Soft and Hard
In "What's Your Favorite 'On the Ground' Recession Indicator?" California-based author and publisher of the Of Two Minds blog (a longtime favorite of mine), Charles Hugh Smith, writes about an interesting development in his neck of woods:
I've sold a few cars myself at
the local "sell your own car" lot, so I know it's reputable and a model
that works for buyers and sellers. For a flat fee, you park
your car on their lot and price it however you want. Potential buyers
get to test-drive it, take it to their mechanic, etc. It's a big lot, so
the selection of cars and prices is suggestive of larger trends--at
least to me.
Back in 2009 at the initial depths of the
recession, the used Toyotas and Hondas vanished and the lot filled with
Volvos and other big-car-payment brands. I took this to reflect people
were ditching their car payments and snapping up older reliable cars
they could buy for cash and get another 100,000 miles out of.
55 Interesting Facts About The U.S. Economy In 2012
How
is the U.S. economy doing in 2012? Unfortunately, it is not doing
nearly as well as the mainstream media would have you believe. Yes,
things have stabilized for the moment but this bubble of false hope will
not last for long. The long-term trends that are ripping our economy
and our financial system to shreds continue unabated. When you step
back and look at the broader picture, it is hard to deny that we are in
really bad shape and that things are rapidly getting worse. Later on in
this article you will find a list of interesting facts that show the
true state of the U.S. economy. Hopefully many of you will find this
list to be a useful tool that you can share with your family and
friends. Each day the foundations of our economy crumble a little bit
more, and we need to wake up as many Americans as we can to what is
really going on while there is still time. We have accumulated way too
much debt, we consume far more wealth than we produce, millions of our
jobs are being shipped overseas, our big cities are decaying, family
budgets are being squeezed more than ever, poverty is rampant and we
have raised several generations of Americans that expect the government
to fix all of their problems. The U.S. economy is at a crossroads, and
the decisions that the American people make in 2012 are going to be
incredibly important.8 Reasons Why The Greek Debt Deal May Not Stop A Chaotic Greek Debt Default
The
global financial system is not a game of checkers. It is a game of
chess. All over the world today, news headlines are proclaiming that
this new Greek debt deal has completely eliminated the possibility of a
chaotic Greek debt default. Unfortunately, that is simply not the
case. Rather, the truth is that this new deal actually "sets the table"
for a Greek debt default. When I was studying and working in the legal
arena, I learned that sometimes you make an agreement so that you can
get the other side to break it. That may sound very strange to the
average person on the street, but this is how the game is played at the
highest levels. It is all about strategy. And in this case, the new
debt deal imposes such strict conditions on Greece that it is almost
inevitable that Greece will fail to meet some of them. When Greece does
fail, Germany and the other northern European nations may try to claim
that they "did everything that they could" but that Greece just did not
"live up to its obligations". So does this mean that we will definitely
see a chaotic Greek debt default? No. What this does mean is that the
chess pieces are being moved into position for one.10 Signs That America Is Decomposing Right In Front Of Our Eyes
The
decay of society is so much harder to quantify than economic decline
is. The government keeps lots of statistics on things like unemployment
and inflation, but it really does not keep track of how sick and
twisted people are becoming. Most of us recognize that the character of
the American people has changed dramatically over the decades, but
unlike the national debt, you can't easily point to a chart or a graph
to show exactly how bad things are getting. In this article, my
approach will be to point you to various "signs" of social decay. Signs
tell us where we are at now and where we are headed. Some of the signs
that I will use will be statistics while others will simply consist of
anecdotal evidence. Yes, anecdotal evidence is not perfect, but when
you put enough of it together it starts to paint a pretty clear picture
of what is going on out there. America is becoming a truly frightening
place. Our cities our decaying, thieves are becoming bolder, you never
know who you can trust and everyone seems depressed. America is
decomposing right in front of our eyes, and it is time that we all
admitted it.A Referendum on Obama. Michael Boskin
In the attached Project Syndicate video, NAME expands upon the views expressed in this commentary. Click here to watch.
STANFORD – Successful political candidates try to implement the proposals on which they ran. In the United States, President Barack Obama and the Democrats, controlling the House of Representatives and (a filibuster-proof) Senate, had the power to do virtually anything they wanted in 2009 – and so they did.
Obama and his congressional allies enacted an $800 billion “stimulus” bill that was loaded with programs geared to key Democratic constituencies, such as environmentalists and public employees; adopted a sweeping and highly unpopular health-care reform (whose constitutionality will be determined by the Supreme Court this year); imposed vast new regulations on wide swaths of the economy; embraced an industrial policy that selects certain companies for special treatment; engaged in borrowing and spending at levels exceeded only in World War II; and centralized power in Washington, DC (and, within the federal government, in the executive branch and regulatory agencies).
STANFORD – Successful political candidates try to implement the proposals on which they ran. In the United States, President Barack Obama and the Democrats, controlling the House of Representatives and (a filibuster-proof) Senate, had the power to do virtually anything they wanted in 2009 – and so they did.
Obama and his congressional allies enacted an $800 billion “stimulus” bill that was loaded with programs geared to key Democratic constituencies, such as environmentalists and public employees; adopted a sweeping and highly unpopular health-care reform (whose constitutionality will be determined by the Supreme Court this year); imposed vast new regulations on wide swaths of the economy; embraced an industrial policy that selects certain companies for special treatment; engaged in borrowing and spending at levels exceeded only in World War II; and centralized power in Washington, DC (and, within the federal government, in the executive branch and regulatory agencies).
Disaster Can Wait. Barry Eichengreen
SHANGHAI
– Nowadays there is no shortage of pundits, economic or otherwise,
warning of impending disaster. If right, they are hailed as seers; if
wrong, chances are that no one will remember. So here’s a forecast:
there will be no shortage of predictions that 2012 is shaping up as a
disastrous year.
My view is different: 2012 will not be a year of crisis, but nor will it bring an end to our current economic troubles. Rather, it will be a year of muddling through.
Many people think that 2012 will be the make-or-break year for Europe – either a quantum leap in European integration, with the creation of a fiscal union and the issuance of Eurobonds, or the eurozone’s disintegration, igniting the mother of all financial crises.
My view is different: 2012 will not be a year of crisis, but nor will it bring an end to our current economic troubles. Rather, it will be a year of muddling through.
Many people think that 2012 will be the make-or-break year for Europe – either a quantum leap in European integration, with the creation of a fiscal union and the issuance of Eurobonds, or the eurozone’s disintegration, igniting the mother of all financial crises.
Countering China's Reach in Latin America
By Alan W. Dowd, ASCF Senior Fellow
Focused
on military operations in the Middle East, nuclear threats in Iran and
North Korea, and the global threat of terrorism, U.S. policymakers have
neglected a growing challenge right here in the Western Hemisphere: the
expanding influence and reach of China.
Eyeing energy resources to keep its economy humming, China is engaged in a flurry of investing and spending in Latin America.
In Costa Rica, China is funding a
$1.24-billion upgrade of the country’s oil refinery; bankrolling an
$83-million soccer stadium; backing infrastructure and
telecommunications improvements; and pouring millions into a new police
academy.
Saudi Arabia Is Arming the Syrian Opposition What could possibly go wrong?. BY JONATHAN SCHANZER
How to Beat Obama The president is far more vulnerable than he thinks on foreign policy. BY KARL ROVE AND ED GILLESPIE
Racing for the exits. By Gayle Tzemach Lemmon
Are we already at war with Iran?. Posted By Thomas E. Ricks
Should Central America's drug violence be considered a global crisis?. By Joshua Keating
In Central America, the escalating drug-related violence involving drug trafficking, transnational and local gangs and other criminal groups has reached alarming and unprecedented levels, significantly worsening security and making the subregion one of the most violent areas in the world. Crime and drug-related violence continue to be key issues of concern in Central American countries. Drug trafficking (including fighting between and within drug trafficking and criminal organizations operating out of Colombia and Mexico), youth-related violence and street gangs, along with the widespread availability of firearms, have contributed to increasingly high crime rates in the subregion. There are more than 900 maras (local gangs) active in Central America today, with over 70,000 members. According to a recent report by the World Bank, drug trafficking is both an important driver of homicide rates in Central America and the main single factor behind the rising levels of violence in the subregion. The countries of the so-called "Northern Triangle" (El Salvador, Guatemala and Honduras), together with Jamaica, now have the world's highest homicide rates.
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