DETROIT (Reuters) - Ford Motor Co's $9 billion investment plan for its U.S. operations includes two new products for a Michigan plant that will lose production of small cars, and U.S. production of a new Lincoln luxury sedan, a proposed four-year contract with the United Auto Workers shows, the UAW said on Monday.
NEW DELHI (Reuters) - General Electric Co has won a $2.6 billion contract to supply India's railways with 1000 diesel locomotives, as the state-owned network looks to foreign capital to help it modernize.
NEW YORK (Reuters) - General Motors Co may be liable for punitive damages in lawsuits it faces over an ignition switch problem that prompted the recall of millions of vehicles last year, a U.S. judge said on Monday.
The economic picture manufactured by the national consensus trance has never been more out of touch with reality in my lifetime. And so the questions as to what anyone might do can hardly be addressed. How can I protect my savings? Who do I vote for? How do I think about where my country is going? Incoherence reigns, especially in the circles ruled by those who guard the status quo, which includes the failing legacy news media.
The Federal Reserve has morphed from being a faceless background institution of the most limited purpose to a clique of necromancers and astrologasters, led by one grand vizier, in full public view pretending to steer a gigantic economic vessel that has, in fact, lost its rudder and is drifting into a maelstrom.
For more than a year, the fate of the nation has hung on whether the Fed might raise their benchmark interest rate one quarter of a percent. They talk about it incessantly, and therefore the mob of financial market observers has to chatter about it incessantly, and the chatter itself has appeared to obviate the need for any actual action on the matter. The Fed gets to influence markets without ever having to do anything. And mostly it has worked to produce the false narrative of an advanced economy that is working splendidly well to the advantage of the common good.
This is all occurring against the background of a larger global network of economic relations that is quite clearly breaking apart. The rising tensions between the US, Russia, China, and the Euro Union grew out of monetary mischief "innovated" by our central bank, especially the shenanigans around debt monetization, which have created dangerous distortions in markets, trade, and perceptions of national interest. Nations are rattling sabers at ...
Submitted by Eugen von Bohm-Bawerk via Bawerk.net,
In last week's article, we explained how the yield curve could cause GDP to contract in The Yield Curve and GDP - a causal relationship. Some of our readers suggested the analysis was wrong on back of an outdated view of modern money creation. The critics claim modern banks are not dependent on central bank reserves to create additional money; citing a Bank of England article from 2014 (which we have been well aware of)
[A] common misconception is that the central bank determines the quantity of loans and deposits in the economy by controlling the quantity of central bank money — the so-called 'money multiplier' approach. In that view, central banks implement monetary policy by choosing a quantity of reserves. And, because there is assumed to be a constant ratio of broad money to base money, these reserves are then 'multiplied up' to a much greater change in bank loans and deposits. For the theory to hold, the amount of reserves must be a binding constraint on lending, and the central bank must directly determine the amount of reserves. While the money multiplier theory can be a useful way of introducing money and banking in economic textbooks, it is not an accurate description of how money is created in reality. Rather than controlling the quantity of reserves, central banks today typically implement monetary policy by setting the price of reserves — that is, interest rates.
U.S. stocks stumbled Monday as investors sold the some of the yearâ€™s biggest gainers and losers alike amid global growth concerns and higher expectations for the U.S. Federal Reserve to raise rates this year.
The October 2015 Survey of Consumer Expectations appear mixed. The median three-year ahead inflation expectation fell slightly to its lowest level since the inception of the survey and household income expectations recorded their largest one-month drop of the series.
Treasury yields climb Monday for the sixth straight session, reaching their highest level in nearly four months, as investorsâ€™ expectations that the Federal Reserve will boost interest rates in December continued to increase.
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