- Especially relevant for those who think low-interest rates cure recessions: Japanese economy at a standstill. All euphemisms aside, the R-word is finally being used with reference to Germany: “German economy has slipped into recession.”
- The New York Times business page headlines the European recession announcement from the EU.
- Running an economy is a bit more complex than running off a regime, suggests this odd but intensely interesting story from the Washington Post, in which we discover that Iraq was a socialist country because “the government provided transportation along with meager housing, food, and health care” for oil workers. The thousands of questions concerning the mundane issues usually handled by markets are coming up daily: how much do workers get paid, who is liable, who provides security, how companies are managed, etc. The US military keeps promising to allow Iraqis to decide this but can’t bear letting private entrepreneurs take over. The story ends with this scene: “it had come to this: An officer for the victorious army, standing in the dust of northern Iraq, managing the repair of a single bum wheel.”
- News of a flat CPI can only add to the hysteria about deflation, and give further license to the Fed to pump money--just like the BOJ has tried to do for many years. See the first item in this list.
- LewRockwell.com today links to a story on commercially provided MRIs that offer a complete look at your insides for a flat $1,000. The Spectator discusses the new appeal of gold ownership. And Lew reminds us that the Wall Street Journal favored the war on Serbia as much as it did the war on Iraq.
- Paul Kasriel says “thank goodness for depreciation“: “For the past three years running economic depreciation for nonfinancial corporations has accounted for over 90% of their domestic cash flow.... this is the highest depreciation has been as a percent of cash flow in the post-WWII period. In 2001, depreciation accounted for slightly over 100% of cash flow!”
Japan at Standstill
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