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Disasters Can Happen

Slip Back Economics

20 DOLLAR BILLS IN SEQ OLD PAPER MONEY US CURRENCY BANK NOTE CHICAGO IL  coolkenny on ebay 2by MN Gordon Economic Prism

What’s this? Has the U.S. consumer, the primary engine of economic growth, has become ambivalent? This is what the latest data says…

According to the Thomas Reuters/University of Michigan’s early July index reading, consumer sentiment is 81.3. This is below the 83 level that the experts predicted and below the June mark of 82.5. Yet while consumer sentiment is lower, it generally didn’t change. What to make of it.

“The most remarkable aspect of recent trends in consumer confidence has been its resistance to change in either direction due to very negative GDP nor very positive employment gains,” survey director Richard Curtin (Read More....)

. . . → Read More: Slip Back Economics

Wealth Consumption

Moneyby MN Gordon Economic Prism

There aren’t many professions out there where there are no readily applied and real-time performance standards. In fact, in the corporate world today, there’s a fanatic fixation on tying numerous metrics to performance. You name it…

If it’s measurable, verifiable, and reportable…then performances are planned and benchmarked against it. Gross margin, operating margin, net margin, profit after tax, net operating profit after tax, earnings before interest and tax, earned value, and on and on. There are spreadsheets, charts, and graphs for all of them.

Where is the enterprise according to plan? Where is it going? Are profits going up? What about costs? What is the percent spent verses the percent complete? Where are costs being disproportionally spent?

All of these metrics, in our opinion, have taken all the fun out of business. There’s no energy left for creativity. There are no allowances left for taking deliberated risks. Not when days are spent tracking and charting (Read More....)

. . . → Read More: Wealth Consumption

Dirty Investing

Dirty Moneyby MN Gordon Economic Prism

Temperatures in Brisbane, Australia, fell to their lowest level in 103 years. On June 27, temperatures dropped all the way to 36o F. The average for this time of year is 53o F.

Here in the United States summer’s in full swing. However, for some areas this week it may not feel like it. According to meteorologist Megan Glaros, a “polar vortex will be shooting a pocket of cold air…, possibly resulting in record low temperatures all across large portions of the Midwest and upper Great Plains, including Illinois, Indiana, Wisconsin, Iowa, Minnesota, Michigan, and Ohio.”

To long time Economic Prism readers this comes as no surprise. For this lines up perfectly with our (Read More....)

. . . → Read More: Dirty Investing

An Absolute Disaster?

Price Fixingby MN Gordon Economic Prism

Last Thursday the DOW surpassed 17,000 for the first time ever. What a marvelous achievement. The combined forces of mass money creation and speculative fervor have bid up the market to levels a person of sound mind and honest intentions never thought possible.

According to the Bank for International Settlement, in its recently released Annual Report, “financial markets are euphoric.” The BIS also recommends that central banks begin raising interest rates while economies are growing so they can be prepared for the next recession. Jim Edwards at the Business Insider has the particulars…

“The subtext (and not so subtext) of BIS’s annual report is that, because many central banks have reduced interest rates to zero — the U.S. and Japan included — they are without weapons to boost the economy should (Read More....)

. . . → Read More: An Absolute Disaster?

Independence Day Hootenanny

Moneyby MN Gordon Economic Prism

Uncompromising independence, rugged individualism, and unbounded personal freedom were once essential to the American character. According to popular American folklore, they still are. We have some reservations.

In the year 2014, the ideas that roused America’s War of Independence are, alas, just ideas. Limited government and individual liberty were long ago squandered for big government. Similarly, personal freedoms were turned over for safety nets and collectivism.

Was there ever a time when you could surf the web without the NSA ogling your every keystroke? Perhaps there was a brief moment during the twilight of the last millennium. We don’t know.

But we do know that gone are the days when you could earn a living without the IRS making a federal case out of it. So, too, gone are the days when you could board an airplane without some TSA boob squeezer touching your most private parts. Nearly all has been lost.

Over the last 100 years Washington has become a sort of money sucking vortex. At (Read More....)

. . . → Read More: Independence Day Hootenanny

Janet Yellen’s Unwise and Inhumane Policies

Janet Yellenby MN Gordon Economic Prism

Federal Reserve Chair Janet Yellen says the 0.4 percent May CPI increase is noise. Perhaps she is right and it is noise. But just what type of noise is it?

Is it the type of noise to ignore…like a street vagrant’s mutterings of gibberish? Or is it the type of noise, like a fire alarm, telling us to get out because our home is about to go up in smoke? The difference is stark.

Though Yellen didn’t elaborate, we assume she means the CPI noise is something to ignore. That price inflation isn’t a real concern. Here at the Economic Prism we think otherwise.

Regardless of whether it shows up in the CPI, the price of just about everything that’s needed to live is going up. In fact, according to (Read More....)

. . . → Read More: Janet Yellen’s Unwise and Inhumane Policies

The Paradox of Fed Credit

Ben Bernanke,Fed’s balance sheet,economic implosion,Bernanke, Obama, Congress, recession,Marxism-Leninismby MN Gordon Economic Prism

Last Tuesday the Bureau of Labor Statistics reported the Consumer Price Index increased 0.4 percent in May and 2.1 percent over the last 12 months. That means if you didn’t get a 2 percent raise this year you’re doing worse – not better – than last year. But not to worry…

The following day, Federal Reserve Chair Janet Yellon dismissed the CPI report…calling the data “noisy.” Obviously, she missed the announcement from In-N-Out – the iconic California hamburger stand – that they’re raising (Read More....)

. . . → Read More: The Paradox of Fed Credit

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