Econophile's blog

For good reason the G-7 held their meeting last week in one of the remotest places on the planet. No protesters, no hordes of nasty press, just good fun doing useless things with their fellow co-conspirators.

Part II of three on Econophile's take on the economy for 2010: Debt, deleveraging, and residential and commercial real estate.

This is the first report of a series of 3 reports on the state of the economy as we enter 2010. Part II will appear Wednesday, and Part III will be posted on Thursday. Econophile, as usual, has a different take.

It's very hard to tell if this increase in employment is real, a temporary bump from stimulus, or a fiction arising from incorrect assumptions used by the BLS. Here's how to read the numbers.

5.7% GDP growth for Q4 2009 is a phantom. Understand that a normal part of the business cycle is to replenish shelves when retailers realize that 90% (or 84%, depending on what you believe) of Americans are working and buy some stuff. But the fundamentals are still bad. It's just the foam off the stimulus brew.

President Obama seems to be tone deaf and his State of the Union address was revealing. His rambling speech continued his theme of Big State control on the one hand yet preaching bipartisanship and fiscal responsibility on the other. This administration and the Democratic leadership is marching us toward European-style welfare socialism and seem incapable of compromise.

China has created a new housing bubble. Here are some excellent reports on what the bubble looks like and some ominous glimpses on how it may end. Like all bubbles it will burst and the economic fallout will impact China's economy and the U.S.'s. The frenzy indicates that the blow-up will occur soon.

The U.S. and Japan face similar economic problems and they are trying to solve them in the same way: fiscal and monetary stimulus. The comparison is eerily similar. It hasn't worked for Japan and it won't work for the U.S. Japan just received a downgrade warning from S&P over their credit rating and the U.S. is not far behind.

Q: Is Avatar a metaphor for "capitalism?" A: Yes, in James Cameron's populist vision of "capitalism." Q: Is the rape of another planet capitalism? A: No. Q: Is the movie left wing Hollywood schlock propaganda? A:Yes. Q: Is the movie marvelous entertainment? A: Yes. Q: Is it also something else? A: Yes.

Forget the Isle of Man, Cayman Islands, Nauru, Liechtenstein, and like havens. The World Securities, Exchanges, and Financial Rules Commission is being planned by the Europeans and the Obama Administration. This is the theme of the World Economic Forum Annual Meeting in Davos.

President Obama used his bully pulpit on Thursday to chastise banks and bankers while announcing a punitive tax on them to assuage an angry populace. Is his rage valid? Should we be angry at banks for making lots of money and then paying out big bonuses?

If it weren’t for Hugo Chávez, my favorite Latin American dictator, life would be pretty dull. The guy is a walking, talking economics lesson. He’s so easy to pick on because he has the Sadim touch (you know, instead of turning things into gold like Midas, he turns things into crap). Everything he has done has moved Venezuela backwards. The people who actually do something productive in the economy hate him. The have-nots love him because he promised them lots of free stuff. But lately his numbers are sinking: his policies don’t work.

This post demonstrates how economic ignorance and megalomania combine for a devastating result for the people of Venezuela. This is a script for Venezuela’s future.

Is it time to head for the hills, stockpile food and ammo, and wait in the bunkers? I get a number of e-mails from readers seeking advice, usually investment advice. Last year I received messages of a theme that can be described as folks who felt The Great Collapse was happening. Armageddon and that type of thing. Here's my advice. Do you agree?

2009 was a game changer, a year that will have profound long-term impacts on our future. These changes are generational. Here are the top 10 economic events of 2009. Understand them well because they will change your future and the future of your children and grandchildren. It won't be good change.

Econophile reveals his personal Christmas Wish List.