Friday, February 15, 2013

Jobless Claims Near 5-Year Low

Unemployment-insurance claims are near their lowest level in five years. The four-week moving average of first-time jobless claims, which smooths out distortions, edged up last week to 352,500. But the figure was close to the previous week’s 351,000, the lowest level since March 2008, reports WSJ.

The manipulated boom is on, next comes the price inflation.


  1. RW- I found this article by Frank Shostack to be enlightening and in contrast to your view when it comes to where the economy is headed from here. An excerpt:

    "It is not clear whether we have already reached this stage in the US. But despite massive pumping by the Fed, economic activity remains subdued and this raises the likelihood that the US economy is not far from sinking into a black hole."

    I believe you and Shostack view the economy in a very similar 'Austrian' light. Would you agree that you are not on the same page as to where the economy is headed in the near future?

    1. It depends on how you are measuring price inflation. A reflated boom and thus money chasing after assets and equity that should be falling in value, not rising, is itself a form of inflation. Both due to fundamentals in their respective markets, but also due to speculation from investors chasing return in light of abysmal returns on bonds and savings, commodities have also fired up, which will have knock on effects on all markets in the future. Then there is the fact that the US exports a good deal of its money creation.

      Inflation in consumer goods is some time away still, but its effects are already being felt elsewhere, including the reignited housing market. Scary.