Posted by WARREN MOSLER on 28th May 2009
Karim writes:
Durable Goods Order/Claims
- Durables goods orders +1.9% headline; -1.5% ex-aircraft and defense (this is the measure used for the private sector capex component of GDP)
- Defense up 23.2% m/m; here are the prior 3mths for defense orders in 2009 (-11%;+33%;-40%)
- Shipments ex-defense -0.3%
- Inventories -0.8% (unexpected as most felt inventory drawdown was over in Q1)
- Initial claims fall to 623k from 636k (revised up from 631k)
- Continuing claims up another 110k
- Data shows economy still contracting; look for range of estimates for Q2 from -2% to -4%
Posted in Daily, Karim | 2 Comments »
Posted by WARREN MOSLER on 28th May 2009
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(email exchange)
>
> Hi Warren. I heard James Grant speak yesterday. He was funny, entertaining, articulate
> and full of historical knowledge, but I found his monetary analysis appalling. He wants
> the U.S. (and the rest of the world) to be on a strict gold standard.
>
> It seems to me that the consequent reduction in flexibility and efficiency could be a
> death sentence for hundreds of millions of people around the world. What do you think ?
>
Agreed!
The gold standad wasn’t abandoned because it worked so well!
The gold standard panic of 1907 was so bad they created the Fed in 1913 to keep it from ever happening again.
It happened again and even worse in 1929 to the point gold was dropped domestically in 1934.
No depressions since as the supply side constraints on ‘money’ were eliminated and counter cyclical fiscal policy became viable.
They kept the Fed open anyway and gave it other things to do.
Send this along to Jim, thanks!
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Posted in Fed, Government Spending, Recession | 27 Comments »
