Econintersect: Click Read more >> below graphic to see today’s list.
The top of today’s reading list asks if electronic money and negative interest rates can smooth the business cycle and get rid of recessions forever…….. and the last article says the price action of copper proves this recovery is a fake and the stock market advance is a fraud. With that cheerful news, Happy Thanksgiving!
- Can we get rid of inflation and recessions forever? (Dylan Matthews, The Washington Post) Can electronic money and negative interest rates smooth the finncial cycle? See also GEI News.
- The Economics of ObamaCare (Ludwig von Mises Institute) Hat tip to John O’Donnell.
“The biggest hit will occur in places that right now offer bare-bones catastrophic policies with large deductibles and low caps.”
In other words, the biggest hits will be for those that were paying something for essentially no coverage? Well, duh!
- Are real rates of return negative? Is the “natural” real rate of return negative? (Tyler Cowen, Marginal Revolution) More on the Larry Summers activated stagnationist discussion. Tyler Cowen appears to be concerned that “out of equilibrium assumptions” invovled in the negative return scenario. From Econintersect‘s point of view, that is one of the most important points. See GEI News.
- Cost of Thanksgiving Dinner up Nearly 70% in 17 Years (5 Min. Forecast)
- The Disinflationary Developed World: 2 Investment Implications (Russ Koesterich, Advisor Perspectives)
- Debt No More! How Obama can defeat Austerity Thugs by Using the Constitution and Debt-Free Money (Scott Baker, OpEdNews) Scott Baker has contributed to Global Economic Intersection.
- The State of Rentierism (Matt Busigin, Macrofuge Analytics) The clearest definition here of the difference between savings and investment. All too many do not distinguish between the capitalist and the rentier.
The distinction between the rentier and capitalist is that the capitalist reinvests her cashflow into creating new capacity – or new real capital. The rentier more simply exploits his existing monopoly on capital for cashflow. The capitalist accumulates new real capital, which expands the nation’s capital stock while rentier accumulates economic rent.
When the rentier gains ascendancy over the capitalist, unemployment rises. The following graph shows the structural problem in the economy which has distorted employment to an extreme state.
- Use Bitcoin As A Currency, Get Wiped Out (The Government Likes It That Way) (Wolf Richter, Testosterone Pit) Hat tip to Naked Capitalism.
- As investors buy, managers sock away cash (Jeff Benjamin, Investment News)
- How This One Chart Proves Economic Recovery Is Fake (Sasha Cekerevac, Investment Contrarians) Hat tip to Doug Short, Advisor Perspectives.
