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  Monday, April 21, 2014
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192, 000 Jobs Added in March but Wages Fall
Prof. Peter Morici - 4/6/2014
The economy created 192,000 jobs in March, down from 197,000 in February, and still well below the pace needed to lower underemployment to respectable levels. Those mediocre results are consistent with a broadly underperforming economy.

Slow Growth Continues Despite Abundance of Reasonable Solutions
Prof. Peter Morici - 3/28/2014
The economy grew 2.6 percent in the fourth quarter—hardly the 4 to 5 percent needed to provide enough jobs and restore housing prices to prerecession levels.

Obama Budget Offers Little Relief from Jobs Drought
Prof. Peter Morici - 3/5/2014
Friday, the Labor Department is expected to report the economy added 150,000 jobs in February. This is less than half the pace needed to lower unemployment to an acceptable level, and President Obama’s budget promises little relief.

More than Winter Chill Gripping Housing, Broader Economy
Prof. Peter Morici - 2/25/2014
President Obama and many of the nation’s top economists entered 2014 predicting a breakout year for the economic recovery. However, troubles in the housing sector indicate more difficulties and several more years of mediocre growth lie ahead.

CBO Report Confirms Raising the Minimum Wage to $8.25 Is Best Option
Prof. Peter Morici - 2/19/2014
The recent Congressional Budget Office Report confirms raising the minimum wage in line with inflation to $8.25 is the best course. It would likely not create much additional unemployment, still put billions of dollars in the pockets of the working poor and does less damage to the economy.

Only 113,000 Jobs — How Decadence Breeds Decay!
Prof. Peter Morici - 2/8/2014
The economy created only 113,000 jobs in January, up from 75,000 in December. Colder than normal weather was a factor but that simply does not explain two consecutive months of poor performance. These sad results are consistent with a broadly underperforming economy.

Hate the Super Rich
Joel S. Hirschhorn - 2/1/2014
There are times when hatred is a needed, logical and moral stance to take. Evil, injustice and corruption are fine examples of what to appropriately hate. For the overwhelming majority of people it is now rational to hate the super rich, notably the thousands of billionaires holding most of the world’s wealth and wielding power over political and economic systems. They have been successfully raping the global economy and while doing that have kept increasing their wealth as well as economic inequality afflicting ordinary people. One dollar, one vote describes the new reality.

US Economy Adds Only 74,000 Jobs in December
Prof. Peter Morici - 1/11/2014
The economy created only 74,000 jobs in December well below the 2013 average of 188,000. The Labor Department report indicates stronger growth for the coming year predicted by many economists may not materialize.

Revival of U.S. Automaking Awaits if UAW Will Follow Toyota Model
Prof. Peter Morici - 1/8/2014
American car companies are on the anvil of history. United Auto Workers President Ron Gettelfinger holds the hammer and will determine whether they emerge more competitive or shattered in pieces and sold to foreign investors, says Gary Smyth, a large used car dealer in Fort Worth. In December 2008, at the tail end of his Presidency, George W. Bush granted $17.4 billion in temporary loans on the condition those firms convert two-thirds of their debt into equity. And persuade the UAW to accept stock for one half of what these companies owe to fund retiree he...

Extended Unemployment Benefits Slow Growth, Hoax on the Working Poor
Prof. Peter Morici - 1/7/2014
Reinstating emergency unemployment benefits, as President Obama urges, would slow growth and impose unconscionable burdens on the working poor as well as small businesses such as BloomThat San Francisco or Florida contractors. State governments provide a basic benefit averaging $300 per week for 26 weeks. During the Great Recession, Washington financed additional benefits for as long as 99 weeks. With the recovery in its 55th month, the emergency...

Volcker Rule Arrives with the Hidden Jewel in Dodd-Frank
Prof. Peter Morici - 12/14/2013
U.S. regulators are finally implementing the Volcker Rule, and it may prove the hidden jewel in the Dodd-Frank financial reforms.

Economy Adds 203,000 Jobs, Fed Pull-Back on Bond Purchases Grows Likely
Prof. Peter Morici - 12/9/2013
The Labor Department reported the economy added 203,000 jobs in November, in line with the progress of recent months. Overall, the economy should be stronger in 2014, permitting the Fed to ease back on monthly bond purchases and let longer term interest rates rise modestly.

Barack ‘Adam Smith’ Obama?
Ellis Washington, J.D. - 12/9/2013
“Statistics show not only that our levels of income inequality rank near countries like Jamaica and Argentina, but that it is harder today for a child born here in America to improve her station in life than it is for children in most of our wealthy allies, countries like Canada or Germany or France. They have greater mobility than we do, not less.”

Slowing Growth Clouds Jobs Outlook
Prof. Peter Morici - 11/18/2013
The Labor Department reported the economy created 204,000 jobs in October after adding 163,000 jobs the prior month. This is much better than was expected, but still well below what is needed to bring unemployment down to acceptable levels.

Eurosclerosis Comes to America
Prof. Peter Morici - 11/2/2013
Abroad and at home, President Obama with unprincipled pragmatism is undermining America’s most cherished values, economy and liberties.

US ECONOMIC SWEEP: Obamacare to Jobs
Prof. Peter Morici - 10/27/2013
I. ObamaCare and America's Journey into the Third World

US ECONOMIC SWEEP: From JP Morgan to Obamacare and the Budget
Prof. Peter Morici - 10/20/2013
I. J.P. Morgan's $13 Billion Settlement Casts Doubts of Viability for Customers, about Obama DOJ's Prosecutorial Discretion, according to Michelle Lenkow and Ron Owens, binary options brokers and financial experts. J.P. Morgan's record $13 billion tentative settlement with the Justice Department concerning misrepresented residential mortgage-backed securities does not absolve from criminal charges senior bank officials or the bank as an institution.

Getting Out of the Budget and Debt Morass
Prof. Peter Morici - 10/5/2013
The government shutdown is proving less draconian than presidential warnings, but failing to raise the debt ceiling and default would be another matter.

Syria, Jobs, and GDP in the USA
Prof. Peter Morici - 9/4/2013
I. Hesitation on Syrian Strike Threatens Economic Recovery

GDP Growth Revised Up but Outlook Remains Treacherous
Prof. Peter Morici - 8/30/2013
GDP growth was revised up for the second quarter to 2.5 from 1.7 percent, because the trade deficit was much smaller than originally estimated and investments in inventory were revised upward.

AMERICAN ECONOMIC SWEEP: Obama, Mortgages, and More
Prof. Peter Morici - 8/12/2013
I. Tough Choices behind Obama’s Mortgage Initiative

AMERICAN SWEEP: Economics and Politics in Obama's and Bernanke's World
Prof. Peter Morici - 7/23/2013
I. Easy Money, Opiate of the American Economy

How to Make Taxes Fairer and Abolish the IRS
Prof. Peter Morici - 7/2/2013
Congressional frustration with efforts to get to the bottom of IRS targeting of conservative groups plainly shows the tax agency is dangerous to civil liberties, irrevocably broken and corrupting national politicians. [caisse français étranger bsi] Investigators on Capitol Hill and in the Justice Department may be able to finger a few malefactors but that won’t fix the IRS. The union representing IRS employees is deeply involved in the management of the agency, its leaders have the self-pronounced goal of doing whatever it takes to defeat ...

As Federal Reserve Meets, Ordinary Folks Should Trim Spending
Prof. Peter Morici - 6/18/2013
Is "easy money" lending merely the government's discount promo to jumpstart the economy? Wednesday, the Federal Reserve is expected to indicate when and how quickly it will pull back from its easy money policies. Americans can expect mortgage rates to climb, selling homes to get tougher, and interest rates to increase on credit cards, auto purchases and home equity loans.

Banks Cooking Up another Financial Crisis
Prof. Peter Morici - 6/13/2013
Wall Street is cooking up another crisis-making shoddy loans and selling worthless securities to investors hungry for higher yields than CDs and government bonds offer.

Economy Adds 175,000 Jobs in May but Trouble Ahead
Prof. Peter Morici - 6/9/2013
The Labor Department announced the economy added 175,000 jobs in May, but that is hardly the 360,000 thousand jobs needed each month to bring unemployment down to 6 percent over the next three years.

Forgiving Student Debt Won’t Help Students or Fix Colleges
Prof. Peter Morici - 5/13/2013
College is too expensive, graduates can’t find decent jobs and pay off their loans, and students, parents and educators all share in the blame. Now, President Obama proposes to forgive more student debt and that will make a bad situation worse.

The Economy: Not Random or By Accident
John Gregory - 5/3/2013
What happens when a person gets distracted? "What they were working on or thinking about doesn't get the attention it needs," said Joel Severyn, whose business specializes in double glazing in Manchester. And that is what finger-pointing is all about. "If a problem isn't going away, let's just blame somebody, until they fix it, even if their part in it is small," says small business owner Randy Carlson, an NYC electrician. Where does it end? Find the source.Bear with me as I attemp...

Slash Top Federal Salaries
Joel S. Hirschhorn - 5/3/2013
Are you ready for another insane aspect of American society? Read this and get angry. People on the right want smaller government. People on the left bemoan high unemployment, economic inequality and the huge amounts of money made by corporate executives and Wall Street fat cats that effects everything from the cost of food to print job application to conservatory prices.

Gas and Diamonds: the Russian-Ukrainian Balance of Power
Dr. Andreas Umland - 4/28/2013
While Russia has greatly expanded its natural resource exports in the recent decade, including gold and diamonds, it is not the princess cut diamond rings that are key to the Russian foreign policy, but its energy section. Without Russia, millions of Europeans would be left in the cold. A disruption in the supply of gas, as well as the reduction of other resource exports like gold, diamonds and wood, would have a significant effect on Germany or other economic powers. It appears that, in the future, European Union monitors will observe the flow of Russian gas and diamonds to Europe.

Is Peak Oil Here To Stay?
Angelique van Engelen - 4/15/2013
Oil prices which are feared to linger at their skyrocketing levels longer than ever and taking on the hallmarks of permanency are undermining the prospects of economic growth worldwide, according to BestRatesIn.com on car leasing deals, focusing on Mercedes Benz cars. Oil, as well as and cheap Chinese exports and an expected widening of the US trade deficit, with car leasing companies taking the brunt of it.

Will The Government Help or Hurt Hurricane Sandy victims?
Todd Spodek, Esq. - 2/21/2013
Hurricane Sandy left many devastated, unable to recover because for some people and businesses, loans because impossible to acquire. Even the short term loans and the personal loans are hard to get. Real estate prices have further down. Current mortgage rates today are inconsistent because the banks are having a difficult time pricing housing values. The economy of New York's outer Boroughs as well as other areas h...

USA SWEEP: Jobs, GOP, Fiscal Cliff
Prof. Peter Morici - 1/20/2013
I. Self-Inflicted Wounds Threaten Jobs Market Meltdown

USA SWEEP: Fiscal Cliff, Guns, Jobs, Fed, Trade Deficit
Prof. Peter Morici - 12/20/2012
I. Emerging Fiscal Cliff Deal Could Push Economy into Recession

Soaking the Rich Won’t Solve Much
Prof. Peter Morici - 12/8/2012
To avert the fiscal cliff, President Obama may get Republican cooperation in soaking the rich, but the deal that emerges could put the nation in dire straits by the end of the decade, argue small business accounting services experts. The Budget Act of 2011 requires the President and Congress to cut federal deficits by $1.2 trillion over nine years, or annual defense and non-entitlement outlays automatically will be reduced $107 billion annually on January 1. Also, the Bush tax cuts, payroll tax reductions and other assorted programs expire.

Unemployment Rate Falls: More Adults Discouraged, Quit Looking
Prof. Peter Morici - 12/8/2012
The economy added 146,000 jobs in November, up a bit from 138, 000 in October.

Trade Deficit, Fiscal Cliff Threaten Second Recession
Prof. Peter Morici - 11/11/2012
The Commerce Department reported the deficit on international trade in goods and services was $41.5 billion in September, up from $24.9 billion prior to the economic recovery.

Unemployment Expected to Rise in Final Pre-Election Jobs Report
Prof. Peter Morici - 11/4/2012
Friday, the Labor Department reported that the economy added 171,000 jobs in October and unemployment increased to 7.9 percent.

US ECONOMIC SWEEP: GDP, Presidential Elections
Prof. Peter Morici - 10/27/2012
I. Third Quarter GDP Indicates Little Hope for Better Times

Economy Adds an Uninspiring 114,000 New Jobs
Prof. Peter Morici - 10/5/2012
The economy added 114,000 in September, down from 142,000 in August and not nearly enough to keep pace with population growth.

Outsourcing, China and the Presidential Campaign
Prof. Peter Morici - 9/29/2012
President Obama and Governor Romney each claims they would do better standing up for American workers against unfair trade with China. However, when it comes to outsourcing both have sins to repent.

AMERICAN SWEEP Trade Deficit, Jobs, QE3
Prof. Peter Morici - 9/12/2012
I. Trade Deficit Rises, Stifles Jobs Creation and Smothers Growth

Trade Deficit Stifles Growth
Prof. Peter Morici - 8/22/2012
On August 9, the Commerce Department reported the deficit on international trade in goods and services was $42.9 billion in June.

Pressures Mount on Fed, ECB but Each Can Do Little
Prof. Peter Morici - 8/4/2012
Pressure mounts on the Federal Reserve and European Central Bank to avert another recession, but neither can accomplish much without their governments pursuing more competent economic policies.

Unemployment Rises, Hundreds of Thousands Quit Looking
Prof. Peter Morici - 8/4/2012
The economy added 163,000 jobs in July. Although an improvement over the first quarter, the ranks of the unemployed swelled another 45,000.

ECONOMIC SWEEP: GDP, Fed's Arrows, China, Economic Collapse
Prof. Peter Morici - 7/28/2012
I. Second Quarter GDP Grows Only 1.5 Percent


The Commerce Department reported today the economy grew only 1.5 percent in the second quarter, down from 2.0 percent the previous period.

Consumer spending slowed under the weight of growing pessimism about the effectiveness of President Obama’s economic program, and a growing sense that Governor Romney will not unseat him. The President leads in polls in most swing states, and the President has made clear his intention to double down on interventionist economic policies.

The trade deficit worsened, increasing its drag on...

Jobs Growth Painfully Slow, Unemployed To Remain Too High for Years
Prof. Peter Morici - 7/7/2012
The economy added only 80,000 jobs in June—much less than what is needed to keep up with natural population growth. The unemployment rate was steady at 8.2 percent, largely because another 34,000 unemployed Americans chose not to look for work.

Fed Meets with Few Options As Recession Threatens
Prof. Peter Morici - 6/23/2012
The U.S. economy flirts with recession, but Federal Reserve policymakers meeting today and Wednesday have few options.

Trade Deficit and Unemployment
Prof. Peter Morici - 5/9/2012
I. Fix the Trade Deficit to End Jobs Drought

The $600 billion annual deficit is the most significant barrier to achieving a robust economic recovery and creating jobs, and oil and consumer goods from China account for virtually the entire problem.

Economists agree the pace of economic recovery has been too slow, because of too little demand for what Americans make.

Consumers are spending again—the process of winding down household debt that followed the Great Recession ended more than a year ago; however, too many consumer dollars go abroad to purchase Middle East oil an...

Why Johnny Can’t Pay His Student Loans
Prof. Peter Morici - 5/3/2012
Young people face a cruel irony. Most can’t land a decent job without a college education, yet many graduates are locked into poorly paying positions that don’t permit repayment of student monthly installment loans.

Beyond Elections
Ron Coody - 4/30/2012
Pick up a dollar bill and have a look at it. You'll find, in addition to some rather elaborate decorations meant to foil counterfeiting, the simple phrase, "In God We Trust." When taking the time to really read that overly familiar phrase that passes under our hands countless times each day, one question that arises is, are we telling the truth? Do we really trust in God?

Economic Outlook: Economies Slows in First Quarter, Weaker Jobs Growth Likely
Prof. Peter Morici - 4/13/2012
The economy grew at a 3 percent annual rate in the 4th quarter of 2011, but first half growth is likely to disappoint, renewing upward pressures on unemployment.

In speech, Obama runs from his record on the economy, blames Republicans instead
Prof. Peter Morici - 4/6/2012
In a speech in Washington delivered at the annual Associated Press luncheon Tuesday, President Obama spoke on the economy. And he was at it again—running from his record and blaming Republicans for the pain his actions have

Soon in Your Neighborhood, $8 a Gallon Gas!
Prof. Peter Morici - 4/3/2012
Campaigning for office, President Obama promised to do something about high gas prices but now he is denying he can do much about what Americans pay to drive. He is too modest!

Economic Outlook for 2012
Prof. Peter Morici - 3/27/2012
The economy grew at 3 percent annual rate in the 4th quarter, but first half growth is likely to disappoint, renewing upward pressures on unemployment.

High Gas Prices and the Wisdom of Drilling for Oil
Prof. Peter Morici - 3/14/2012
Gas prices are zooming passed $4 a gallon, and the nation is hardly freer from the grip of imported oil or closer to robust economic recovery. With his approval ratings dropping precipitously, the President is blaming speculators and investigating fraud and at the pump, when this mess is the direct result of failed federal energy policies.

Unemployment steady at 8.3 Percent, Jobs Growth Slows
Prof. Peter Morici - 3/10/2012
The economy added 227,000 jobs in February, down from 284,000 in January and unemployment rate remained 3 percent. Going forward unemployment is not likely to fall much further and may rise again.

Manufacturing Matters, There Is No Other Way Out!
Prof. Peter Morici - 3/5/2012
Barack Obama and his Republican challengers don’t agree about much, but they do agree manufacturing matters and resurrecting America’s factories will be at the center of the fall presidential campaign.

Gas Prices Up, President Wrongly Attacks Critics Again
Prof. Peter Morici - 2/28/2012
When Barack Obama assumed the presidency, gas prices were less than $2 a gallon. He proceeded to shut down deep-water drilling in the Gulf, tightened other federal restrictions on petroleum development, and vetoed the Keystone Pipeline. Now, even with Americans driving not a lot more than three years ago and global growth slowing, gas is nearing $4 a gallon.

Romney, Severely Awful
Joel S. Hirschhorn - 2/24/2012
There are many, many reasons to have low regard for Mitt Romney. All but the totally delusional correctly see him as disingenuous, dishonest, devious and devoid of an authentic set of core beliefs. He is a shill for corporate and rich elites. He is the phony smiling, perfect hair poster jerk for the proverbial one percent. But I now clearly see that there is another, more important reason to feel like vomiting at the thought of President Romney.

Existing Home Sales Underperform Forecast, Prices Down
Prof. Peter Morici - 2/22/2012
The market for existing homes continues in the doldrums, as young couples continue to op for renting and older couples can’t unload homes to retire or relocate to find employment.

Obama: Heroic Assumptions or Real Growth?
Prof. Peter Morici - 2/14/2012
I. Obama Budget Embraces Heroic Growth Assumptions

American Review: GOP, Trade Deficit and Jobs
Prof. Peter Morici - 2/10/2012
I. GOP May Not Deserve to Win

Rick Santorum’s victories in Colorado, Missouri and Minnesota laid bare Mitt Romney’s weaknesses and the GOP’s fading prospects for defeating Barack Obama.

Romney’s advantages are money and organization. His well financed machine overwhelmed opponents in Florida, but he chose not to devote many resources to those beauty contests, and without the advantages of money—and massive attack ads—Mr. Santorum bested him by an average margin of 20 percent.

Mr. Santorum’s principal appeal is social issues and adherence to Republican economic fundamental...

Falling Unemployment Hardly a Game Changer but Obama May Not Need One
Prof. Peter Morici - 2/8/2012
Democrats rejoiced that unemployment fell to 8.3 percent and 247,000 new jobs were added in January, confirming to them President Obama will take them to victory in November.

State of Dysfunction: Fairness, the Economy and Hypocrisy
Prof. Peter Morici - 1/26/2012
In his State of the Union Address, President Obama hammered on two resounding themes—fairness and the economy.

Trade Deficit, Jobs, and Insourcing
Prof. Peter Morici - 1/13/2012
I. Trade Deficit Slows Growth and Blocks Jobs Creation

Unemployment Falls to 8.5 Percent but that May Be as Good as It Gets!
Prof. Peter Morici - 1/8/2012
The economy added 200,000 jobs in December, and unemployment rate fell to 8.5 percent. Going forward unemployment is not likely to fall much further and may rise again.

Saving the Middle Class: Agenda for Economic Renewal
Prof. Peter Morici - 12/30/2011

The hollowing out of the middle class is a potent campaign issue. Almost everyone—even affluent professionals and entrepreneurs—want to identify with the middle class, but increasingly, the genuine middle is a tough place to be.

Since 2000, the median income of working age households has fallen more than 10 percent. With the top 25 percent of earners grabbing a much larger slice of a shrinking pie, income losses for folks in the middle and working classes are much greater.

Lost jobs and stagnant wages have put 100 million Americans—one in three—below or close to the poverty ...

USA: Retail Sales, Obama's Roosevelt
Prof. Peter Morici - 12/14/2011
I. November Retail Sales Indicate Weaker 4th Quarter Growth than Expected

Trade Deficit Blocks Jobs Creation, Growth
Prof. Peter Morici - 12/10/2011
Friday, the Commerce Department reported the deficit on international trade in goods and services was $43.5 billion in October, up slightly from $43.1 billion in September.

Fed’s Assistance to European Only Prolongs the Agony: Euro is a Cruel Hoax on Mediterranean Nations
Prof. Peter Morici - 12/2/2011
Federal Reserve assistance to shore up Europe’s sagging banks may be good geo-politics but it is bad economics. Only abandoning the euro, not printing money and Teutonic austerity, will fix Europe’s banks and economies.

Deficit Talks, Endless Budget Drama: America On the Road to Armageddon
Prof. Peter Morici - 11/18/2011
America’s finances are headed for a train wreck.

By November 23, the Super Committee in Congress must come up with a package to cut the federal deficit by $1.2 trillion over ten years or draconian cuts in defense and discretionary spending follow.

Something still may be cobbled together but the federal deficit would remain too large, and could easily fly out of control. Genuine progress is not possible, because the principals won’t even accept the facts.

Democrats harp that Bush tax cuts, wars and prescription drug plan for seniors caused the deficit to swell to $1.3 tril...

USA: The Economy and Jobs
Prof. Peter Morici - 11/8/2011
I. Trade Deficit Blocks Jobs Creation and Growth

Thursday, the Commerce Department is expected to report the deficit on international trade in goods and services was $46.3 billion in September. This trade deficit is the most significant barrier to jobs creation and growth in the U.S. economy—even more formidable than the federal budget deficit, because its effects are more immediate.

Simply, the U.S. economy suffers from too little demand for what U.S. workers make. Americans are spending again—the process of winding down consumer debt that followed the Great recession ended in ...

Don’t Raise Taxes or Cut Defense to Solve Budget Woes
Prof. Peter Morici - 10/31/2011
Whether the Joint Select Committee on Budget Reduction reaches a deal to reduce the federal deficit by at least $1.2 trillion or stalemates on November 23, Democrats appear intent on handicapping the national economy with higher taxes and imperiling national security by cutting defense. Those are the wrong places to solve the nation’s budget woes.

Perry Tax Plan Little No Sense
Prof. Peter Morici - 10/27/2011
Seeking to jump start his flagging campaign and establish his pro-growth and fiscal responsibility credentials, Governor Rick Perry is unveiling a tax plan that will not jump start the economy and is fiscally irresponsible.

Fed's Tricks, Obama's Mortgages
Prof. Peter Morici - 10/24/2011
I. Obama Mortgage Program Sows another Credit Crisis

USA: Trade Deficit, Jobs, and Taxes
Prof. Peter Morici - 10/15/2011
I. August Trade Deficit $45.6 Billion, Huge Jobs Killer

Pass the China Currency Bill
Prof. Peter Morici - 10/11/2011
The China Currency Bill is the most significant jobs bill Congress could pass. It enjoys the bi-partisan support of nearly 80 Republican and Democratic Senators, yet President Obama and Speaker Boehner oppose it, illustrating both are out of touch with the problems besetting the American economy.

Economy Waffles, Adds Too Few Jobs in September: Dead Cat Bounce Off Terrible August Performance
Prof. Peter Morici - 10/8/2011
The economy added 103,000 jobs in September. Coming off a gain of 57,000 jobs in August, the September performance is more of a dead cat bounce than real progress.

Free Trade Is Failing America
Prof. Peter Morici - 10/4/2011
No economic policy could better serve Americans than genuine free trade but open trade policies are failing Americans.

Comments on the Economy of the United States
Prof. Peter Morici - 9/26/2011
1. Courting another Recession

Stocks are dropping like stones tossed into a summer lake, and the economy dances along the precipice of a second recession.

The U.S. economy is imploding thanks to incompetence in Washington and arrogance on Wall Street. President Obama is hardly the victim of his predecessor’s mistakes as much as his own decisions.

The Great Recession was caused by an imbalance of demand between the United States and Western Europe, on the one hand, and China and other Asian economies, on the other. The latter maintain rigged and undervalued currencies—esse...

What President Obama Needs to Say and Do
Prof. Peter Morici - 9/15/2011
America is in crisis.

The new normal is not good enough. The unemployed can’t find jobs, the old can’t retire and those in between live in constant fear of being tapped on the shoulder and trust into the abyss.

Property values are lower than a snake’s belly, stocks are diving and gold—the “fear asset”—seems the only sound investment.

Thursday the President addresses Congress and is expected to propose ideas that only maintain the status quo, or perhaps do worse.

Infrastructure spending, payroll tax holidays, and unemployment benefits will only replace monies now ...

Economy Needs Policy Overhaul, Not More Tinkering
Prof. Peter Morici - 9/9/2011
U.S. policy needs a complete overhaul to save the economy from a second Great Recession, but instead the President promises more of the same policies that have failed—stimulus spending, higher taxes and onerous, ineffective business regulations and health care costs.

Economy Stalls, No Jobs Added in August
Prof. Peter Morici - 9/3/2011
The economy added no jobs in July. Unemployment stayed constant at 9.1 percent only because so many adults are too discouraged to look for work.

Economic Impact of Hurricane Irene
Prof. Peter Morici - 8/30/2011
Although, initially a Category 1 hurricane and now only a tropical storm, Irene is testing flood-level records in New York City and in much of the Northeast, raising casualty loss estimates to $20 billion. Two days of lost economic activity, over a period of a week, is almost certain, and adds another $20 billion. Longer term, rebuilding and postponed business activity will make up much of the near term impact on the economy.

Jobs Report Will Offer Little Evidence Washington’s Policies Lifting Economy: An American Policy of Decline by Design
Prof. Peter Morici - 8/30/2011
Friday, forecasters expect the Labor Department to report the economy added only 67,000 jobs in August—my estimate is 63,000. Either would be much less than the 130,000 the economy must create each month to stay even with adult population growth.

America and the gold standard
Ellis Washington, J.D. - 8/24/2011
By a continuous process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method, they not only confiscate, but they confiscate arbitrarily; and while the process impoverishes many, it actually enriches some.

No Time to Panic – This Is not 2008 Again
Prof. Peter Morici - 8/12/2011
At times of peril, when all around are panicking, the person who stays calm can see the facts, act prudently, and not merely survive, but prosper. No doubt, readers have heard that before, but this is a good time to remember it.

Comments on Current Economic Issues
Prof. Peter Morici - 8/10/2011
I. Fixing Markets, the Economy Must Begin in the Oval Office

US Dollar, Bonds to Benefit from Debt Downgrade
Sam Vaknin, Ph.D. - 8/8/2011
In August 2011, the rating of US debt was downgraded by Standard and Poor's. The other major rating agencies, Moody's and Fitch, left the USA's top-notch AAA

Economy Adds 117,000 Jobs in July
Prof. Peter Morici - 8/8/2011
The economy added 117,000 jobs in July. While not a stellar performance, those were more jobs than were expected by forecasters, and more than the 46,000 posted in June.

President and Tea Party Win Big, the National Interest Be Damned
Prof. Peter Morici - 8/1/2011
In the debt ceiling melodrama, the President and Tea Party each had political objectives and national interests to serve. Politics won out.

Semantic Propaganda Feeds Stupidity
Joel S. Hirschhorn - 7/29/2011
We would already have had a much needed American revolution in response to the tyranny of the money-fed two-party plutocracy that is destroying the middle class except for one big problem: so much of the American population is just plain stupid. Too stupid to behave like angry Greeks and rise up in the streets to rebel against the dysfunctional government.

Cognitive Dissonance and the Debt-Ceiling Morass: No Budget Deal Possible until the Adults Come to Play
Prof. Peter Morici - 7/27/2011
Cognitive dissonance—a refusal to accept objective facts that define rational behavior—is at the root of impending disaster in Washington.

Notes on USA's Deficit Drama and Beyond
Prof. Peter Morici - 7/25/2011
I. America’s Permanent Deficit Problems: On the Road to Armageddon

Solutions to Slow Growth and Job Creation
Prof. Peter Morici - 7/21/2011
The Commerce Department reported the May deficit on international trade in goods and services increased to $50.2 billion up from $43.6 billion in when the economic recovery began.

Funding the Government after August 2: Running QE2 in Reverse
Prof. Peter Morici - 7/19/2011
If the debt ceiling talks fail, is August 2 really the drop dead date for a U.S. default?

Debt Ceiling Deal a Prelude to Ultimate Default
Prof. Peter Morici - 7/15/2011
President Obama wants a big deficit reduction deal—a long term solution to the nation’s unbalanced finances. Yet, what the President and Republicans propose—even if both could accept much of what the other offers—would only delay the inevitable. Like Greece, America’s finances will grow worse and worse.

Republicans Need New Taxes, President Obama Does Not
Prof. Peter Morici - 7/12/2011
President Obama hardly needs more taxes to slash the federal deficit but Congressional Republicans do need new taxes to survive politically.

Another Disappointing Jobs Report
Prof. Peter Morici - 7/9/2011
The economy added only 18,000 jobs in June, after posting a lackluster 25,000 gain in May. Jobs creation remains moribund and inadequate to appreciably dent unemployment, because the economic recovery is simply not gaining steam.

Consumer Confidence Data Shows Second Recession a Big Risk: “Bipartisan” CBO Peddling Obama’s Low Growth Hoax
Prof. Peter Morici - 7/4/2011

Consumer confidence continues to slip indicating the May slowdown in jobs creation, retail sales, and personal income and spending continues into June. Second quarter GDP growth could be worse than the tepid 1.9 percent registered in the first quarter, indicating a second recession is in the wings.

The Conference Board Index of Consumer Confidence fell to 58.5 in June—below forecasters’ expectation and the prior month figure of 61.7.

Importantly, more and more Americans say jobs are hard to find and don’t see the job market getting better anytime soon. They see inflation risi...

No Default, Shutdown Not Inevitable if Debt Ceiling Talks Fail
Prof. Peter Morici - 6/30/2011
The United States does not have to default on its debt, and the social security and Medicare checks can go out even if Republicans and President Obama cannot strike a deal to raise the debt ceiling by August 2.

An American Weimar Republic
Ellis Washington, J.D. - 6/30/2011
There are two ways to conquer and enslave a nation. One is by the sword, the other is by debt.

Federal Reserve Ending QE2 - Much Ado about Nothing
Prof. Peter Morici - 6/22/2011
The Federal Reserve will soon conclude its $600 billion in bond purchases. Not much will happen, because QE2 was as inconsequential as one hand clapping.

Trade Deficit Slows Recovery, Jobs Creation: Cutting Trade Gap in Half Would Create Up to 5 Million Jobs
Prof. Peter Morici - 6/13/2011
The Commerce Department reported the April deficit on international trade in goods and services increased to $43.7 billion up from $27.1 billion in when the economic recovery began.

Pick Your Poison
Joel S. Hirschhorn - 6/10/2011
One of the hardest truths to accept is that for most sources of pain hitting humans there seems to be nothing effective for government to do. Nowadays, those of us who do not gobble various distractions but work to stay connected to reality see two dreadful conditions. Nature seems mad as hell.

Avoiding a Double Dip Recession, or Worse
Prof. Peter Morici - 6/8/2011
Jobs creation, industrial production and car sales are slipping, and consumer confidence and stock prices have turned south. The U.S. economy may be tumbling into a second recession or worse, hitting the mat for good. Solutions are at hand, but politicians—and voters—won’t embrace what needs doing.

Lessons from Euroland for the United States
Prof. Peter Morici - 6/7/2011
Greece’s finances are out of control. Its bonds are downgraded to junk; and without a German and European Central Bank bailout, it will be forced to restructure its debt.

Economy Creates Only 54,000 Jobs in May: Faltering Recovery Casts Shadow on Jobs Outlook
Prof. Peter Morici - 6/4/2011
Friday, the Labor Department reported the economy added only 54,000 jobs in May, indicating the economic recovery is faltering. Washington has not addressed structural problems that caused the Great Recession—unnecessary dependence on high priced imported oil, the huge trade deficit, burdensome health care costs, and a tax structure that disadvantages U.S. based businesses—even though reasonable solutions are at hand.

Home Sales, Gas Prices and Stocks
Prof. Peter Morici - 5/24/2011
On May 20, the National Association of Realtors reported existing home sales were 5.05 million in April, down slightly from 5.1 million in March but down significantly from 5.8 million last April.

The Risk of U.S. Default and Return of the Gold Standard
Prof. Peter Morici - 5/13/2011
Gold is selling for close to $1500 an ounce, up from $258 in 2001.

Trade Deficit Jumps on Higher Oil Prices
Prof. Peter Morici - 5/11/2011
The Commerce Department reported the deficit on international trade in goods and services was $48.2 billion in March, up from $45.4 billion in February. The deficit on oil surged $5.8 billion on higher prices and increased volumes.

Jobless Claims Soar, Economy May Be Headed for Second Recession: Rising Gas Prices, Deficit Woes Cast Shadow on Jobs Outlook
Prof. Peter Morici - 5/5/2011
The Labor Department reported today new unemployment claims rocketed to 474,000 last week, indicating the recent uptick in hiring may be ending. It appears the economy slowed further in April, as rising gas prices took a bite out of consumer spending, and the lack of resolve to deal with federal budget woes is curbing businesses appetite for risk taking and hiring.

Don’t Raise Debt Ceiling without Radical Reforms
Prof. Peter Morici - 5/2/2011
To raise the debt ceiling, moderate Democrats and Republicans in Congress may compel President Obama to significantly cut spending. Done right, that would be a good thing!

Economics, Politics and Ben Bernanke’s Press Conference
Prof. Peter Morici - 4/29/2011
On Wednesday, Ben Bernanke discussed with reporters decisions taken by the

Gas Prices and the Blame Game
Prof. Peter Morici - 4/26/2011
When gas prices spike, owing to Middle East turmoil or hurricanes, conspiracy theories abound about profiteering speculators. The truth is Americans are suffering from bad energy polices—politicians eager to sell pet projects and hoist blame onto others.

Inflation Moves to Center Stage, Highlights Fed and G20 Impotence
Prof. Peter Morici - 4/18/2011
On Friday, the Labor Department reported consumer prices were up 0.5 percent in March, driven by 3.5 and 0.8 percent jumps in energy and food prices.

Inflation Hits Money and Lies
Joel S. Hirschhorn - 4/18/2011
How do the powerful keep the US population dumb and distracted? A key tactic has been using methodologies that produce totally misleading underestimates of key economic factors. First we learned that official unemployment figures are too low by a factor of two. Now, understand that the official rate of inflation hitting consumers is even more inaccurate. You will hear about a low inflation rate of less than 3 percent. In reality, it is closer to 10 percent, according to the highly regarded analysis by John Williams.

Getting Serious about Reducing the Federal Deficit: President’s Budget Speech Offers Little to Cheer
Prof. Peter Morici - 4/14/2011
President Obama’s plan to balance the budget was a brilliant political speech—highlighting weakness in the Republican deficit reduction proposal drafted by Congressman Paul Ryan—but it offered little new or encouraging that would correct Washington’s troubled finances.

Gas Prices, Consumers and the Economy
Prof. Peter Morici - 4/13/2011
Gasoline prices are soaring passed $4.00 a gallon in many places and driving will continue to be more expensive. Unless consumers are determined to again recklessly pile up credit card debt, higher gas prices will profoundly slow other purchases and the economic recovery.

Fight Economic Oppression, Target the Top One Percent
Joel S. Hirschhorn - 4/13/2011
Massive economic inequality is killing America and we the people. It has already killed American democracy. The rich have captured the political system so they could manipulate the economy and benefit unfairly. Economic freedom and opportunity are gone. Greed among the top one percent has succeeded so well that a true uprising and revolt by Americans, like that seen in Egypt, may be needed to restore America.

Tuesday’s Trade Deficit Report
Prof. Peter Morici - 4/11/2011
Tuesday, analysts expect the Commerce Department to report the deficit on international trade in goods and services was $44.0 billion in February, up from $27 billion in mid-2009, when the economic recovery began.

The Tragedy of the Budget Impasse
Prof. Peter Morici - 4/8/2011
If the government shuts down, the Republicans will likely get the blame but the American people will be the losers.

Despicable Lies, Delusional Recovery
Joel S. Hirschhorn - 4/7/2011
The US government lies. Sure looks like most Americans gobble up false and misleading information that is nothing less than political propaganda. Take the highly hyped unemployment number for March, 2011 of 8.8 percent that moved like a tornado through the media and was praised by Democrat politicians and the White House. As if that number is accurate, as if it fairly describes unemployment. It does not. What is called by experts, such as Leo Hindery, as the real unemployment number was actually 17.7 percent, which is remarkably higher. To appreciate that much higher number is to throw a large bucket of cold water on all the political spin on the economic recovery.

The Budget Follies: Demagoguery and Sophistry Reign
Prof. Peter Morici - 4/5/2011

Federal finances are in shambles, and Americans should be amused if not disgusted by the explanations and solutions both political parties offer.

The President’s budget plan issued in February projects a $1.6 trillion deficit for 2011 and a cumulative shortfall of $11 trillion through 2021.

Things may get worse, as additional revenue and cost savings from health care reforms don’t materialize and the 4 percent growth assumed by the President’s budget for the next four years proves Pollyanna.

Time and again, House Democratic Leader Nancy Pelosi and President Barack Ob...

Train Wreck: Calibrating the Consequences of a Government Shutdown
Prof. Peter Morici - 4/5/2011
The economic consequences of a government shutdown can’t be calibrated on a spreadsheet with an economic model. It all depends on who wins public opinion—Congressional Republicans or the President and Democrats.

Economy Creates 216,000 Jobs in March
Prof. Peter Morici - 4/1/2011
Friday, the Labor Department reported the economy added 216,000 jobs in March. After adding 194,000 jobs in February, this indicates the economy is finally accomplishing momentum. First quarter growth will likely be a bit higher than 3 percent.

The Gathering Strom: Economy Remains too Vulnerable
Prof. Peter Morici - 3/29/2011
The economy picked up in the first quarter. After adding 175,000 jobs in February, economists expect the Labor Department will report on Friday that the economy added 188,000 jobs in March. However, events in Japan, Libya and the wider Middle East, and the European sovereign debt crisis threaten to reverse these gains and thrust the economy into a second recession.

Wisconsin Union Curbs Settle Little
Prof. Peter Morici - 3/14/2011
Wisconsin’s new law curbing public employee unions ends the first skirmish to restore integrity to public sector collective bargaining and sanity to states’ finances. Even if other states adopt similar laws, it won’t provide a politically stable model for public sector collective bargaining.

Rising Trade Deficit Slows Recovery, Jobs Creation
Prof. Peter Morici - 3/9/2011
The Commerce Department reported the deficit on international trade in goods and services was $46.3 billion in January, up from $40.2 billion in December and $27 billion in mid 2009, when the recovery began. Deficits on oil and with China jumped $1.2 and $2.6 billion, respectively, and the overall trade deficit is blocking the creation of 3 million jobs each year.

High Oil, Gas Prices Destroy 600,000 Jobs
Prof. Peter Morici - 3/8/2011
Turmoil in the Middle East and elsewhere have pushed up oil prices more than $20 per barrel, and average gasoline prices from less than $3.00 a gallon to about $3.60. All the additional cash spent on imported oil that does not return to buy exports translates into lost demand for U.S. goods and services, lost growth and fewer jobs. Higher gas prices simply means fewer cell phones, restaurant meals and other good purchased that create jobs.

February Jobs: Don't Break out the Champagne Just Yet
Prof. Peter Morici - 3/5/2011
Finally, the economy appears to be delivering jobs—adding 222,000 private sector jobs and 192,000, after losses in government are subtracted, in February.

Gas Prices, Labor Unrest Cloud Jobs Outlook
Prof. Peter Morici - 3/3/2011
Friday, economists optimistically expect the Labor Department will report the economy added 180,000 jobs in February. This may look like a breakthrough number but caution should be the byword.

The drowned heart of America
Bhuwan Thapaliya - 3/1/2011
“I miss my work,” says John King. “I want to return to my work.” That is easier said than done. In this economy, it has become nearly impossible for many to find a job. Much of the hit was due to the collapse of the auto industry, with car manufacturers and auto lenders taking a massive hit.

Budget Demagoguery: The deficit is $1.6 trillion in 2011
Prof. Peter Morici - 2/14/2011
The annual exercise in obfuscation begins—the President has tabled his 2012 budget and the Congressional Republicans are responding. Neither party is serious about cutting spending.

German Takeover of New York Stock Exchange Is Bad News for the U.S. Economy
Prof. Peter Morici - 2/11/2011
The acquisition by merger of the New York Stock Exchange by Deutsche Borse is bad news for the U.S. economy. However, short of antitrust, the U.S. government is in no position to stop it, and antitrust concerns can be resolved without blocking the merger.

Trade Deficit Drags on Growth and Jobs Creation
Prof. Peter Morici - 2/9/2011
Friday, the Commerce Department to reported the deficit on international trade in goods and services was $40.6 billion in December, up from $38.3 billion in November and $27.1 billion in mid 2009, when the economic recovery began.

Damn the Regulators, Full Speed Ahead: the Dow Heads for 13,000
Prof. Peter Morici - 2/7/2011
The U.S. economy is growing only moderately and the job market remains sluggish, but stocks keep roaring ahead—and they should. American companies are fundamentally undervalued, and unless upheavals in the Middle East or a European debt crisis derail global growth, the Dow is headed for 13,000.

Another Lousy Jobs Report
Prof. Peter Morici - 2/4/2011
Another lousy jobs report!

The economy only added 36, 000 jobs in January and that is terrible.

The unemployment rate fell to 9.0 percent, because the labor force decreased by 504,000 and the working age population shrunk by 185,000.

Despite all the Administration’s claims, things are getting worse, not better. Folks are giving up looking, and the country appears to be losing population to emigration. Many workers are resorting to self employment, not because home-based businesses offer great opportunities, but because real jobs simply are not being created.

The p...

Downgrade U.S. Treasuries to Junk
Prof. Peter Morici - 12/21/2010
With the new tax cuts, rating agencies should downgrade U.S. government debt to junk. Economists, pundits and politicians had little choice but to endorse the tax deal between President Obama and Congressional Republicans, because snapping back to pre-Bush tax rates would crush the economic recovery. But Washington exhibited not even the shadow of self-restraint and cut taxes far beyond what is needed or smart.

Trade Deficit, Ailing Banks Threaten Recovery
Prof. Peter Morici - 12/17/2010
Last friday, the Commerce Department reported the deficit on international trade in goods and services was $38.7 billion in October or 3.6 percent of GDP.

Trade Deficit, Ailing Banks Threaten Recovery
Prof. Peter Morici - 12/10/2010
Friday, analysts expect the Commerce Department to report the deficit on international trade in goods and services was $44.0 billion in October or 3.6 percent of GDP. The trade deficit and crippled regional banks starve U.S. businesses of the customers and capital needed to create jobs and fire up growth.

How to settle your debt
GP Interviews - 12/7/2010
Debt settlement or settlement of your debts is a process where the creditors can help you settle half or less than half the amount of the total amount that you owe a person. Debt settlement has been in practice for centuries now to help people in debt. They help them by coming up with a plan so that they are able to pay their debts. The settlement amount would be close to a ¼ or ¾ of the amount that is left for settling the debt. (Source: www.bestautolenders.com auto lenders report).

Republicans: Compromise to Win an Enduring Majority
Prof. Peter Morici - 12/2/2010
Republicans don’t have a mandate to impose a rigid conservative agenda. Voters want less government and smaller deficits but polls indicate upwards to 80 percent want Republicans to compromise with Democrats to get things done. Like Bill Clinton in 1992, Barack Obama mistook his 2008 victory as a mandate for an aggressive liberal agenda—socialized medicine, bailouts for Detroit and Wall Street, and an obsession with race and gender on everything from preschool enrollment to judicial nominations. Like Clinton, President Obama got his House Speaker fired.

Friday’s Jobs and President Obama’s Reelection Prospects
Prof. Peter Morici - 12/2/2010
Friday, economists expect the Labor Department will report the economy added 168,000 jobs in November, enough to hold unemployment steady at 9.6 percent and far less than should be expected 17 months into an economic recovery. To win re-election President Obama must improve on those numbers. Governing with the new Republican majority in the House offers him the opportunity to adjust policies, as necessary, and present himself to voters as a flexible and capable leader.

Chinese Mercantilism, Not Fed Easy Money, Are Making a Mess
Prof. Peter Morici - 11/30/2010
Ben Bernanke is right. Germany shouldn’t blame easy money in the United States for the world’s woes. Currency mercantilism in China and elsewhere is causing a mess—especially in the United States. Last week, Bernanke fingered China, Taiwan, Singapore, and Thailand for driving down the values of their currencies. Through massive government purchases of U.S. Treasuries securities, those mercantilists accomplish huge trade surpluses and jack up their GDP growth and employment. The flip side is a huge U.S. trade deficit that sentences Americans to slow growth and 10 percent unemployment.

Truth About Global Economic Crisis: Book Review
Prof. Peter Morici - 11/30/2010
You want to read The Global Economic Crisis The Great Depression of the XXI Century, edited by Michel Chossudovsky and Andrew Gavin Marshall, if you meet these criteria: you welcome information and analysis about critically important issues that come from great thinkers outside the mainstream media and publishing world; you can handle brain pain from detailed and brutally honest revelations; you are willing and able to challenge your own biases and preconceptions to let in new explanations of how the world really functions.

Have Stocks Become a Sucker Bet?
Prof. Peter Morici - 11/30/2010
With corporate profits breaking records, Wall Street anxiously anticipates the return of the individual investors to the stock market. It may be a long wait, because the little guy may have concluded investing in stocks is a sucker bet.

Investors, as opposed to traders, buy stocks in companies whose profits they expect to rise. The conventional wisdom says stock prices will follow profits up, but over the last two business cycles, that simply has not happened.

QE2 and G20 Hypocrisy
Prof. Peter Morici - 11/17/2010
As President Obama heads for the G20, Germany and others cry foul about U.S. Quantitative Easing—QE2 in popular jargon. Seldom has the G20 been treated to such hypocrisy. November 3, the Federal Reserve announced plans to purchase $600 billion in U.S. Treasury securities. Pushing liquidity into bond markets will lower interest rates on mortgages and business loans, and hopefully boost demand for U.S. goods and lower unemployment.

Now, to Fix the Economy!
Prof. Peter Morici - 11/7/2010
American capitalism is broken, and little that newly empowered Republicans and surviving Democrats offer is likely to fix it. American prosperity was built on technology, fair competition and sound finance. From Thomas Edison to Steve Jobs, America was repeatedly transformed by inventors coming up with new products, raising capital and earning fortunes in the marketplace. In established lines, intense competition compelled American enterprises to make and move goods more effectively than businesses abroad. When American companies came up short, foreign competitors like Toyota came here, and domestic businesses like Ford reinvented themselves to re-challenge foreign rivals.

Leaders of the Developed World Need to Focus on Growth, Not Rhetoric
Michael Trinkle - 10/14/2010
Another earnings season has come and gone, and another is quickly approaching. While corporate leaders will surely espouse their prowess at cutting costs and producing after tax earnings like never before, their track record in the developed countries of the world will most likely remain lackluster. (Source: Tote The Note report). Corporations, at least the multi-national ones, are not too terribly bothered by domestic issues when it comes to producing profits for their shareholders. Most all have gravitated in the direction of Asia and Brazil because that is where the growth is these days.

More Infrastructure, Payroll Tax Holidays and Mortgage Aid Won’t End Jobs Drought
Prof. Peter Morici - 9/29/2010
With Congressional Democrats facing a November shellacking, President Obama is floating new programs to aid troubled homeowners and create jobs that will prove costly and ineffective. Despite rock bottom interest rates, residential sales are at historic lows and two million families face foreclosure this year, because Americans need decent jobs to buy homes and pay mortgages.

Don't look to the business world to replace Summers
Prof. Peter Morici - 9/28/2010
The Chairman of the National Economic Council is the gatekeeper to the Oval Office for economic information and principal advisor to the president of policies for economic recovery.

The Decadence of Election 2010
Prof. Peter Morici - 9/22/2010
Americans are justifiably ticked off with both political parties but Election 2010 offers little hope. Democrats, Republicans, and yes the Tea Party offers little that is encouraging. President Obama’s droning complaints about the failures of George Bush, notwithstanding, the current economic quagmire is a bi-partisan creation.

Replacing Larry Summers
Prof. Peter Morici - 9/22/2010
The Chairman of the National Economic Council is the gatekeeper to the Oval Office for economic information, and principal advisor to the President of policies for economic recovery. He prepares the daily brief on all the economic data journalists and analysts report and write about. Hence, replacing him with someone from industry, for example Anne Mulcahy, former chief executive of Xerox, would be a mistake even if that is likely to happen.

Wake Up Obama
Joel S. Hirschhorn - 9/18/2010
If the United States is not kaput it is certainly withering away even as a rich upper class enjoys all the things that money buys. There is massive, widespread economic pain inflicting a huge fraction of Americans who are unemployed, underemployed, relying on food stamps, losing their homes, and who are feeling totally insecure financially. This maintains sluggish consumer spending that makes necessary economic growth impossible.

For Whom The Bell Tolls
Prof. Peter Morici - 7/23/2010
Greece is insolvent. No austerity or new taxes will pay its debts. Like a homeowner owing four times income, belt tightening and a longer repayment period are not enough. Either, the house is sold to clear the debt, or the bank takes back the house.

Worse than the disease
Prof. Peter Morici - 7/18/2010
Washington in the Obama era seems bent on imposing "solutions" that not only fail to solve Americans' problems, but make us poorer in the bargain.

The Fed, the Yuan and the Failure of Diplomacy
Prof. Peter Morici - 7/18/2010
When the Federal Reserve Open Market Committee meets Wednesday, no one expects it to raise the federal funds rate—the overnight bank rate that now hovers below 0.25 percent. However, businesses, politicians and prognosticators are eager, perhaps inappropriately so, to hear clues about when it will begin raising short-term interest rates to a more normal level.

US Economy Stuck in Misery
Joel S. Hirschhorn - 7/10/2010
The middle class is dead. The US has produced a self-sustaining two-class society. Most Lower Class Americans are in bad or uncertain economic shape but the rich and powerful Upper Class crowd keeps making and spending money as if there has been no recession. Talk about a possible double-dip recession misses the larger reality: For many millions of Americans the first recession is still here; there has been no recovery for them. Too bad President Obama cannot comprehend that. Nice that only 23 percent of people believe that his policies have made economic conditions better. Maybe they got...

Understanding the BP Oil Tragedy: Time Blindness
Joel S. Hirschhorn - 7/10/2010
A loss expected to happen next year looks smaller than that same loss happening next week. Worse yet, a loss or catastrophe that may happen (indeed, is highly likely to happen) decades away is essentially invisible, unthinkable or unworthy of attention now. In other words, humans suffer from an intrinsic thinking defect best described as time blindness. It is the inability to correctly foresee and take seriously long term consequences of current actions.

Economy Loses Jobs
Prof. Peter Morici - 7/1/2010
Friday, forecasters expect the Labor Department to report the economy shed about 110 thousand jobs in June and unemployment rose to 9.8 percent. Economists expect the private sector created about 110,000 jobs but government employment dropped twice that amount, as many temporary census jobs disappeared. Twelve months into recovery from such a deep recession, this is a terrible performance. The economy must add 13 million private sector jobs by the end of 2013 to bring unemployment down to 6 percent, and President Obama’s policies are not creating conditions for businesses to hire.

China's cynical currency ploy
Prof. Peter Morici - 6/28/2010
When the Federal Reserve Open Market Committee meets Wednesday, no one expects it to raise the federal funds rate — the overnight bank rate that now hovers below 0.25 percent. However, businesses, politicians and prognosticators are eager, perhaps inappropriately so, to hear clues about when it will begin raising short-term interest rates to a more normal level.

Walking the Peaceful Path of Ludwig von Mises
Ronald Holland - 6/15/2010
Last week, Lew Rockwell posted my essay "In the Summer of 2009" with the title: Smart, Rich People Are Leaving the US. As usual, I received a number of responses both positive and negative.

Most New Jobs Temporary
Prof. Peter Morici - 6/13/2010
The economy added 431 thousand jobs in May but 411 thousand were temporary census jobs. The private sector needs much more supportive government policies to accelerate the economic recovery and jobs creation.

A Double Dip Recession?
Prof. Peter Morici - 6/10/2010
It is the season for economic forecasts, and I have been polled by several published surveys. Here is my response.

Who Needs the Euro Anyway?
Prof. Peter Morici - 6/1/2010
European banks and global financial markets have been roiled by needless artifacts of post-modern Europe—the euro and malignant social safety nets. For decades, European population and economic growth have been perilously handicapped by too generous social benefits that discourage individual risk taking and business entrepreneurship.

Trade Deficit, China Trade Taxes Economic Recovery
Prof. Peter Morici - 6/1/2010
The trade deficit, along with the credit and housing bubbles, were the principal causes of the Great Recession. Now, a rising trade deficit and continued weakness among regional banks threatens to stifle the emerging recovery and keep unemployment near 10 percent through 2011.

Lessons from Greece for the United States
Prof. Peter Morici - 6/1/2010
As the Flash Crash in U.S. equity markets May 6 illustrated, problems in Greece can have grave consequences for not merely other Mediterranean economies and Europe, but U.S. and the broader global economy.

Why Gold Prices Are Soaring
Prof. Peter Morici - 6/1/2010
Gold prices are soaring because of growing inflation fears--both the European Central Bank and the Federal Reserve seem to be on the path to permanently easy money with the Greek bailout and huge U.S. budget deficits.

U.S. Stocks Poised for Big Rally
Prof. Peter Morici - 5/18/2010
The day of the Flash Crash, I was asked at an executive seminar in Jersey City, what impact Greece would have on equity markets. I replied, “It should all be over by Wednesday.”

The Not So Great Economic Recovery
Prof. Peter Morici - 5/18/2010
Americans have the economy scoped. Polls indicate they sense the economy growing again, but many more believe the job market is getting worse than see it improving. Over the next three years, the economy must create nearly 13 million jobs to bring unemployment down to 5 percent—still higher than pre-recession levels. That requires 360,000 jobs every month and economic growth at 5 percent a year. After a deep recession, robust growth is possible if businesses have enough customers and capital, but President Obama’s policies don’t address the underlying causes of the Great Recession. Neither enough demand nor financing are forthcoming.

Economic Power: Avoid Arizona and Boycott BP
Joel S. Hirschhorn - 5/18/2010
Money is power. Each of us has it to varying degrees. Our challenge is to use our spending to advance worthy goals. Right now we see economic power being used against the state of Arizona because of the awful legislation recently passed that makes it all too easy for police there to seek proof of citizenship from virtually anyone they choose. Many groups and government entities have already cancelled conferences and other activities in Arizona , sending state and business leaders into a frizzy. They deserve to suffer as do the vast majority of Arizona citizens that supported the legislati...

Derivatives and Playing the Ponies
Prof. Peter Morici - 5/9/2010
Growing up in the shadow of Belmont Park, I learned success in finance is much like running a book. After all, pari-mutuel wagers are derivatives—contracts to pay contingent on the future value of an asset, namely horse’s ability to finish in the money—win, place or show. Track owners profit from the public’s appetite for risk and reward, much as does Goldman Sachs does writing derivatives, called swaps, on mortgage backed securities for investors choosing long or short positions on foreclosure rates.

Trade Deficit, China’s Currency Require U.S. Action Now
Prof. Peter Morici - 5/9/2010
The Commerce Department reported the February deficit on international trade in goods and services increased to $39.7 billion from $37.0 billion in January. President Hu Jintao has told President Obama that China will not revalue its currency in response to U.S. requests.

Friday’s Jobs Report
Prof. Peter Morici - 5/6/2010
Friday, the Labor Department will release April employment data, and economists are optimistic the economy will show stronger jobs creation.

Obama's Wall Street Rx: This 'fix' won't fly
Prof. Peter Morici - 5/2/2010
President Obama yesterday spoke in New York in support of the bills before Congress that, he said, would "enact a set of updated, commonsense rules to ensure accountability on Wall Street." But would they really do the job -- or, as Mayor Bloomberg has warned, interfere with markets (and slam New York) without preventing a future crisis?

GDP Gains 3.2 in First Quarter, False Spring for the Middle Class
Prof. Peter Morici - 5/2/2010
The Commerce Department reported GDP grew a modest 3.2 percent in the first quarter, further confirming the end of the recession and that the recovery is only moderate and disappointing. Half of the growth came from inventory adjustments, and the prospects for future growth and wage gains are only modest.

Derivatives!
Prof. Peter Morici - 4/24/2010
Derivatives are as ancient as civilization. Greek famers insured crops with investors prepared to speculate on the weather, just as life insurers hedge mortgage-backed securities by purchasing credit default swaps. When written against real assets—farmers’ crops or homes--derivatives spread risk, lower capital costs and foster growth.

Trade Deficit, China’s Currency Require U.S. Action Now
Prof. Peter Morici - 4/14/2010
The Commerce Department reported the February deficit on international trade in goods and services increased to $39.7 billion from $37.0 billion in January. President Hu Jintao has told President Obama that China will not revalue its currency in response to U.S. requests.

Trade Deficit Burdens Economic Recovery
Prof. Peter Morici - 4/11/2010
Tuesday, the Commerce Department will report the February deficit on international trade in goods and services. Analysts expect it to increase to $39.0 billion from $37.3 billion in January. My forecast is in line with the consensus.

Stock Market: Dow Headed for 12,000
Prof. Peter Morici - 4/9/2010
Stocks prices have enjoyed a lot of help in recent months. A moderate recovery—three percent GDP growth expected this year and next—and more robust growth in Asia are good for the profits of large U.S. multinationals.

Jobs Report Confirms Better Policies Needed
Prof. Peter Morici - 4/3/2010
The Labor Department announced the economy added 162,000 jobs, confirming my earlier, more conservative than the consensus forecast of 150,000. As expected, temporary census jobs contributed a significant but not overwhelming 48,000 to the jobs total. The private sector gained 128,000 new positions. This reflects moderate GDP growth—something in the range of three percent for the balance of 2010. Not enough to bring down unemployment, which remains at 9.7 percent.

Friday’s Jobs Report
Prof. Peter Morici - 4/1/2010
Friday, the Labor Department will release March employment data, and economists have been optimistic the economy is finally gaining jobs and the recession has ended.

Breakthrough Jobs Repot Expected
Prof. Peter Morici - 3/29/2010
Economists are looking for a breakthrough employment report that will send the stock market soaring, and buoy Democrats coming off a big win on health care.

Dodd Financial Reforms Won't Fix Banks
Prof. Peter Morici - 3/15/2010
America’s banks are as vulnerable today as before the credit crisis, and reforms offered by Senate Finance Committee Chairman Christopher Dodd won’t fix things.

Economy Sheds More Jobs: Obama’s Policies Not Enough
Prof. Peter Morici - 3/6/2010
The Labor Department reported the economy shed 36,000 jobs in February and the unemployment rate held 9.7 percent. Counting workers compelled to work part time for lack of full time opportunities and discouraged workers that have quit looking, the unemployment rate rose to 16.8 percent.

Friday’s Jobs Report
Prof. Peter Morici - 3/4/2010
Friday, the Labor Department will release February employment figures. Since December 2007, the economy has shed 8.4 million jobs. A sharp uptick in employment would indicate the recession is ending, while more job losses would indicate a double dip recession is more imminent.

Obama’s Budget Task Force Is Clever Politics but Poor Leadership
Prof. Peter Morici - 2/22/2010
President Obama’s budget deficit taskforce is clever politics but poor leadership. Instead of drafting a responsible budget, he seeks to force Republicans to endorse wasteful spending and higher taxes, or be cast as obstructionists. President Bush was no model of austerity. He inherited a $263 billion surplus from Bill Clinton. By fiscal 2007, the year before the Great Recession, the deficit was $161 billion.

Obama’s 2011 Budget
Prof. Peter Morici - 2/8/2010
President Obama released his proposed 2011 budget, which forecasts the federal deficit will fall to $706 billion by 2014 or just 3.9 percent of GDP before rising again in 2015.

Stocks Stumble as Investors Lose Confidence in the Recovery
Prof. Peter Morici - 2/7/2010
Stocks are tumbling, as investors realize President Obama is simply not offering policies that will fix the U.S. and global economies. Each week more than 450,000 Americans apply for new unemployment benefits, and 17 percent of adults can’t find a full time job or have quit looking for work altogether.

Obama’s Export Initiative not up to the Task
Prof. Peter Morici - 2/7/2010
President Barack Obama is seeking to double U.S. exports and create 2 million jobs over the next five years. The new Commerce Department program to accomplish this goal is simply inadequate.

Mr. President: It’s the trade deficit stupid!
Prof. Peter Morici - 2/7/2010
Since the Democrat’s debacle in Massachusetts, President Obama has been campaigning. In the State of the Union address, his new budget and other staged events for the faithful gather for hope, the President has the audacity to double down on class warfare and crowd frenzying envy, and tout as success an economic recovery about as thin as the Chicago Cubs World Series record book.

On banks, Obama talks tough, does little
Prof. Peter Morici - 1/27/2010
Goldman Sachs, JPMorgan Chase and other big Wall Street banks are awarding multimillion-dollar bonuses to the same financiers who pushed the nation to the brink of financial ruin. President Barack Obama voices outrage, but he fails to take the actions available to him to stem the abuse.

Obama Disappoints on Bank Reform
Prof. Peter Morici - 1/27/2010
President Obama announced he wants to prohibit banks from forming hedge funds, private equity funds and trading securities on their own accounts, and he wants to limit the size of banks and financial institutions generally.

The Bank Tax: Just another Bit of Demagoguery
Prof. Peter Morici - 1/21/2010
President Obama is at it again—pandering to rich and powerful political supporters, while portraying himself the guardian of the exchequer and champion of the little guy.

Wall Street Rakes Big Bonuses, Obama Fails to Stem Abuse
Prof. Peter Morici - 1/14/2010
Goldman Sachs, JPMorgan and other big Wall Street banks are awarding multi-million dollar bonuses to the same financiers who pushed the nation to the brink of financial ruin.

Impact of Blizzard on Northeast Holiday Shopping
Prof. Peter Morici - 12/22/2009
I have been receiving calls and emails about the likely impact of this weekend’s blizzard on holiday sales. As with everything it depends on where you are in the marketplace.

Obama Talks Tough, but Kowtows to Bankers
Prof. Peter Morici - 12/19/2009
You got to admit President Obama obfuscates embarrassing facts and pays off his supporters as well as any politician since Huey Long. He slams health insurance companies, while endorsing heath care reforms that would compel thirty more million Americans to buy their policies or face a poll tax.

Want a Tax Break like Citigroup, Send the President 20 Bucks
Prof. Peter Morici - 12/19/2009
The Internal Revenue Service is suspending tax rules for Citigroup and other TARP recipients to permit those companies to more rapidly pay back the Treasury what they owe in TARP loans, and to their boost stock prices.

Good News on Jobs but Don't Break Out the Champagne
Prof. Peter Morici - 12/16/2009
Job losses at only 11,000 was good news but unemployment fell to 10 percent as much because folks left the labor force--throwing up their arms in frustration--as folks finding new work.

Recession Ends for Summers but for Who Else?
Prof. Peter Morici - 12/14/2009
White House chief economic advisor Lawrence Summers has declared the recession over, but as with most things economic, the opinion you get depends on who you ask.

Stimulus Spending and Lost Hope
Prof. Peter Morici - 12/14/2009
American workers face a jobless recovery and more stimulus spending won’t fix what’s broke. Unemployment fell to 10 percent in November, but progress was achieved only because 291,000 more adults did not look for work and were not counted in the monthly tally of jobless Americans.

Trade Deficit, New Home Tax Credit and Easy Fed Policies Threaten Double Dip Recession
Prof. Peter Morici - 12/9/2009
The trade deficit, new home buyer tax credits and Federal Reserve support for the mortgage market threaten a double dip recession. More than anything, U.S. businesses need customers—people buying American-made goods and services—to hire workers and continue the economic recovery.

Unemployment to Stay Above 10 Percent in 2010
Prof. Peter Morici - 12/7/2009
The economy continues to bleed jobs, even as GDP rebounds. Employment may be a lagging indicator, but job losses should have abated by now even if a lot of new jobs are not being added.

Third Quarter GDP to Be Revised Downward
Prof. Peter Morici - 12/2/2009
Tuesday, the Commerce Department will report revised data for third quarter GDP. Third quarter growth likely will be revised down to 2.8 percent from the 3.5 percent reported on October 29. The economy contracted 0.7 percent in the second quarter.

China’s Yuan, Not the Dollar, Is Too Cheap
Prof. Peter Morici - 11/17/2009
From Berlin to Bangkok, governments are screaming about the falling dollar, because they can no longer rely on reckless American consumers to power their economies.

Trade Deficit Threatens a Double-Dip Recession, Economic Armageddon
Prof. Peter Morici - 11/17/2009
Friday, the Commerce Department will report September international trade in goods and services. The trade deficit—the amount imports exceed exports—is expected to rise to $32.5 billion from $30.7 billion in August.

Stocks Soar, Unemployment Passes 10 Percent and the Dollar Slumps
Prof. Peter Morici - 11/17/2009
Stocks are soaring, yet unemployment surges and the dollar slumps. A contradiction made possible by Washington’s neglect of international challenges to U.S. growth. During the recent expansion, the trade deficit swelled to more than $700 billion or five percent of GDP. Americans borrowed from abroad, mostly to pay for oil and Chinese consumer goods. They posted as collateral homes at values inflated by slap-dash appraisals and slick Wall Street financial engineering.

Washington’s Neglect of Main Street Banks Threatens Recovery
Prof. Peter Morici - 10/12/2009
The Federal Reserve has announced the recession has ended but watch out. Washington’s inclination to bail out the biggest banks while letting their Main Street brethren languish may prove the steel arrow through the heart of the economic recovery.

Trade Deficit Threatens “W” Shaped Recovery, Destroys Jobs
Prof. Peter Morici - 10/10/2009
Thursday, the Commerce Department will report July international trade in goods and services. The trade deficit, which is the amount imports exceed exports, is expected to rise to $28.0 billion from $27.0 billion in May.

The Falling Dollar and China’s Cries for a Global Currency
Prof. Peter Morici - 10/10/2009
As the dollar falls against the euro, yen and other major currencies, China and other emerging economic powers holding lots of dollars and U.S. securities are crying foul, and for an end to the dollar’s central status in global commerce. If they are truly disgusted, they should look to themselves for answers.

Health Care Reform is a Loser for President Obama
Prof. Peter Morici - 9/29/2009
Public opposition threatens to crush President Obama’s health care reforms and wound his presidency, because his plans would do more harm than good. The bills moving through Congress reveal the basic elements of his preferred approach. Universal Coverage and Community Ratings—everyone plays and pays what they can; insurers must accept all applicants, can’t charge higher premiums for preexisting conditions, or cancel policyholders.

American workers in a global economy
Prof. Peter Morici - 9/28/2009
Breakthroughs in electronics, biochemistry, and other industries, and sweeping changes in global trade are creating two American economies -- one prosperous, another poor. This radically alters what workers need to succeed and Washington should do to help.

Regulate Bank Pay
Prof. Peter Morici - 9/24/2009
Wall Street greed has nearly destroyed the U.S. economy. The pay of a mid-range banking industry employee now far exceeds, say, the social worker's salary. Big bonuses for bankers encourage reckless risk taking and were a principal cause of the credit crisis and Great Recession. Pay must be regulated to avoid another calamity.

Two hurdles for Uncle Sam
Prof. Peter Morici - 9/4/2009
On Friday, the US Labor Department will report employment data for August. In July, the economy lost 247,000 jobs, and the consensus forecast is for another 200,000 jobs lost in August.

Friday’s Employment Report and the Recovery
Prof. Peter Morici - 9/3/2009
Friday, the Labor Department will report employment data for August. In July, the economy lost 247,000 jobs, and the consensus forecast is for another 200,000 jobs lost in August

Main Street Banks May Crush the Recovery
Prof. Peter Morici - 9/1/2009
Like a boxer staggering to its feet, the U.S. economy is recovering. Since May, real consumer spending has been gradually rising. Technology spending is looking up, as computers age and Asian growth pulls demand for sophisticated components. New home construction is showing new life.

An “X” Shaped Economic Recovery?
Prof. Peter Morici - 8/27/2009
Will the economic recovery be enduring—V shaped? Collapse after a short time—W shaped? For the middle class, it may be none at all—an X.

Obama’s Troubles with Health Care
Prof. Peter Morici - 8/27/2009
Health care reform is in trouble because President Obama and congressional leaders are not adequately addressing issues that trouble many Americans, says Eric Landshire, who runs an international dental supply business called "Dental Implants London." Speaker Pelosi and Health and Human Services Secretary Sabelius caution Americans to ignore terrorist claims about death panels. Reasonable enough—unseemly critics on both the right and the left seek to stir up unwarranted hysteria.

Trade Deficit Dampens Recovery and Destroys Jobs
Prof. Peter Morici - 8/19/2009
Wednesday, the Commerce Department will report June international trade in goods and services. The trade deficit is expected to rise to $28.5 billion from $26 billion in May.

Economic Talks with China Not Likely to Accomplish Much
Prof. Peter Morici - 8/7/2009
U.S. leaders are sitting down to another round of talks with China on security, the economy and the environment. With banks stabilized, nothing is more important to accomplishing a sustainable U.S. economic recovery than recalibrating trade with China.

Health Care: Creating Real Competition to Lower Costs
Prof. Peter Morici - 7/30/2009
U.S. health care is broken but President Obama’s reforms would raise costs and subsidize the beast with taxes on small businesses and the successful. Americans spend 18 percent of GDP on health care, and Obama’s patches and plugs would push that above 20.

President Obama’s Donut Economics
Prof. Peter Morici - 7/27/2009
The stock market is rallying. The economy will recover by yearend, and strong profits among big players like Goldman Sachs, IBM and Google will spread to other big corporations. However, many small businesses and working Americans won’t be cheering.

Restore nation's ability to produce
Prof. Peter Morici - 7/27/2009
The $789 billion stimulus doesn’t fix what ails the economy and is doomed to fail. Since 2007, the private sector has shed 6.6 million jobs — half in manufacturing and construction. Governments added 185 thousand employees, hired teachers, and no change in those trends can be detected since the stimulus began.

A Jobless Recovery and Strong Stock Market
Prof. Peter Morici - 7/27/2009
The economy is bottoming and a modest recovery will begin this fall. The stock market will soar but high unemployment will stain Barack Obama’s presidency.

ECONOMY: Trade Deficit Negates Stimulus Spending
Prof. Peter Morici - 7/27/2009
The trade deficit rose to $31.0 billion from $29.2 billion in April. Subsidized manufactures from China and petroleum imports comprise more than 90 percent of the deficit and both will rise as consumer spending and oil prices rebound later in 2009.

ECONOMY: Why Obama’s Economic Policies Are Failing
Prof. Peter Morici - 7/14/2009
The $789 billion stimulus doesn’t fix what ails the economy and is doomed to fail. Since 2007, the private sector has shed 6.6 million jobs—half in manufacturing and construction. Governments added 185 thousand employees, hired teachers, and no change in those trends can be detected since the stimulus began.

Reform fractured system through competitive plan
Prof. Peter Morici - 6/13/2009
American health care is broken. At 16 percent, the United States spends a much larger share of GDP on health care than Western European economies. Yet the United States has about 45 million uninsured, while its peers do not.

Let's Dream of Financial Ruin
Mike Spaniola - 6/13/2009
Clues to the nation’s financial debacle are buried deep in the dustbin of history as the body politics most responsible for today’s money mess safeguard their sleights of hand as closely as any magician.

Trade Deficit Expected to Rise, Overwhelms Effects of Stimulus
Prof. Peter Morici - 6/12/2009
Wednesday, the Commerce Department report will report April international trade in goods and services. The U.S. trade deficit on goods and services is expected to rise to $28.7 billion from $27.6 billion in March. My forecast is $29.9 billion.

ECONOMY: A Moderate Recovery and Bull Market
Prof. Peter Morici - 6/11/2009
Finally, some good news from labor markets—job losses are slowing, recovery is in sight, and the stock market is poised for robust rally.

ECONOMY: Friday’s Jobs Report: Unemployment and Stock Prices Heading Up
Prof. Peter Morici - 6/5/2009
Friday, the Labor Department will report employment data for May. In April, the economy lost 539,000 jobs, and the consensus forecast is for another 550,000 jobs lost in May. My forecast is for a 561,000 loss.

The Recession Still Has Time to Run but the Stock Market Is Headed North
Prof. Peter Morici - 5/28/2009
Tuesday, the Conference Board reported a sharp improvement in consumer confidence—the index scored 54.9 in May, up from 40.8 the prior month. The stock market celebrated with a strong rally.

Uncle Sam's 'F'-rated bonds
Prof. Peter Morici - 5/22/2009
Were the United States any other country, its bonds would lose their AAA rating. President Barack Obama plans dramatic increases in spending over the next four years on healthcare, the environment, education, and federal employment. Yet the private economy, which must be taxed, is likely to grow slowly, resulting in too much borrowing.

Stress Tests: Investors Should Steer Clear of Banks Found Needing New Capital
Prof. Peter Morici - 5/13/2009
Whether or not the banks needed them, the Federal Reserve has completed the stressed tests. It has acted on pleadings from bank executives and will announce which major banks need to raise more capital late Thursday afternoon.

Trade Deficit Rise in March, Drags on Recovery
Prof. Peter Morici - 5/13/2009
Yesterday, the Commerce Department reported the March trade deficit was $27.6 billion, up from $26.1 billion in February.

Chrysler, Stress Tests and Swine Flu
Prof. Peter Morici - 5/3/2009
This week we will get a first glimpse of the beginning of the end of the recession, perhaps.

Chrysler and How the Government Can Screw Up Capitalism
Prof. Peter Morici - 5/1/2009
Chrysler is teetering on Chapter 11, and the federal bailout illustrates how government efforts to rescue failing businesses often fall victim to crass political considerations.

Economic Recovery and the “D” Word
Prof. Peter Morici - 4/29/2009
The consensus among economic forecasters is that the economy will achieve very modest growth in the third quarter and climb out of the doldrums in the fourth quarter. However, among those soothsayers conviction may be waning,

The Great Recession
Prof. Peter Morici - 4/27/2009
Economists expect a late year economic recovery, but their conviction appears failing.

Housing Sales and Fixing the Economy
Prof. Peter Morici - 4/22/2009
It seems an article of faith that the first signs of recovery will emerge in the housing market. March data for existing and new homes sales, due out Thursday and Friday, will be trumpeted crocuses of spring if those beat expectations.

Thursday's Housing Starts Data and the Economic Outlook
Prof. Peter Morici - 4/20/2009
Thursday, the Commerce Department released key data for new home construction—housing starts and permits issued for March. After rising in February to 583,000, housing starts are expected to slip back to 550,000, and those February levels were hardly anything to cheer about. Building permits are expected to remain at recessionary levels.

Businesses Gird for Economic Depression
Prof. Peter Morici - 4/8/2009
The economy is shifting to permanently lower levels of production and employment, as the recession nears a depression.

ECONOMY: Obama Courting Disaster
Prof. Peter Morici - 3/27/2009
President Obama’s strategy to combat the recession courts disaster. He proposes huge federal deficits from 2009 to 2011 to prop up domestic demand and break the negative feedback cycle of rising unemployment, falling incomes and sinking consumer spending, while recapitalizing the banks to get credit flowing again.

Facts and Fictions in the Securities Industry
Sam Vaknin, Ph.D. - 3/24/2009
The securities industry worldwide is constructed upon the quicksand of self-delusion and socially-acceptable confabulations. These serve to hold together players and agents whose interests are both disparate and diametrically opposed. In the long run, the securities markets are zero-sum games and the only possible outcome is win-lose.

Fixing America's banks: Geithner's tactics not the answer
Prof. Peter Morici - 3/24/2009
Timothy Geithner’s policy to fix the banks is destroying private equity and simply inadequate.

AIG or GM: Who Is the Fool?
Prof. Peter Morici - 3/18/2009
Washington and the nation are enraged that AIG is paying millions in bonuses to retain financial wizards that sold insurance on mortgage backed securities with few assets to back up their promises.

Bankers and Stockbrokers as Malignant and Psychopathic Narcissists
Sam Vaknin, Ph.D. - 3/4/2009
The perpetrators of the recent spate of financial frauds in the USA acted with callous disregard for employees, investors, and shareholders - not to mention other stakeholders. Yet, they are the tip of a pernicious iceberg of perfidious, self-enriching, callous, and antisocial bankers, stockbrokers, analysts, and other members of the professions within the financial sector.

Treasury’s Flawed Plan for Citigroup and Other Banks
Prof. Peter Morici - 3/3/2009
Timothy Geithner continues to destroy bank equity with a misguided TARP and vaguely-defined Financial Stability Plan. He seeming doesn’t grasp that he can’t stop a tub with a two inch drain from losing its water with a one inch stopper.

The Role of Governments in Global Crises
Sam Vaknin, Ph.D. - 2/25/2009
Market failures signify corruption and inefficiency in the private sector. Such misconduct and misallocation of economic resources is usually thought to be the domain of the public sector, but actually it goes on eveywhere in the economy.

Mesmerized by Melodic Rhetoric
Joel S. Hirschhorn - 2/23/2009
"I've been through Y2K and I've been through 9/11. I have never seen people so afraid as what we are seeing right now,” said gun shop owner Scott Moss recently. With more guns per capita – easily 250 million privately owned ones – and certainly more people in prisons than any other democracy, the intriguing question in this still worsening economic calamity is: If Americans found the courage for political rebellion now, would it preempt massive criminal violence, social havoc and armed rebellion later?

Start by abolishing all income taxes and fire your government employees
Iqbal Latif - 2/23/2009
Atlas Shrugged* was Ayn Rand's greatest achievement and last work of fiction. "Atlas" bleakly predicted that we will treat the inept that destroy their companies as victims, while those ingenious business owners who deliver earnings are depicted as recipients of illicit boon. (According to a survey by the Library of Congress and the Book of the Month Club, readers rate "Atlas" as the second-most influential book in their lives, behind only the Bible. )

U.S. Registers $677 Billion Trade Deficit in 2008
Prof. Peter Morici - 2/23/2009
Last week, the Commerce Department reported the 2008 deficit on international trade in goods and services was $677.1 billion. This is down from $700.3 billion in 2007 but still 4.7 percent of GDP. The trade deficit was smaller in 2008, becasue economic growth and consumer spending began to decline during the second half 2008.

The Next 18 Months: Recession, False Recovery, Depression
Sam Vaknin, Ph.D. - 2/22/2009
The Obama stimulus package, worth some 800 billion USD, the 1.9 trillion USD in TARP funds and the endless Fed injections and auctions are bound to revive the moribund American economy by the third and fourth quarter of 2009. The Dow-Jones is likely to touch 10900, consumption will recover, as will housing starts and, in some markets, housing prices.

ECONOMY: Unemployment Headed for 9 Percent
Prof. Peter Morici - 2/6/2009
Today, the Labor Department will report employment data for January. In December, the economy lost 524,000 jobs, and the consensus forecast is for another 535,000 jobs lost in January. My forecast is for a 520,000 loss.

Sophistry On Our Economy Reigns Supreme
Prof. Peter Morici - 2/5/2009
As Congress has added to the stimulus package, members have become ever more elastic in defining various kinds of spending and tax programs as GDP boosting and jobs creating. Expanded welfare payments, unemployment benefits for part-time workers and more generous tax write offs for past corporate losses to name just a few.

Economy: Tax Solution to Wretched Greed
Joel S. Hirschhorn - 2/5/2009
By now most Americans have experienced extreme disgust upon hearing about the nearly $20 billion in bonuses given to people in New York City ’s financial sector at the end of 2008. After sending the nation into the current economic black hole there is no way of comprehending the audacity of financial company executives in giving themselves and their colleagues shameful rewards for abysmal and disgraceful performance. Other than screaming and moaning about all this dishonorable behavior what should the Obama administration and Congress do?

World Economy to further suffer from Economic Epidemic in 2009
Bhuwan Thapaliya - 2/5/2009
How many economists does it take to fight the recession and how long will the downturn last? The world is asking questions such as these every moment but no one has been able to answer these questions with accuracy.

Economy's Meltdown Creates New Global Champions
Naseem Javed - 2/5/2009
We have now arrived right in the middle of that second half of the hyper-accelerated phase, where western brands start to fall like dominos. As pointed in my column of 2006, ‘The Global Image Repositioning Shifts’, in the US alone hundreds of its world-class brands are being erased, from monster banking to mega manufacturing, some 73,000 stores alone being closed in the first half of 2009 according to the International Council of Shopping Centers, overall a Trillion-dollars worth of branding imagery that took decades of image building is getting scrubbed out worldwide. The damage so huge it can possibly be seen from the space, as streets are less bright and the cities are dimmer.

Fixing Banks
Prof. Peter Morici - 1/28/2009
For every new president, campaign promises and inaugural idealism must give way to the hard choices that measure the mettle of their leadership.

Why Recessions Happen and How to Counter Them
Sam Vaknin, Ph.D. - 1/19/2009
The fate of modern economies is determined by four types of demand: the demand for consumer goods; the demand for investment goods; the demand for money; and the demand for assets, which represent the expected utility of money (deferred money).

U.S. Economy Records Huge Trade Deficit
Prof. Peter Morici - 1/18/2009
Tuesday, the Commerce Department reported the November trade deficit was $40.4 billion. This was down from $56.7 billion in October, largely because oil prices fell and the recession is curbing demand for imported consumer goods and petroleum.

ECONOMY: Wall Street Produces More Villains In A Year Than the Hollywood
Bhuwan Thapaliya - 1/17/2009
Old habits die hard in Corporate America. One of the most durable is a reluctant to be at all honest about the health of the organization in charge by the top executives of the firm.

The Economy Is in a Depression
Prof. Peter Morici - 1/11/2009
The Labor Department reported on Jan. 9 that the economy lost 524,000 payroll jobs in December, and average employment was 1.3 million lower in the fourth quarter than in the third quarter. I believe the economy is already in the jaws of a depression.

Bush Auto Plan Will Test Obama's Union Loyalties
Prof. Peter Morici - 1/8/2009
President Bush has agreed to lend GM and Chrysler $17.4 billion on the condition these firms complete a plan to accomplish financial viability of the auto and trucking industry. The agreements set goals for automakers: converting two-thirds of their debt into equity; paying company stock to fund one half of the Voluntary Employee Benefits Associations, which fund retiree health care benefits and remove these costs from future liabilities; aligning wages, benefits and work rules with U.S. Nissan, Toyota or Honda operations.

ECONOMY: Unemployment Headed for 8 Pecent
Prof. Peter Morici - 1/8/2009
Friday, the Labor Department will report employment data for December. In November, the economy lost 533,000 jobs, and the consensus forecast is for another 475,000 jobs lost in December. My forecast is for a 480,000 loss.

What's Next for the Fed: The People's National Bank?
Prof. Peter Morici - 12/29/2008
The Federal Reserve has cut the federal funds rate and its short-term lending rate to banks to near zero, but those moves have done little to unlock credit markets. Conventional mortgage money, structured settlements and business loans remain too scarce, as regional banks, which are the arteries and capillaries of our credit system, remain short of loanable funds.

Bush Auto Plan Will Test Obama's Union Loyalties
Prof. Peter Morici - 12/22/2008
President Bush has agreed to lend GM and Chrysler $17.4 billion on the condition these firms complete a plan to accomplish financial viability, including revising their car leasing deals. The agreements set goals for automakers: converting two-thirds of their debt into equity; paying company stock to fund one half of the Voluntary Employee Benefits Associations, which fund retiree health care benefits and remove these costs from future liabilities; aligning wages, benefits and work rules with U.S. Nissan, Toyota or Honda operations.

Bottom-Up Stimulus for the U.S. Economy
Yossef Ben-Meir, PhD - 12/18/2008
What development projects deliver short-term relief to people and long-term economic structural change for sustained growth and should therefore be part of the upcoming economic stimulus package? The answer: projects determined and managed by the local communities they are intended to benefit.

U.S. Economy Records Huge Current Account Deficit
Prof. Peter Morici - 12/18/2008
Yesterday, the Commerce Department reported the third quarter current account deficit was $174.1 billion. This was caused largely by a $214.7 billion deficit on trade in goods.

Auto Industry Bailout Testimony
Prof. Peter Morici - 12/16/2008
On Tuesday, December 9, I testified on the auto industry bailout before the House Select Committee on Energy Independence and Global Warming. Here is my testimony.

U.S. Economy Registers $57.2 Billion Trade Deficit
Prof. Peter Morici - 12/15/2008
Last thursday, the Commerce Department reported the October deficit on trade in goods and services was $57.190 billion, up from $56.559 billion in September. The consensus forecast was $54.0 billion and my forecast was $53.5 billion.

Economy: Friday's Job Report
Prof. Peter Morici - 12/6/2008
Friday, the Labor Department will report employment data for November. In October, the economy lost 240,000 jobs, and the consensus forecast is for another 300,000 jobs lost in November. My forecast is for a 275,000 loss.

The Next Crisis: Imploding Bond Markets
Sam Vaknin, Ph.D. - 11/16/2008
To finance enormous bailout packages for the financial sector (and potentially the auto and mining industries) as well as fiscal stimulus plans, governments will have to issue trillions of US dollars in new bonds. Consequently, the prices of bonds are bound to come under pressure from the supply side.

Who Needs Investment Funds?
Sam Vaknin, Ph.D. - 11/12/2008
The credit and banking crisis of 2007-9 has cast in doubt the three pillars of modern common investment schemes. Mutual funds (known in the UK as "unit trusts"), hedge funds, and closed-end funds all rely on three assumptions:

Paulson’s Folly: Throwing Good Money after Bad at AIG
Prof. Peter Morici - 11/12/2008
The Treasury is injecting another $27 billion into AIG and raising the taxpayers’ investment to $150 billon. Secretary Paulson appears more intent on helping his pals on Wall Street than protecting taxpayer interests.

Why all the Stock Exchanges Collapsed
Sam Vaknin, Ph.D. - 11/11/2008
In the wake of the global credit crunch, stock exchanges throughout the world collapsed in tandem. Why?

Paul Krugman: The Nobelist Blogger
Sam Vaknin, Ph.D. - 11/7/2008
The Royal Swedish Academy of Sciences has decided to award the 2008 Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel to Professor Paul Robin Krugman (born 1953).

There is no Free Lunch
Sam Vaknin, Ph.D. - 11/6/2008
During the months of September-October 2008, governments throughout the world took a series of unprecedented steps to buttress tottering banks. In the USA, the Federal Reserve and the Treasury Department have flooded the financial system with liquidity; granted commercial banking licenses to the few investment banks left standing; lent funds against financial instruments turned toxic; and purchased non-voting equity and senior debt in a host of firms and banks. Several European countries have guaranteed all bank deposits and short-term interbank loans.

Are Free Markets Dead?
Sam Vaknin, Ph.D. - 11/5/2008
Three of the most important functions of free markets are: price discovery, the provision of liquidity, and capital allocation. Honest and transparent dealings between willing buyers and sellers are thought to result in liquid and efficient marketplaces. Prices are determined, second by second, in a process of public negotiation, taking old and emergent information about risks and returns into account. Capital is allocated to the highest bidder, who, presumably, can make the most profit on it. And every seller finds a buyer and vice versa.

Notes on the Credit Crisis
Sam Vaknin, Ph.D. - 11/3/2008
The global crisis of 2007-9 was, actually, a confluence of unrelated problems on three continents. In the United States, investment banks were brought down by hyper-leveraged investments in ill-understood derivatives. As stock exchanges plummeted, the resulting devastation and wealth destruction spilled over into the real economy and caused a recession which is bound to be mild by historical standards.

Strategies to End the Economy Crisis
Prof. Peter Morici - 11/3/2008
Global stock and commodity prices continue to drop, as the threat of a long recession looms. Fear casts a shadow that threatens the viability of democratic capitalism and threatens a wholesale breakdown of the economy into a depression.

Chrysler makes a poor fit for GM
Prof. Peter Morici - 10/28/2008
General Motors Corp. is having trouble lining up the financing to acquire Chrysler LLC -- either by merging it into its operations or as a scaled-down subsidiary. Observers may blame the credit crisis and the present reluctance of banks to lend. While that makes GM's task more difficult, it certainly is not the central reason why the acquisition should not go forward.

Will a Stimulus Package Work For the Economy?
Prof. Peter Morici - 10/22/2008
Several reporters and producers have asked for my views on a stimulus package. Here it is. A stimulus package generally takes a quarter or more to implement and then gives the economy a temporary lift. As we saw, the last package gave consumption a lift that slipped back after a few months. That gave GDP growth a sugar high late in the second quarter and helped growth from slipping too much in the third quarter.

ECONOMY: U.S. Trade Deficit at $59.1 Billion in August
Prof. Peter Morici - 10/12/2008
Friday, the Commerce Department reported the August deficit on trade in goods and services was $59.1 billion. This was not much changed from the July deficit of $61.3 billion.

Economy: An Explanation of a Crisis
John Mangun - 9/29/2008
It is as complicated as trying to trace one noodle in a plate of spaghetti. I was asked during a recent television interview, “Who is to blame?”. That is like asking who is to blame for a bowl of tangled pasta. The guy who invented spaghetti, the cook, the sauce, and the one who is eating. No one is to blame; everyone is to blame for “The Crisis”.

Bailout and the Economy
Prof. Peter Morici - 9/29/2008
The US trade deficit has grown to $US700 billion, which of course is money not spent on US goods and services. This has killed off well paying jobs, has slowed the economy and created unemployment.

Can the bailout save the economy?
Prof. Peter Morici - 9/19/2008
The Treasury Department has placed Fannie Mae and Freddie Mac under federal conservatorship and booted the senior management. This bailout will impose needed reforms in the companies' business practices. And, contrary to much conventional wisdom, the cost to the taxpayer may not be large - that is, if the federal government gets Wall Street to help.

ECONOMY: Reasons to Cheer Lehman’s Demise
Prof. Peter Morici - 9/18/2008
Lehman Brothers appears headed for liquidation and that may hasten needed reforms on Wall Street. Efforts to find a buyer or dismember the company in an orderly fashion failed this weekend for the same reasons that CEO Richard Fuld’s earlier proposal to reorganize Lehman generated little enthusiasm.

Economy Loses 84,000 Jobs in August
Prof. Peter Morici - 9/9/2008
Today, the Labor Department reported the economy lost 84,000 payroll jobs in August, after losing 60,000 jobs in July. This was much worse than was expected, as the full weight of banking crisis, rising oil prices and imports from China drive up unemployment.

ECONOMY: GDP UP 3.3 Percent in Second Quarter
Prof. Peter Morici - 9/1/2008
Thursday, the Commerce Department reported second quarter GDP rose 3.3 percent, as compared to 0.9 percent in the first quarter. Stronger exports, reduced imports and increased personal consumption contributed importantly to this strong growth report.

ECONOMY: Durable Goods Orders Jumped 1.3 Percent in July
Prof. Peter Morici - 8/27/2008
Today, the Commerce Department reported new orders for producer durable orders bounced up 1.3 percent in July. This confounded the more conservative estimates of forecasters�the consensus of prognosticators was for a 0.2 percent gain.

Is the Fed Still a Central Bank?
Prof. Peter Morici - 8/26/2008
Federal Reserve officials, academics and central bankers from abroad are gathering for Ben Bernanke’s annual confab in Jackson Hole Wyoming to discuss the management of financial crises. A better topic might be: Is the Fed Still a Central Bank?

Dangerous Liaisons: Online Banking
Sam Vaknin, Ph.D. - 8/15/2008
Banks in developing countries offer to their customers financial services, products and product reviews through the Internet. However, as opposed to their counterparts in the West, none of them is aggressively pushing its clientele to adopt online banking. This may be the result of multiple reasons: (1) A computer-illiterate public, unaccustomed to working on the Web; (2) Staff lacking in training; (3) Computer systems that do not integrate seamlessly Internet-generated transactions with the banks' ledgers; (4) In poor countries, online banking may be no less costly to process than "bricks and mortar" transactions at the branch.

ECONOMY: U.S. Trade Deficit at $56.7 billion in June
Prof. Peter Morici - 8/13/2008
Yesterday, the Commerce Department reported the June deficit on trade in goods and services was $56.7 billion, down from the $59.2 billion deficit in May. U.S. imports of consumer goods did ease, as a result of the recession in retail sales, but the cost of oil imports and the trade deficit with China continued to rise.

Crashing and Cashing, Pumping and Dumping: Stock Manipulation in the U.S. Economy
Sam Vaknin, Ph.D. - 8/11/2008
In early July, 2008, America's Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority and New York Stock Exchange Regulation announced that they will investigate the spreading of unsubstantiated or patently false rumors in order to manipulate the prices of stocks.

ECONOMY: U.S. Productivity Advances 2.2 Percent
Prof. Peter Morici - 8/8/2008
Today, the Department of Labor reported productivity in the nonfarm private business sector increased at a 2.2 percent annual rate in the second quarter of 2008. This was a very good showing the middle of an economic slowdown, and in line with the 2.6 percent increase recorded in the first quarter of 2008.

Economy Loses 51,000 Jobs in July
Prof. Peter Morici - 8/3/2008
Friday, the Labor Department reported the economy lost 51,000 payroll jobs in July, after losing 51,000 jobs in June. Economists expected a 75,000 loss in June. My forecast was for a 60,000 loss.

ECONOMY: When Will Henry Paulson Learn?
Prof. Peter Morici - 8/3/2008
Once again, we have good news and bad from Wall Street. Henry Paulson has announced Citigroup and three other banks will begin issuing covered bond in an effort to rejuvenate commercial bank mortgage lending and the housing market.

Why Some Governments Like Inflation
Sam Vaknin, Ph.D. - 7/28/2008
Some governments like and encourage inflation because inflation masks the true situation and makes them look good. Inflation helps to deceive the public and even experienced observers. How?

ECONOMY: GDP and Jobs Data Highlight the Week Ahead
Prof. Peter Morici - 7/28/2008
Second quarter GDP and the July employment report highlight this week’s economic data. The hiring data, reflecting business sentiment about future sales, are key indicators of where the economy is headed in the second half.

U.S. Trade Deficit Remains Stifling in May
Prof. Peter Morici - 7/16/2008
Friday, the Commerce Department reported the May deficit on trade in goods and services was $59.8 billion. This was not much changed from the April deficit of $60.5 billion in April.

ECONOMY: Bernanke, Congress and President Drive Stock Market Rout
Prof. Peter Morici - 7/16/2008
On Tuesday, Federal Reserve Chairman Ben Bernanke outlined Washington efforts to restore confidence in U.S. financial institutions. Initially, this gave the market a lift. After closer examination by investors, the market continued its downward spiral on Wednesday, led by financial stocks.

Economy Loses 62,000 Jobs in June
Prof. Peter Morici - 7/3/2008
Today, the Labor Department reported the economy lost 62,000 payroll jobs in June, after losing 62,000 jobs in May. Economists expected a 50,000 loss in June.

The New Name-Economy of The New World
Naseem Javed - 6/27/2008
Among other things, the top one percentile of the global brand name identities also causes what's pulling the strings of the world's stock exchanges, as when they sneeze, a shiver triggers throughout the globe, altering the wealth of national economies. The fact that markets shoot up or down when customers of the world, en masse respond to their dazzling offering either jumping in joy or taking a momentary pause proves their influence on global moods of the economy. These brand identities are extremely powerful and command respect from the universal populace; they also have obtained exclusive ...

ECONOMY: Bernanke aggravates trade deficit risks
Prof. Peter Morici - 6/27/2008
The growing United States deficit on trade in goods and services, rising to US$60.9 billion in April from $56.5 billion in March, heightens the risk of recession and surging unemployment. he recent comments by Federal Reserve Board chairman Ben Bernanke about oil-driven inflation only serve to distract attention from these issues and aggravate risks.

Economy: Current Account Deficit Surges in First Quarter
Prof. Peter Morici - 6/19/2008
Yesterday, the Commerce Department reported the first quarter current account deficit was $176.4 billion, up from $167.2 billion in the fourth quarter of 2007. The deficit was 5.0 percent of GDP.

ECONOMY: Bernanke Aggravates Risks and Ignores Fundamental Problems
Prof. Peter Morici - 6/10/2008
Today, the Commerce Department reported the April deficit on trade in goods and services was $60.9 billion. This was up from $56.5 billion in March, substantially larger than the 59.5 billion consensus forecast.

ECONOMY: What to look for in Tuesday’s Trade Deficit Data
Prof. Peter Morici - 6/9/2008
Tuesday, the Commerce Department will report the April trade deficit. Last month, the Commerce Department reported the March deficit on goods and services was $58.2 billion. For April, my published forecast is $60.0 billion and the consensus forecast is $59.5 billion.

Economy: What to look for in Tuesday’s Trade Deficit Data
Prof. Peter Morici - 6/8/2008
Tuesday, the Commerce Department will report the April trade deficit. Last month, the Commerce Department reported the March deficit on goods and services was $58.2 billion. For April, my published forecast is $60.0 billion and the consensus forecast is $59.5 billion.

Economy: Recession Grips the Job Market
Prof. Peter Morici - 6/7/2008
Friday, the Labor Department reported the economy lost 49,000 payroll jobs in May, after losing 28,000 jobs in April. My published forecast was for a 50,000 loss.

Poisonous Plutocracy Pushes Economic Inequality
Joel S. Hirschhorn - 6/7/2008
The biggest political issue receiving no attention by the Democratic and Republican presidential candidates is the powerful plutocracy that has captured the government to produce rising economic inequality.

Economy: Extending discount window a threat to markets
Prof. Peter Morici - 6/4/2008
US Federal Reserve vice chairman Donald L Kohn has floated the idea of giving Wall Street securities firms permanent access to Federal Reserve loans conditional on imposing greater regulatory oversight. While temporary Fed lending to these firms helped stabilize markets during the subprime meltdown, longer-term moral hazard has been established by creating expectations that both the Wall Street banks and primary securities deals may rely in the future on big Fed bailouts.

Economy: Extending Fed Discount Window to Securities Dealers Would Destabilize Markets
Prof. Peter Morici - 6/1/2008
Federal Reserve Vice Chairman Kohn has floated the idea of giving Wall Street securities firms permanent access to Federal Reserve loans conditional on imposing greater regulatory oversight. While temporary Fed lending to these firms has helped stabilized markets during the subprime meltdown, longer term moral hazard has been established by creating expectations that both the Wall Street banks and primary securities deals may rely in the future on big Fed bailouts.

Friday’s Home Sales Report and the Sorry State of Banking
Prof. Peter Morici - 6/1/2008
On May 21, the National Association of Realtors will report April existing home sales and prices. These are expected to continue the down trend of recent months and reflect the sorry and dysfunctional state of the banking industry.

The Positive "R" Words
Naseem Javed - 5/20/2008
The current and unavoidable Recession of America, slowly impacting Canada, Mexico, spreading it wings towards Europe and Asia, all the way to the farthest corners of the world is nothing to be either afraid or surprised of. It is just one of those cycles that appear every decade or so. While some land soft, some land hard, but this may be the hardest, yet still there are some very positive things in that "R" word.

Measures to Contain Inflation and the Trade Deficit
Sam Vaknin, Ph.D. - 5/20/2008
Countries around the world - from Vietnam to Kazakhstan - have adopted these measures to reduce their burgeoning inflation and trade deficit:

Economy: What to Watch in Wednesday's Consumer Price Data
Prof. Peter Morici - 5/14/2008
Wednesday, the Labor Department will issue April data for the Consumer Price Index. The consensus forecast is for a 0.3 percent increase in the headline number and a 0.2 percent increase in the core index—the headline number with energy and food prices removed. My published forecasts are 0.5 and 0.2 percent in these two indicators of consumer inflation.

Economy: What to Watch in Tuesday's Consumer Price Data
Prof. Peter Morici - 5/12/2008
Tuesday, the Labor Department will issue April data for the Consumer Price Index. The consensus forecast is for a 0.3 percent increase in the headline number and a 0.2 percent increase in the core index—the headline number with energy and food prices removed. My published forecasts are 0.5 and 0.2 percent in these two indicators of consumer inflation.

Economy: U.S. Productivity Advances 1.9 Percent
Prof. Peter Morici - 5/11/2008
This week, the Department of Labor reported productivity in the nonfarm private business sector increased at a 2.2 percent annual rate in the first quarter of 2008. The consensus forecast was 1.5 percent, and my published forecast was 2.0 percent.

Economy: U.S. Trade Deficit Falls to 58.2 billion in March, Lowers GDP by $250 Billion
Prof. Peter Morici - 5/11/2008
Friday, the Commerce Department reported the March deficit on trade in goods and services was $58.2 billion. This was down from $61.7 billion in February and was about 4.9 percent of GDP.

Economy and the World in Crisis: Gas, Food, Thought
Jennifer L. Jackson - 5/11/2008
Crisis is defined first as a "turning point" and secondly as a "crucial situation."

Economy: Is The United States Headed for Economic Malaise?
Prof. Peter Morici - 5/1/2008
The Labor Department will report employment data for April on Friday. This is a key indicator of the depth and duration of the economic slowdown, which began in the fourth quarter.

Irrational Exuberance to Bust: Financial Bubbles Demand Regulation
Kemal Dervis - 4/29/2008
The last 15 years have been characterized by rapid, accelerating world growth, with three interruptions: the Asian and then Russian financial crisis around 1997, the dot-com bubble burst around 2001, and most recently a financial crisis rooted in the US sub-prime mortgages and securitized investment vehicles. In all three cases “irrational exuberance” as well as regulatory failures in the financial sector led to the shocks and growth slowdowns. The pattern suggests that there’s a strong case for overhauling regulation of the financial sector.

Cut trade deficit and clean up Wall Street
Prof. Peter Morici - 4/24/2008
THE RECESSION is a wake-up call. Americans need to confront some false gods — free trade, gas guzzlers and Wall Street. In the 1990s, the U.S. launched the World Trade Organization and opened trade with China. Americans were to import more T-shirts and TVs and sell more software and sophisticated services to a world hungry for U.S. know-how. That would move Americans into better paying jobs. Unfortunately, the U.S. welcomed imports with more enthusiasm than China and other developing countries, which kept high tariffs and notorious regulatory barriers to purchases of western products. America’...

An eternal optimist's humble riposte to Professor Krugman
Iqbal Latif - 4/24/2008
Living with hope and buoyancy is far better than gloom and kismet. We are all inherently dull creatures; we steal our moments of happiness from sorrows around us. We need to live every instant with the greatest of relish, this is what life is all about. Give it your best shot silly - GIYBSS is my motto.

Milton Friedman produced millions of millions of Tank Men
Iqbal Latif - 4/20/2008
In response to: ''Do u guys like the ideas that inspired Tieanenman Square or the ideas of Pinochet? I think u'll find they took many of their ideas from Friedman. Have a think about whether u want to be his fans in the light of that? I'm off out of here (i.e. I joined just to post this and am leaving his fan group now.'

The G7, the Banks and GE
Prof. Peter Morici - 4/18/2008
This week, it’s tough to pick the most significant news. The G7 Finance Ministers Meeting was significant for what it didn’t do—something truly constructive about the credit crisis. Tired carpenters, the ministers and central bank chiefs hammered the same old nails. Their Financial Stabilities Forum report served up the same tired nostrums—extended capital requirements, transparency, closer international cooperation and the like.

Knocking Down False Gods
Prof. Peter Morici - 4/17/2008
The recession is a wake up call. Americans need to confront some false gods -- free trade, gas guzzlers and Wall Street.

Economy: U.S. Trade Rises in February; Drags Growth, Lowers GDP by $250 Billion
Prof. Peter Morici - 4/11/2008
Yesterday, the Commerce Department reported the February deficit on trade in goods and services was $62.3 billion. This was up from $59.0 billion in January and about 5.3 percent of GDP. The deficit was pushed higher by rising prices from many industrial supplies and materials and increased imports of consumer goods.

Commerce Department to Release February Trade Deficit Data on Thursday
Prof. Peter Morici - 4/10/2008
Thursday, the Commerce Department will report the February trade deficit.

Americans must live within their means
Prof. Peter Morici - 4/8/2008
The U.S. economy is in recession, with no end in sight. Falling housing prices and questionable mortgages are blamed. But digging out will require Americans to use less gasoline, get tough on trade with China, and learn to live within their means.

The Yin and Yang of US Debt
Prof. Dwight Jaffee and Ashok Bardhan - 4/5/2008
American homeowners worried about dwindling property values and the burden of adjustable-rate mortgages may not care to know what made their mortgages so affordable. Increased purchase of US Treasury bills, Agency bonds and mortgage-backed securities by foreign government institutions that made mortgages so low, however, has worried economists. With the US economy reeling from multiple shocks, economists have another source for concern – the increasing role played by foreign institutions and sovereign wealth funds, mostly belonging to emerging economies, in financing imports of goods and services to the US that support its lifestyle.

Labor Department Releases Key March Jobs Data Friday
Prof. Peter Morici - 4/4/2008
The Labor Department will report employment data for March on Friday. This is a key indicator of the depth and duration of the recession, which began in December. If the payroll jobs decline for a third straight month, it will be hard to deny that the economy has entered a recession of unknown depth and duration.

Paulson Regulatory Reform Plan Falls Short
Prof. Peter Morici - 4/1/2008
The regulatory framework proposed by Treasury Secretary Henry Paulson will not address fundamental problems in the banking sector that contributed significantly to the recession and that must be fixed to rescue the U.S. economy from recession and avoid future crises.

Knocking Down False Gods
Prof. Peter Morici - 3/28/2008
The recession is a wake up call. Americans need to confront some false gods--free trade, gas guzzlers and Wall Street. In the 1990s, the U.S. launched the World Trade Organization and opened trade with China. Americans were to import more tee-shirts and TVs and sell more software and sophisticated services to a world hungry for U.S. knowhow. That would move Americans into better paying jobs.

Fed Bernanke and the HKMA Donald Tsang
Iqbal Latif - 3/26/2008
Via MediaBistro, we learn that Fox Business Network has bought ad space in the New York Times and the Wall Street Journal, poking fun at CNBC's Jim Cramer, and what he said about Bear Stearns, days before its collapse.

Economy: Fixing the Banks
Prof. Peter Morici - 3/26/2008
America's banks are broken, and the U.S. economy cannot be pulled out of recession until they are fixed. Thirty years ago, mortgages were straightforward. Homebuyers went to banks, which checked incomes, purchased independent appraisals and loaned buyers the money. The bank held notes or sold them to Fannie Mae or perhaps insurance companies.

Digging The Economy Out of the Recession
Prof. Peter Morici - 3/25/2008
The U.S. economy is in recession with no end in sight. Falling housing prices are blamed, but the root causes are bad economic policies and lousy banking practices.

Open Letter to John McCain
Joel S. Hirschhorn - 3/23/2008
Every few days I get yet another mailing begging me for money for your campaign. There is always explicit language about my being one of your supporters. But I do not support you for president. You are an abomination, because of your support for President George W. Bush and his unjustified, immoral and illegal Iraq war. Everyone who sees a McCain presidency as a continuation of the Bush administration is totally correct.

Economy and The Global Meltdown
Iqbal Latif - 3/23/2008
For an average trader the real day starts at nearly 1.30 in the morning as Japanese markets pick up steam and ends at 8.00 in the evening, just six hours into the close New Zealand is trading and with yen carry trade being unwound the pain never seems to end around the clock. The six hours are the real party time, the sun down time. Ask me would I like to live any other way, burning at two ends I would rather resign and burn to the end, life in the slow lane is not for me. The ecstasy never ends, the fatalities mount and profits search is like unending pursuit of Eldorado, seeing perfectly nor...

U.S. Economy Records $738.6 Billion Current Account Deficit
Prof. Peter Morici - 3/19/2008
Monday, the Commerce Department reported the 2007 current account deficit was $738.6 billion, down from $811.5 billion in 2006. The deficit exceeded 5.3 percent of GDP. The fourth quarter deficit was $172.9 billion.

Economy: Fire Sale at Bear Stearns and Panic at the Fed
Prof. Peter Morici - 3/18/2008
Sunday evening J.P. Morgan announced its purchase of Bear Stearns at $2 per share after it had closed at $30 on Friday, and the Federal Reserve announced yet another emergency credit facility.

Pyrrhic Victories of Anti-Trade Crusaders
Ernesto Zedollo - Former President of Mexico - 3/13/2008
With the American election season upon us, fear once again emerges as the most salable commodity for aspiring presidential candidates. As the primary results show, the fear of trade has emerged as the potent weapon in the hands of Democratic candidates, much as fear of terrorism was in the hands of their Republican rivals for the previous two election seasons.

Trade Deficit Rises to $58.2 billion in January
Prof. Peter Morici - 3/13/2008
Yesterday, the Commerce Department reported the January deficit on trade in goods and services was $58.2 billion. This was up from $57.9 billion in December and was about 5 percent of GDP. Undervaluation of the dollar against the Chinese yuan and high oil prices keep dragging the trade deficit up.

Economy Loses 63,000 Jobs in February
Prof. Peter Morici - 3/9/2008
Friday, the Labor Department reported the economy lost 63,000 payroll jobs in February, after losing 22,000 jobs in January. Governments added 38,000 jobs and private sector employment contracted 101,000. Businesses have become too pessimistic about the outlook for the economy, and the capacity of the Bush Administration and Federal Reserve to manage it, to be adding new employees or replacing those that leave.

Slow housing economy needs jolt
Prof. Peter Morici - 3/6/2008
The National Association of Realtors reported January existing home sales sank to 4.89 million from 6.38 million a year earlier, and the average price was $201,100, down 4.6 percent from $210,900 from a year earlier. In December, sales were 4.91 million and the median price was $207,000. The large price drop from December was particularly disturbing.

The Lure of Protectionism in Ohio
Morgan Robinson and Susan Froetschel - 3/5/2008
The candidates for US president sense deepening anxiety over globalization among workers, blue and white collar alike. But too often, they frame globalization as a choice for employers or government, and not for consumers. The experience of a tiny TV manufacturer shows how an electorate’s inability to look at globalization in its totality risks taking the country in a wrong direction.

Bernanke should encourage banks to adopt sounder business models
Prof. Peter Morici - 3/5/2008
Ben Bernanke, in recent testimony before the Senate Banking Committee, noted the shortages of credit, especially the reluctance of banks to extend credit to one another.

More than Three Hots and a Cot
Jeremy Reynalds, Ph.D. - 3/5/2008
New Mexico’s Joy Junction is more than just a place where the homeless go to get a meal and a bed.

Primary Economics
Prof. Peter Morici - 3/3/2008
The Texas and Ohio primaries could well determine the Democratic nominee for President. Its high time Barak Obama and Hillary Clinton quit musing about change and explain what they will do to fix the economy.

David vs Goliath; Homeowner Forced to Live on the Streets
Jeremy Reynalds, Ph.D. - 3/3/2008
Neatly dressed and immaculately groomed, Joe Calkins shatters any stereotype image you may have had of a homeless person.

The Auction-Rate Securities Fiasco
Prof. Peter Morici - 2/28/2008
I dont know how Broadway sells tickets these days when folly is in so plain array on Wall Street. Auction-rate securities drama provides the latest tale of greed and betrayal.

Economy: Home Sales, Home Prices Sink Again
Prof. Peter Morici - 2/26/2008
The National Association of Realtors reported January existing home sales sank to 4.890 million from 6.380 million a year earlier, and the average price was $201,100, down from $210,900 or 4.6, percent from a year earlier. In December, sales were 4.910 million and the median price was $207,000. The large price drop from December was particularly disturbing.

The Next President Should End The Madness
Prof. Peter Morici - 2/26/2008
VOTERS ARE FOCUSING too much on personalities and not enough on issues. This is unfortunate. Americans need a president to address tough problems and implement solutions.

Economy and Stagflation
Prof. Peter Morici - 2/22/2008
The chickens are coming home to roost. Professional negligence in trade and energy policies and fraudulent banking have set up Americans for a tough bout with stagflation - rising prices and unemployment. Washington offer palliatives but no solutions.

Global Economy: Recession in America , Inflation in China
Bhuwan Thapaliya - 2/22/2008
Possible fear of Recession has created panic in America as its economy is in doldrums, whereas China is trying hard to cool its economy from overheating as inflation lurks in.

Economy: Cerberus Acquisition of Chrysler Makes Little Sense
Prof. Peter Morici - 2/21/2008
Cerberus will acquire control of the Chrysler Group from DaimlerChrysler. Cerberus will pay $7.4 billion for 80.1 percent of Chrysler Group and assume the North American automaker’s pension and health care liabilities. Daimler would retain 19.9 percent ownership.

Economy: 2007 Trade Deficit Exceeds $700
Prof. Peter Morici - 2/20/2008
Last Thursday, the Commerce Department reported the 2007 deficit on international trade in goods and services was $711.6 billion. This is down from $758.5 billion in 2006 but still 5.1 percent of GDP.

Economy: Is Bernanke Headed for the Exit?
Prof. Peter Morici - 2/19/2008
Last Thursday, Ben Bernanke appeared before the Senate Banking Committee. In his testimony, he noted the shortages of credit, especially the reluctance of banks to extend credit to one another, and the inability of the banks to securitize Alt-A, Subprime and Jumbo mortgages. The latter makes all but Fannie Mae conforming mortgages and home equity loans too scarce.

Economy: Bernanke's silence ignores his task
Prof. Peter Morici - 2/18/2008
Ben Bernanke appeared before the Senate Banking Committee Thursday. In his testimony, he noted the shortages of credit, especially the reluctance of banks to extend credit to one another, and the inability of the banks to securitize alt-A, subprime and jumbo mortgages. The latter makes all but Fannie Mae conforming mortgages and home equity loans scarce.

Investments by Sovereign Wealth Funds in the United States
Prof. Peter Morici - 2/14/2008
In purest form, a sovereign wealth fund is a pool of resources, owned and/or controlled by a government, invested in public or private assets, including debt instruments, equities and direct investments in property.

The Bush - Bernanke Show Goes On
Bhuwan Thapaliya - 2/12/2008
Many Americans have lost confidence in their country's "economic security" over the last few years and as the recent CNN poll found that 57% of the public believe that the U.S. is already is recession.

With Expected Upsurge in Homeless Veterans, Joy Junction Vets Give Advice to Their Comrades Returning Home
Jeremy Reynalds, Ph.D. - 2/12/2008
According to a Nov. 7 2007 story in the New York Times, more than 400 veterans of the Iraq and Afghanistan wars are homeless, and the Veterans Affairs Department and other service groups are expecting a new surge in homeless veterans in the years to come.

Stimulus Package, Interest Cuts Should Help, but Crisis Continues
Prof. Peter Morici - 2/12/2008
The $150 billion dollar stimulus package announced by the George W. Bush Administration and Democratic leaders, coupled with interest rate cuts implemented by the Federal Reserve, should help avert an economic debacle but the danger of recession continues.

Fed Interest Rate Cuts Will Not Be Enough
Prof. Peter Morici - 2/10/2008
In recent weeks, the Federal Reserve cut the federal funds rate a half point to 3.0 percent, as expected. It really had little choice.

American Economy: Flirting with Recession
Bhuwan Thapaliya - 2/4/2008
The Earth revolves around the Sun, and around the Earth, US dollar revolves - until few years ago this used to be an omnipotent realism. But today, Earth still revolves around the Sun, but same cannot be said of the U. S dollar’s circulation around the Earth.

Economy Loses 17,000 Jobs in January
Prof. Peter Morici - 2/4/2008
Friday, the Labor Department reported the economy lost 17,000 payroll jobs in January. These poor jobs data are the strongest evidence so far that the economic expansion is grinding to a halt.

American Economy: Strolling over the troubled waters
Bhuwan Thapaliya - 1/29/2008
Against a backdrop of growing concern about the recession, the central bank of the United States, the Federal Reserve unexpectedly, out of the blue, slashed a key interest rate by three – quarters of a percentage point, from 4.25 percent down to 3.5 percent on Tuesday January 22nd after Federal Reserve Chairman Ben Bernanke and his team approved the huge rate cut after an emergency video conference on Monday night.

Miscalculating Inflation
Sam Vaknin, Ph.D. - 1/18/2008
The most accurate yardstick of inflation is the GDP deflator (which includes the prices of capital goods and export and import prices). Regrettably, it is rarely used or mentioned in public.

The Federal Reserve Needs More Than a New Communications Strategy
Prof. Peter Morici - 1/17/2008
Ben Bernanke has indicated that the Federal Reserve will redouble its efforts to communicate clearly about the outlook for the economy and monetary policy.

Why the Trade Deficit Matters
Prof. Peter Morici - 1/10/2008
On Friday, the Commerce Department will release data for the November 2007 trade deficit. The consensus estimate is $60 billion, up from $57.8 billion in October. It may be a bit larger or smaller, but either way, it comes to about 5 percent of GDP, That is an enormous drag on national income and growth, and has corrosive consequences for our children's future..

2007 - A Year For The History Books!
Denis Petit - 1/8/2008
I am convinced that future historians will look at 2007 as the year that the Over The Counter (OTC) derivative market, the largest financial market ever created in all of human history began it’s inevitable collapse that will lead to the chaos that is to come in 2008 and beyond.

2008 - Time to pay the piper!
Denis Petit - 1/8/2008
The year 2008 will be a year for the history books. All of the events since the creation of the FED and the Bank of Canada in 1913 which led to America’s first default in 1934 when the US government removed the convertibility of the US dollar into gold bullion for US citizens, then up to the US default in1971 when Nixon took America off the gold standard and officially put the US and because of the Breton Wood agreement of 1944 the rest of the world on a fiat (money back by nothing but empty government promises) monetary system has led us to where we are today. Anyone who has studied the works...

Economy Adds Only 18,000 Jobs in December
Prof. Peter Morici - 1/7/2008
Friday, the Labor Department reported the economy added only 18,000 payroll jobs in December, after posting an 115,000 gain in November. Economists expected a 70,000 gain in December, and these jobs data are the strongest evidence so far that the economic expansion is grinding to a halt.

Recession Watch, the Jobs Report and Fed Policy
Prof. Peter Morici - 1/4/2008
The holiday season did not bring a lot of good economic news. Weak retail sales, the flagging fortunes of automakers and declining industrial production have pundits guessing whether the U.S. economy has entered a recession and, if so, how long will it last.

Central Banks and the Credit Crunch of 2007
Sam Vaknin, Ph.D. - 12/24/2007
I. The Credit Crunch of 2007

The global credit crunch induced by the subprime mortgage crisis in the United States, in the second half of 2007, engendered a tectonic and paradigmatic shift in the way central banks perceive themselves and their role in the banking and financial systems.

Subsidizing Hunger On Borrowed Cash
Lagan Sebert - 12/21/2007
A window of opportunity for farm-subsidy reform is closing after the Senate approved a new $286 billion farm bill passed on Friday. The bill’s innocuous name belies a wide-reaching American policy. The farm bill continues to be touted as a safety net for American farmers, but the word farm isn’t even in the bill's official title this year-- The Food and Energy Security Act of 2007. An odd coalition of critics ranging from President Bush to environmental groups have charged that the Senate failed to significantly reform a subsidy system, which continues to subsidize large-scale farmers already making record profits and wealthy city-slickers cashing in on vast land ownership.

Business as Usual: the Energy Bill, Subprime Mess and Recession Watch
Prof. Peter Morici - 12/21/2007
The stock market remains unsettled, as the nation's economic problems grow. Washington from the White House to Capitol Hill to the Federal Reserve gives us lots of bustle but no truly comforting action.

U.S. Records $178.5 Billion Third Quarter Current Account Deficit
Prof. Peter Morici - 12/18/2007
Monday, the Commerce Department reported the third quarter current account deficit was $178.5 billion, down from $188.9 billion in the second quarter. The deficit exceeded 5.4 percent of GDP.

Chinese Dragon Does Not Flinch and the Bernanke's Toothless Dog
Prof. Peter Morici - 12/14/2007
This week, the big news continues to center around the dollar and the credit crisis. Secretary Henry Paulson returns from China empty handed on the dollar-yuan exchange rate, and Federal Reserve Chairman Ben Bernanke is stunned when an interest rate cut sinks the stock market.

America’s Socio- Economic Conundrum
Bhuwan Thapaliya - 12/14/2007
At the dawn of the 21st century, the United States is still an economic powerhouse and the one and only superpower of this world. But its economy is facing competition from the rising giants such as China and India and as well as from its internal socio-economic differences. Its lower and middle classes are facing the economic heat, and the United States which was the world’s biggest creditor until the 1980s is now the world’s biggest debtor. Hence, it’s worth scrutinizing the United States and its socio- economy more closely.

President Bush's Mortgage Program and Rumblings from Europe about the Dollar
Prof. Peter Morici - 12/11/2007
This week, the big news may be the shoes that are yet to drop: President George W. Bush's program to help distressed homeowners and halt the free fall in housing and subprime securities markets, and the continued carping from the Europeans about the decline in the dollar.

Economy Adds 94,000 Jobs in November
Prof. Peter Morici - 12/9/2007
Friday, the Labor Department reported the economy added 94,000 payroll jobs in November, after posting a 170,000 gain in October. Economists expected a 70,000 gain in November, and my published forecast was 88,000. The grip of the subprime mortgage crisis is apparent, as jobs growth has slowed to much less than the 115,000 necessary to keep even with labor force growth at one percent a year. Slow jobs growth, along with the shortage of business credit, declining home prices, and falling industrial production, indicate the risk of a recession is clearly above 50 percent. Either the economy has already entered a recession or the risk that a recession will begin soon exceeds 50 percent.

Good News for Inflation, Interest Rates and Stocks
Prof. Peter Morici - 12/7/2007
Wednesday, the Department of Labor reported productivity in the nonfarm private business sector increased at a 6.3 percent annual rate in the third quarter of 2007. This was significantly higher than the 2.2 percent increase recorded in the second quarter.

Avoiding A Recession
Prof. Peter Morici - 12/2/2007
Recessions are not inevitable adjustments built into the clockwork of a modern economy. Businesses no longer make products on long lead times and stumble into excess inventories of cars and appliances, triggering layoffs and pauses in consumer spending. Computer-aided supply chain management and tracking customer purchases permit businesses to better align what they make to what can be sold.

Rising Hunger: The muddle in America
Bhuwan Thapaliya - 11/30/2007
When talk turns to America, the world is almost as full of self-described "realists" who believe that there is not an iota of problem in America, and the nation is an emblem of paradise. It is indeed rich, powerful and even the poor masses enjoy numerous benefits because of vast economic opportunities but everything is not rosy in the United States as it looks to the eye of the beholder. In reality, the facts are diverse.

Envy Driven Society
Aleksandar Dimishkovski - 11/26/2007
Doing more, doing better… This unwritten rule that is a pure representation of envy has been the reason behind many people's successes, many victories, great business achievements, advanced technology development etc. Being envious obviously motivates humans to render a better version of themselves, by constantly comparing themselves to others. To be better than the rest is also the most important rule in business in any sense, from innovative production to pure profit making – the more, the better.

The $100 Zerophobia
Naseem Javed - 11/25/2007
What a difference a single dollar makes. A very big difference indeed. As a matter of fact, almost like a mind-altering-shock wave, a global hysteria, a cry of the consumer to be heard around the deepest corners of the globe, in addition to being 'breaking news' to the hearts content for the glitzy-TV-media-machine. The current oil prices have been coasting around, give or take a few dollars less than $100 for a little while; it is only a matter of time before, sooner or later, when that one dollar addition becomes the anticipated reality. So what does this mean? The global population has par...

An Emergency Interest Rate Cut?
Prof. Peter Morici - 11/21/2007
Tuesday, stock markets were lifted on speculation that Ben Bernanke will call an emergency meeting at the Federal Reserve to further cut interest rates. This would be a remarkable turnaround for Chairman Bernanke. On October 31, the Fed cut the federal funds rate a quarter point to 4.50 percent but essentially said that it would not likely cut rates further. The Open Market Committee stated: "The Committee judges that, after this action, the upside risks to inflation roughly balance the downside risks to growth."

The Limits of Federal Reserve Policy
Prof. Peter Morici - 11/12/2007
Federal Reserve policymakers and critics labor under false assumptions. Hawks believe tighter credit can stave off inflation. Doves hew to lower rates to mitigate risks of recession.

U.S. Records $56.5 Billion Trade Deficit in September
Prof. Peter Morici - 11/9/2007
Today, the Commerce Department reported the September deficit on trade in goods and services was $56.5 billion. This was down slightly from $56.8 billion in August but was still 4.9 percent of GDP.

Stock Prices and the Trade Deficit
Prof. Peter Morici - 11/8/2007
Wall Street and American capitalism are suffering a crisis of confidence. Stock markets are in turmoil, because U.S. banks are taking record losses from foolish bets on subprime mortgages, the dollar is tanking against the euro and some other currencies, and oil prices are rocketing.

The Falling Dollar and the Stubborn U.S. Trade Deficit
Prof. Peter Morici - 11/7/2007
Since October 2006, the euro has risen about 13 percent against the dollar but don't expect dramatic improvements in the U.S. trade deficit until China and other Asian exporters permit their currencies to rise significantly too.

The Haunted America
Naseem Javed - 10/20/2007
Countries are like little homes; they house a nation, hold ideologies and provide shelter and comfort to its people in hopes that the occupant will nurture better ideas for themselves and further flourish humanity. Such are primary desires and goals of most countries on this small planet. America is no exception. For decades, billions of people around the world slept at night on empty stomachs amidst dreadful circumstances, often dreaming of the freedoms and liberties of America, which they likened to a great land, a paradise and a final destination point.

Why the Bernanke Should Cut Rates
Prof. Peter Morici - 10/20/2007
This week Federal Reserve Chairman Ben Bernanke and Treasury Secretary Henry Paulson admitted the mortgage crisis and housing slump are more critical than previously assessed. Paulson is prodding major players in the private capital markets to create a safety net for bonds that fund home mortgages and refinance more adjustable rate mortgages (ARMS). The goal is to put a floor under housing prices and save the economy from recession. An interest rate cut from the Federal Reserve would help a lot.

U.S. Banks Offer Plan to Calm Credit Markets
Prof. Peter Morici - 10/18/2007
The creation by Citigroup, JP Morgan, and Bank of America of a special fund to purchase the collateralized debt obligations (CDOs) of major structured investment vehicles (SIVs) should be viewed as good news by the stock and bond markets.

Consumer Prices Increase 0.3 Percent in September
Prof. Peter Morici - 10/17/2007
Today, the Labor Department reported that the Consumer Price Index rose 0.3 percent in September because of continuing pressures from rising food prices and a very modest rebound in consumer energy prices.

On Achievement
Sam Vaknin, Ph.D. - 10/13/2007
If a comatose person were to earn an interest of 1 million USD annually on the sum paid to him as compensatory damages – would this be considered an achievement of his? To succeed to earn 1 million USD is universally judged to be an achievement. But to do so while comatose will almost as universally not be counted as one. It would seem that a person has to be both conscious and intelligent to have his achievements qualify.

Deficit Lowers GDP $1750 for Each Working American
Prof. Peter Morici - 10/12/2007
Thursday, the Commerce Department reported the August deficit on trade in goods and services was $57.6 billion. This was down from $59.0 billion in July, but the trade deficit still is about 5.0 percent of GDP and remains a big drag on economic growth and incomes. The consensus forecast was $59.0 billion, and my published forecast was $58.1 billion.

Democratic Accountability and the Doha Round
Prof. Peter Morici - 10/9/2007
History teaches that open markets best promote economic progress, but markets without good rules can pitch us into chaos, and the rule makers must be broadly accountable or tyranny will follow. In our effort to bring order and fairness to global markets, the Doha Round of World Trade Organization negotiations could sabotage democratic accountability by relegating tough issues to unelected bureaucrats in Geneva.

Economy Adds 110,000 Jobs in September
Prof. Peter Morici - 10/7/2007
Friday, the Labor Department reported the economy added 110,000 payroll jobs in September, after posting an 89,000 gain in August. The consensus forecast was 100,000, and my published forecast was 110,000. The grip of the subprime crisis is apparent. In the third quarter, jobs growth was 99,000 per month, at bit less than is needed to keep unemployment from rising. The economy grew at a decidedly slower pace in the third quarter than the 3.8 percent posted in the second quarter. Something in the range or 2.5 percent, or a bit less, is likely for the third quarter.

The Perils of Going Slow to Clean Up Mortgage Lending and Bond Rating
Prof. Peter Morici - 10/1/2007
If the hearings at the Senate Banking and House Financial Services Committees demonstrate anything, fixes to the broken mortgage lending and bond rating processes will come only slowly, and that is bad for U.S. home buyers and capital markets more generally. The Treasury and Federal Reserve favor minimum intervention and letting market discipline establish transparency in credit markets as much as possible. However laudable that might be, it is apparent that such approaches have already failed. That is how we got into the fix we find ourselves.

Personal Income up $40.2 Billion in August
Prof. Peter Morici - 9/30/2007
Friday, the Commerce Department reported in August personal income increased $40.2 billion or 0.3 percent, disposable personal income increased $37.2 billion or 0.4 percent, and personal consumption expenditures increased $54.8 billion or 0.6 percent. Consumer spending continues to support economic growth, and for July and August, consumer spending outpaced second quarter growth.

UAW - GM Pact Leaves GM at Cost Disadvantage
Prof. Peter Morici - 9/27/2007
The details that emerged in the press today about the "historic" UAW - GM labor pact indicate the deal may prove the death knell for yet many more Midwestern manufacturing jobs.

Tough Choices for Bernanke
Prof. Peter Morici - 9/26/2007
The Fed is in a tough box. Vital signs--housing sales, new home construction, retail sales, and jobs creation--all indicate slower growth and the risk of a recession. Cutting interest rates is a necessary but limited policy option for two sets of reasons.

Producer Prices Fall 1.4 Percent in August
Prof. Peter Morici - 9/21/2007
Tuesday, the Labor Department reported the Producer Price Index fell 1.4 percent in August, after rising 0.6percent in July.

Fed Cuts Federal Funds and Discount Rates by 50 Basis Points
Prof. Peter Morici - 9/20/2007
Tuesday, the Federal Reserve Open Market Committee cut the target federal funds rate by 50 basis points to 4.75 percent and lowered the discount rate by the same amount to 5.25 percent.

U.S. Records $190.8 Billion First Quarter Current Account Deficit
Prof. Peter Morici - 9/16/2007
Friday, the Commerce Department reported the second quarter current account deficit was $190.8 billion, down from $197.1 billion in the first quarter. The deficit exceeded 5.5 percent of GDP. My published forecast was $191.7 billion for the second quarter.

Oil, China and Autos Push Up Deficit - U.S. Records $59.2 Billion Trade Deficit in July
Prof. Peter Morici - 9/15/2007
Tuesday, the Commerce Department reported the July deficit on trade in goods and services was $59.2 billion. This was down slightly from the $59.4 billion deficit in June, and was still about 5.2 percent of GDP. The consensus forecast was $59.0 billion, and my published forecast was $59.4 billion.

Henry Paulson's Fear Mongering
Prof. Peter Morici - 9/14/2007
Recently Treasury Secretary Paulson warned that legislation moving through Congress to address the harm imposed by Chinese protectionism could set off a trade war and unsettle global markets. Such fear mongering places the U.S. economy at grave peril.

Economy Losses 4000 Jobs in August: Impact of Subprime Crisis Apparent, Fed Likely to Cut Rates
Prof. Peter Morici - 9/7/2007
Today, the Labor Department reported the economy lost 4000 payroll jobs in August, after posting a 68,000 gain in July. Economist expected a 110,000 gain in August and were clearly taken off guard by the sudden drop in hiring.

U.S. Productivity Improves: Good News for Inflation, Interest Rates and Stocks
Prof. Peter Morici - 9/6/2007
Today, the Department of Labor reported productivity in the nonfarm private business sector increased at a 2.6 percent annual rate in the second quarter of 2007. This was significantly higher than the 0.7 percent increase recorded in the second quarter of 2007.

Putting Lipstick On Pigs
Prof. Peter Morici - 9/1/2007
The pope and US Federal Reserve chairman Ben Bernanke both rely on a higher force to motivate millions. The pope relies on faith in the Resurrection; poor Ben depends on the credibility of the bond market. The latter, ultimately, rests on the integrity of investment banks and bond-rating agencies, and those have proved faulty.

When Trust Fails, Credit Markets Collapse
Prof. Peter Morici - 8/25/2007
The Pope and Ben Bernanke both rely on a higher force to motivate millions. The Pope relies on faith in the Resurrection, poor Ben depends on the credibility of the bond market. The latter, ultimately, rests on the integrity of investment banks and bond rating agencies, and those have proven faulty.

Asset Confiscation and Asset Forfeiture
Sam Vaknin, Ph.D. - 8/22/2007
The abuse of asset confiscation and forfeiture statutes by governments, law enforcement agencies, and political appointees and cronies throughout the world is well-documented. In many developing countries and countries in transition, assets confiscated from real and alleged criminals and tax evaders are sold in fake auctions to party hacks, cronies, police officers, tax inspectors, and relatives of prominent politicians at bargain basement prices.

Voucher Communities - the Solution to Unemployment?
Sam Vaknin, Ph.D. - 8/21/2007
I. Executive Summary

"Voucher Communities" are communities of unemployed workers organized in each municipality. The unemployed exchange goods and services among themselves in a barter-like or countertrade system. They use a form of "internal money": a voucher bearing a monetary value.

Thus, an unemployed electrician can offer his services to an unemployed teacher who, in return, gives the electrician's children private lessons. They pay each other with voucher money. The unemployed are allowed to use voucher money to pay for certain public goods and services (such as health and education)...

Oil, China and Auto Parts Push Trade Deficit Up
Prof. Peter Morici - 8/16/2007
Today, the Commerce Department reported the June deficit on trade in goods and services was $58.1 billion. This was down from the $59.2 billion deficit in May but was still about 5.1 percent of GDP. This was lower than expected. The consensus forecast was $61.0 billion.

Hedge Funds, Private Equity Funds and Stock Markets
Prof. Peter Morici - 8/11/2007
The recent market meltdown had much less to do with bad subprime loans than advertised. It was caused more fundamentally by excesses at hedge and private equity funds.

Robert Nardelli and Chrysler
Prof. Peter Morici - 8/7/2007
Yesterday Ceberus shoved aside Thomas LaSorda to name Robert Nardelli CEO of Chrysler. One wonders why. As things currently stand, the North American automobile industry is losing money. Toyota earns about $1200 a car and the Detroit Three lose more than that. Overall, the Big Six--GM, Ford, Chrysler, Toyota, Nissan, and Honda--have trouble turning a profit.

Economy Adds 92,000 Jobs in July
Prof. Peter Morici - 8/5/2007
Friday, the Labor Department reported the economy added 92,000 payroll jobs in July, down from 126,000 in June. The consensus forecast was 135,000.

U.S. Dollar Keeps Falling
Bhuwan Thapaliya - 8/3/2007
An economist, it has been said, is an expert who will know tomorrow why the things he predicted yesterday did not happen today. This is especially true of currency forecasting too. Over the past couple of years economists have repeatedly forecast that the dollar would strengthen against the other main currencies. They have been wrong.

Fed Policy and Interest Rate Outlook: Fed target unchanged through November
Prof. Peter Morici - 7/29/2007
Treasuries are currently overbought. The long end of the Treasury yield curve will rise as the subprime scare subsides, freeing up additional cash for solid mortgages and enterprises with sound business plans. The ten-year Treasury rate should rise through the balance of the third quarter. Look for something above 5.10. Treasury long rates are artificially suppressed by the subprime scare. This may be a good time to move high quality corporate and municipal debt, and for investors to move from Treasuries to lower grade, but investment quality corporate debt.

Second Quarter GDP Increases 3.4 Percent
Prof. Peter Morici - 7/28/2007
Yesterday, the Commerce Department reported that GDP grew at a 3.4 percent annual rate in the second quarter of 2007, up from 0.6 percent in the first quarter. This exceeded the consensus, which was 3.2 percent.

No Change in Federal Reserve Policy Likely, Stocks Poised to Rise
Prof. Peter Morici - 7/19/2007
Yesterday, the Labor Department reported the Producer Price Index fell 0.2 percent in June, after rising 0.9 percent in May. For June, the consensus forecast was 0.2 percent, and my published forecast was 0.0 percent.

Food Costs Drive Inflation, Gasoline to Spike, Yet Bull Market to Continue
Prof. Peter Morici - 7/18/2007
Today, the Labor Department reported that the Consumer Price Index rose 0.2 percent in June, thanks in significant measure to rising food prices. Food prices were up 0.5 percent, after rising 0.3 percent in May. Rising food prices are exacerbated by the ethanol program, which is pushing up the prices for grains and derivative products like poultry, beef and baked goods to supplement imported gasoline supplies. Federal policy is clearly pushing up food prices to cope with oil import dependence.

Outlook for Interest Rates, Stocks Remains Good
Prof. Peter Morici - 7/16/2007
Friday, the Commerce Department reported June retail sales were down 0.9 percent from May. Less automobiles and parts, retail sales fell 0.4 percent. This retreat was greater than expected by forecasters.

U.S. Records $60 Billion Trade Deficit in May
Prof. Peter Morici - 7/14/2007
Thursday, the Commerce Department reported the May deficit on trade in goods and services was $60.0 billion. This was up from the $58.7 billion deficit in April and was about 5.2 percent of GDP. The petroleum deficit increased to $23.9 billion in May from $22.4 billion in April, while the trade deficit on nonpetroleum products increased to $42.7 from $42.4 billion.

No Change in Fed Interest Rate Policy Likely and Stocks Will Continue Up
Prof. Peter Morici - 7/8/2007
Friday, the Labor Department reported the economy added 132,000 payroll jobs in June, down from 190,000 in May. Wages increased a moderate 6 cents per hour, or 0.3 percent, despite surging energy and food prices. Moderate wage and labor productivity growth should help keep core inflation in check, but rising gasoline prices later this summer and pressure from the ethanol program on grain and food prices could yet ignite a wage-price spiral. The Federal Reserve will remain cautious about inflation.

The Trials of Bear Stearns
Prof. Peter Morici - 7/1/2007
The near melt-down of two Bear Stearns hedge funds invested in subprime mortgages has focused attention on two critical questions. Will mortgage financing dry up, throwing the economy into the great abyss? Will the rush of private equity into publicly trade companies, aimed at reorganizing U.S. corporate assets, reverse and send stock prices tumbling?

Inflation Slows, Stocks Should Rally
Prof. Peter Morici - 6/30/2007
Yesterday, the Commerce Department reported in March personal income increased $47.3 billion or 0.4 percent, disposable personal income increased $37.6 billion or 0.4 percent, and personal consumption expenditures increased $52.0 billion or 0.5 percent. Consumers continue to lead economic growth, and this should continue. Gasoline prices rose 10 percent in May, and consumers are borrowing more to maintain spending habits. However, spending is moderating a bit as consumers save more. Those savings should find their way into the stock market, and that will be good for stock prices.

Why China Won't Revalue
Prof. Peter Morici - 6/28/2007
An undervalued yuan offers Beijing great advantages but imposes significant costs on the U.S. economy. That is not likely to change anytime soon, because those costs are not apparent to many Americans feasting on cheap imports, and President Bush and the Congress lack the courage to act effectively.

Short Selling and Volatility
Sam Vaknin, Ph.D. - 6/26/2007
Short selling involves the sale of securities borrowed from brokers who, in turn, usually borrow them from third party investors. The short seller pays a negotiated fee for the privilege and has to "cover" her position: to re-acquire the securities she had sold and return them to the lender (again via the broker). This allows her to bet on the decline of stocks she deems overvalued and to benefit if she is proven right: she sells the securities at a high price and re-acquires them once their prices have, indeed, tanked.

Can Gross Domestic Product (GDP) Figures be Trusted?
Sam Vaknin, Ph.D. - 6/24/2007
The formula to calculate GDP is this: GDP (Gross Domestic Product) = Consumption + investment + government expenditure + net exports (exports minus imports) = Wages + rents + interest + profits + non-income charges + net foreign factor income earned.

Moderation in Core Rate Should Comfort Investors, Push Up Stocks
Prof. Peter Morici - 6/21/2007
Friday, the Labor Department reported that the Consumer Price Index rose 0.7 percent in May, thanks in large measure to rising energy and food prices. This was higher than expected but moderation in the core rate of inflation should comfort investors. Energy prices rose 5.4 percent in May after rising 2.4 percent in April. Tight refining capacity and scattered emergency closures have run down inventories. Gasoline supplies will remain tight and prices will likely continue head up further.

U.S. Records $193 Billion First Quarter Current Account Deficit Taxing Growth
Prof. Peter Morici - 6/20/2007
Friday, the Commerce Department reported the first quarter current account deficit was $192.6 billion, up from $187.9 billion in the fourth quarter. The deficit was 5.7 percent of GDP. The consensus forecast was $203 billion, and my published forecast was 195.8. The current account is the broadest measure of the U.S. trade balance. In addition to trade in goods and services, it includes income received from U.S. investments abroad less payments to foreigners on their investments in the United States.

No Change in Federal Reserve Policy Likely, Stocks Poised to Rise
Prof. Peter Morici - 6/17/2007
Thursday, the Labor Department reported the Producer Price Index rose 0.9 percent in May, after rising 0.7 percent in April. For May, the consensus forecast was 0.6 percent, and my published forecast was 0.8 percent. Energy prices rose 4.1 percent, after rising 3.4 percent in April. Food prices fell 0.2 percent in May after rising 0.4 percent in April. Core producer prices "producer prices less food and energy" rose 0.2 percent in May after no change in April.

Oil, China and Autos Push Up Deficit
Prof. Peter Morici - 6/12/2007
Last week, the Commerce Department reported the April deficit on trade in goods and services was $58.5 billion. This was down from the $62.4 billion deficit in March and well below the consensus forecast, which was $64.0 billion.

Economy Adds 157,000 Jobs in May, Personal Income Down But Spending Up
Prof. Peter Morici - 6/2/2007
Friday, the Labor Department reported the economy added 157,000 payroll jobs in May, up from 80,000 in April. In the first quarter, the economy added 496,000 payroll jobs, or about 165,000 jobs per month, and the economy is not on track to equal that pace in the second quarter.

How the Wealth Grows - Introduction to Economics
Dimitri Kolb - 6/1/2007
Everybody loves economists. They are really nice guys, they predicted and brought to life everything we have. Were would we be now without economists? At best, we would suffer from darkness, cold and hunger in the middle of dark, dark ages. But suddenly came the economist and said: "Let it be market". And everything appeared itself in front of astonished people. The Invisible Hand of the Market - that it was.

Growth Picking Up and Outlook for Stocks Remains Strong
Prof. Peter Morici - 5/18/2007
Wednesday, the Commerce Department reported 1.528 new homes were started in April. Separately, the Federal Reserve reported industrial production rose 0.7 percent, with manufacturing posting a robust 0.5 percent. The latter figure followed a 0.6 percent gain in March.

Gasoline Headed for $4.00 a Gallon, But Good News for Stocks
Prof. Peter Morici - 5/17/2007
Tuesoday, the Labor Department reported that the Consumer Price Index rose 0.4 percent in April, thanks in large measure to rising energy and food prices. The consensus forecast was 0.5 percent. This better than expected inflation report should give stocks a lift.

Cerberus Acquisition of Chrysler Makes Little Sense
Prof. Peter Morici - 5/16/2007
Cerberus will acquire control of the Chrysler Group from DaimlerChrysler by paying $7.4 billion for 80.1 percent of Chrysler Group and assume the North American automaker's pension and health care liabilities. Daimler would retain 19.9 percent ownership. This arrangement fails to address Chrysler's fundamental competitiveness problems on three fronts.

U.S. Records $63.9 Billion Trade Deficit
Prof. Peter Morici - 5/12/2007
Thursday, the Commerce Department reported the March deficit on trade in goods and services was $63.9 billion. This was up from the $57.9 billion deficit in February and was about 5.6 percent of GDP. The petroleum deficit increased to $22.1 billion in March from $18.5 billion in February, while the trade deficit on nonpetroleum products increased to $45.5 from $44.3 billion.

No Change in Federal Reserve Policy Likely, Good News for Stocks
Prof. Peter Morici - 5/11/2007
Today, the Labor Department reported the Producer Price Index rose 0.7 percent in April, after rising 1.0 percent in March. Energy prices rose 3.4 percent in April, after rising 3.6 percent the prior month. Food prices were up 0.4 percent in April, after rising 1.4 percent in March.

How Did Toyota Manage To Squeeze The US Car Market From General Motors?
Prof. Peter Morici - 5/9/2007
Toyota enjoys much lower labor costs in the United States and benefits from an undervalued yen for cars made in Japan. In the United States, this comes to about $2500 per vehicle. The entry level and middle level market segments are very sensitive to price and vehicle durability. Toyota has been able to translate its cost advantage into vehicles with higher, more attractive content and longer life than General Motors. Toyota's Camry and Corolla, and derivatives of those cars, have been able to dominate their market spaces—they set the standard others must follow and they establish the price thresholds.

Economy Added 88,000 Jobs in April
Prof. Peter Morici - 5/7/2007
Friday, the Labor Department reported the economy added 88,000 payroll jobs in April, down from 177,000 in March. In the first quarter, the economy added 497,000 payroll jobs, or about 166,000 jobs per month. Somewhat slower employment growth in April is consistent with the recent pickup in productivity growth and a moderately expanding economy. New home construction is likely bottoming out. Continued strong consumer purchases and an up tick in business investment and commercial construction should lift GDP growth to above 2 percent in the second quarter.

U.S. Productivity Advances Solidly
Prof. Peter Morici - 5/5/2007
Yesterday, the Department of Labor reported productivity in the nonfarm private business sector increased at a 1.7 percent annual rate in the first quarter of 2007. This was in line with the 1.6 percent increase recorded in the fourth quarter of 2006. (1.6).

Can Charles Rangel Fix U.S. Trade Policy?
Prof. Peter Morici - 5/3/2007
The Bush Administration and the House Ways and Means Committee Chairman Charles Rangel appear close to an agreement to strengthen the labor rights provisions in pending free trade pacts with Panama and Peru. The prospect that such provisions could be generalized to all trade agreements is scaring the pants off unions and business lobbies alike. Their angst is unfortunate, because stronger labor safeguards will neither fix what really bothers organized labor about free trade nor harm American commercial interests.

Personal Income up $79.9 Billion in March
Prof. Peter Morici - 5/1/2007
Yesterday, the Commerce Department reported in March personal income increased $79.9 billion or 0.7 percent, disposable personal income increased $65.5 billion or 0.7 percent, and personal consumption expenditures increased $24.4 billion or 0.3 percent.

Outlook for the Stock Market Looks Great
Prof. Peter Morici - 4/29/2007
Friday, the Commerce Department reported that GDP grew at a 1.3 percent annual rate in the first quarter of 2007, down from 2.5 percent in the fourth quarter of 2006. This was below the consensus forecast of 1.8 percent and only based on preliminary data. There is a decent chance the first quarter figure will be revised upward.

Economy Gaining Steam: Dow Headed for 14,000
Prof. Peter Morici - 4/28/2007
Wednesday morning the Commerce reported durable goods orders were up 3.4 percent in March. Excluding transportation equipment orders were up 1.5 percent, and excluding defense purchases orders were up 4.5 percent.

Good News for the Economy and the Stock Market
Prof. Peter Morici - 4/19/2007
Monday, the Commerce Department reported March retail sales were up 0.7 percent from February. Less automobiles and parts, retail sales advanced 0.8 percent. Compared to a year ago, March retail sales were up 3.8 percent, and excluding automobiles and parts, retail sales increased 3.9 percent.

Gasoline Prices Headed for $4.00 a Gallon
Prof. Peter Morici - 4/18/2007
Yesterday, the Labor Department reported that the Consumer Price Index rose 0.6 percent in March, thanks in large measure to rising energy and food prices. Energy prices rose 5.9 percent in March, after rising 0.9 percent in February. Colder weather in February ran down inventories and pushed up fuel prices in March. Food prices were up 0.3 percent, after rising 0.8 percent in February.

No Change in Federal Reserve Policy Likely, Stocks Poised to Rise
Prof. Peter Morici - 4/16/2007
Friday, the Labor Department reported the Producer Price Index rose 1.0 percent in March, after rising 1.3 percent in February. For March, the consensus forecast was 0.7 percent, and my published forecast was 1.0 percent.

U.S. Records $58.4 Billion Trade Deficit in February
Prof. Peter Morici - 4/14/2007
Today, the Commerce Department reported the February deficit on trade in goods and services was $58.4 billion. This was down from the $58.9 billion deficit in January but still was about 5.2 percent of GDP. The decline largely reflected a temporary fall in petroleum imports. The non-oil trade deficit jumped $3.0 billion.

Economy Added 190,000 Jobs in March
Prof. Peter Morici - 4/6/2007
Today, the Labor Department reported the economy added 180,000 payroll jobs in March, up from 113,000 in February. The March figure considerably exceeded the consensus forecast, which was 135,000.

The Economics of Expectations
Sam Vaknin, Ph.D. - 3/21/2007
Economies revolve around and are determined by "anchors": stores of value that assume pivotal roles and lend character to transactions and economic players alike. Well into the 19 century, tangible assets such as real estate and commodities constituted the bulk of the exchanges that occurred in marketplaces, both national and global. People bought and sold land, buildings, minerals, edibles, and capital goods. These were regarded not merely as means of production but also as forms of wealth.

US Economy: Barbarians At the Gates?
Naseem Javed - 3/15/2007
Like scenes from a never-ending story, where there in endless halls and huge chambers, dark robes and heavy cloaks slide, stern men in attire ready to quip and stab gather, a decorum of strained hostilities and false grins, and somewhere there, they greet the wizard of the century, the one who pauses, takes a posture and then sharply raises his voice and addresses the chamber: "Sire, your children are in trouble, failing in education while you are shutting doors on highly skilled magicians from far away lands…open the gates and let the talent march in, or this land is in trouble." In quick res...

U.S. Productivity Advances Solidly
Prof. Peter Morici - 3/14/2007
Tuesday, the Department of Labor reported productivity in the nonfarm private business sector increased at a 1.6 percent annual rate in the fourth quarter of 2006. This was a sharp improvement over the 0.5 percent decline recorded in the third quarter.

Economy Adds 97,000 Jobs in February
Prof. Peter Morici - 3/12/2007
Friday, the Labor Department reported the economy added 97,000 payroll jobs in February, after adding 146,000 the previous month. The January figure was revised upward from 110,000, indicating employment growth remains steady.

Addressing Income Inequality
Prof. Peter Morici - 3/3/2007
Democrats won control of Congress, in part, promising to address income inequality. Unfortunately, many seem more determined to help union leaders than address the real problems workers face.

Outlook Promising for Stock Prices
Prof. Peter Morici - 2/21/2007
Today, the Labor Department reported that the Consumer Price Index rose 0.2 percent in January, despite falling energy prices.

American Economy: on the rise, no need to panic
Bhuwan Thapaliya - 2/6/2007
An Economist, it has been said, is an expert who will know tomorrow why the things he predicted yesterday did not happen today. This is true of Gross Domestic Product (GDP) forecasting too.

American monetary policy and its less curvy yield curve
Bhuwan Thapaliya - 1/29/2007
The United States of America is the world’s largest and most successful economy with a Gross Domestic Product(GDP) for 2006 of $13.3 trillion dollars but according to some analysts, this giant economy is about to collapse into a recession. Is the American economy about to collapse into a recession or is it just an expert’s speculation?

Defending against China trade
Prof. Peter Morici - 1/3/2007
Democrats soon to control Congress are frightening large multinational corporations with promises to do something about the U.S. international trade deficit. Prominent newspapers are publishing commentaries warning against the perils of protectionism. As the author of several tracts extolling the virtues of free trade, I find these reactions wrongheaded and counterproductive.

Consumers Continue to Hold Up the Economy
Prof. Peter Morici - 12/29/2006
The Commerce Department reported in November personal income increased $33.8 billion or 0.3 percent, disposable personal income increased $27.0 billion or 0.3 percent, and personal consumption expenditures increased $50.5 billion or 0.5 percent.

Personal Income up $33.8 Billion in November
Prof. Peter Morici - 12/26/2006
Saturday, the Commerce Department reported in November personal income increased $33.8 billion or 0.3 percent, disposable personal income increased $27.0 billion or 0.3 percent, and personal consumption expenditures increased $50.5 billion or 0.5 percent.

The Public Sector - An Uncertain Future
Sam Vaknin, Ph.D. - 12/26/2006
What is: big, hated, outdated and indispensable? Answer: the Public Sector.

No Change in Fed Policy Likely, Stock Prices Should Continue Rising
Prof. Peter Morici - 12/20/2006
Yesterday, the Labor Department reported the Producer Price Index rose 2.0 percent in November, after falling 1.6 percent in October.

No Change in Consumer Prices in November
Prof. Peter Morici - 12/16/2006
Yesterday, the Labor Department reported that the Consumer Price Index did not change from October to November, on a seasonally adjusted basis, thanks to falling apparel, transportation, food, and energy prices.

November Retail Sales Register a Decent Advance
Prof. Peter Morici - 12/15/2006
On Wednesday, the Commerce Department reported retail sales in November increased 1 percent from October, and retail sales, less automobiles and parts, were up 1.1 percent.

The Professions of the Future
Sam Vaknin, Ph.D. - 12/14/2006
Predicting the future is a tricky business. There have been countless ridiculous failures at identifying the trends and products which will determine the future shape of our life and our environment. Even more difficult is trying to guess which of us will be deemed a useful member of the community - and which an obsolete relic. To a large extent, the answer to this question lies in determining the useful professions of the future.

Automakers Hypocrisy about Steel Protection
Prof. Peter Morici - 12/14/2006
Today in the Wall Street Journal, executives from the domestic Big Three and Japanese automakers with substantial production facilities in the United States railed against U.S. antidumping duties on anticorrosive steel. What seems to go unaddressed is the rationale for these duties, and that automakers are silent about the protection on automobiles they enjoy from Mercedes Benz cars and other brands. World Trade Organization law provides for anti-dumping orders to guard against countries exporting unemployment b...

U.S. Records $59 Billion Trade Deficit in October - Deficit with China Keeps Getting Worse
Prof. Peter Morici - 12/13/2006
Yesterday, the Commerce Department reported the October deficit on trade in goods and services was $58.9 billion. This was down from a $64.3 billion deficit in September but remains about 5.3 percent of GDP.

Peter Morici: Why Detroit left D.C. empty-handed
Prof. Peter Morici - 12/12/2006
The leaders of General Motors, Ford and Chrysler recently had their long-awaited summit with President Bush. Sensitive to public sentiment, auto leaders argued they were not looking for special treatment. Instead, they sought adjustments in public policy that would benefit both the country and their operating environment. A close look at their problems and actions indicates automakers are not willing to address tough issues and Washington cannot save them.

Economy Added 132,000 Jobs in November
Prof. Peter Morici - 12/11/2006
Friday, the Labor Department reported the economy added 132,000 payroll jobs in November. The consensus forecast and my forecast were 110,000

Hurricane Milton (Friedman)
Prof. Walden Bello - 12/6/2006
While economists laud the recently deceased Milton Friedman for being “a champion of freedom whose work transformed economics and changed the world,” as a full-page advertisement in the New York Times put it, people in the South will remember the University of Chicago professor as the eye of a human hurricane that cut a swath of destruction through their economies. For them, Friedman will long be associated with two things: free-market reform in Chile and “structural adjustment” in the developing world.

To Grow Out of Unemployment
Sam Vaknin, Ph.D. - 12/6/2006
There is a connection between economic growth and unemployment. There is a connection between growth and inflation. Therefore, commonsense (and financial theory) goes, there must be a connection between inflation and unemployment. A special measure of this connection is the Non Accelerating Inflation Rate of Unemployment (NAIRU). Supposedly, this is the rate of unemployment which still does not influence inflation. If unemployment goes below NAIRU, inflationary pressures begin to exert themselves.

Personal Income up $49.3 Billion in October - Savings Rate Improves, Good News for Stocks
Prof. Peter Morici - 12/6/2006
Last week, the Commerce Department reported in October personal income increased $49.3 billion or 0.4 percent, disposable personal income increased $33.1 billion or 0.3 percent, and personal consumption expenditures increased $16.9 billion or 0.2 percent.

Meritocracy and Brain Drain
Sam Vaknin, Ph.D. - 12/4/2006
Groucho Marx, the famous Jewish-American comedian, once said:

GDP Increases 2.2 Percent in Third Quarter
Prof. Peter Morici - 12/4/2006
Last week, the Commerce Department reported that GDP grew at a 2.2 percent annual rate in the third quarter, down from 2.6 percent in the second quarter.

Answering Chinese Mercantilism is Not Protectionism, It's Self-Defense
Prof. Peter Morici - 11/26/2006
Democrats, soon to control Congress, are frightening large multinational corporations with promises to do something about the U.S. international trade deficit. Prominent newspapers are publishing commentaries warning against the perils of protectionism. As the author of several tracts extolling the virtues of free trade, I find these reactions wrongheaded and counterproductive.

Making your Workers your Partners
Sam Vaknin, Ph.D. - 11/23/2006
There is an inherent conflict between owners and managers of companies. The former want, for instance, to minimize costs - the latter to draw huge salaries as long as they are in power.

Outlook for the U.S. Economy: Moderate Growth and a Bull Market
Prof. Peter Morici - 11/23/2006
Each month, I respond to the Bloomberg and Reuters surveys of Wall Street and corporate economists for the medium-term economic outlook. Here is my latest forecast.

Why GM, Ford and Chrysler Left Washington Empty Handed
Prof. Peter Morici - 11/21/2006
The leaders of General Motors, Ford and Chrysler recently had their long awaited summit with President Bush. Sensitive to public sentiment, auto leaders argued they were not looking for special treatment. Instead, they sought adjustments in public policy that would benefit both the country and their operating environment. A close look at their problems and actions indicates automakers are not willing to address tough issues and Washington cannot save them.

Relax, Democrats Might Not Be So Protectionist After All
Edward Gresser - 11/20/2006
Pundits worldwide suggest that Democratic control of the US Senate and House of Representatives after the November 7 election spells doom for free trade. But the Democratic Party has a tradition of economic internationalism, beginning with presidents such as Woodrow Wilson who served from 1913 to 1921. The party’s leaders have put forward a domestic agenda that aims at calming the anxiety of American citizens, according to trade policy analyst Edward Gresser. It includes an increase in the minimum wage, revising energy policy to reduce dependence on foreign oil, financing for stem-cell researc...

Core Inflation Slows, Fed Should Stand Pat and Stock Prices Should Surge
Prof. Peter Morici - 11/20/2006
Thursday, the Labor Department reported that the Consumer Price Index fell 0.5 percent in October, after falling 0.5 percent in September.

The Yen, Yuan and the Big Three Meeting with President Bush
Prof. Peter Morici - 11/19/2006
The President is meeting with leaders of the Big Three domestic automobile companies. Auto leaders say they want don't want special treatment but rather solutions that generally help U.S. businesses whether they make cars or car paint or simply replace tires.

U.S. Records $64.3 Billion Trade Deficit in September
Prof. Peter Morici - 11/17/2006
Last week, the Commerce Department reported the September deficit on trade in goods and services was $64.3 billion. This was down from a record $69.0 billion deficit in August.

Why Doors Slam Shut On U.S.-Made Products
Prof. Peter Morici - 11/16/2006
Timothy Aeppel's four-part series "Still Made in the U.S.A." (Marketplace, Oct. 24-27), which chronicles the success of a wide array of U.S. manufacturers, from those making church organs and surgical instruments to Bobcat, throws cold water on the notion that U.S. manufacturing can't compete. But it raises the question: Why has the trade deficit in manufacturing nearly tripled and the market share of manufactured imports grown from 5.6% in 1998 to about 15.2% this year?

Economy Added 92,000 Jobs in October
Prof. Peter Morici - 11/7/2006
On Friday, the Labor Department reported the economy added 92,000 payroll jobs in October. The consensus forecast was 125,000.

Personal Income up $53.3 Billion in September
Prof. Peter Morici - 10/30/2006
Today, the Commerce Department reported in September personal income increased $53.0 billion or 0.5 percent, disposable personal income increased $49.3 billion or 0.5 percent, and personal consumption expenditures increased $11.6 billion or 0.1 percent.

Resilient Consumers, Business Investment Stave Off Recession
Prof. Peter Morici - 10/30/2006
Friday, the Commerce Department reported that GDP grew at a 1.6 percent annual rate in the third quarter, down from 2.6 percent in second quarter. The consensus forecast was 2.1 percent.

Outlook for Interest Rates and Stock Market Upbeat
Prof. Peter Morici - 10/26/2006
Today, the National Association of Realtors reported September existing home sales were 6.16 million, down from 6.30 million in August and down from 7.20 million in September 2005. The consensus forecast was 6.23 million, and my forecast published by Reuters was 6.20 million.

GM Reports Quarterly Loss: Train Wreck Ahead?
Prof. Peter Morici - 10/26/2006
Today, GM reported a quarterly loss of $115 million--a significant improvement over the 2005 loss of $1.7 billion. Excluding special items associated with restructuring, GM recorded a net profit of $529 million.

Competition Laws and Industrial Action - Part IV
Sam Vaknin, Ph.D. - 10/25/2006
Maintain excess capacity to be used for "fighting" purposes to discipline ambitious rivals.

Competition Laws and Industrial Action - Part III
Sam Vaknin, Ph.D. - 10/24/2006
C. ANTI - COMPETITIVE STRATEGIES
(Based on Porter's book - "Competitive Strategy")

Anti-competitive practices influence the economy by discouraging foreign investors, encouraging inefficiencies and mismanagement, sustaining artificially high prices, misallocating scarce resources, increasing unemployment, fostering corrupt and criminal practices and, in general, preventing the growth that the country or industry could have attained otherwise.

Ford Reports $5.8 Billion Loss: Time for Bill Ford to Resign
Prof. Peter Morici - 10/24/2006
On Monday, the Ford Motor Company announced a third quarter loss of $5.8 billion. Excluding special items associated with restructuring, continuing operations lost $1.2 billion. North American operations posted a $2.0 billion pre-tax loss.

Competition Laws and Industrial Action - Part II
Sam Vaknin, Ph.D. - 10/23/2006
B. HISTORICAL AND LEGAL CONSIDERATIONS

Why does the State involve itself in the machinations of the free market? Because often markets fail or are unable or unwilling to provide goods, services, or competition. The purpose of competition laws is to secure a competitive marketplace and thus protect the consumer from unfair, anti-competitive practices. The latter tend to increase prices and reduce the availability and quality of goods and services offered to the consumer.

Fed Should Stand Pat and Stock Prices Should Surge
Prof. Peter Morici - 10/23/2006
On Wednesday, the Labor Department reported that the Consumer Price Index fell 0.5 percent in September, after rising 0.2 percent in August. The consensus forecast was minus 0.3 percent, and my forecast published by Reuters was minus 0.4 percent.

Competition Laws and Industrial Action - Part I
Sam Vaknin, Ph.D. - 10/18/2006
Should the price of labor (wages) and its conditions be left entirely to supply and demand in a free market - or should they be subject to regulation, legislation, and political action?

Retail Sales Fall in September Because Gasoline Prices Fall
Prof. Peter Morici - 10/17/2006
Today, the Commerce Department reported September retail sales decreased 0.4 percent from August, and retail sales, less automobiles and parts, were down 0.5 percent. Compared to a year ago, September retail sales were up 5.5 percent, and excluding automobiles and parts, retail sales increased 5.5 percent.

The Future of Work
Sam Vaknin, Ph.D. - 10/14/2006
A US Department of Labor report published, aptly, on Labor Day 1999, summed up the conventional wisdom regarding the future of this all-pervasive pastime we call "work". Agriculture will stabilize, service sector jobs will mushroom, employment in the manufacturing sector will be squeezed by "just in time" inventory and production systems and by labor-intensive imports. An ageing population and life-prolonging medicines will prop up the healthcare sector.

Paulson Dialogue with China Offers Little Hope as U.S. Multinationals Continue to Lobby Washington on China’s Behalf
Prof. Peter Morici - 10/13/2006
Yesterday, the Commerce Department reported the August deficit on trade in goods and services was $69.9 billion, up from $68.0 billion in July, setting a new record.

Entrepreneurship and Workaholism
Sam Vaknin, Ph.D. - 10/13/2006
The Dutch proudly point to their current rate of unemployment at less than 2%. Labour force participation is at a historically high 74% (although in potential man-hour terms it stands at 62%). France is as hubristic with its labour policies - the 35 hours week and the earlier reduction in employers' participation in social contributions. Employment is sharply up in a host of countries with liberalized labour markets - Britain, Spain, Ireland, Finland. The ECB brags that employment in the euro zone has been rising faster than in the USA since 1997.

Employee Benefits and Ownership
Sam Vaknin, Ph.D. - 10/12/2006
Aligning the interests of management and shareholders in the West by issuing stock options to the former - has failed miserably. Options are frequently re-priced in line with the decline in share prices, thus denuding them of their main incentive. In other cases, fast eroding stock options motivated managers to manipulate the price of the underlying stock through various illegal and borderline practices. Stock options now constitute c. 60 percent of the pay of Fortune 500 executives.

Outlook for the U.S. Economy
Prof. Peter Morici - 10/12/2006
Each month, I respond to the Bloomberg and Reuters surveys of Wall Street and corporate economists for the medium-term economic outlook. In a nutshell, economic growth should reignite as we move through the holiday season and into 2007 ifgasoline prices do not significantlyrebound and the adjustment in housing prices does not cause a large, abrupt increase in consumer savings. The prospects for both seem low at this time.

Economy Added 51,000 Jobs in September
Prof. Peter Morici - 10/6/2006
Today, the Labor Department reported the economy added 51,000 payroll jobs in September. The consensus forecast was 120,000, and my forecast published by Reuters was 125,000. The revised figure for August jobs growth was 188,000, up from 128,000. This indicates much of the shortfall in September was caused by bunching in August.

Housing Prices Likely to Continue Falling
Prof. Peter Morici - 10/3/2006
The National Association of Realtors reported today that its Index of Pending Homes Sales Index was down 14.1 percent in August from a year earlier. The August index was up 4.3 percent from July and down 3 percent from May and June.

Personal Income up $38.4 Billion in August
Prof. Peter Morici - 9/29/2006
Today, the Commerce Department reported in August personal income increased $38.4 billion or 0.3 percent, disposable personal income increased $38.8 billion or 0.4 percent, and personal consumption expenditures increased $10.5 billion or 0.1 percent.

America, the Debtor Nation
Prof. Peter Morici - 9/28/2006
The United States is a debtor nation, just like the poorest states in Africa, Latin America and Asia. Since the fourth quarter of last year, U.S. citizens and businesses have paid more dividends, interest and the like to foreigners than they have received from abroad.

Stock Market and the Economic Outlook
Prof. Peter Morici - 9/24/2006
On Thursday, the Philadelphia Federal Reserve Bank bank reported a negative index for September manufacturing activity in the Pennsylvania, New Jersey and Delware region, and the stock market slid. That reaction has continued today.

Economy Poised for a Soft Landing and Great News for the Stock Market
Prof. Peter Morici - 9/19/2006
Today, the Labor Department reported the Producer Price Index increased 0.1 percent in August, after rising 0.1 percent in July. This bodes well for a soft landing and is great news for the stock market.

U.S. Current Account Deficit Widens in Second Quarter
Prof. Peter Morici - 9/18/2006
Today, the Commerce Department reported the second quarter 2006 current account deficit was $218.4 billion, up from $213.2 billion in the first quarter. The consensus second quarter forecast was $213.5 billion, and my forecast published by Reuters was $215.1 billion.

Inflation Moderates and Stock Prices Should Benefit
Prof. Peter Morici - 9/15/2006
Today, the Labor Department reported that the Consumer Price Index rose 0.2 percent in August, after rising 0.4 percent in July. The consensus forecast was 0.3 percent, and my forecast published by Reuters was 0.2 percent.

The Way Forward - Is Ford Running Fast Enough to Catch Up?
Prof. Peter Morici - 9/15/2006
Ford has announced acceleration of its much touted "Way Forward." Unfortunately, it may slow the decline of this venerable icon of America's industrial golden age, but it is simply not enough.

Outlook for Holiday Retail Season Brightens
Prof. Peter Morici - 9/14/2006
Today, the Commerce Department reported retail sales increased 0.2 percent in August from July, and retail sales, less automobiles and parts, were up 0.2 percent. Compared to a year ago, August retail sales were up 6.7 percent, and excluding automobiles and parts, retail sales increased 7.5 percent.

U.S. Trade Deficit Hits New Record in July
Prof. Peter Morici - 9/12/2006
Today, the Commerce Department reported the July deficit on trade in goods and services was $68.0 billion, up from $64.8 billion in June and surpassing the record $66.3 billion set in January.

U.S. Productivity Growth Declines - An Opportunity for Ben Bernanke?
Prof. Peter Morici - 9/7/2006
Yesterday, the Department of Labor reported productivity in the nonfarm private business sector increased at a 1.6 percent annual rate in the second quarter from the first quarter of 2006. This was an upward revision from the 1.1 percent preliminary estimate published August 8. On a year-over-year basis, second quarter productivity in the nonfarm business sector was up 2.5 percent. That is a solid performance and indicates the growth potential of the U.S. economy remains formidable.

Outlook for the U.S. Economy
Prof. Peter Morici - 9/6/2006
Each month, I respond to the Bloomberg and Reuters surveys of Wall Street and corporate economists for the medium-term economic outlook. Here is what I submitted to Bloomberg this week, along with some comments on the risks of recession published by the Globe and Mail and Merrill Lynch Canada.

Economy Added 128, 000 Jobs in August
Prof. Peter Morici - 9/1/2006
Today, the Labor Department reported the economy added 128,000 payroll jobs in August. My forecast and the consensus forecast were 125,000 new jobs. The revised figure for July jobs growth was 121,000. Over the last five months, the economy has added 119,000 jobs per month. This is well below the number needed to accommodate labor force growth and keep unemployment from rising.

Personal Income up $60.2 Billion in July
Prof. Peter Morici - 8/31/2006
Today, the Commerce Department reported in July personal income increased $60.2 billion or 0.5 percent, disposable personal income increased $63.9 billion or 0.7 percent, and personal consumption expenditures increased $78.7 billion or 0.8 percent.

The Economic Freedom of Indices
Sam Vaknin, Ph.D. - 8/20/2006
The quality of Wall Street research has suffered grievous blows these last six years. Yet, publishers of political and economic indices largely escaped unscathed. Though their indicators often influence the pecuniary fate of developing countries, they are open to little scrutiny and criticism.

Consumer Prices Up 0.4 Percent in July
Prof. Peter Morici - 8/16/2006
Today, the Labor Department reported that the Consumer Price Index rose 0.4 percent in July, after rising 0.2 percent in June. Seasonally adjusted, food prices were up 0.2 percent in July, after rising 0.1 and 0.3 percent in May and June. Energy prices were up 2.9 percent in July, after rising 2.4 percent in May and falling 0.9 percent in June.

Producer Prices Rise Only 0.1 Percent in July - Nonenergy Prices Drop
Prof. Peter Morici - 8/15/2006
Today, the Labor Department reported the Producer Price Index increased 0.1 percent in July, after rising 0.2 and 0.5 percent in May and June.

U.S. Trade Deficit Eases in June but Will Head North Through the Summer
Prof. Peter Morici - 8/10/2006
Today, the Commerce Department reported the June trade deficit on goods and services was $64.8 billion, down from $65.0 billion in May but up from $63.3 billion in April.

Henry Paulson: Defender of the Yuan?
Prof. Peter Morici - 8/6/2006
China’s currency manipulation imposes severe economic costs on the United States, Europe and many developing countries that compete with China. Persuading China to revalue its currency should be new U.S. Treasury Secretary Paulson’s top priority. Sadly, Mr. Paulson has already indicated he will continue the failed policies of his predecessor, John Snow.

Economy Added 113, 000 Jobs in July
Prof. Peter Morici - 8/4/2006
Today, the Labor Department reported the economy added 113,000 payroll jobs in June, and the unemployment rate rose to 4.8 percent from 46 percent in June. The consensus forecasts were 150,000 new jobs and unemployment at 4.6 percent.

America's Steeling a March on Europe
Sam Vaknin, Ph.D. - 8/3/2006
The recent steel spats between the USA and, among others, the EU, is a classic case of suicidal protectionism. American steel producers ended up imposing quotas and tariffs on manufacturers they have only recently purchased in central and eastern Europe.

Personal Income up $67 Billion in June: Personal Savings Continues Negative and Stagflation and Recession Threaten
Prof. Peter Morici - 8/1/2006
Today, the Commerce Department reported in June personal income increased $66.5 billion or 0.6 percent, disposable personal income increased $53.2 billion or 0.6 percent, and personal consumption expenditures increased $35.4 billion or 0.4 percent. My forecasts, published by Reuters, were 0.6 percent for personal income and 0.4 percent for personal consumption expenditures.

Congress Approves Flawed Oman Trade Pact
Prof. Stephen Zunes - 7/30/2006
One of the sub-plots in last year's critically acclaimed film Syriana tells the story of two young Pakistani “guest workers” in an unnamed Persian Gulf nation who, after years of resentment over miserable living conditions, are taken in by a radical cleric and recruited to be suicide bombers. The film is an all too accurate portrayal of the exploitation of “guest workers” in many Gulf countries, and how these conditions can cause instability.

GDP Increases 2.5 Percent in Second Quarter - Recession Risks Apparent
Prof. Peter Morici - 7/28/2006
The Commerce Department announced today that GDP grew at a 2.5 percent annual rate in the second quarter. This was below the consensus forecast, 3.2 percent, and my forecast published by Reuters, which was 3.0 percent.

General Motors Scores an Operating Profit but Tough Sledding Lies Ahead
Prof. Peter Morici - 7/27/2006
Today, GM reported a second quarter loss of $3.179 billion dollar, or $5.62 per share. Deducting expenses for restructuring, GM scored an operating profit $1.153 billion or 2.04 per share. GM's North American operations continued to lose money but those loses were cut to $85 million form $1.1 billion a year ago. While the profit on ordinary operations is good news that will please investors, GM's situation remains worrisome.

Consumer Prices Up 0.2 Percent in June
Prof. Peter Morici - 7/24/2006
The Labor Department reported that the Consumer Price Index rose 0.2 percent in June, after rising 0.4 percent in May. Seasonally adjusted, food prices were up 0.3 percent in June and 0.1 percent in May. Energy prices fell 0.9 in June after rising 2.4 percent in May.

President Bush and the Doha Round
Prof. Peter Morici - 7/21/2006
The G8, urged by President George Bush, have recommitted to successfully concluding the Doha Round of World Trade Organization negotiations. Advocates claim a new global trade pact would raise millions from poverty. Sadly, though, a Doha agreement would benefit most the wealthy and large multinational corporations. It would offer little for smaller developing countries and farmers and workers in industrialized nations.

Producer Prices Rise 0.5 Percent - More Interest Rate Hikes Likely
Prof. Peter Morici - 7/19/2006
The Labor Department reported the Producer Price Index increased 0.5 percent in June, after rising 0.2 percent in May. Food prices rose 1.4 percent and energy prices rose 0.7 percent. These components of both producer and consumer prices are quite erratic month to month, and Fed policymakers pay particular attention to movements in the core indexes.

Retail Sales Decline in June: More Evidence Growth Is Slowing and Stagflation Is a Threat
Prof. Peter Morici - 7/15/2006
Today, the Commerce Department reported retail sales decreased 0.1 percent in June, while retail sales, less automobiles and parts, were up 0.3 percent.

U.S. Trade Deficit Rises in May and Will Likely Increase Further
Prof. Peter Morici - 7/13/2006
Today, the Commerce Department reported the May trade deficit on goods and services was $63.8 billion, up from $63.3 billion in April and $61.9 billion in March. The petroleum deficit increased to $25.4 billion in May from $21.0 billion in April and $20.0 billion in March, as both the volume and price of imports jumped substantially.

Economy Adds 121,000 Jobs in June - Economy Slows Down
Prof. Peter Morici - 7/7/2006
Today, the Labor Department reported the economy added 121,000 payroll jobs in June. The consensus forecast was 170,000, and my forecast published by Reuters was 125,000. The revised figures for April and May were 112,000 and 92, 000. Over the past three months jobs gains have averaged only 108,000. This is well south of the number needed to keep unemployment from rising.

The Tragedy that is General Motors
Prof. Peter Morici - 7/6/2006
The GM Board of Directors should listen to its managers and nix the alliance with Renault and Nissan proposed by shareholder Kirk Kerkorian. The tie-up promises to cut costs by pooling parts procurement and elements of vehicle design. These benefits are fantasy, and only thinly veil an attempt by Kerkorian to shake up GM’s inept management and Board of Directors.

Mortgage Financed Construction
Sam Vaknin, Ph.D. - 6/30/2006
The Buyers<>1. The Buyers of residential property form an Association.

2. The Buyers' Association signs a contract with a construction company chosen by open and public tender.

3. The contract with the construction company is for the construction of residential property to be owned by the Buyers.

Personal Income up $38 Billion in April: Personal Savings Go Deeper into Negative Territory, Fed Risks a Recession
Prof. Peter Morici - 6/30/2006
Today, the Commerce Department reported in May personal income increased $38.3 billion or 0.4 percent, disposable personal income increased $31.6 billion or 0.3 percent, and personal consumption expenditures increased $40.3 billion or 0.4 percent. The Federal Reserve closely watches the price index for personal consumption expenditures, less food and energy. This index increased 0.2 percent in May and was up 2.1 percent from May 2005. This was same situation as in April. Clearly, inflation has Ben Bernanke worried to the point that he is willing to risk recession to contain it.

Why Dollar Hegemony Is Unhealthy: The world’s dangerous dependence on the US dollar risks hurting all
Thomas I. Palley - 6/21/2006
With US Federal Reserve chairman warning about inflation, the US dollar is in the news these days, and there▓s a sense that the world economy has become excessively reliant on the dollar. This reliance smacks of dysfunctional co-dependence whereby the US and the rest of the world both rely on the dollar▓s strength, but neither is well served by it.

Bernanke’s Opportunity to Step Out of Greenspan’s Shadow
Prof. Peter Morici - 6/20/2006
Ben Bernanke is in a tough spot. The U.S. economy is slowing, inflation is up, and he can easily make things worse. The predicament owes much to President Bush and Alan Greenspan, but Bernanke’s words and ideas are contributing to the emerging morass. Since President Bush took office, GDP has risen 2.7 percent annually. Hardly a breakneck pace, the policies that accomplished this growth promise poorly for the future.

First Quarter Current Account Deficit Improves but Will Rise in Second Quarter - U.S. Borrowing at an Alarming Rate
Prof. Peter Morici - 6/18/2006
Friday, the Commerce Department reported the first quarter 2006 current account deficit was $208.7 billion, down from $223.1 billion in the fourth quarter of 2005. The current account is the broadest measure of the U.S. trade balance. In addition to trade in goods and services, it includes income received from U.S. investments abroad less payments to foreigners on their investments in the United States.

Consumer Prices Jump in May: Stagflation Is a Risk
Prof. Peter Morici - 6/17/2006
Wednesday, the Labor Department reported that the Consumer Price Index rose 0.4 percent in May on a seasonally adjusted basis, as energy prices surged 2.4 percent. The consensus forecast was 0.5 percent, and my forecast published by Reuters was also 0.3 percent. Seasonally adjusted, food prices were up 0.1 percent in May after virtually no change in April. Wholesale prices for food fell 0.5 percent in May and rose only 0.1 percent in April, indicating inflationary pressures from food prices should be moderate through the summer.

Smash Sarbanes-Oxley law
Prof. Peter Morici - 6/16/2006
The announced merger of the New York Stock Exchange and Euronext -- bringing together the largest U.S. equities market and exchanges in Amsterdam, Brussels, Paris, and Lisbon -- has attracted notice for its potential to drive down trading costs and competitive consequences for other exchanges. However, the merger's biggest and unintended consequences may be for overzealous national securities regulators.

Producer Prices Rise and Retail Sales Flag
Prof. Peter Morici - 6/15/2006
On Tuesday, the Labor Department reported the Producer Price Index increased 0.2 percent in May. Food prices dropped 0.5 percent and energy prices rose 0.4 percent. These components of both producer and consumer prices are quite erratic month to month, and Fed policymakers pay particular attention to movements in the core indexes. Core producer prices—producer prices less food and energy—rose 0.3 percent in May after rising 0.1 percent in April and March.

U.S. Trade Deficit Rises: A Threat to Growth, Limits Fed Options
Prof. Peter Morici - 6/14/2006
On Friday, the Commerce Department announced the April trade deficit was $63.4 billion, up from $61.9 billion in March. Petroleum imports played a key role. The volume of imports fell a bit but petroleum prices jumped. The net deficit on petroleum increased from to $21.0 billion in April from $20.0 billion in March. This trend is likely to continue through the summer.

Dividing the Loot
Sam Vaknin, Ph.D. - 6/8/2006
It is when the going gets better, that the going gets tough. This enigmatic sentence bears explanation: when a firm is in dire straits, in the throes of a crisis, or is a loss maker - conflicts between the shareholders (partners) are rare. When a company is in the start-up phase, conducting research and development and fighting for its continued, profitable survival in the midst of a massive investment cycle - rarely will internal strife arise and threaten its existence. It is when the company turns a profit, when there is cash in the till - that, typically, all manner of grievances, complaint...

Manufactured Scarcity
Sam Vaknin, Ph.D. - 6/7/2006
Conspiracy theorists have long alleged that manufacturers foster scarcity by building into their products mechanisms of programmed obsolescence and apopstosis (self-destruction).

Will the NYSE-Euronext Merger Smash Sarbanes Oxley?
Prof. Peter Morici - 6/6/2006
The announced merger of the NYSE and Euronext, bringing together the largest U.S. equities market and exchanges in Amsterdam, Brussels, Paris and Lisbon, has attracted notice for its potential to drive down trading costs and competitive consequences for other exchanges. However, the merger's biggest and unintended consequences may be for overzealous national securities regulators.

Economy Adds 75,000 Jobs in May - Growth Slowing in Second Quarter
Prof. Peter Morici - 6/2/2006
Today, the Labor Department reported the economy added 75,000 payroll jobs in May. The consensus forecast was 167,000. The revised figure for April was 126,000. Disappointing jobs growth in April and May indicate the economy is slowing more than Wall Street analysts and Federal Reserve policymakers have anticipated. The slowdown in the housing market and higher gas prices have dampened auto and other retails sales, and the jobs data indicate the economy is headed for much slower growth and perhaps a downturn.

The Trials of Henry Paulson
Prof. Peter Morici - 6/1/2006
Failing to convince voters and financial markets the U.S. economy is sound, Treasury Secretary John Snow is being replaced by Wall Street investment banker Henry M. Paulson, Jr. President Bush hopes he will bring the kind of clout with financial markets and the general public that Robert Rubin enjoyed during the Clinton years. Don't hold your breath. The Bush Administration labors under the false assumption that better media spin will fix its flagging fortunes even as systemic ills truly bedevil the American economy.

Personal Income up $58 Billion in April: Personal Savings Go Deeper into Negative Territory, More Interest Rate Hikes Likely
Prof. Peter Morici - 5/28/2006
The Commerce Department reported in April personal income increased $57.9 billion or 0.5 percent, disposable personal income increased $36.4 billion or 0.4 percent, and personal consumption expenditures increased $55.0 billion or 0.6 percent. The consensus forecasts were 0.8 percent for personal income and 0.4 for personal consumption. My forecasts, published by Reuters, were 0.6 percent for both personal income and personal consumption.

Producer Durable Orders and Housing Sales Indicate Economy Is Weakening
Prof. Peter Morici - 5/27/2006
The Commerce Department reported producer durable goods and housing orders in April were down 4.8 percent. The consensus forecast was minus 0.1 percent. In contrast, durable goods orders expanded 6.1 percent in March, driven significantly by robust orders for commercial aircraft and components which fluctuate dramatically month to month. Excluding commercial aircraft and components, durable goods orders were down 2.1 percent in April.

Producer Durable Orders Indicate Economy is Weakening
Prof. Peter Morici - 5/26/2006
The Commerce Department reported producer durable goods orders in April were down 4.8 percent. The consensus forecast was minus 0.1 percent. In contrast, durable goods orders expanded 6.1 percent in March, driven significantly by robust orders for commercial aircraft and components which fluctuate dramatically month to month. Excluding commercial aircraft and components, durable goods orders were down 2.1 percent in April.

Consumer Prices Jumped in April
Prof. Peter Morici - 5/25/2006
Last week, the Labor Department reported that the Consumer Price Index rose 0.6 percent in April on a seasonally adjusted basis, as energy prices surged 3.9 percent. The consensus forecast was 0.5 percent, and my forecast published by Reuters was 0.8 percent. Seasonally adjusted food prices were flat in April. This was in line with the 0.1 percent increase in April wholesale prices reported yesterday. From month to month, food prices often fluctuate, but inflationary pressures from food prices should be moderate through the summer.

Producer Prices Rise 0.9 Percent in April; Gasoline Prices Keep Surging
Prof. Peter Morici - 5/24/2006
Last week, the Labor Department reported the Producer Price Index increased 0.9 percent in April, thanks to surging energy prices. The consensus forecast was 0.8 percent, and my forecast published by Reuters was 1.0 percent. Core producer prices—producer prices less food and energy—rose 0.1 percent in April after rising 0.1 percent in March. The consensus forecast was 0.2 percent, and my forecast was 0.2 percent.

The Return of the Gold Standard?
Prof. Peter Morici - 5/23/2006
Gold is selling for more than $700 an ounce, up $258 in 2001. Jewelry and industrial applications absorb 85 percent of new supply. Production has fallen a bit as industrial demand increases but this alone cannot explain surging prices. Bringing new deposits on line would cost less than $700 an ounce. The big new players are exchange traded funds. These store bullion for investors who have lost confidence in the dollar, and these may be a precursor of a new gold standard.

The factors behind the increase in the price of oil
Abid Mustafa - 5/22/2006
Today global crude oil prices are hovering around US$70 a barrel, compared with merely about US$20 in 2002. Earlier on April 21 and 24 the price of a barrel of oil reached $75.35 on the New York Mercantile Exchange, the highest since the contracts began trading in 1983. So what are the reasons for oil prices?

Laci Peterson, Elizabeth Smart & the D.C. Snipers: What was the Common Thread?
Jeremy Reynalds, Ph.D. - 5/21/2006
What do Laci Peterson, Elizabeth Smart and the D.C. Snipers have in common?

Producer Prices Rise 0.5 Percent in April Gasoline Prices Keep Surging
Prof. Peter Morici - 5/21/2006
Today, the Labor Department reported the Producer Price Index increased 0.9 percent in April, thanks to surging energy prices. The consensus forecast was 0.8 percent, and my forecast published by Reuters was 1.0 percent.

Bush Administration Capitulates to China in Currency Report
Prof. Peter Morici - 5/11/2006
The Treasury Department today released its long awaited report on the International Economic and Exchange Rate practices of major U.S. trading partners. Regarding China, it concluded that “far too little progress has been made in introducing exchange flexibility” however “the Treasury Department is unable to determine, from the evidence at hand, that China’s foreign exchange system was operated during the last half of 2005 for the purpose (i.e., with the intent) of preventing adjustments in China’s balance of payments or gaining China an unfair competitive advantage in trade.”

It’s High Time for John Snow to Cite China for Manipulating the Yuan
Prof. Peter Morici - 5/8/2006
U.S. Treasury Secretary John Snow will soon issue his semiannual report on the currency policies of major trading nations. The Omnibus Trade and Competitiveness Act of 1988 requires him to “consider whether countries manipulate the rate of exchange between their currency and the United States dollar for the purposes of preventing effective balance of payments adjustments or gaining unfair competitive advantage in international trade."

Economy Adds 138,000 Jobs in April - Growth Appears Slowing in Second Quarter
Prof. Peter Morici - 5/5/2006
Today, the Labor Department reported the economy added 138,000 payroll jobs in April. The consensus forecast was 205,000. Wages were up 0.5 percent but that figure likely will lag inflation when consumer price data are reported on April 17.

Yes, Virginia, it's the yuan
Prof. Peter Morici - 5/4/2006
COLLEGE PARK, Maryland - Of late, it has become conventional wisdom that the focus of various US politicians on the yuan-dollar exchange rate is misplaced. Those who hold this view, including the Chinese government and many commentators both in Asia and in the West, have argued that the US is faced with underlying structural problems that the yuan-dollar rate has little to do with. They further contend that the China-US wage differential, a major cause of the United States' trade deficits with China, is currently so large that revaluation of any conceivable magnitude would do little to address it.

GDP Jumps 4.8 Percent in First Quarter
Prof. Peter Morici - 5/1/2006
The Commerce Department announced today that GDP grew at a 4.8 percent annual rate in the first quarter. This confirmed the consensus forecast, which was also 4.8 percent.

GM Announces $323 Million First Quarter Loss
Prof. Peter Morici - 4/20/2006
Today, General Motors announced it lost $323 million during the first quarter of 2006, as compared to a $1.3 billion the first quarter of 2005. GM automotive operations lost $721 million. GM's poor competitive position in the North American market again was the primary problem. North American operations lost $946 million, as compared to $1.5 billion last year.

The Fed Likely to Keep Increasing Interest Rates
Prof. Peter Morici - 4/19/2006
Today, the Labor Department reported that the Consumer Price Index rose 0.4 percent in March on a seasonally adjusted basis, as energy prices surged 1.3 percent. The consensus forecast and my forecast published by Reuters were 0.3 percent. Core producer prices—producer prices less food and energy—rose 0.3 percent in March. The consensus forecast and my forecast published by Reuters were 0.2 percent, as core inflation surged more than economists expected.

Producer Prices Rise 0.5% - Gas Prices Keep Surging
Prof. Peter Morici - 4/18/2006
Today, the Labor Department confirmed our forecast and reported the Producer Price Index increased 0.5 percent in March, thanks to surging energy and food prices. The consensus forecast was 0.3 percent, and my forecast published by Reuters was 0.5 percent. Core producer prices—producer prices less food and energy—rose 0.1 percent in March after rising 0.3 percent in February.

Personal Income Up $31.5 Billion
Prof. Peter Morici - 4/4/2006
Last week, the Commerce Department reported in February personal income increased $31.5 billion or 0.3 percent, disposable personal income increased $21.7 billion or 0.2 percent, and personal consumption expenditures increased $13.1 billion or 0.1 percent. The consensus forecasts were 0.4 percent for personal income and zero for personal consumption.

Structural Changes – Destruction Of The U.S. Dollar
David J. Jonsson - 4/3/2006
In an editorial by Jennifer Hughes in the Financial Times on March 19, 2006, she commented: Is it time to dust off the dreaded “e” word—that is exuberance? The word entered the market lexicon on December 6, 1996, when Alan Greenspan asked: “How do we know when irrational exuberance has unduly escalated asset values?” The good news is cyclical and bad news is structural. Have we reached the point where the structural changes affecting the Dollar will have a long-term impact and hence the U.S. economy and the creation of a New World Order? The good news is that the cyclical upturn is continuing...

Ben Bernanke's Baptism under Fire
Prof. Peter Morici - 3/26/2006
This week, virtually everyone expects the Federal Reserve to raise the benchmark Federal Funds rate to 4.75 percent. What will interest the bond market and economists most will be what clue the Fed offers about future rate hikes.

GM’s Deal with Delphi and the UAW Will Not Resurrect Carmakers Competitive Prowess
Prof. Peter Morici - 3/25/2006
General Motors has reached a deal with the United Auto Workers to offer generous buyouts to its 113,000 unionized workers, and 13,000 employees at its parts supplier Delphi, which currently resides in Chapter 11 bankruptcy. Shaping the best auto detail deal that would satisfy the UAW to downsize both GM and Delphi’s work forces is a key part of GM Rick Wagoner’s efforts to align GM’s headcount to its shrunken market share, and get down GM’s costs for parts.

Producer Prices Fall but Outlook for Future Inflation Is Mixed
Prof. Peter Morici - 3/24/2006
On March 21, the Labor Department reported the Producer Price Index fell 1.4 percent in February, thanks to falling energy and food prices. Core producer prices—producer prices less food and energy—rose 0.3 percent in February after rising 0.4 percent in January. Two consecutive months of surging nonenergy wholesale prices, will empower inflation hawks at the Fed to push the Federal funds rate beyond 5 percent.

Why It Is Time for Rick Wagoner to Leave GM
Prof. Peter Morici - 3/23/2006
Last week we learned that mistakes in GM accounting raised its 2005 losses above $10 billion. That is well over $5000 per vehicle. With Toyota earning money on its cars, GM’s disadvantage vis-à-vis Toyota must be in the range of $7000 per vehicle. Quite simply, GM has higher costs than Toyota, and Toyota can fetch higher prices for its durable vehicles than Rick Wagoner can command for his more trouble ridden contraptions.

Economy drowning in trade-deficit tide
Prof. Peter Morici - 3/21/2006
Last week, the Commerce Department reported that the 2005 current account deficit was $804.9 billion, up from $668.1 billion in 2004. The current account is the broadest measure of the U.S. trade balance. In the fourth quarter, the current account deficit was $224.9 billion, up from $185.4 billion in the third quarter. In the fourth quarter, that deficit exceeded 7 percent of gross domestic product.

Consumer Price Inflation Moderates in February
Prof. Peter Morici - 3/16/2006
Today, the Labor Department reported that the Consumer Price Index rose only 0.1 percent in February on a seasonally adjusted basis, as energy prices fell 1.2 percent. The core CPI, consumer prices less food and energy, rose 0.1 percent. This contrasts with 0.7 and 0.2 percent increases in January in the broad and core indexes.

Trade Deficit Hits another Record in February
Prof. Peter Morici - 3/10/2006
Today, the Commerce Department announced the January trade deficit was $68.5 billion, up from $65.1 billion in December. The consensus forecast for January was $66.6 billion. My forecast published by Reuters was $68 billion. The trade deficit exceeds 6 percent of GDP and is weighing down economic growth. Although petroleum plays a key role, it is certainly not the whole story. Since December 2001, the monthly trade deficit has increased by $42 billion. Petroleum accounts for less than half of that change.

Oil Drilling in Florida: All Quiet on the Eastern Front?
Terence Buckley - 2/22/2006
Drilling in Florida’s eastern section of the Gulf of Mexico has recently come under attack. Lately, the oil companies, which claim that offshore oil drilling will not threaten Florida’s tourism or environment, have gained some ground in opening Florida’s water for offshore oil drilling. Florida’s state government is torn on the issue, and the federal government is closing in. The differences among politicians lie in the perception of Florida’s ability to contribute to U.S. energy needs, and that contribution is less than minimal at best.

The American Economy is Lagging Behind
Bhuwan Thapaliya - 12/31/2005
In today's world, a superpower is no longer determined by its military force only, but by its economic performances too. Therefore, the main issue for America is now the "dollar" and understanding where it is heading. The good news for America is that in recent times the dollar has strengthened significantly against all the major currencies. So far this year, the dollar has risen 14 percent against the euro and 15 percent against the yen. Moreover, the Federal Reserve's policy has taken overnight interest rates to four percent and has lured investors into short-term dollar deposits. Analysts e...

Christmas: A Hatless, Beardless Santa Singing the Blues in Louisiana!
Ghazal Omid - 12/27/2005
Watching images on TV of Christmas shopping in barely back-to-normal and still dark and unsafe at night Louisiana, I saw one family who bought only one ornament for their lonely, bare, undecorated tree saying they can’t buy anything because they have neither the money to buy nor a place to put it.

Oil Wars: US Companies against China, Russia and India
Teymur Huseyinov - 12/15/2005
With the prospect of declining reserves, rising extraction costs, and recent poor record of exploration in their traditional fields of operation the international oil 'majors' need better access to untapped oil fields in the Middle East and Russia. However, easy to express in words, the actual process itself promises to be rather arduous. While under heavy pressure from the need to preserve the returns their investors expect, the international oil companies (IOCs) are less welcome in oil-producing countries: increased nationalism and consistently higher crude prices have reduced many governments' need for international assistance.

Where is the price of Oil and Gas driving us?
Ghazal Omid - 12/2/2005
There are many ways to look at what some experts call a “crisis.” As a member of an Iranian whose family worked in one of the oldest and largest refineries in the Middle East, I have a different view about the price of oil and gas. First, I believe that to resolve any problem one must not only look realistically at the scientific data but also be open-minded by analyzing the facts and acknowledging there is a problem before jumping to a conclusion. Yes, the prices at the pump are higher than years ago and, yes, we will see even higher prices in the future but that doesn’t mean the oil and gas ...

The Process of Due Diligence
Sam Vaknin, Ph.D. - 11/26/2005
A business which wants to attract foreign investments must present a business plan. But a business plan is the equivalent of a visit card. The introduction is very important - but, once the foreign investor has expressed interest, a second, more serious, more onerous and more tedious process commences: Due Diligence.

Look Back: Winners of the 1997 Nobel Prizes in Economy
Sam Vaknin, Ph.D. - 11/8/2005
The Royal Swedish Academy of Sciences has decided to award the Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel 1997, to Professor Robert C. Merton, Harvard University, and to Professor Myron S. Scholes, Stanford University, jointly. The prize was awarded for a new method to determine the value of derivatives.

Internet - A Medium or a Message? (Part XX)
Sam Vaknin, Ph.D. - 10/27/2005
These essays were published by the Israeli (Hebrew) edition of PC Magazine back in 1996, when the Internet was in its formative epoch. I have left them essentially unchanged, except for a few minor errata I corrected. I find time travel fascinating. It is interesting to recall the mainstream view, ten years ago, about the Internet, its goals, its role, and its future. So, here goes:

Internet - A Medium or a Message? (Part XIX)
Sam Vaknin, Ph.D. - 10/27/2005
These essays were published by the Israeli (Hebrew) edition of PC Magazine back in 1996, when the Internet was in its formative epoch. I have left them essentially unchanged, except for a few minor errata I corrected. I find time travel fascinating. It is interesting to recall the mainstream view, ten years ago, about the Internet, its goals, its role, and its future. So, here goes:

Internet - A Medium or a Message? (Part XVII)
Sam Vaknin, Ph.D. - 10/26/2005
These essays were published by the Israeli (Hebrew) edition of PC Magazine back in 1996, when the Internet was in its formative epoch. I have left them essentially unchanged, except for a few minor errata I corrected. I find time travel fascinating. It is interesting to recall the mainstream view, ten years ago, about the Internet, its goals, its role, and its future. So, here goes:

Internet - A Medium or a Message? (Part XVIII)
Sam Vaknin, Ph.D. - 10/26/2005
These essays were published by the Israeli (Hebrew) edition of PC Magazine back in 1996, when the Internet was in its formative epoch. I have left them essentially unchanged, except for a few minor errata I corrected. I find time travel fascinating. It is interesting to recall the mainstream view, ten years ago, about the Internet, its goals, its role, and its future. So, here goes:

Internet - A Medium or a Message? (Part XVI)
Sam Vaknin, Ph.D. - 10/25/2005
These essays were published by the Israeli (Hebrew) edition of PC Magazine back in 1996, when the Internet was in its formative epoch. I have left them essentially unchanged, except for a few minor errata I corrected. I find time travel fascinating. It is interesting to recall the mainstream view, ten years ago, about the Internet, its goals, its role, and its future. So, here goes:

Internet - A Medium or a Message? (Part XV)
Sam Vaknin, Ph.D. - 10/25/2005
These essays were published by the Israeli (Hebrew) edition of PC Magazine back in 1996, when the Internet was in its formative epoch. I have left them essentially unchanged, except for a few minor errata I corrected. I find time travel fascinating. It is interesting to recall the mainstream view, ten years ago, about the Internet, its goals, its role, and its future. So, here goes:

Internet - A Medium or a Message? (Part XIII)
Sam Vaknin, Ph.D. - 10/24/2005
These essays were published by the Israeli (Hebrew) edition of PC Magazine back in 1996, when the Internet was in its formative epoch. I have left them essentially unchanged, except for a few minor errata I corrected. I find time travel fascinating. It is interesting to recall the mainstream view, ten years ago, about the Internet, its goals, its role, and its future. So, here goes:

Internet - A Medium or a Message? (Part XIV)
Sam Vaknin, Ph.D. - 10/24/2005
These essays were published by the Israeli (Hebrew) edition of PC Magazine back in 1996, when the Internet was in its formative epoch. I have left them essentially unchanged, except for a few minor errata I corrected. I find time travel fascinating. It is interesting to recall the mainstream view, ten years ago, about the Internet, its goals, its role, and its future. So, here goes:

Internet - A Medium or a Message? (Part IX)
Sam Vaknin, Ph.D. - 10/21/2005
These essays were published by the Israeli (Hebrew) edition of PC Magazine back in 1996, when the Internet was in its formative epoch. I have left them essentially unchanged, except for a few minor errata I corrected. I find time travel fascinating. It is interesting to recall the mainstream view, ten years ago, about the Internet, its goals, its role, and its future. So, here goes:

Internet - A Medium or a Message? (Part XII)
Sam Vaknin, Ph.D. - 10/21/2005
These essays were published by the Israeli (Hebrew) edition of PC Magazine back in 1996, when the Internet was in its formative epoch. I have left them essentially unchanged, except for a few minor errata I corrected. I find time travel fascinating. It is interesting to recall the mainstream view, ten years ago, about the Internet, its goals, its role, and its future. So, here goes:

Internet - A Medium or a Message? (Part XI)
Sam Vaknin, Ph.D. - 10/21/2005
These essays were published by the Israeli (Hebrew) edition of PC Magazine back in 1996, when the Internet was in its formative epoch. I have left them essentially unchanged, except for a few minor errata I corrected. I find time travel fascinating. It is interesting to recall the mainstream view, ten years ago, about the Internet, its goals, its role, and its future. So, here goes:

Internet - A Medium or a Message? (Part X)
Sam Vaknin, Ph.D. - 10/20/2005
These essays were published by the Israeli (Hebrew) edition of PC Magazine back in 1996, when the Internet was in its formative epoch. I have left them essentially unchanged, except for a few minor errata I corrected. I find time travel fascinating. It is interesting to recall the mainstream view, ten years ago, about the Internet, its goals, its role, and its future. So, here goes:

Internet - A Medium or a Message? (Part VIII)
Sam Vaknin, Ph.D. - 10/19/2005
These essays were published by the Israeli (Hebrew) edition of PC Magazine back in 1996, when the Internet was in its formative epoch. I have left them essentially unchanged, except for a few minor errata I corrected. I find time travel fascinating. It is interesting to recall the mainstream view, ten years ago, about the Internet, its goals, its role, and its future. So, here goes:

Internet - A Medium or a Message? (Part VII)
Sam Vaknin, Ph.D. - 10/19/2005
These essays were published by the Israeli (Hebrew) edition of PC Magazine back in 1996, when the Internet was in its formative epoch. I have left them essentially unchanged, except for a few minor errata I corrected. I find time travel fascinating. It is interesting to recall the mainstream view, ten years ago, about the Internet, its goals, its role, and its future. So, here goes:

Internet - A Medium or a Message? (Part VI)
Sam Vaknin, Ph.D. - 10/18/2005
These essays were published by the Israeli (Hebrew) edition of PC Magazine back in 1996, when the Internet was in its formative epoch. I have left them essentially unchanged, except for a few minor errata I corrected. I find time travel fascinating. It is interesting to recall the mainstream view, ten years ago, about the Internet, its goals, its role, and its future. So, here goes:

Internet - A Medium or a Message? (Part V)
Sam Vaknin, Ph.D. - 10/18/2005
These essays were published by the Israeli (Hebrew) edition of PC Magazine back in 1996, when the Internet was in its formative epoch. I have left them essentially unchanged, except for a few minor errata I corrected. I find time travel fascinating. It is interesting to recall the mainstream view, ten years ago, about the Internet, its goals, its role, and its future. So, here goes:

Internet - A Medium or a Message? (Part IV)
Sam Vaknin, Ph.D. - 10/18/2005
These essays were published by the Israeli (Hebrew) edition of PC Magazine back in 1996, when the Internet was in its formative epoch. I have left them essentially unchanged, except for a few minor errata I corrected. I find time travel fascinating. It is interesting to recall the mainstream view, ten years ago, about the Internet, its goals, its role, and its future. So, here goes:

Internet - A Medium or a Message? (Part III)
Sam Vaknin, Ph.D. - 10/16/2005
These essays were published by the Israeli (Hebrew) edition of PC Magazine back in 1996, when the Internet was in its formative epoch. I have left them essentially unchanged, except for a few minor errata I corrected. I find time travel fascinating. It is interesting to recall the mainstream view, ten years ago, about the Internet, its goals, its role, and its future. So, here goes:

Internet - A Medium or a Message? (Part II)
Sam Vaknin, Ph.D. - 10/12/2005
These essays were published by the Israeli (Hebrew) edition of PC Magazine in 1996, when the Internet was in its formative stage. Sam Vaknin have left them essentially unchanged, except for a few minor details. These are published for the purpose of "internet time travel". It is interesting to recall the mainstream view, ten years ago, about the Internet, its goals, its role, and its future. The following is part 2 of 10 of this article.

Internet - A Medium or a Message? (Part I)
Sam Vaknin, Ph.D. - 10/12/2005
These essays were published by the Israeli (Hebrew) edition of PC Magazine in 1996, when the Internet was in its formative stage. Sam Vaknin have left them essentially unchanged, except for a few minor details. These are published for the purpose of "internet time travel". It is interesting to recall the mainstream view, ten years ago, about the Internet, its goals, its role, and its future.

The Invention of Television
Sam Vaknin, Ph.D. - 9/29/2005
The transmission of images obsessed inventors as early as 1875 when George Carey of Boston proposed his cumbersome system. Only five years later, the principle of scanning a picture, line by line and frame by frame - still used in modern television sets - was proposed simultaneously in the USA (by W.E. Sawyer) and in France (by Maurice Leblanc). The first complete television system - using the newly discovered properties of selenium - was patented in Germany in 1884, by Paul Nipkow. Boris Rosing of Russia actually transmitted images in 1907. The idea to incorporated cathode -ray tubes was proposed in 1911 by a Scottish engineer, Campbell Swinton.

The Tale of the Humble Popcorn
Sam Vaknin, Ph.D. - 9/27/2005
Corn pollen more than 80,000 years old was found in Mexico. Proper popcorn was known in China, Sumatra, and India for at least 5000 years. Popped popcorn and kernels 5600 years old were discovered in the "Bat Cave" in New Mexico in 1948-1950. Popcorn kernels - ready to pop - were unearthed in ancient Peruvian tombs. In a cave is southern Utah, fluffy, fresh looking, white popcorn was dated to 1000 years ago.

Are We Really Helping Katrina Victims?
Michele Paiva - 9/2/2005
It is devastating to see the conditions in New Orleans, as well as the lack of help for these folks. What is being done isn’t enough. Why isn’t it possible for hotels - on a national level – to donate at least ten hotel rooms to these victims? Why isn’t it possible for transportation services to donate free seats to these folks to get them to the hotels?

Petrodollars Could Turn Out To be Bush' Achilles Heel
Angelique van Engelen - 9/2/2005
Vladimir Putin's seemingly unflinching support for the US led war against terror has led many to think about why he was being so good a friend to such an uningratiating Washington. It appears that he hasn't got much respite from backing the US in the War on Terror. Yet he's not alone. What can the rest of the world feasibly do to curb the US aspirations for global dominance?

The Typology of Financial Scandals
Sam Vaknin, Ph.D. - 8/18/2005
Tulipmania - this is the name coined for the first pyramid investment scheme in history.

Scavenger Economies, Predator Economies
Sam Vaknin, Ph.D. - 8/17/2005
The national economies of the world can be divided to the scavenger and the predator types. The former are parasitic economies which feed off the latter. The relationship is often not that of symbiosis, where two parties maintain a mutually beneficial co-existence. Here, one economy feeds off others in a way, which is harmful, even detrimental to the hosts. But this interaction - however undesirable - is the region's only hope.

Market Impeders and Market Inefficiencies
Sam Vaknin, Ph.D. - 8/17/2005
Even the most devout proponents of free marketry and hidden hand theories acknowledge the existence of market failures, market imperfections and inefficiencies in the allocation of economic resources. Some of these are the results of structural problems, others of an accumulation of historical liabilities. But, strikingly, some of the inefficiencies are the direct outcomes of the activities of "non bona fide" market participants. These "players" (individuals, corporations, even larger economic bodies, such as states) act either irrationally or egotistically (too rationally).

Labor’s Foreign Policy Heads in a New Direction
Tim Shorrock - 8/16/2005
Lost amidst the publicity about the breakup of the AFL-CIO at its convention last month were two events that, in their own ways, could point to a radically new foreign policy for American unions and workers. The first was the convention’s passage of a resolution placing organized labor squarely behind a rapid withdrawal of U.S. forces from Iraq—the first time that the AFL-CIO has ever taken a public stance against an ongoing U.S. war. The significance of the resolution was slightly muted by the fact that the Service Employees International Union (SEIU), Teamsters, and other members of the Chan...

The Fabric of Economic Trust
Sam Vaknin, Ph.D. - 8/16/2005
Economics acquired its dismal reputation by pretending to be an exact science rather than a branch of mass psychology. In truth it is a narrative struggling to describe the aggregate behavior of humans. It seeks to cloak its uncertainties and shifting fashions with mathematical formulae and elaborate econometric computerized models.

Book Review: The Calculus of Consent by James M. Buchanan and Gordon Tullock
Jay McCarthy - 8/15/2005
The Calculus of Consent by James M. Buchanan and Gordon Tullock is the one of the founding works of public choice theory and a delightful read. Public choice takes the same principles that economists use to analyze people's actions in the marketplace and applies them to people's actions in collective decision making. Economists who study behavior in the private marketplace assume that people are motivated mainly by self-interest. Although most people base some of their actions on their concern for others, the dominant motive in people's actions in the marketplace whether they are employers, em...

Hold Your Wallets: Congress Passes Energy and Transportation Bills
Ross Kaminsky - 8/11/2005
The newly passed Energy Bill is a 1,724 page boondoggle of subsidies and tax breaks to industries that don't need and/or don't deserve taxpayer money, ranging from the wildly profitable oil industry to stupidly wasteful billions spent on "renewable" energy. (It's not that I oppose renewables, it's simply that private industry can and would handle the development themselves if there would be a market for it. If there wouldn't, we shouldn't spend taxpayer money on projects that a profit-seeking business would not rationally support.)

Trade Unions (Syndicates) after Communism
Sam Vaknin, Ph.D. - 8/3/2005
The AFL-CIO (the result of a merger, exactly 50 years ago, between the American Federation of Labour and the Congress of Industrial Organizations) is America's largest trade unions umbrella organization. When it splintered in July 2005, it merited barely a mention in the international media. Thus far have fallen the fortunes of organized labor.

Explaining Union Opposition To CAFTA and Free Trade
Ross Kaminsky - 8/1/2005
On Wednesday, July 27, 2005 the House of Representative passed the Central American Free Trade Agreement on a nearly party line vote of 217-215 after much arm twisting by President George W. Bush and House Republican leadersship. Cutting through the Democrats' bluster, analysis of the arguments against CAFTA are demonstrably wrong, representing a misrepresentation of the current situation, a misunderstanding of basic economics, and shameless political pandering.

Is My Money Safe? On the Soundness of Our Banks
Sam Vaknin, Ph.D. - 6/28/2005
Banks are institutions where miracles happen regularly. We rarely entrust our money to anyone but ourselves – and our banks. Despite a very chequered history of mismanagement, corruption, false promises and representations, delusions and behavioural inconsistency – banks still succeed to motivate us to give them our money. Partly it is the feeling that there is safety in numbers. The fashionable term today is "moral hazard". The implicit guarantees of the state and of other financial institutions move us to take risks which we would, otherwise, have avoided. Partly it is the sophistication of ...

Fannie Mae and Freddie Mac Regulation: Even More Dangerous Than Usual
Ross Kaminsky - 6/16/2005
For several years there have been calls for reform of Fannie Mae and Freddie Mac, the quasi-governmental mortgage giants. Because of their implied Federal guarantees, these companies seem to take much more risk than any similar independent company would, taking huge positions in mortgages with less reserve capital than is required for similar organizations.

Competition Laws: Anti-Competitive Strategies (Part 3)
Sam Vaknin, Ph.D. - 6/16/2005
Any Competition Law should excplicitly include strict prohibitions of the following practices (further details can be found in Porter's book - "Competitive Strategy"). These practices characterize markets of many countries, especially those in developing countries. They influence the economy by discouraging foreign investors, encouraging inefficiencies and mismanagement, sustaining artificially high prices, misallocating very scarce resources, increasing unemployment, fostering corrupt and criminal practices and, in general, preventing the growth that a country could achieve.

Competition Laws: Historical and Legal Considerations (Part II)
Sam Vaknin, Ph.D. - 6/16/2005
Why does the State involve itself in the machinations of the free market? Because often markets fail or are unable or unwilling to provide goods, services, or competition. The purpose of competition laws is to secure a competitive marketplace and thus protect the consumer from unfair, anti-competitive practices. The latter tend to increase prices and reduce the availability and quality of goods and services offered to the consumer.

Competition Laws: Philosophy of Competition (Part I)
Sam Vaknin, Ph.D. - 6/16/2005
The aims of competition (anti-trust) laws are to ensure that consumers pay the lowest possible price (the most efficient price) coupled with the highest quality of the goods and services which they consume. This, according to current economic theories, can be achieved only through effective competition. Competition not only reduces particular prices of specific goods and services - it also tends to have a deflationary effect by reducing the general price level. It pits consumers against producers, producers against other producers (in the battle to win the heart of consumers) and even consumer...

Financing Transportation Projects
Sam Vaknin, Ph.D. - 6/10/2005
The role of government in facilitating transport projects is inevitable. But governments are monopolists and largely cannot be trusted with the efficient allocation of resources, not to mention the problem of corruption. So, the less the state is involved the better off everyone is. Transport has gone a full circle. Until the beginning of the 17th century it was largely privately financed. The state took over until the last two decades of the twentieth century. And now there is a revival of the involvement of the private sector in financing infrastructure. Additionally, transport has become a commodity and is securitized, as we shall see.

Alice in Credit-Card Land
Sam Vaknin, Ph.D. - 6/9/2005
Your credit card is stolen. You place a phone call to the number provided in your tourist guide or in the local daily press. You provide your details and you cancel your card. You block it. In a few minutes, it should be transferred to the stop-list available to the authorization centres worldwide. From that moment on, no thief will be able to fraudulently use your card. You can sigh in relief. The danger is over.

The Agent-Principal Conundrum
Sam Vaknin, Ph.D. - 6/5/2005
In the catechism of capitalism, shares represent the part-ownership of an economic enterprise, usually a firm. The value of shares is determined by the replacement value of the assets of the firm, including intangibles such as goodwill. The price of the share is determined by transactions among arm's length buyers and sellers in an efficient and liquid market. The price reflects expectations regarding the future value of the firm and the stock's future stream of income - i.e., dividends.

The Future of the SEC - Interview with Gary Goodenow
Sam Vaknin, Ph.D. - 6/3/2005
In June 2005, William H. Donaldson was forced to resign as Chairman of the Securities and Exchange Commission (SEC). The reason? As the New York Times put it: "criticism that his enforcement was too heavy-handed". President Bush chose California Rep. Christopher Cox, a Republican, to replace him.

Moral Hazard and the Survival Value of Risk
Sam Vaknin, Ph.D. - 6/2/2005
Risk transfer is the gist of modern economies. Citizens pay taxes to ever expanding governments in return for a variety of "safety nets" and state-sponsored insurance schemes. Taxes can, therefore, be safely described as insurance premiums paid by the citizenry. Firms extract from consumers a markup above their costs to compensate them for their business risks.

Fighting Wal-Mart
Ross Kaminsky - 5/31/2005
Last week, Governor Robert Ehrlich of Maryland vetoed the Fair Share Health Care Act which said that any employer with over 10,000 employees must spend at least 8% of payroll on health care benefits. Opponents of Wal-Mart demanded that the company's insurance plan cover everything from surgery down to the garcinia cambogia fruit. But does the fact you should know about garcinia cambogia mean that the insurance plan a company gets should cover it? It is hardly a surprise that only ...

How Much are These Shares Worth? - Models of Stock Valuation
Sam Vaknin, Ph.D. - 5/28/2005
The debate rages all over Eastern and Central Europe, in countries in transition as well as in Western Europe. It raged in Britain during the 80s.

The Myth of the Earnings Yield
Sam Vaknin, Ph.D. - 5/7/2005
In American novels, well into the 1950's, one finds protagonists using the future stream of dividends emanating from their share holdings to send their kids to college or as collateral. Yet, dividends seemed to have gone the way of the Hula-Hoop. Few companies distribute erratic and ever-declining dividends. The vast majority don't bother. The unfavorable tax treatment of distributed profits may have been the cause.

The Real Threats to the Economy of the USA
Sam Vaknin, Ph.D. - 4/26/2005
The outcry about offshoring (outsourcing - the relocation of domestic jobs to more efficient and cheaper suppliers abroad) is politically motivated. Outsourcing affects the vocal, politically active, emblematic, and well-connected hi-tech industry in a year of presidential elections. No wonder it has become a campaign issue.

Eight Questions about Technology
Sam Vaknin, Ph.D. - 4/20/2005
However far modern science and technology such as cloud storage wizard have fallen short of their inherent possibilities, they have taught mankind at least one lesson: Nothing is impossible. Today, the degradation of the inner life is symbolized by the fact that the only place sacred from interruption is the private toilet. By his very success in inventing labour-saving devices, modern man has manufactured an abyss of boredom that only the privileged classes in earlier civilizations have ever fathomed.

Going Bankrupt: Comparing American System to Others
Sam Vaknin, Ph.D. - 4/19/2005
Close to 1.6 million Americans filed for personal bankruptcy (mostly under chapter 7) in 2004 - nine times as many (per capita) as did the denizens of the United Kingdom (with 35,898 insolvencies). The figure in the USA 25 years ago was 300,000. Bankruptcy has no doubt become a growth industry. This surge was prompted by both promiscuous legislation (in 1978) and concurrent pro-debtor (anti-usury) decisions in the Supreme Court.

Demise of the Work Ethic
Sam Vaknin, Ph.D. - 4/14/2005
Airplanes, missiles, and space shuttles crash due to lack of maintenance, absent-mindedness, and pure ignorance. Software support personnel, aided and abetted by Customer Relationship Management application suites, are curt (when reachable) and unhelpful. Despite expensive, state of the art supply chain management systems, retailers, suppliers, and manufacturers habitually run out of stocks of finished and semi-finished products and raw materials. People from all walks of life and at all levels of the corporate ladder skirt their responsibilities and neglect their duties.

The Misconception of Scarcity
Sam Vaknin, Ph.D. - 4/10/2005
It will be only a mild overstatement to say that the science of economics, such as it is, revolves around the Malthusian concept of scarcity. Our infinite wants, the finiteness of our resources and the bad job we too often make of allocating them efficiently and optimally - lead to mismatches between supply and demand. We are forever forced to choose between opportunities, between alternative uses of resources, painfully mindful of their costs.

The Merits of Inflation
Sam Vaknin, Ph.D. - 4/10/2005
In a series of speeches designed to defend his record, Alan Greenspan, until a few years ago an icon of both the new economy and stock exchange effervescence, reiterated the orthodoxy of central banking everywhere. His job, he repeated disingenuously, was confined to taming prices and ensuring monetary stability. He could not and, indeed, would not second guess the market. He consistently sidestepped the thorny issues of just how destabilizing to the economy the bursting of asset bubbles is and how his policies may have contributed to the froth.

The Roller Coaster Market - On Volatility and Risk
Sam Vaknin, Ph.D. - 4/6/2005
Volatility is considered the most accurate measure of risk and, by extension, of return, its flip side. The higher the volatility, the higher the risk - and the reward. That volatility increases in the transition from bull to bear markets seems to support this pet theory. But how to account for surging volatility in plummeting bourses? At the depths of the bear phase, volatility and risk increase while returns evaporate - even taking short-selling into account.

Computer Age: The Solow Paradox
Sam Vaknin, Ph.D. - 3/23/2005
On March 21, 2005, Germany's prestigious Ifo Institute at the University of Munich published a research report according to which "More technology at school can have a detrimental effect on education and computers at home can harm learning". It is a prime demonstration of the Solow Paradox. Named after the Nobel laureate in economics, it was stated by him thus: "You can see the computer age everywhere these days, except in the productivity statistics". The venerable economic magazine, "The Economist" in its issue dated July 24th, 1999 quotes the no less venerable Professor Robert Gordon ("one of America's leading authorities on productivity") - p.20:

The Distributive Justice of the Market
Sam Vaknin, Ph.D. - 3/22/2005
The public outcry against executive pay and compensation followed disclosures of insider trading, double dealing, and outright fraud. But even honest and productive entrepreneurs often earn more money in one year than Albert Einstein did in his entire life. This strikes many - especially academics - as unfair. Surely Einstein's contributions to human knowledge and welfare far exceed anything ever accomplished by sundry businessmen? Fortunately, this discrepancy is cause for constructive jealousy, emulation, and imitation. It can, however, lead to an orgy of destructive and self-ruinous envy.

Legacy Time: Get to Work on the Flat Tax
Marc Johnson - 1/11/2005
What do Hong Kong and Estonia have in common? Well, for starters, they're among the most economically free states on earth, according to the Heritage Foundation's 2004 Index of Economic Freedom (communist-occupied Hong Kong is #1, former Soviet Republic Estonia #6 -- consider that the United States, supposedly keeper of the capitalist flame, is #10).



  



  

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