consumer

Measuring Well-Being

The Fable of Smith and Jones You moved into a new, upscale neighborhood a few years ago. The two biggest homes in the area were owned by Mr. Smith and Mr. Jones. While the homes were comparable, similarities between the two gentlemen ended there: Mr. Smith had two older model automobiles, maintained his own lawn and property, rarely went on [...]

John Rubino’s Optimism

John Rubino has an excellent post dealing with three major problems that are still unresolved in our economy. These problems, in my opinion, ensure that our economic condition will drag on for years, or collapse into another Great Depression. My guess is that the latter is the more likely outcome. His second problem, dealing with zombie consumers, is the one [...]

The Nonsense of Consumption

One of the most important lessons for a true economist to learn is that consumption is not the lead dog of economic outcomes. Indeed, Steven Horwitz argues it is not even pulling the sled: One of the most pernicious and widespread economic fallacies is the belief that consumption is the key to a healthy economy.  We hear this idea all [...]

Your Eyes or Government Data?

No need for “Green Shooters” or “Kool-Aid drinkers” to read the following. Be comfortable in your rosy world without letting facts intrude. The rest of you, however, better be prepared for what is coming. It is not going to be pretty! In a piece, reminiscent of Groucho Marx’s line, “Who you going to believe — me or your lying eyes?,” [...]

Wake up and Smell Economic Reality

To those still foolish enough (or delusionally optimistic) to believe that our economy has turned the corner and is headed back to pre-2008 days, turn off your TVs and cancel whatever newspapers you are reading. It just ain’t happening and it isn’t about to begin! The post below describes the situation thusly (my emboldening): we are now witnessing are the [...]

Inflation or Deflation – Considered Again

A reasoned view for high inflation is made on Zerohedge. My opinion is that hyperdeflation (if it is defined as 5% or more) does not occur. The level of inflation could be hyper, however. I agree that “Monetisation is now the policy lever of first resort” and that governments will default on a rather massive scale. Albert Edwards Predicts Deflation Followed By [...]

Martenson Sees No Recovery

Here is a good collection of articles from Chris Martenson’s site. These articles show no green shoots, and in no way are consistent with what the government wants you to believe. There is no recovery coming. See recent post about 2010 will be worse. Take a look at Chris’ site. Be sure to watch “The Crash Course” that he provides [...]

Simple Math Suggests No Imminent Recovery Possible

Here is a post from Karl Denninger. It is about Citibank and is outrageous. Apparently it is going on with other credit card issuers as well. This is the sort of thing that, in my opinion, makes meaningful economic recovery impossible.  (Click for a larger copy) Here’s what it says: To continue to provide our customers with access to credit, [...]

Numbers versus Hope

Three Government Reports Point to Fiscal Doomsday (M.W.) Three recently released government reports now point to fiscal doomsday for America; and one of the reports, issued by the Congressional Budget Office (CBO), says so explicitly …

The Notion of Green Shoots is Laughable!

There cannot be a recovery without the consumer. The consumer cannot increase his spending from recent years without increasing his credit load. But he is overleveraged and is in the process of correcting that, despite what the government might want him to do. Consumers seem to be more intelligent, at least in their actions, than our government. Another rapid response [...]