Daily Digest

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Daily Digest 1/2 - Oil Falls To 5 1/2 Year Low, What's Wrong With Georgia?

Friday, January 2, 2015, 12:43 PM

Economy

European Central Bank Hints of Stimulus as Euro Falls Against Dollar (jdargis)

Mario Draghi, the president of the European Central Bank, said in an interview published in the German newspaper Handelsblatt that the risk that the central bank would not be able to meet its main task of keeping inflation from being too low or too high was greater than it had been six months ago. At 0.3 percent in November, inflation in the eurozone was far below the central bank’s official target of close to 2 percent.

Oil Falls to 5 1/2-Year Low Amid Russia, Iraq Production Gains (jdargis)

Oil slumped 46 percent in New York in 2014, the steepest drop in six years and second-worst since trading began in 1983, as U.S. producers and the Organization of Petroleum Exporting Countries ceded no ground in their battle for market share. OPEC pumped above its quota for a seventh month in December even as U.S. output expanded to the highest in more than three decades, according to data compiled by Bloomberg.

Web Freedom Is Seen as a Growing Global Issue (jdargis)

The clumsiness of current censorship efforts was apparent in mid-December, when Russia’s Internet regulator demanded that Facebook remove a page that was promoting an anti-government rally. After Facebook blocked the page for its 10 million or so Russian users, dozens of copycat pages popped up and the word spread on other social networks like Twitter. That created even more publicity for the planned Jan. 15 event, intended to protest the sentencing of Aleksei A. Navalny, a leading opposition figure.

To Rescue Economy, Japan Turns to Supermom (jdargis)

In a country where juggling work and family has long been especially difficult, Mr. Abe has pledged to ease the way for women like Ms. Kitajima, with more state-funded child care and other measures to foster “a society where all women shine.” Tackling the nation’s shrinking population and declining labor force by encouraging working women is part of his broader effort to re-energize the economy, which is looking especially unsteady after Japan unexpectedly fell into a recession last quarter.

What's Wrong With Georgia? (jdargis)

“This is what a state looks like when you have a hands-off, laissez-faire approach to the economy,” said Michael Wald, a former Bureau of Labor Statistics economist in Atlanta. “Georgia is basically a low-wage, low-tax, low-service state, that’s the approach they’ve been taking for a very long time.”

The nation's unemployment rate in November, by contrast, was 5.8 percent, which was also the November jobless rate of Georgia's neighbor and occasional rival, North Carolina.

Economic Inefficiency Means Low Oil Prices Are Here To Stay (Evan K.)

Since about 2001, several sectors of the economy have become increasingly inefficient, in the sense that it takes more resources to produce a given output, such as 1000 barrels of oil. I believe that this growing inefficiency explains both slowing world economic growth and the sharp recent drop in prices of many commodities, including oil. The mechanism at work is what I would call the crowding out effect. As more resources are required for the increasingly inefficient sectors of the economy, fewer resources are available to the rest of the economy. As a result, wages stagnate or decline. Central banks find it necessary lower interest rates, to keep the economy going.

Optimal Consumption (Wilson S.)

For decades, the Keynesian policy of consumption stimulation has been followed consistently in many countries, particularly the US (see below). Specially in the current economic slump, the government policy has been to encourage more spending – a Keynesian prescription which is frequently, widely and approvingly repeated by central bankers (Dudley, 2014; Yellen, 2014), academics (Krugman, 2014) and journalists (Coy, 2014). The main public debate is about how effective the various government policies have been to induce more private spending.

Thermodynamic analysis reveals large overlooked role of oil and other energy sources in the economy (Arthur Robey)

In a new study published in the New Journal of Physics, Professor Reiner Kümmel at the University of Würzburg and Dr. Dietmar Lindenberger at the University of Cologne argue that the missing ingredient represented by the Solow residual consists primarily of energy. They show that, for thermodynamic reasons, energy should be taken into account as a third production factor, on an equal footing with the traditional factors capital and labor.

Gold & Silver

Click to read the PM Daily Market Commentary: 12/31/14

Provided daily by the Peak Prosperity Gold & Silver Group

Article suggestions for the Daily Digest can be sent to [email protected]. All suggestions are filtered by the Daily Digest team and preference is given to those that are in alignment with the message of the Crash Course and the "3 Es."

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saxplayer00o1
Status: Diamond Member (Offline)
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saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4163
The $100 Billion New Year's Party

Don't say that Washington doesn't know how to party.

 

Treasury Direct Link

The Daily History of the Debt Results

Historical returns from 12/27/2014 through 12/31/2014

The data for the total public debt outstanding is published each business day. If there is no debt value for the date(s) you requested, the value for the preceding business day will be displayed.

( Debt Held by the Public vs. Intragovernmental Holdings )

Date Debt Held by the Public Intragovernmental Holdings Total Public Debt Outstanding
12/26/2014 12,994,194,510,569.30 5,035,918,845,506.75 18,030,113,356,076.05
12/29/2014 12,994,463,454,881.51 5,044,992,625,901.44 18,039,456,080,782.95
12/30/2014 12,995,323,491,166.67 5,048,538,756,222.38 18,043,862,247,389.05
12/31/2014 13,023,951,380,768.58 5,117,492,754,794.72 18,141,444,135,563.30

 

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