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

Corporate/shareholder value, energy market and global warming

Updated: Renewable Germany bailing out Nuclear France   I just read the following in an article by a Mr. Bill McKibben and thought it to be an interesting perspective on why climate change/global warming is being so vigorously denied. If we spew 565 gigatons more carbon into the atmosphere, we’ll quite possibly go right past […]

Screw Austerity, I have a new theme song

by Daniel Becker Being that we’re about to experience austerity because we are convinced we can’t spend money properly such that we actually end up with more after rather than less …  which is very depressing to me and defeatist in presentation, I present my new theme song:  That’s how it goes. I just find […]

Why There’s Little Inflation, In One Easy Graphic

Ex-food and energy, inflation is at 0.9% for the past twelvemonth. Even if you include those in the longer measure, annual inflation has been 1.7%. (Recall that we paid an average of more than $3.00/gallon for most of the Spring of 2010, for instance.) There is a simple reason “everyone” expected higher numbers: they were […]

In One Sentence What Once Took Four LONG Parts

Once Again, D-Squared Explains It All: [T]he Big Mac Index can plausibly claim to be the major methodological forerunner of Freakonomics, as it combines the two methodological techniques of choosing “quirky” instruments more valuable for their amusement value than their validity, and not checking anything to see whether it’s economically meaningful. I’m not certain that […]

I Remember When Mankiw was still a Neo-Keynesian

Cassander, writing at Steve Keen’s Debtwatch,* puts the hammer to those arguing that the death of the patient had nothing to do with the doctor: What a load of bollocks. The “principles of economics” that [N. Gregory] Mankiw champions, and the “More economic research (and teaching)” that [Doug] McTaggart et al are calling for, are […]

UnReal Business Cycle

Via Dr. Black, those RBC models may be missing a variable or two: In April, the rate in the United States rose to 8.9 percent. When the European figures are compiled, it seems likely that the American rate will be higher for the first time since Eurostat began compiling the numbers in 1993…. First, it […]

Will the stimulus package be a pork fest?

by Bruce Webbreader Buffpilot in comments insists the answer is clearly yes on the grounds The Dems, have NEVER, shown fiscal responsibility when in charge of the purse strings (or at least since before LBJ). So you have zero track record to back you up on thinking that the Dems will suddenly cut back government […]

The Winners Compensate the Losers? Thoughts on Armistice Day + 90

Ken Houghton Not Veteran’s Day, which is a U.S. construction to make certain we don’t have to give another Federal holiday to Those Who Served. And arguably not Remembrance Day, the version here in Canada, since (as Rob[ert] Farley notes) there are “only” ten known survivors remaining of The War to End All Wars, which […]

What do we want our economy to do? Misuse of GDP

by Divorced one like Bush(successfully I might add) I had the following quotes sitting around for awhile. Like May of 07. Being that we have a “crisis” with our economy (I have a hard time with the word crisis being used, it implies suddenness, unseen), a new governing philosophy in place and we really, really, […]