Economy

PARIS (Reuters) - There are signs that the economies of two of the world's leading emerging powerhouses, India and China, are starting to falter, while Europe continues to be handicapped by its debt woes according to a recent report by the Organisation for Economic Co-operation and Development (OECD). [Here are some of the pertinent data.] Words: 250

Over the years foreigners have been buying more and more U.S. debt and now amounts to 33% of the total which is up from "just" 27% at this time 4 years ago and less than 15% only 20 years ago. However, given the dire state of U.S. finances it makes one wonder how much longer this trend will continue and what the consequences will be when the U.S. nolonger has a ready buyers to subsidize their excessive ways. Let's take a look at which countries and entities hold the U.S. debt and the extent to which it has changed over the years. Words: 480

Is this the time to acquire gold? Or is this the time to run away from it? Either answer could be correct, depending upon what course government chooses. Government is at a decision point, one that will determine how our economic malaise next turns. [Let's review their choices.] Words: 922

The Markit PMI data from Europe shows still more deterioration led by France, Italy, and Spain. Let's take a look at a few countries.

[The European Union] will collapse before the end of the year and very likely before the end of the summer. When this crisis hits it will be worse than 2008 and the world Central Banks will not be able to control the damage. What makes this time different are several items: [Let me explain]. Words: 1400

The latest CFTC report shows an extraordinarily high net long US dollar open interest in the futures markets...[which] is starting to increasingly look like a "crowded trade". That makes the dollar quite vulnerable to a downside correction. [As such,] any hint of incremental monetary easing by the Fed that involves balance sheet expansion could force a violent reversal....Words: 410

A recent survey by the National Association of Colleges and Employers has revealed that the majority of paid interns receive a job offer and the majority who accept such offers (the majority) stay with their new employer for more than 5 years. Conclusion: internships are a "win-win" for students and employers alike.

We are currently seeing bullish indicators regarding housing demand coupled with bearish indicators regarding housing prices. Let's take a look at the past relationship between house demand and house prices and see what it suggests for the future in real estate prices. Words: 450

Why are both debtors and creditors willing to build a status quo of massive unprecedented debt? [After all, the delusions of] creditors that debt is wealth and should never be liquidated, and of debtors that debt is an easy or free lunch have been smashed by the juggernaut of history many times before...[and] I think they will soon be smashed again. [Let me explain.] Words: 1150

There is some discussion in the blogosphere that the recent spike in gold reflects increased inflation expectations (possibly due to higher potential for Fed's QE3). That may be true, but that assumption is completely inconsistent with inflation expectations implied by TIPS.