ECONOMICS

Authored by Mike Maharrey via Money Metals,

When I was about 7 years old, my friend Tommy and I decided we were going to dig a cave. We envisioned a massive cavern we could stand up in. It would be our secret fort. We went as far as digging a pretty deep hole in Tommy’s backyard. 

It was a dumb idea.

But our cave-building scheme wasn’t nearly as dumb as the notion that simply minting a trillion-dollar coin can solve America’s debt problem.

The idea is pretty (more…)

Authored by Mike Shedlock via MishTalk.com,

Greg Ip says the conditions for recession are not in place. I disagree. And I show where and how he went wrong.

The chart itself explains where Ip went wrong. See if you can figure it out.

“This Doesn’t Look Like Recession” Says Greg Ip

Please consider This Doesn’t Look Like Recession. Here’s How One Could Happen.

Background on the McKelvey (Sahm) Rule

Edward McKelvey, a senior economist at Goldman (more…)

China’s consumer prices rose faster than expected in July, driven mostly by a surge in food/pork prices, even as core inflation continued to sink, raising concerns over persistent deflation in the world’s second-largest economy.

The country’s CPI rose 0.5% YoY In July year on year, the National Bureau of Statistics said on Friday, beating the median forecast of a 0.3%. The rise was the biggest since February, when prices grew 0.7%, and outpaced the 0.2% rise in June. Food price (more…)