FREE NEWSLETTER: Econintersect sends a nightly newsletter highlighting news events of the day, and providing a summary of new articles posted on the website. Econintersect will not sell or pass your email address to others per our privacy policy. You can cancel this subscription at any time by selecting the unsubscribing link in the footer of each email.

>> Click Here for Historical Wall Post Listing <<

What We Read Today 04 April 2014

Econintersect: Every day our editors collect the most interesting things they find from around the internet and present a summary "reading list" which will include very brief summaries of why each item has gotten our attention. Suggestions from readers for "reading list" items are gratefully reviewed, although sometimes space limits the number included.

  • Euro-Zone Economy Slows as ECB Meets (Paul Hannon, The Wall Street Journal) Manufacturing and Services PMI (Purchasing Managers' Indexes) both declined narrowly in March, but remained well above the 50 reading corresponding to the division between expansion and contraction. Inflation also backed down from February (0.7% annualized) to 0.5% growth for March (annualized rate). For possible policy moves by the ECB see Drastic Stimulus On Table In Europe (Brian Blackstone and Todd Buell, The Wall Street Journal). Also see more 'beyond the wall'.

  • NASA Cassini spacecraft finds sign of subsurface sea on Saturn’s moon Enceladus (Joel Achenbach, The Washington Post) An ice encapsulated moon of Saturn has been found to have a liquid water lake with content equal in volume to that of Lake Superior. The lake is near the moon's south pole, has a rocky bottom and covered by a 20-mile thick layer of ice. The lake is the source of water plumes that have been observed to project from the surface of the moon, Enceladus. This behavior is similar to another outer solar system moon, Europa, orbiting Jupiter, which appears to have a sub-surface ocean and also with ejected water plumes. These moons and the presence of subsurface water on Mars have excited scientists looking for possible life forms (past or present) on other bodies in the solar system. See also New study suggests frozen water hidden below Mars surface (NDTV).
  • ‘We’re All Cheneyites Now’ (Todd E. Pierce, Hat tips to Chuck Spinney and Roger Erickson. A retired military Judge Advocate General discusses his view that the Obama administration is carrying out the views of former vice president Dick Cheney on national defense policy.

There are 17 more articles discussed 'behind the wall'.

Please subscribe for premium content 'behind the wall'.

Just $25 a year supports all that we do for you at Global Economic Intersection.

  • Why Surging Profits Aren't Leading To CapEx And Jobs (Lance Roberts of Streettalk Live, Advisor Perspectives Lance Roberts will be contributing a weekly article for Global; Economic Intersection starting Monday 07 April. The strong growth in PCE (personal consumption spending) since 1979 was driven by surging household credit which rose from $1.3 trillion in 1980 to $5.6 trillion in 2000 and to $13.7 trillion in 2013. The growth of household debt to compensate for lack of income growth is discussed in Steve Hansen's weekly summary article out tomorrow. The same discussion appeared here 'behind the wall' a few days ago.


  • Employees getting back on the 401(k) bandwagon (Andy Stonehouse, Employee Benefit News) The article suggests that a half-decade of retirement savings doldrums may be over. Large numbers of employees have increases in contributions or restarted contributions (76% of accounts) and changes in accounts other than "draining funds" occurred in approximately 7 of 8 accounts with activity (83%). While this is presented as a positive occurrence, we will repeat an discussion article from yesterday [From Ignorance Comes Certainty (Dave Gonigam, 5 Min. Forecast)] which shows the public has a very poor record when timing when to invest. See also next article.


  • ECBs deflation paralysis drives Italy, France and Spain into debt traps (Ambrose Evans-Pritchard, The Telegraph) Frankfurt could force down the euro at any time by signalling a determination to do something about its predicament. It has chosen not to do so. In other words, Germany is in the driver's seat and prefers to play the role of Wylie Coyote rather than the Road Runner.


  • Europe’s dangerous addiction to Russian gas needs radical cure (Guy Chazan and Ed Crooks, The Financial Times) About 31% of European natural gas consumption is supplied by Russia's Gazprom. The possibility of developing natural gas sources in Qatar and Nigeria are mentioned, along with shale gas in Great Britain (and possibly other European sources). About 75% of added energy production in Europe last year was in renewables, but that has a long way to go to displace significant amounts of natural gas. And Gazprom holds many European contracts that extend beyond 2020. See also previous article.


  • China Outlines Measures to Support Growth as Goal Recedes (William Bi and Xin Zhou, Bloomberg) China will try a little mini-stimulus ($24 billion in rail bonds) plus tax relief to try to keep the economy above stall speed. Question: Who will buy the bonds? Unless it is the financial sector creating more money it may not be stimulative at all. If it removes cash savings that could otherwise have been spent then the effort could be a wash. Unless of course, the multiplier for yuan spent on building railroads is greater than the previous multiplier.
  1. Real interest rates now close to zero; set to rise only moderately
  2. Factors influencing rates in past unlikely to reverse
  3. Continued low rates mean cheaper debt but also constrain policy
  • Is college worth it? (The Economist) We keep returning to this topic and The Economist version of the story is the best yet, They say:
Too many degrees are a waste of money. The return on higher education would be much better if college were cheaper.

But cost is not the only factor. Some of the low-cost schools appear at the bottom of the list as well as at the top. More important factors include quality of the education and what field is the major. The Economist says engineering is a good bet wherever one studies. "Hard subjects pay off."


The following is the full 2-hour session of the hearing.

Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.

Econintersect Behind the Wall


Print this page or create a PDF file of this page
Print Friendly and PDF

The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.

Take a look at what is going on inside of
Main Home
Analysis Blog
Slow Economic Growth Will Be Around For A Long Time
The Job Guarantee, Wage-Price Inflation And Alternative Solutions: Part 2
News Blog
NASA Precise Landing Technologies Tested On Vertical Testbed Rocket
March 2017 Conference Board Consumer Confidence Highest Since 2000
Richmond Fed Manufacturing Survey Again Improves In March 2017.
Case-Shiller 20 City Home Price Index January 2017 Shows 5.7 % Year-over-Year Growth
A Changing Rulebook To Tame The New Global Arms Race
Infographic Of The Day: Chart: Understanding Alphabet's 4 Billion Dollar In "Other Bets"
Early Headlines: Asia Stocks And Dollar Up, Oil, Gold Steady, Obama Climate Policies Gone, US Oil Glut, Euro Surges, Shorts Remain, Trump Into Yemen?, Iran-Russia Deals, Cat 4 Cyclone Hits Oz, And More
March 27, 2017 Weather and Climate Report - Will the MJO Deliver a Nino?
The Most Reputable Companies Worldwide
Gut Bacteria Play A Role In Long-term Weight Gain
What We Read Today 27 March 2017 - Special Public Edition
Is Less More In The Smartphone Market
Average Gasoline Prices for Week Ending 27 March 2017 Statistically Unchanged - Again
Investing Blog
The Dollar's Coming Impact On Markets
The Real 401k Plan Manager 27 March 2017
Opinion Blog
Macron May Lead But Le Pen Remains The Big Story
Is The 20th Century Still The 'Hayek Century'?
Precious Metals Blog
These Gold Stocks Will Produce Much Bigger Gains Than Gold Itself
Live Markets
28Mar2017 Pre-Market Commentary: Wall Street Eyes A Lower Opening, Crude Prices Edge Higher, Investors Await Fed Members Clues On Timing Of Next Rate Hike
Amazon Books & More

.... and keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet
Asia / Pacific
Middle East / Africa
USA Government



Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day


Asia / Pacific
Middle East / Africa
USA Government

RSS Feeds / Social Media

Combined Econintersect Feed

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution



  Top Economics Site Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2017 Econintersect LLC - all rights reserved