Barataria

Sep 14

No Longer Driven by Oil

No Longer Driven by Oil

A new international war has started in the Middle East as Syria continues to burn. Russia is slowly being strangled by international sanctions that are now cutting off their ability to produce and sell oil. With all of this happening in the world, something remarkable is happening to the price of oil – it’s dropping.

How could this happen? The short answer is that the US continues to move towards

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Sep 11

Global Policeman, Again

Another year, another war in Iraq. Like the sunspot cycle, they seem to come ‘round about every 11 years. But this is not a natural cycle – this is caused by the instability built into a planet that is closer than ever before. Artificial “nations” created by outside powers with inherent instability, such as Iraq, are a burden on everyone.

There’s little point going into the strange history of…

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Sep 9

Job Loss Hits a Milestone

Job Loss Hits a Milestone

Of all the various measures of the economy we have at our disposal, one of the most consistent and real-time is the Unemployment Initial Claims, which comes out weekly. It’s nothing more than a measure of how many people filed for unemployment insurance in the previous week, so it’s a solid number that doesn’t come from a survey or other statistical measure.

It still has its problems, however.…

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Sep 7

Bizarro World Finance

This last week, the yield on a 2-year Irish Government bond turned negative, garnering a rate of -0.007%. That means that if you want to loan the Irish government some of your money, you have to pay for the privilege of doing so. Negative interest rates are not exactly new, but in the case of Ireland it’s particularly bizarre. Just three years ago, amid a potential default crisis, the same bonds…

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Sep 4

Maglev Trains in Our Future

Maglev Trains in Our Future

Is the US ready for high speed rail? If The NorthEast Maglev (TNEM) gets its way, a solid demonstration project between Baltimore and Washingtonmight be built sometime in the future for an undisclosed amount of money. The project is hardly scoped out yet, but the promise of being able to rocket between the cities at over 300 mph (500 kph) has attracted attention – and $5B in potential backing…

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Sep 2

Skills Gap?

Is there a “skills gap”? Many economists and policy wonks have debated whether or not persistent unemployment is related to a lack of workers with just the right training to fill today’s jobs. JP Morgan’s Jamie Dimon famously wrote an argument in favor of a lack of skills as the major problem, which Paul Krugmanthen proceeded to tear apart. The arguments continue back and forth with little…

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Aug 31

Labor Creates All Wealth

Labor Creates All Wealth

As Democrats contemplate the possibility of losing the Senate, there are many ways we can handle it.  We could all sit in the back and throw stuff, much as the Republicans did for the last few years.  We could turn on each other and rip our own guts out in a festival of shame and blame.  Or, if we’re intent on really standing up to our principles, we can use this time away from being the…

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Aug 28

A Can’t Lose War He Can’t Fight

A Can’t Lose War He Can’t Fight

Russian troops have invaded Ukraine, this is not in question. Whether or not they have the official sanction of Russia itself or are merely “on vacation” fighting for a good cause is up to the reader to decide. The main contention so far is what exactly Putin is doing by playing a very silly game by trying to invade without invading, telling the world a fairly transparent fairy tale that no one…

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Aug 26

Player Piano

Kurt Vonnegut’s 1952 novel “Player Piano” was more than his first. It was arguably the first “dystopian utopia” novel of a world carefully described and proscribed for everyone involved. Those with technical degrees were the masters of the carefully planned world, and the rest either joined the army or worked for the “Reconstruction and Reclamation Corps” building infrastructure. Government took…

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Aug 24

Labor in a (Jackson) Hole

Labor in a (Jackson) Hole

The Federal Reserve of Kansas City puts on the big event every year – and why not throw a big party when your territory includes Jackson Hole, Wyoming? This year’s productionconcluded after presentations and official pronouncements from all the top central bankers of the world – Mario Drahgi of the European Central Bank (ECB), Haruhiko Kuroda of the Bank of Japan (BOJ), and our own Janet Yellen.…

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Aug 21

When Great Force Becomes Easy

When Great Force Becomes Easy

The still summer evening was suddenly ripped apart by the heavy THWUP!-THWUP!-THWUP! of helicopters. In this part of St Paul copters are common enough as small emergencies across the state hurry themselves to nearby United Hospital. But this sound was different. It was heavy, immediate, and amplified by three of them flying low enough to sneak up on the otherwise placid city.

Then there was the…

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Aug 19

Six (more) Things Schools Should Teach

Six (more) Things Schools Should Teach

In Junior High I had a class on typing. We meandered to a windowless room full of the clickety-crunch churn of IBM Selectric typewriters, set out in rows on tables. Each had the solid ca-CHUNK keys that let you know that you hit one, even when you became proficient and fast on the things.

It seems like it was the era of the dinosaurs describing it to kids today. They’ve never even seen such a…

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Aug 17

The Opportunity Cost

You can’t have your cake and eat it, too.  It’s a silly old saying with a huge dollop of folk wisdom hidden in the middle of it.  But money spent is sometimes more than just money gone – in an integrated world it’s a choice to make one connection when another one might have been a better choice.

Rather than just measure how much money is going in and out, it might be better to understand what we…

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Aug 14

One Last Bubble?

Is the stock market nothing but a bubble waiting to burst? There are many reasons to believe that there is one last downturn at the exit of this Managed Depression, which may indeed be slowly forming. The risk comes in the nature of how the economy is so carefully managed through monetary policy directed by the Federal Reserve. Years of zero interest and $3.7T in quantitative easinghave produced…

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Aug 12

A Jolt of Confidence

A Jolt of Confidence

There are many ways to measure an economy, as we’ve discussed before. There are thousands of workers toiling away at the Bureau of Labor Statistics (BLS), Bureau of Economic Analysis (BEA) and many other agencies providing more data than anyone will ever be able to fully understand. It’s something like the internet in terms of data overload, except many of these measures were developed before the…

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