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The Fed via QE2 tried to generate inflation but got the wrong kind. Instead of wage inflation or real estate inflation (including house price increases) which causes people to ratchet up their spending because they feel richer, what we have…
Read MoreDuring the housing bust banks held mortgage debt they thought was safe. It wasn’t. In the crunch, they got scared and froze; so did the economy. If Cong fails to lift the debt ceiling the chain of events will be…
Read MoreDemographics 101: Over the past decade the US population has grown by 9.7% to 309m. Minorities accounted for 92% of that growth. The ranks of Hispanics swelled by 43% to 51m. The Asian population grew at the same rate to…
Read MoreBernanke and a majority of Fed officials predict that the surge in oil prices will lead only to a modest and short-lived increase in consumer prices as firms will have a very tough time passing cost increases on to consumers…
Read MoreWhile money may not buy happiness beauty buys both money and happiness. Economic research shows that the beautiful are happier than the plain. Moreover, the majority of beauty’s effect on happiness works through its impact on economic outcomes! For example,…
Read MoreYesterday China reported that imports ($400bn) had exceeded exports ($399bn) in Q1 ‘11. This tiny deficit, China’s first in 7 years is an encouraging development for the world economy. It comes after 2 successive years of import growth outpacing exports.…
Read MoreThe Ryan G.O.P. Budget Proposal to abolish Medicare and replace it with vouchers to be used to buy private health insurance may be a great idea but privatizing Medicare does nothing to limit health-care costs. In fact, it almost surely…
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