Must Read Posts for August 14, 2010

On The Economic Populist you might have noticed the right column. We try to list other sites and blogs who have exceptional insight and writing on what is happening in the U.S. economy.

Sometimes though, one cannot say it better but miss those who did.

Must Read Post #1

Another scary chart, proving corporations are simply creating jobs....abroad, this time from The Economist. The last two recessions are worst than the Great Depression in terms of job growth.



Must Read Post #2

Calculated Risk is warning on increasing economic negative news:

The news flow is about to take a more negative tone starting with the existing home sales report on August 23rd.

He lists a host of economic reports, most centered on the residential real estate market, that will make the recent economic reports look tepid by comparison.

Must Read Post #3

Once again, regardless of which (ahem) political party is in office, we have the never ending agenda to rip apart social security, rearing it's ugly head. Paul Krugman does a little reality check in fun with mortality tables.

Must Read Post #4

Trade Reform does a call out on some former Bushies trying to justify offshore outsourcing your job. It's a detailed analysis and more one must wonder why the Washington Post continues to publish economic fiction instead of people like Trade Reform who use actual facts?

Must Read Post #5

Public Citizen does a call out on our never ending trade deficit, which undermines any economic recovery.

Must Read Post #6

Alan Tonelson does a call out on why Germany economically recovered. Hello. They have a trade surplus.

Must Read Post #7

Who knew? China's rich have $1.1 trillion in hidden income.

Must Read Post #8

Student Loan debt now exceeds credit card debt. The ticket to ride, called a college degree, has become absurdly expensive. Unfortunately while earning that degree, corporations offshore outsourced the job you hoped to land upon graduation.



In #6 , Alan Tonelson

In #6 , Alan Tonelson belittles Vivesh Kumar of AOL’s Daily Finance for his lack of understanding of the effect of trade flows on economic growth. He then demonstrates why he's in no postion to criticize :


"Meanwhile, Germany’s GDP growth is projected to be two percent for the last quarter – the highest level since Germany’s reunification in 1990. That figure, of course, is no great shakes by recent U.S. standards, even since the crisis."

Here Tonelson makes the mistake that labels him as a rank rookie among financial columnists. Kumar must be grinning.

The U.S. financial press is virtually unique in reporting GDP growth figures in annual terms , even when reporting quarterly data. The GDP growth in Germany that Tonelson scoffs at is actually close to 9% in annual terms. I'd call that "great shakes" , especially compared to the moribund U.S. economy.

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easy mistake

and Tonelson is no "rookie", he's been around forever, books on Japan manufacturing and trade policy. His main point, Germany has a trade surplus (and the U.S. has a trade deficit w/ EU I might add), is something completely ignored in the U.S. press.

They ignore the U.S. trade deficit.

But, getting numbers confusion is quite easy, very good point that U.S. GDP is annualized, so people realize they are not comparing Apples to Apples. GDP trade data has price multipliers too.

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It indicates a stock market crash (what a great name!) and it triggered on August 12.

The financial press are all ablaze on this but the article says it must hit 3x in a month.

I've never heard of it until now, so hopefully someone who follows this can write up more about it.

But, a stock market crash wouldn't surprise me in the least. I've been more shocked at how high it is considering the suffering of the real economy.

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I'm watching cable and the press the most trivial is once again in the headlines. Now it's "Mosqueqate", but the point is because frankly we've lost at ever turn, the attention onto real legislation and policy changes the U.S. needs, desperately, are not even being mentioned.

We already have absurd statements in the press and TV, public arena that are pure spin, confusing the American public on what economic policy does what.

Take "tax cuts", we have uber rich tax cuts being promoted as middle class tax cuts.

Social security, we have the Obama administration saying one thing, doing another.

Even worse is manufacturing and U.S. jobs. Literally while Obama proclaims the great U.S. workers, we know his administration, nothing to do with Congress, is funding the training of foreigners to offshore outsource your job to.

Yes it's harder to wrap your head around these topics, but public awareness is not increasing, it's decreasing and that's not good.

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