The US Fed says economic activity has picked up… but household spending is sluggish, interest rates will remain the same, and the economy is still shedding jobs. No surprises here, says Henry Thornton.
Political economy
Political economy: In Australia’s recovery, the winner is Rudd
A strong economy will allow Kevin Rudd again to campaign as a fiscal conservative, as well as the messiah who protected Australia from world depression, correction, severe downturn, writes Henry Thornton.
Political economy: A wonky week ahead
The week ahead will be a good one for economic policy wonks, writes Henry Thornton, with the US economy achieving growth in the Third Quarter and Australia’s central bank monthly meeting results to come.
Political economy: How best to regulate the financial system
It has been observed that if a bank is too big to fail it is too large to live, writes Henry Thornton. Goldman Sachs is in the class of organisations that should be allowed to fail.
Political economy: Rate hike didn’t go far enough
If a 3% interest rate is “imprudent:, 3.25% is hardly prudent. Why the Reserve bank did not hike by 50 points last month is difficult to fathom, writes Henry Thornton.
Political economy: There’s no recession in Washington
Henry Thornton is in Washington, where the public servants, politicians and lobbyists are buying like there’s no tomorrow.
Political economy: Stevens’ rate rise fever goes global
Congratulations, Glenn Stevens, for preparing us for bold rate hikes, writes Henry Thornton.
Political economy: Stop-start fiscal policy still a worry
The US economy is struggling, while China booms. But China’s stimulus will inevitably be followed by a bust down the road, writes Henry Thornton.
Political economy: neoliberalism emerges triumphant
It is looking increasingly likely that the neoliberal (whatever that is) paradise that is Australia’s economy is powering through the Great Crash with hardly a lost beat, says Henry Thornton.
Political economy: a looming property crash?
One reason to be worried about raising interest rates here is the parlous state of the US economy, writes Henry Thornton, with US unemployment at 9.8% and hours worked at record lows.
Political economy: Financial stress on the rise
Kevin Rudd is in New York with Penny Wong fighting valiantly to fix the world’s climate. Meanwhile, back home, financial stress for families on the rise, writes Henry Thornton.
