Global Investment in Renewable Energy Has Stalled

By Steve Goreham – Re-Blogged From http://www.WattsUpWithThat.com

Earlier this month, the Trump Administration announced a decision to apply a 30 percent tariff on imported solar cells and panels. The Solar Industries Association denounced the measure, projecting job losses and cancellation of solar investments. But the solar tariff discussion hides a larger renewable energy issue. Global investment in renewables has stalled in the US, in Europe, and in many markets across the world.

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What Everyone Is Missing About The US Tax Cuts

By Steve Saville – Re-Blogged From http://www.Silver-Phoenix500.com

The changes to US taxes that were approved late last year have drawn acclaim and criticism, but in most cases both those who view the tax changes positively and those who view the tax changes negatively are missing two important points.

Most criticism of the tax changes boils down to one of three issues. The first is that the tax cuts favour the rich. This is true, but any meaningful tax cut will have to favour the people who pay most of the tax. Furthermore, contrary to the Keynesian belief system a tax cut will bring about the greatest long-term benefit to the overall economy if it favours people who are more likely to save/invest the additional income over people who are more likely to immediately spend the additional income on consumer items.

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Deflation Must Be Embraced

By Alasdair Macleod – Re-Blogged From http://www.Silver-Phoenix500.com

There are two problems with understanding deflation: it is ill defined, and it has a bad name. This article puts deflation into its proper context. This is an important topic for advocates of gold as money, who will be aware that sound money, in theory, leads to lower prices over time and is often criticised as an objective, because it is not an inflationary stimulation.

The simplest definition for deflation is that it is when the quantity of money contracts. This can come about in one or more of three ways. The central bank may reduce the quantity of base money, commercial banks may reduce the amount of bank credit, or foreigners, in possession of your currency from an imbalance of trade, sell it to the central bank.

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In China, Innovation Cuts Both Ways

By Matthew Bey – Re-Blogged From https://worldview.stratfor.com

China is in a bind. The heavy industry that propelled the country’s economy through three decades of dizzying growth has reached its limits. To escape the dreaded middle-income trap, China will need to shift its focus from low-end manufacturing to other economic industries, namely the technology sector. Beijing has put tech at the center of its long-term economic strategy through campaigns such as Made in China 2025 and Internet Plus. But these initiatives alone won’t push the Chinese economy past its current plateau. The tech sector is notorious for relentless innovation. And innovation requires flexibility.

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Consumer Spending Stalls as Core Inflation Moderates

By Thomson Reuters – Re-Blogged From Newsmax

U.S. consumer spending barely rose in August likely as Hurricane Harvey weighed on auto sales and annual inflation increased at its slowest pace since late 2015, pointing to a moderation in economic growth in the third quarter.

The weak report from the Commerce Department on Friday did little to change expectations that the Federal Reserve would raise interest rates in December. Chair Janet Yellen said on Tuesday the Fed needed to continue gradual rate hikes despite uncertainty about the path of inflation.

“We think current economic conditions are heavily impacted by the effect of the recent hurricanes,” said Chris Rupkey, chief economist at MUFG in New York. “The Fed will rightly look over any soft patch for economic growth in the third quarter.”

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Here’s The True Definition Of A Recession

By Frank Shostak – Re-Blogged From http://www.Silver-Phoenix500.com

According to the National Bureau of Economic Research (NBER), the institution that dates the peaks and troughs of the business cycles,

A recession is a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in real GDP, real income, employment, industrial production, and wholesale-retail sales. A recession begins just after the economy reaches a peak of activity and ends as the economy reaches its trough.

In the view of the NBER dating committee, because a recession influences the economy broadly and is not confined to one sector, it makes sense to pay attention to a single best measure of aggregate economic activity, which is real GDP. The NBER dating committee views real GDP as the single best measure of aggregate economic activity.

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