Friday, January 9, 2015

Some Friday morning news

Here, read some stuff today, it's good for you:

New Deal Demoncrat - the bottom in gas prices is close. Aw geez, he bases it on "inexorable seasonality". When will people realize that things can be different this time?

Project Syndicate - Europe's monetary lapse of reason. Even Joe Stiglitz is now mocking the Europeans for their austerity fixation. So how many Nobel laureates will it take before the Germans wise up? Well:
In Greece, for example, measures intended to lower the debt burden have in fact left the country more burdened than it was in 2010: the debt-to-GDP ratio has increased, owing to the bruising impact of fiscal austerity on output. At least the International Monetary Fund has owned up to these intellectual and policy failures.
If the data unequivocally proves the EZ's strategy a failure, and yet they adhere to it, then the only reasonable conclusion to draw is that they never wanted to fix Greece's debt-to-GDP ratio. They wanted to destroy Greece.

Bloomberg Businessweek - Jim O'Neill on shitting BRICs. I dunno, Jim still thinks India has a good story. I wonder if he knows that their per capita productivity is still on par with Nigeria?

Bloomberg View - Jim O'Neill with three reasons to be bullish China in 2015. His take:
I can think of at least three basic reasons to be bullish on China: First, the collapse of crude oil prices will boost consumers' real incomes, helping them play a larger role in the economy.

Second, even though property prices have recently stalled and begun to fall, China will probably avoid a serious credit crunch, partly because Chinese policy makers have been more serious about restraining prices before they can collapse. Moreover, the price decline has made real estate affordable for more Chinese.

A third reason to be optimistic is the subdued nature of inflation in China. This allows for more accommodative monetary policy going forward.

Taken together, these factors will make it easier for China to rebalance its economy -- by raising wages, increasing property-ownership rights for urban migrants and reforming pension systems.
And he knows more than you, lad, so pay heed.

Reuters - Modi throws doors open to the Indian diaspora. Well, it's a great way to instantly boost your human capital. Then again, maybe he's doing this because he realizes he's not going to boost the human capital any other way.

FT beyond brics - hey, remember rare earths? That supposed critical rare earths deficit has worked itself out exactly how you'd expect it to. That is, how you'd expect it to if you knew the slightest damn thing about economics. How's that Molycorp position doing, by the way? - iron ore price about to get hit by a supply flood. This is bullish for the global economy. It's actually a bit bearish for India, since they had a lot of iron ore mining capacity that they wanted to bring back into production, but they won't be able to mine it at a profit now.

New Music Express - first ever academic conference on Kraftwerk to be held at Aston University. Hey, is Simon Ridgway a Kraftwerk fan? Anyone know?

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