Daily Digest 12/8 - Managed Bankruptcy For Detroit, The Yen Gets It In The End
CPI Unchained (jdargis)
“Chaining” the index means taking a slightly broader view of how the baskets should work in order to account for switching behavior. One reason people buy pork, for example, is that it’s cheaper than beef. But so is chicken. So if pork prices rise, price-sensitive shoppers will probably shift and buy less pork and more chicken. In other words, the price of pork went up, but the overall impact on meat prices is smaller than a naïve look at the movement in pork prices would suggest.
Overall, CBO analysts said that, accounting for shifts in both revenue and spending, the deficit would be $8 billion lower this year than it was last year at this time.
The agency, Congress’s nonpartisan budget scorekeeper, releases preliminary estimates of the government’s fiscal position each month. Final figures will come later this month from the Treasury Department.
Contingency planning in Lansing for a possible Chapter 9 bankruptcy filing is not likely to be popular inside council chambers or the Mayor's Office. But it's the responsible and necessary thing to do, whatever the protests from the elected officials whose denial and self-delusion are hastening the arrival of a reckoning they can no longer avoid.
When The "Price" Of Gold Or Silver Means Nothing (Thomas C.)
Among the most important of these is the illusory nature of “change.” The Weimer Hyperinflation provides us with a classic illustration of that concept. Viewed from nearly a century in the future, our assumption is that this “episode” was characterized by a consistent progression: either the parabolic explosion in prices (and collapse in the value of currency) which we are taught defines hyperinflation, or (at the least) some steady-but-dramatic linear progression.
The Yen Gets It In The End: James Saft (westcoastjan)
“If I become prime minister, I won’t comment on specific monetary policy measures, as they should be decided by the BOJ,” Abe said in a joint party leaders’ debate. That rings somewhat hollow, given that he’s put the BOJ and his efforts to make it more responsive to the woes of Japan’s economy at the center of the LDP campaign.
The “net benefit” test, with all of its many overlapping, arbitrary, and subjectively applied criteria, will remain in place for all takeovers, whether by private or state-owned enterprises. In addition, a second battery of tests will now be applied to SOEs: for example, a bid will be accepted or rejected depending on how much “control or influence” the SOE would have over its new subsidiary, and how much control or influence its state owners have over it.
Defence officials, long entranced by the F-35’s advanced technology, persuaded successive ministers of defence, Gordon O’Connor and Peter MacKay, to approve the purchase with the promise of billions in spin-off “industrial benefits” for the Canadian aerospace industry. Virtually no documentation was provided in support of any of these claims, nor were any of the usual rules and procedures followed.
The research makes up an important part of a white paper recently produced by the American Institute of Chemical Engineers (AIChE), the nation’s largest chemical engineering association. In the paper, the chemical engineers call for a greater integration of energy sources and urge policymakers to consider chemical conversion processes as a potential method to produce cleaner and cheaper fuels.
"There's no doubt that for us to take on climate change in a serious way would involve making some tough political choices," said the president. "And understandably, I think the American people right now have been so focused, and will continue to be focused on our economy and jobs and growth, that if the message is somehow we're going to ignore jobs and growth simply to address climate change, I don't think anybody is going to go for that. I won't go for that."
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