Econophile's blog

My recent article, "Inflation, Deflation, or Hyperinflation?" apparently missed another weapon in the Fed's arsenal for creating quantitative easing. And it's rather ingenious.

Richmond Fed economist Kartik Athreya recently penned a criticism of economics bloggers that has exploded over the blogosphere. Basically he says that professional, PhD-educated economists can be trusted because of their rigorous methodology. Bloggers (most), he says, aren't to be trusted. Econophile's rebuttal.

This is the fourth and final part of my major four part series dealing with what I feel is the primary question investors must now answer: is our future to be inflation or deflation? The answer has vast implications to our investment planning and decisions for the near term, and possibly for our long term. It is a very complex question with a lot of moving parts involving economics and politics. For those of you who have stuck with me for this series, thanks!

This is Part 3 of a major four part series dealing with what I feel is the primary question investors must now answer: is our future to be inflation or deflation? The answer has vast implications to our investment planning and decisions for the near term, and possibly for our long term. It is a very complex question with a lot of moving parts involving economics and politics.

This is Part 2 of a major four part series dealing with what I feel is the primary question investors must now answer: is our future to be inflation or deflation? The answer has vast implications to our investment planning and decisions for the near term, and possibly for our long term. It is a very complex question with a lot of moving parts involving economics and politics.

This is a major four part series dealing with what I feel is the primary question investors must now answer: is our future to be inflation or deflation? The answer has vast implications to our investment planning and decisions for the near term, and possibly for our long term. It is a very complex question with a lot of moving parts involving economics and politics. This is Part 1.

Lenders are just starting to face up to their bad CRE loans and the decline in CRE values doesn't look encouraging for debt that will roll over from now until 2013. Investors are starting to pick at the market, but can they provide a floor?

This is a look at the downside of boom and bust economics. It is Austrian creed that central banks create the boom-bust cycle. Keynesians and Monetarists take a different view, and generally rule out our Fed as being the "cause" of business cycles. This is the story of a fine local bank that got caught up in the boom-bust cycle without understanding it. The bank cratered and took down many good people with it. Keynes said "in the long term we'll all be dead." Some of these folks don't have that luxury. When will we learn?

President Obama has now become a professional economist, because like most professional economists his unemployment forecast was wrong. The May unemployment data clearly reveals a flattening of the economy.

This article is a look at the US's recovery, Europe's recovery, Asia's (China) recovery, and how they all tie together. While US manufacturing has been improving, mainly because of exports, it is also flattening out. Ditto almost everywhere else. This is a sign of what's coming.

A new study shows that anyone with a smattering of economics is more likely to be a Republican than a Democrat. That's not saying much, but it does show that Democrats are more likely to be ignorant of economics.

Why would BP take on a risky venture like drilling in 5,000' of water without adequate safeguards? I understand that BP may turn out to be incompetent relative to its peers. But they are a public company and as such they are responsible to shareholders and creditors. Why indeed. Here's a hint: their after tax earnings in Q1 were $6.1 billion and the economic damages liability cap was $75 million.

It is obvious that the government's policies to revive the economy are not working. As soon as the stimulus money runs out, we will see GDP backtrack. Instead of trying the same failed policies over again we should try something new. That is, deleveraging the economy. Until that happens the economy will stagnate. (See: Japan) Here are some proposals that will allow the economy to recover, quickly.

David Wessel of the Wall Street Journal laments the fact that Mr. and Ms. America wrongfully scorn the bailouts of Wall Street. He believes the bailouts saved the world. I think Mr. and Ms. America have it right.

Remember the Bushism, "fool me once, shame on -- shame on you. Fool me -- you can't get fooled again." The National Association For Business Economics just came out with their latest forecasts for the economy. That's what brought up the old saying, "Fool me once, shame on you; fool me twice, shame on me" that George W. so magnificently bumbled.