and raises significant questions about the nature of the financial crisis.
Minyanville | High-Risk Bonds and Inflation Expectations
High-risk bonds could benefit from rising inflation expectations until short-term interest rates begin to rise. But have we reached that point when too much of a good thing turns ugly?
Blogs
WSJ: MarketBeat | Don’t Expect ‘Few Good Men’ Moment from Fed
I just want to go on the record here: tomorrow’s heavily publicized, much ballyhooed Ben Bernanke press conference will ultimately be a nonevent.
Budget
News
CNN: Money | Lobbyists stir about debt ceiling
The Treasury estimates U.S. borrowing will hit the debt ceiling by May 16. The amount of debt subject to the limit can fluctuate on a daily basis, and there are steps the department can take to stave off the day of reckoning.
Econ Comments
CNN: Money | American standard: Wall Street piles on the debt
The U.S. economy won't be hitting junk status anytime soon. Well, unless it is what it eats.
Cato Institute | Cutting Expenditure Is A Good Thing
The U.S. faces a fiscal meltdown because government undertakes activities that are not necessary or useful functions of government.
Blogs
Political Calculations | Writing a Better Balanced Budget Amendment
Back on 3 February 2011, a number of Republican party members in the U.S. Senate introduced Senate Joint Resolution 5, which proposes to amend the U.S. Constitution to require the U.S. Congress to balance the annual budget of the U.S. federal government. The resolution has since been signed on by all the Republican members of the U.S. Senate.
NRO: The Corner | Changes on the State and Municipal Pension Front
State and local pensions always seemed to be a sacred cow, but in recent days I have been reading more and more stories about how states and local governments are slowly but surely making changes to their pension plans.
Heritage Foundation | States Take Action to Combat $1.26 Trillion Shortfall
Wisconsin and Ohio, both of which made headlines for working to get pension costs under control, aren’t the only ones taking action.
WSJ: Real Time Economics | Why Do We Have a Debt Ceiling Anyhow?
On the face of it, a federal debt ceiling seems strange. Congress passes spending bills and tax bills, and those decisions lead to bigger or smaller deficits — or once upon a time surpluses — depending on what happens with the economy.
CNN: Money | Lobbyists stir about debt ceiling
The Treasury estimates U.S. borrowing will hit the debt ceiling by May 16. The amount of debt subject to the limit can fluctuate on a daily basis, and there are steps the department can take to stave off the day of reckoning.
Econ Comments
CNN: Money | American standard: Wall Street piles on the debt
The U.S. economy won't be hitting junk status anytime soon. Well, unless it is what it eats.
Cato Institute | Cutting Expenditure Is A Good Thing
The U.S. faces a fiscal meltdown because government undertakes activities that are not necessary or useful functions of government.
Blogs
Political Calculations | Writing a Better Balanced Budget Amendment
Back on 3 February 2011, a number of Republican party members in the U.S. Senate introduced Senate Joint Resolution 5, which proposes to amend the U.S. Constitution to require the U.S. Congress to balance the annual budget of the U.S. federal government. The resolution has since been signed on by all the Republican members of the U.S. Senate.
NRO: The Corner | Changes on the State and Municipal Pension Front
State and local pensions always seemed to be a sacred cow, but in recent days I have been reading more and more stories about how states and local governments are slowly but surely making changes to their pension plans.
Heritage Foundation | States Take Action to Combat $1.26 Trillion Shortfall
Wisconsin and Ohio, both of which made headlines for working to get pension costs under control, aren’t the only ones taking action.
WSJ: Real Time Economics | Why Do We Have a Debt Ceiling Anyhow?
On the face of it, a federal debt ceiling seems strange. Congress passes spending bills and tax bills, and those decisions lead to bigger or smaller deficits — or once upon a time surpluses — depending on what happens with the economy.
Employment
News
Fox Business | Nokia to Axe 7,000 Jobs in Turnaround Plan
The largest phone maker by volume, Nokia (NOK) is cutting 7,000 jobs and outsourcing its legacy Symbian software in an effort to reduce expenses by 1 billion euros by 2013 as part of a massive overhaul.
Fox Business | Nokia to Axe 7,000 Jobs in Turnaround Plan
The largest phone maker by volume, Nokia (NOK) is cutting 7,000 jobs and outsourcing its legacy Symbian software in an effort to reduce expenses by 1 billion euros by 2013 as part of a massive overhaul.
Tuesday, April 26, 2011
General Economics
News
CNN Money | State retiree benefits gap grows to $1.26 trillion
States are $1.26 trillion in the hole when it comes to their pension and retiree health obligations, according to a report released Tuesday.
CNN Money | Home prices near 'double dip'
Home prices in February sank 3.3% to just above the post-crisis lows reached in April 2009. It was the eighth straight month of declines.
CNN Money | Is the economy losing its mojo?
Inflation took a big bite out of the recovery in the beginning of the year, according to the latest forecasts, which have plummeted over the last several weeks.
National Journal | Frank: Cut Defense Budget, Reexamine NATO
Financial Services chair talks debt ceiling and military spending.
Yahoo | Oil slips as dollar gains, gasoline up for 34th straight day to $3.86 per gallon
The price of crude oil was stable Monday, dipping one cent to settle at US$112.28 per barrel on the New York Mercantile Exchange as the U.S. dollar pulled back from lows set earlier in the day..
Econ Comments
RCM | Let's Put to Bed the 'America Is Bankrupt' Myth
To read economic and political commentary with any kind of frequency is to be bombarded daily - and hourly for that matter - with breathy articles about a United States groaning under deficits that surely signal bankruptcy, Social Security checks that eventually won't clear, and of course a looming financial crisis. A recent New York Times column by noted deficit scold David Stockman naturally referenced America's "desperate" financial situation.
NRO | In Search of Petrovillains
The Delegator-in-Chief has announced the creation of yet another inert task force, this one forced upon the attorney general and tasked with examining the role of “traders and speculators” in skyrocketing gasoline prices.
NRO | The Welfare State and the Selfish Society
Capitalism teaches people to work harder; the welfare state teaches people to want harder. Which is better?
AEI | Even US Can't Afford Generous Defined Benefits Systems
The defined benefit is dying. Barack Obama is struggling to keep it alive, but it's apparent that it's something that even as bounteously rich a society as ours can't afford.
Blogs
Reason | The Myth of Homeownership Wealth Creation
Homeownership is a decent savings account that grows with inflation, but it is not a wealth builder as many believe
Minyanville | Lasting Effects of Japan's Earthquake on China, Global Economies
Expect to see some downside surprises in China's PMIs as a result of a trade slowdown with Japan.
WSJ: Real Time Economics | Economists React: New Home Sales
New home sales rebounded 11% in March from the record-low they plumbed a month earlier. The number of new homes on the market slipped to 183,000, the lowest level since 1967 – but so few new homes are being sold it would still take more than 7 months to exhaust that supply. Economists react:
The Atlantic | What a Crisis Looks Like
There's been some discussion over the last few days of what is going to happen if China starts reducing its position in US Treasuries. Seeking Alpha has a good summation of the problem:
Café Hayek | Will Wilkinson on Paul Krugman
Agree with him or not (I nearly always do agree with him), the Economist‘s Will Wilkinson is unfailingly worth reading and pondering. His latest essay is an excellent example.
WSJ: Real Time Economics | How Gasoline Price Hikes Affect Buying Choices
A dollar is a dollar. So if rising prices cut into our purchasing power, textbook economics suggests that we’d carefully weigh all our buying decisions to determine where to cut back, and by how much.
The American | Green Energy: Don’t Envy Germany
Germany’s promotion of renewable energies is commonly portrayed as setting a standard for the rest of the world. It is instead a cautionary tale.
Reports
RCM: Wells Fargo | New Home Sales Jumped in March, but Still at Low Level
New home sales rose 11.1 percent in March to a 300,000-unit annual pace. Previous months’ data were upwardly revised by a net 32,000 units. Median and mean home prices both fell on a year ago-basis.
CNN Money | State retiree benefits gap grows to $1.26 trillion
States are $1.26 trillion in the hole when it comes to their pension and retiree health obligations, according to a report released Tuesday.
CNN Money | Home prices near 'double dip'
Home prices in February sank 3.3% to just above the post-crisis lows reached in April 2009. It was the eighth straight month of declines.
CNN Money | Is the economy losing its mojo?
Inflation took a big bite out of the recovery in the beginning of the year, according to the latest forecasts, which have plummeted over the last several weeks.
National Journal | Frank: Cut Defense Budget, Reexamine NATO
Financial Services chair talks debt ceiling and military spending.
Yahoo | Oil slips as dollar gains, gasoline up for 34th straight day to $3.86 per gallon
The price of crude oil was stable Monday, dipping one cent to settle at US$112.28 per barrel on the New York Mercantile Exchange as the U.S. dollar pulled back from lows set earlier in the day..
Econ Comments
RCM | Let's Put to Bed the 'America Is Bankrupt' Myth
To read economic and political commentary with any kind of frequency is to be bombarded daily - and hourly for that matter - with breathy articles about a United States groaning under deficits that surely signal bankruptcy, Social Security checks that eventually won't clear, and of course a looming financial crisis. A recent New York Times column by noted deficit scold David Stockman naturally referenced America's "desperate" financial situation.
NRO | In Search of Petrovillains
The Delegator-in-Chief has announced the creation of yet another inert task force, this one forced upon the attorney general and tasked with examining the role of “traders and speculators” in skyrocketing gasoline prices.
NRO | The Welfare State and the Selfish Society
Capitalism teaches people to work harder; the welfare state teaches people to want harder. Which is better?
AEI | Even US Can't Afford Generous Defined Benefits Systems
The defined benefit is dying. Barack Obama is struggling to keep it alive, but it's apparent that it's something that even as bounteously rich a society as ours can't afford.
Blogs
Reason | The Myth of Homeownership Wealth Creation
Homeownership is a decent savings account that grows with inflation, but it is not a wealth builder as many believe
Minyanville | Lasting Effects of Japan's Earthquake on China, Global Economies
Expect to see some downside surprises in China's PMIs as a result of a trade slowdown with Japan.
WSJ: Real Time Economics | Economists React: New Home Sales
New home sales rebounded 11% in March from the record-low they plumbed a month earlier. The number of new homes on the market slipped to 183,000, the lowest level since 1967 – but so few new homes are being sold it would still take more than 7 months to exhaust that supply. Economists react:
The Atlantic | What a Crisis Looks Like
There's been some discussion over the last few days of what is going to happen if China starts reducing its position in US Treasuries. Seeking Alpha has a good summation of the problem:
Café Hayek | Will Wilkinson on Paul Krugman
Agree with him or not (I nearly always do agree with him), the Economist‘s Will Wilkinson is unfailingly worth reading and pondering. His latest essay is an excellent example.
WSJ: Real Time Economics | How Gasoline Price Hikes Affect Buying Choices
A dollar is a dollar. So if rising prices cut into our purchasing power, textbook economics suggests that we’d carefully weigh all our buying decisions to determine where to cut back, and by how much.
The American | Green Energy: Don’t Envy Germany
Germany’s promotion of renewable energies is commonly portrayed as setting a standard for the rest of the world. It is instead a cautionary tale.
Reports
RCM: Wells Fargo | New Home Sales Jumped in March, but Still at Low Level
New home sales rose 11.1 percent in March to a 300,000-unit annual pace. Previous months’ data were upwardly revised by a net 32,000 units. Median and mean home prices both fell on a year ago-basis.
Health Care
News
National Journal | Vermont Closing In on Single-Payer System
The Senate gave preliminary approval Monday to create a government-run health care system that Democratic Gov. Peter Shumlin advocated during his election campaign in 2010. The bill, a version of which already passed the state House, would give Vermont a Canadian-style health care system by the end of the decade.
National Journal | Lobbyists See a 'Second Doc-Fix' With Health Law's Medicaid Pay Bump
Physician groups are asking lawmakers to make indefinite a temporary increase in Medicaid payments, according to several sources involved with the discussions.
Econ Comments
Politico | Don Berwick: Paul Ryan's plan is real rationing
The man Republicans have derided as the “rationer-in-chief” charges that Republicans’ own budget proposals would end up rationing care to millions of Americans on Medicare and Medicaid.
National Journal | Vermont Closing In on Single-Payer System
The Senate gave preliminary approval Monday to create a government-run health care system that Democratic Gov. Peter Shumlin advocated during his election campaign in 2010. The bill, a version of which already passed the state House, would give Vermont a Canadian-style health care system by the end of the decade.
National Journal | Lobbyists See a 'Second Doc-Fix' With Health Law's Medicaid Pay Bump
Physician groups are asking lawmakers to make indefinite a temporary increase in Medicaid payments, according to several sources involved with the discussions.
Econ Comments
Politico | Don Berwick: Paul Ryan's plan is real rationing
The man Republicans have derided as the “rationer-in-chief” charges that Republicans’ own budget proposals would end up rationing care to millions of Americans on Medicare and Medicaid.
Taxes
News
CNN Money | America's richest tax breaks
Today, there are dozens of tax credits, deductions and exclusions that cost federal coffers more than $1 trillion a year. That's a little more than a third of all annual federal spending.
Econ Comments
Washington Times | NUGENT: Punishing the producers
Obama’s class-warfare strategy will only make the deficit larger.
Blogs
NRO: The Corner | The Internet Tax Threat Is Here Again
The issue is back and states are arguing, once again, for a way to put their hands on some of the cash made by out-of-state companies that sell you good and services on the Internet.
Reports
Heritage Foundation | A Rose by Any Other Name: Clarity on Tax Hikes
A tax hike occurs when, as a consequence of a change in the tax law, total tax receipts are projected to be higher than they would be under current policy using traditional quasi-static scoring employed by the Treasury Department and by the congressional Joint Committee on Taxation.
CNN Money | America's richest tax breaks
Today, there are dozens of tax credits, deductions and exclusions that cost federal coffers more than $1 trillion a year. That's a little more than a third of all annual federal spending.
Econ Comments
Washington Times | NUGENT: Punishing the producers
Obama’s class-warfare strategy will only make the deficit larger.
Blogs
NRO: The Corner | The Internet Tax Threat Is Here Again
The issue is back and states are arguing, once again, for a way to put their hands on some of the cash made by out-of-state companies that sell you good and services on the Internet.
Reports
Heritage Foundation | A Rose by Any Other Name: Clarity on Tax Hikes
A tax hike occurs when, as a consequence of a change in the tax law, total tax receipts are projected to be higher than they would be under current policy using traditional quasi-static scoring employed by the Treasury Department and by the congressional Joint Committee on Taxation.
Monetary
News
CNN: Money | How the Fed has (and hasn't) fixed the economy
After the Federal Reserve announces its latest monetary policy decision, Chairman Ben Bernanke will have to face the media and answer for the Fed's actions.
Bloomberg | Fed Confidence in Transitory Inflation Hinges on Low Wage Gains
Brady Miller is paying more for vinyl siding for his construction business and for groceries to feed his family. He can’t charge customers more, showing why some Federal Reserve officials say inflation will ease.
Econ Comments
Minyanville | Trading Chinese Stocks on Inflation Fears
As monetary policy tightening increases along with a rise in inflation, investors must pick their spots wisely.
WSJ | Bernanke's Inflation Paradox
The Fed said it wanted higher prices. Voila!
Minyanville | On Inflation and Money Illusion
Money illusion is a lot of fun until you realize that crisp new dollar bill is not worth the paper on which it is printed.
CNN: Money | How the Fed has (and hasn't) fixed the economy
After the Federal Reserve announces its latest monetary policy decision, Chairman Ben Bernanke will have to face the media and answer for the Fed's actions.
Bloomberg | Fed Confidence in Transitory Inflation Hinges on Low Wage Gains
Brady Miller is paying more for vinyl siding for his construction business and for groceries to feed his family. He can’t charge customers more, showing why some Federal Reserve officials say inflation will ease.
Econ Comments
Minyanville | Trading Chinese Stocks on Inflation Fears
As monetary policy tightening increases along with a rise in inflation, investors must pick their spots wisely.
WSJ | Bernanke's Inflation Paradox
The Fed said it wanted higher prices. Voila!
Minyanville | On Inflation and Money Illusion
Money illusion is a lot of fun until you realize that crisp new dollar bill is not worth the paper on which it is printed.
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