Madoff gets 150 years.

Well, here is one scheme down (sort of). The dog thinks IMHO that many more people are to be charged and schemes are to follow. Here is an article from Bloomberg on the matter:

http://www.bloomberg.com/apps/news?pid=20601087&sid=aCaVUDaGGcAY

Tell us what you think................

International Central Banks

The dog has added quick links to international central banks to the sidebar specifically (BRIC). Enjoy.

Will the U.S. dollar survive as the currency reserve of choice?

Here at the dog..... we try and point you to relevant information. This is an article from Edmund Conway at the Telegraph entitled "Is this the death of the dollar". The article is important to consider as we here at the dog have been discussing in previous articles that it may or may not be possible for the G20 to switch to a new global currency. Here is the article:

http://www.telegraph.co.uk/finance/economics/5586543/Is-this-the-death-of-the-dollar.html

Don't forget to examine our archives at the bottom right of this page for further readings and data related to this subject.

Tell us what you think................

Will the "Theory of Convergence" prevail?

In order to understand where we might go one must understand the philosopy that drives the system. Economic growth........How and why does it occur? The dog wants you "the reader" to contemplate this question (more from the dog will come soon on this very issue). Also, read up on what the U.S. Congress just approved, how that will effect the IMF, and think about the possibility of the "Catch-up effect" working. Here is the article:

http://www.imf.org/external/pubs/ft/survey/so/2009/NEW061809A.htm

Tell us what you think.......................

Don't know international finance?......You need too!

The dog would like to get you "the reader", in the know by pointing you in the direction of great sources for data. Here is a link to the Bank For International Settlements a great source for international financial data:

http://www.bis.org/

Tell us what you think.............

Will the U.S dollar be replaced by a new global currency reserve?

Mabye....Mabye not. First, for the U.S. dollar to be replaced as the world reserve currency there would have to be a economically viable alternative. Is there any contenders out there? Any of the BRIC members or the IMF SDR? Next, what would the new global currency be backed by? Gold? Silver? Nothing? A combination? Who is to say? Lastly, what about national boundries? How would peoples behavior and macroeconomic systems within a nation be affected? Well, it may be safe to conclude that this task would be difficult to say the least. Here is a great article from Bloomberg on the topic:

http://www.bloomberg.com/apps/news?pid=20601087&sid=aKypYCRB22fM

Tell us what you think.............

Are we (globally) solvent?

This report from the IMF is sobering. The reports projections are very important to examine and consider. You absolutly need to read and understand this data. Here is the report entitled "Fiscal Implications of the Global Economic and Financial Crisis":

http://www.imf.org/external/pubs/ft/spn/2009/spn0913.pdf

Tell us what you think................

The Federal Reserve Balance Sheet?

Here at the dog........ we try and point you in the direction of relevant analysis. We also are working on behavioral and economic analysis of our own to present to you. Right now, we would like to point you in the direction of a report by Peter Stella entitled "The Federal Reserve System Balance Sheet: What Happened and Why It Matters":

http://www.imf.org/external/pubs/ft/wp/2009/wp09120.pdf

Tell us what you think.....................

Complexity and Selection: A Template for Nationbuilding?

The dog wishes to introduce the concept of a behavioral level of analysis of function rather than form in understanding economic and social issues. In this article, the author promotes the ideas of Glenn and Malott (2004) and incorporating the ideas of established principles of behavioral selection to the solution of cultural problems. Here is the article:

http://www.uic.edu/htbin/cgiwrap/bin/ojs/index.php/bsi/article/viewFile/22/50

Tell us what you think...............

Why should you examine historical data for unemployment calculations?

Well, here at the dog........ we look for as much data as we can find before reaching any sort of conclusion. Then, we show you the reader what we find and ask; What do you think? We have found some interesting data from the Bureau of Labor Statistics aka "BLS". First, we look at the current unemployment rate from the BLS of 9.4% also known as "U-3". Then, we ask how is that number derived? Next, we ask is that number comparable to past data? Here is a reference from the BLS that can answer these questions:

http://www.bls.gov/cps/eetech_methods.pdf

Now, we search for other computational methods and we find some from the BLS. One method includes "marginally attached workers". Here is an article from the BLS so you can understand what that means:

http://www.bls.gov/opub/ils/pdf/opbils74.pdf

Lastly, we look at the total of these figures known as "U-6" from the BLS and find total unemployment "U-6" for May, 2009 at 16.4%. Here are the numbers from the BLS:

http://www.bls.gov/news.release/empsit.t12.htm

Tell us what you think............

A great interactive data mapper from the IMF.

The IMF has created a great interactive data mapper that is coupled with their "World Economic Outlook" report. We recommend that you try it. Here is the link:

http://www.imf.org/external/datamapper/index.php

Tell us what you think.........

Understading data interpretation is the key to better accuracy?

Statistics is an interesting tool. When anyone shows you stats with charts the first question you should have is..........What are the methodologies (metrics) behind the stats and graph being presented? Beware of people who do not create ranges and make a single inference off of a single set of data. What do we mean by that? We mean that when a researcher has created the metrics for a stat those metrics should be adjusted up and down to create a range. One great alternative resource that does this is John Williams over at Shadowstats. We believe that by creating ranges you can create a more accurate forecast. This is similar to the range forecasts that are used to predict where a hurricane will strike. Here are some great ranges estimated by Shadowstats of inflation, money supply, unemployment, GDP, and more:

http://www.shadowstats.com/alternate_data

Tell us what you think...............

More information on inflation (Historical Example Zimbabwe).

Here at the watchdog, we do our best to bring relevant content to you on economics. We believe this video on Zimbabwe's inflation problem is a great example of runaway inflation. Here is the video:





Tell us what you think..........

Why should you pay attention when China laughs at U.S. Treasury Secretary Geithner?

United States Treasury Secretary Geithner recieves a response of laughter by Chinese students. Why do the students laugh you might ask? Well, to put it bluntly....... they are smart. America is going down a scary path by printing/creating massive amounts of money. To understand why this is important, you as the reader need to read and comprehend what "Fiat" currency means. Fiat money can and has in the past become worthless due to hyperinflation. Hyperinflation can occur when massive amounts of fiat money is printed/created. Get the picture? As far as investing goes.......you should be in the U.S. stock market as inflation occurs because it artificially inflates asset values. What does that mean? It means that the market goes up. However, be ready to pull your money out when riding the inflation wave dies down. I hope this explanation helps some people. Here is the article about Treasury Secretary Geithner being laughed at:

http://www.reuters.com/article/marketsNews/idINPEK12423320090601?rpc=44

Questions? Tell us what you think........

Will GM ever be profitable so taxpayers recoup their money?

The car giant finally faced the inevitable today and filed for Chapter 11 bankruptcy. Supported by monies from the .gov GM will reorganize. Here is the article:

http://www.bloomberg.com/apps/news?pid=20601087&refer=top_news&sid=aA_QjYuWXWzI

Tell us what you think..............