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Declining Deficit

02/13/2013

The federal deficit peaked at 10.1% of GDP in 2009, and fell to 6.94% of GDP by 2012. The CBO projects that it will fall to $845 billion or 5.3% this year. And, if no policy changes are made, the…

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The Zen of Yen

02/12/2013

New Japanese Prime Mister Shinzo Abe has pushed the Yen down 15% against the dollar since 10/12 because of his insistence that the Bank of Japan create inflation by pumping more money into the economy. Moreover, the new Abe appointed…

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Week in Review

02/11/2013

Decent Week in Review: Consumer credit expanded fueled by long-term student (yikes) and auto loans, the service sector continued to expand at a steady if uninspired rate, while manufacturing activity jumped to its highest level since 05/12. The best news,…

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Delayed Delivery

02/08/2013

The Friday File: In an effort to lick billions in losses, the USPS plans to halt Saturday delivery of letters in 8/13. Mail volume has plummeted from 210 billion pieces in 2008 to just 160 billion in 2012, a decline…

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Lobbying Loot

02/07/2013

In yet another sign of how omnipresent government is in the economy and thus how lucrative having access to and influencing policymakers is, the law firm of Cravath Swaine & Moore just hired David Kappos, departing Director of the US…

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Hagel Hurts

02/06/2013

Nominating Senator Hagel for Secretary of Defense raises serious doubts among allies and enemies that President Obama will use all means necessary to prevent Iran from acquiring nuclear weapons. Therefore, the chances of a negotiated settlement fall (despite biting sanctions),…

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Euro Risk

02/05/2013

Despite the euro zone being in recession, the euro is dramatically rising against the US dollar, from $1.20/euro in July to $1.36 today. Why, because massive European Central Bank (ECB) action prevented Spain from collapsing, and the ECB is fast…

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Doubling Debt

02/04/2013

While per capita debt has ballooned from $1,640 in 1/66 to $53,000 today, it’s the growth rate that matters. Between 1/66 and 10/77 (11.75 years) the debt doubled. It doubled again by 7/84 (6.75 years), again by 10/90 (6.25 years),…

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Bad Green Vegetables

02/01/2013

The Friday File: 2.2 million Americans get sick annually from contaminated leafy vegetables. That represents 23% of all food-borne illness. Fruits, vegetables and nuts sicken 4.4 million persons, beef, pork and poultry cause 2.1 million illnesses and dairy products, another…

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GDP Behaving Badly

01/31/2013

Despite GDP contracting at an annual rate of 0.1% in Q4 2012, the worst quarter since the end of the recession in 6/09, another recession isn’t in the cards. That’s because the data also showed relatively strong spending by consumers…

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