Jim McCormick, commenting on the world economic situation, stated he is concerned about inflation in the United States and deflation in Europe. I think his European concerns are spot on, but significant US inflation seems unlikely in my view. Click here to read the full article from “Bloomberg.”
A “New York Times” article also pointed out the likelihood that Europe is slinking into deflation. This is an expected outcome in an economic winter. Continue reading
Incredibly, the USDA is spending taxpayer money to research, prepare and distribute a report that confirms Americans like pizza. Evidently, it took five top scientists to reach this conclusion. Click here to read the full story.
Looks like the new political fight might evolve into a battle against global cooling. Click for more on the story.
In an interesting court case involving agriculture, an Australian organic farmer is suing a neighbor whose genetically modified crop affected enough of his crop to have his organic certification revoked. The full story from “The Telegraph.” Continue reading
Mortgage rates continued their decline this week. The 30 year mortgage rate remained under 4.5% for the fourth straight week. Click here for the full story from “The Washington Post.”
ADP, the payroll processing firm, released its jobs estimate. According to the company, private employers hired 175,000 employees last month. Analysts were expecting 185,000 on average. For the full story on last months job growth. Continue reading
In an economy where most money is debt, one can expect failures of financial institutions. So far in 2014, 3 banks have failed. By the way, I believe the FDIC’s estimate of the cost of bank failures mentioned in the article is far short of what will actually occur. Click here to read the full article from “The Star Tribune.”
The world’s most developed economies are in danger of falling into deflation as we have been warning since the financial crisis of 2008. A “Wall Street Journal” piece explains. Continue reading
I’ve discussed Chicago’s financial issues in the past, in particular the city’s $35 billion pension funding shortfall. Now, the city is making plans to double its credit line and selling $900 million in additional bonds in an attempt to put a band-aid on the city’s fiscal issues. In reality, the city is just kicking the can down the road with these actions and overall costs will ultimately increase. Click here to read the full story from “The Chicago Tribune.” Continue reading