Is the trillion dollar deficit an issue?

It was going to happen sooner or later. Maybe the meltdown in the world of finance hastened the trillion dollar deficit, though US governments have been trying hard to breach that milestone. Three months before the end of this financial year it’s happened. Maybe it’s not such a frightening number in the context of the …
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US economy recession or recovery

Fortune’s gauge: 7 metrics that indicate the trend in the US economy. Data in pretty pictures.

12 year lows are rare

I don’t think that the economic contraction has ended yet, but there are signs of a bottoming out of some markets. The US market has been cleaning itself out for six months, though moral hazard remains as do some big skeletons (like the Madoff, Stanford …). The Fed Chairman is concerned about stagflation too. But …
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Is the US economy really growing?

Today’s report of 1.9% annualised growth of the US economy in the second quarter is surprising.  With virtual stagnation of property markets, dry credit and inflation it seems implausible that this growth is occurring.  These numbers from the Department of Commerce are preliminary and may be downgraded. Many analysts, including us, believe that the US …
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California burning

Fire season in California is of to a hot start.  Since June 20 over half a million acres have been consumed.  The news hasn’t been as prevalent as last year because residential areas have not been so affected … yet – though 40 residences have been destroyed already.  It is still early in the season …
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Changing Games in the Global Casino

Hazel Henderson has pioneered natural capitalism for several decades and writes tirelessly on the dysfunctioning of iniquitous economic systems. In mid-June she published a summary and analysis of current events which is reproduced below and on here. Changing Games in the Global Casino © Hazel Henderson, 2008 Ever since the 1980s when Britain’s Margaret …
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End of credit crunch …?

US Treasury Secretary thinks that it is the “end of the credit crunch“. It is likely that he said “peak” rather than “end”, or meant that anyway. And take that message with caution: yes this may be the peak of the unwinding of the US sub-prime mortgage mess, but unwinding will continue till year end. …
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Another Fed rate cut … how low can you go, Ben?

The US Fed cut again from 2.25% to 2%.  Now is the time to be reducing rates.  But they’ve already come down so much in the past 2-3 quarters, while behaviour of policy makers and fiduciaries remains behind the game. I’m sure Ben would like to have additional room to reduce rates in case stimulation …
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China now has more internet users than the US

China has jumped past the U.S. in terms of total Internet users.  In March 2008, China had more than 230 million people online according to the Beijing based research firm BDA China; that’s only 17% of the population and its growing at about 50% a year.  The U.S. by comparison had 216 million users at …
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Greenspan negative on US economy, again.

Alan Greenspan has warned that US economic growth has stalled and a quick recovery is not likely. It is easier for him to make public statements like this now that his job performance does not depend on America’s economic confidence.