Using The Yield Curve Data To Predict GDP Growth
The yield curve data has surpassed its reputation of merely just being a simple predictor of economic growth. The rule behind its interpretation is simple such as when an inverted curve is displayed then it means a recession is about to happen after a year, and the yield curve inversions have proven reliable for each of the last seven recessions. The most recent recession predicted by the yield curve is the December 2007 recession. An inverted curve was shown in August 2006 and just months more than a year, the recession happened.United States Economy Becoming More Like Germany in the Near Future?
State of the Union 2012: Major intra elite infighting that we haven’t seen since the 1850s as the government finally brought the economy out of a tailspin and into a very precarious horizontal flying position susceptible to unusual political shocks. It is election year in America and 18.3 million voters that matter are beginning to get involved in the future of planetary development…What Is Quantitative Easing and Does It Work?
Quantitative easing is the term used for when a government chooses to use their central bank to create new money from thin air. This money is then used to purchase government bonds from financial institutions.Student Loans Leading To More Bankruptcies
If you have taken out student loans for your education you most likely have incurred some sort of debt. With today’s economy struggling, this debt could have a lasting impact on your financial life.The Four Economic Seasons
History serves as a great teacher and any wise entrepreneur will look back over the past 100 years and see that there is a definite trend. There is a cycle or market fluctuation, which seems to repeat every seven to ten years. During these cycles, there are periods of easy prosperity, followed by periods of challenge, where prosperity is more difficult and opportunities are scarcer. Look back over the past 100 years and even beyond and you will most certainly see a cyclical trend, with alternating bear and bull markets.US Economic Trends for 2012
Okay so, what are the economic trends for 2012 here in the US? Well of course it is an election year, and generally our economy does okay in an election year, however in this particular year the European crisis will also affect our GDP growth slowing us down to 1% or thereabouts. That certainly won’t make the current administration look very well, even if the unemployment rates are slowly dropping, at least as per the official version.How to Compete With a Computer in Economic Analysis
It is rather hard to compete with the computer when doing economic analysis. This is because computers are quite good at doing math once they are programmed, and although economics isn’t an exact science, those who study it, do the research, and use the tools certainly see it as such. Meaning they will use these equations to guestimate the future trends.Global Economic Trends for 2012
Indeed, 2008 was the year about global economics and it is my contention, as well as the view of our think tank that 2012 will also be a year with global economics dominating much of the media. There are challenges all around the world, and I’d like to discuss a few these if I might. One of the big challenges happens to do with Iran’s nuclear weapons program, and the sanctions placed on that nation.The Risks of Being a Lender
Money is a tool that facilitates the exchange of goods and services and represents your purchasing power. When you make a loan or investment there are two risks that you will lose that purchasing power.Sovereign Debt Problems – United States Or Europe, Who Is Worse Off?
Recently Standard and Poor’s downgraded 9 European countries including the number two EU member France. For now, it seems the number one EU economy Germany is off the hook. There are six euro zone countries that currently have equal or greater debt to GDP ratios than the United States. Greece and Italy currently have higher GDP ratios while Ireland and Portugal are just about the same as the United States. Currently the United States is at 100% debt to GDP.Should The Federal Reserve System Be Abolished? If So, What Monetary System Should Take Its Place?
The Foundation for Economic Education (FEE) held a writing competition asking these two questions, and this essay is my entry. In it, I explain why it is necessary for us to abolish or severely rein in the Federal Reserve, and what “money” we should use instead of our deflating fiat dollars.