Gross Domestic Product

China Stops Trying To Fool The World; World Is Sorry

China is the latest in a growing line of “command and control” economies that have risen to prominence, captured the imagination of people who find free markets too messy for comfort, and then blown up when it turns out that dictators have no idea how to allocate capital.

Greek Parliament Passes Further Austerity Measures To Unlock €4BN Bailout Loan

After some pointless debate, Greece promised to do even more of what has not worked at all in the past 5 years just to access some more European "bailout" money, the bulk of which will promptly be used to repay (after some more posturing by the Eurogroup in the coming weeks) maturing debt, held by the ECB.

These 9 Charts Explain The Global Economic Slowdown (And Why Central Banks Can't Fix It)

GDP growth has only two basic components: growth in productivity and growth in the workforce size. That’s it. There are two and only two ways you can grow an economy: increase the (working-age) population or productivity. There is no magic fairy dust you can sprinkle on an economy to make it grow.. and the following rather disconcerting charts showing the continuing decline in productivity and major shifts in demographics that are worsening the situation.

No Wonder We're Poorer: Wages' Share Of GDP Has Fallen for 46 Years

The problem is that limiting financialization will implode the system. The status quo now depends on financialization for its profits and taxes, and so ripping the heart out of financial skims and scams will also rip the heart out of the entire status quo. And so 95% of us will continue to get poorer, no matter who's in office.

Why The Obamacare Gold Rush Is Bankrupting America

Our health care system is going to implode under its own weight. National Health Expenditures are approaching 20 percent of gross domestic product — a figure that is expected to about double over the next half century. Obamacare didn’t start the process, but it’s expediting the end. Obamacare did not reform health care system; it merely transformed it to subsidize favored constituents. To pay for all this price gouging, employers are being forced to offer benefits that many workers themselves cannot afford or absorb in lower take home pay.

2.607 Days Later, The "Most Hated Bull Market Ever" Is Now The Second Longest In History

It's official: as of today the bull market that has been mocked as fake, doomed and history’s most-hated just earned a new title: the second-longest ever. And it only took $14 trillion in central bank liquidity, a global, coordinated central bank "put", central banks purchases of Treasuries, MBS, ETFs and corporate bonds,  and nearly 700 rate cuts in the past 7 years to achieve it.

The $2 Trillion Gamble That Saudi Arabia Cannot Win

The Vision for 2030 is mostly smoke and mirrors. Saudi Arabia probably cannot replace the money it will lose if oil goes out of style and so is doomed to downward mobility and very possibly significant instability. It has been a great party since the 1940s; it is going to be a hell of a hangover.

Where It All Went Wrong

The recovery was always hollow or shallow, for a short time in 2014 it just came in a more appealing package; so appealing, the mainstream never looked beyond that cover. With 2015 a wreck and 2016 looking at best more of the same, they just keep right on reciting all the past cliches because to admit the actual circumstances is just too traumatic

The Real Reason Saudi Arabia Killed Doha

Saudi Arabia single-handedly scuttled the Doha meeting, knowing all along that Iran would not participate, with a valid reason. The Russians and others agreed to proceed without Iran, planning to include them at a later date. So if everything was known beforehand, why did the Saudi’s pour cold water on the aspirations of the remaining members, risking its alienation from Russia and the OPEC community? Was it simply Saudi enmity toward Iran? Not exactly. Upon closer scrutiny, we can find the Saudi masterstroke behind Doha.

Pimco Economist Has A Stunning Proposal To Save The Economy: The Fed Should Buy Gold

"In the context of today’s paralyzed political-fiscal landscape how silly is it to suggest the Fed purchase a significantly large quantity of gold bullion at a substantially greater price than today’s free-market level, perhaps $5,000 an ounce?  Admittedly, this suggestion is almost too outrageous to post under the PIMCO logo, but NIRP surely would have elicited a similar reaction a decade ago. But upon reflection, it could be an elegant solution since it flips the boxes on a foreign currency “prisoner’s dilemma”. Most critically, a massive gold purchase has the potential to significantly boost inflationary expectations, both domestic and foreign."