Relevant and even prescient commentary on news, politics and the economy.

“Profits Without Production”

For me, Profits Without Production equates to Profits sans Direct Labor Input. In most manufacture in the US today, Direct Labor Input is an extremely small ~10% of the Cost of Manufacturing which will vary up and down dependent upon the industry. (For the accountants and the purists, this does not include customary or legislative […]

Fed Policy and Bond Yields

Update:  Charts and data after the read more. With the Fed completing a two day meeting and Bernanke holding a press conference today  it may be a good time to make a few comments about bond yields. In an open economy with a current account deficit the equilibrium interest rate is the one that attracts […]

Inflation, Taxes, and Income

To add to the fire Jazz and Steve have kindled, YOY inflation is at its lowest level historically according to the BEA and Next New Deal blog. It does not look like we need austerity policies and a little fiscal fire might put people back to work and stir the economy into growth. “Last Friday, […]

Links on water

From Aguanomics come these links: Fracking is coming to California in a big way. It’s likely that frackers will be heavily regulated on water quality; it’s ironic that farmers are worried that frackers may be polluting, what? More than them? Ironic, isn’t it? Climate change: “Warmer water will kill off most of California’s native fish […]