LinkedIn LinkedIn google+

August 15, 2014

Today's Commentaries on Economic & Resource News by Ian R. Campbell FCPA FCA FCBV

In This Issue

Forward this Newsletter


Important Highlights from Today's Commentaries

 

Commentaries

The Death of Money, published this past April, is worth reading and thinking hard about. You might even want to buy the book – here is a link to Amazon where you can do that.

 

The Death (or Rebirth?) of Money: An Exclusive Interview With Jim Rickards (Financial Sense – reading time 5 minutes, thinking time longer).

Eurozone update

Eurozone Sees a Stream of Poor Economic Reports comments, with charts, on Italy GDP, eurozone retail sales, and Germany industrial orders and bond yields.

 

I have long thought Germany to be a fulcrum world economy, as it at some point I think it will have to chose between returning much of the economic advantage it has gained from the eurozone in the past fifteen years to its eurozone partner countries - or not. If Germany's response is "not", then I don't see the eurozone continuing in its present configuration.

 

Eurozone Sees a Stream of Poor Economic Reports (Financial Sense – reading time 2 minutes).

“Finite” is an ever more important word!

An article published August 14 titled “Energy and the Economy – Twelve Basic Principles” is a “must read and think about”. Written by Gail Tverberg, it canvasses the following topics: (1) the validity, or lack thereof, of economic models, (2) resources are integral to the economy, (3) production inefficiencies and diminished returns (highest fruit on tree), (4) world population issues, (5) economic fragility, (6) finite world pressures on the economy, (7)collapses of previous civilizations, (8) depletion leads to economic decline, (9)limits and finite lifetimes, (10) oil/energy high correlation to world economic growth, (11) cheap energy = economic growth, and (12) oil affordability.

 

If you agree with much of what is written in this “wake-up article” you are likely to end up “smelling something other than roses”. This causes me to recall a statement recently made to me by a smart friend: “better to know your problems in advance that learn of them when they hit you over the head”.

 

Energy and the Economy – Twelve Basic Principles (Our Finite World – reading time 8 minutes).

Productivity gains and jobs

Productivity gains have been coming from technological change, not job creation. The US manufacturing base is surprisingly strong is an article you might find important to read and think about.


A second complimentary article is For largest U.S. companies, jobs growth has lagged profits, revenues. As I see things this second article goes to the heart of what I think to be a root problem. Companies will always look to increase profitability. That is far from a bad thing. However, one "bad thing" that may increasingly result from increased profitability arising from increased use of technology is that over time some comparatively high income people who are currently gainfully employed in manufacturing plants and offices may be replaced by robots, software advances, or other technology related things. 

 

The US manufacturing base is surprising strong (Vox – reading time 6 minutes,thinking time longer. For largest U.S. companies, jobs growth has lagged profits, revenues (Reuters – reading time 4 minutes).

U.S. wage rates

If you have not seen this short article, you might want to look and think about the summary numbers it shows.

I suggest Main Street America is unlikely to ever again see pre-2008 standards of living. I also suggest the U.S. "economic recovery" is even more fragile than the Federal Reserve would have us believe.


Study: New jobs pay 23% less than those lost during the Great Recession (AEIdeas – reading time 1minute).

Articles Posted Today to Stock Research Portal

Today, supplementary to the articles discussed in this newsletter, filtered articles were posted to the Home Page of Stock Research Portal in the following categories.

News Category No. of Articles
Posted Today
Economic News 139
Financial Market News 10
Precious Metals News 3
Base Metals News 3
Other Minerals News 3
Oil & Gas News 7


For a quick review of filtered world news by category visit www.stockresearchportal.com

Newsletter Methodology and Objective

Each morning we personally filter (on average) over 750 economic and resource articles published in the previous 24 hours. We select those we think to be particularly important, comment on their subject matter, and give you balanced views that save you time.

Our objective is to help you keep up to date, gain new ideas, better trade and invest, better communicate with your investment advisor if you have one, and importantly make your own ‘penny drop’.

About the Author

Ian R. Campbell

Through the Economic Straight Talk Newsletter Ian R. Campbell shares his perspective on the world economy, the financial markets, and natural resources. A recognized business valuation authority, he founded Toronto based Campbell Valuation Partners (1976), Stock Research Portal (2007) a source of resource companies market data and analytic tools, and Economic Straight Talk (2012). The CICBV* annually funds business valuation research in his name**. Contact him at icampbell@srddi.com.
* Canadian Institute of Chartered Business Valuators
** through The Ian R. Campbell Research Initiative

COMMENTS AND OPINIONS EXPRESSED IN THIS NEWSLETTER ARE THOSE OF THE AUTHORS. THEY DO NOT CONSTITUTE INDIVIDULAIZED INVESTMENT ADVICE, ARE PROVIDED “AS IS”, MAY CHANGE WITHOUT PRIOR NOTICE, AND ARE USED AT YOUR OWN RISK. THE INFORMATION AND CONTENT PROVIDED OR REFERENCED MAY BE INCOMPLETE, INEXACT, OR INCORRECT.

© 2012, Stock Research DD Inc., all rights reserved

ANY ACTION YOU TAKE AS A RESULT OF INFORMATION, OPINION OR ANALYIS IS YOUR RESPONSIBILITY. CONSULT YOUR INVESTMENT ADVISOR BEFORE MAKING ANY TRADING OR INVESTMENT DECISIONS. THE AUTHORS MAY OWN SHARES IN COMPANIES REFERRED TO.

YOUR USE OF THIS NEWSLETTER IS SUBJECT TO OUR TERMS OF USE AND LEGAL DISCLAIMER.