Inventory Finally Catching Sales But Not Close To Balance
Wholesale sales rose just 0.8% in March, following a similar rise in February. For the quarter, sales dropped almost 2% from Q1 2015. More importantly, inventory barely budged in either March or for the quarter. [...]
Modern Elasticity And The Appearance of Quasi-Money
It is a myth of the modern age, particularly post-1930’s, that the American banking system needed a central bank in order to perform the function of currency “elasticity.” There were, of course, several severe bank [...]
Disturbed in Japan
Japanese officials including those at the Bank of Japan have been acting very erratic of late, eschewing the more traditional financial setting of vagueness. First it was NIRP that immediately blew up in their face, [...]
As Weak As April Payroll Report Was, Maybe It Should Have Been Much Weaker Still
If the Fed is data dependent in its monetary policy setting, then the current update for the labor market should keep them still inactive (or at least not raising the federal funds rate that nobody [...]
Not Even The Smallest Hint of Cyclicality Anymore
It is absolutely clear that the eurodollar system last functioned on August 8, 2007. Starting August 9, nothing would ever be the same. In describing and detailing how it got that way (the sudden fragmentation [...]
China Trade And The Inevitability Of Systemic Reset
Throughout 2014 and even into 2015, the word “decoupling” was resurrected to try to calm growing unease about the direction of global growth. It’s first broad usage was during the first part of the Great [...]
More Economic Anecdotes That ‘Something’ Changed In The Middle of Last Year
In August last year, Caterpillar announced that it was moving manufacturing jobs back to America from Mexico. The truck and equipment company had entered what is called the “vocational truck” business back in 2011 but [...]
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