Tuesday, January 03, 2012

Morning Journal, Why deficit spending hurts wage earners and favors capital


Economics
This Week’s Data

Other


I found this surprising. The US’s number one export--energy:
http://mjperry.blogspot.com/2011/12/new-age-of-americas-energy-abundance-no.html

Still no signs of inflation in the macro numbers (short):
http://mjperry.blogspot.com/2011/12/bpp-data-shows-inflation-trending.html


This is a great lesson in economics from Greg Mankiw. Unfortunately, it is also very long. However, it does explain why running large budget deficits hurt wage earners and favor owners of capital—a result to which Obama seems completely oblivious:
http://www.economics.harvard.edu/files/faculty/40_whatdobudgetdeficitsdo.pdf

Politics
 Domestic


A chart on crony capitalism--a picture is worth a 1000 words:
http://www.nakedcapitalism.com/2012/01/crowd-sourcing-the-revolving-door.html

International

China’s PMI rebounds:
http://www.investmentpostcards.com/2012/01/02/china%E2%80%99s-manufacturing-pmi-rebounds/

European PMI’s continue to contract but less than expected (short):
http://www.zerohedge.com/news/european-economy-contracts-fifth-month-row-more-pain-ahead

Iran continues to saber rattle (medium):
http://www.zerohedge.com/news/iran-threatens-retaliation-if-us-carrier-returns-persian-gulf-where-5th-navy-stationed