In this final issue of Basic Points, we discuss what we consider The Final Problem for central banks, governments, and investors in the industrial world.
Tragically, capitalism's greatest triumph and the powerful global economic expansion were interrupted by capitalism's greatest infamy. The Crash was caused primarily by the major banks on Wall Street and Europe that we have long labeled as the B5—The Big, Bad, Bonused, Bail-out Banks.
A recession spread rapidly across the Industrial World, and panicky central banks and governments united to rescue collapsing banks, at enormous taxpayer cost. Interest rates were slashed to near-zero during the crisis, when outright defation loomed.
The ensuing recoveries have been so tepid that money continues to be astonishingly cheap for governments,and corporations—and, bizarrely, for banks. What we have called “The Financial Heroin” continues to flow into the veins of once-vibrant economies.This is a week-end of reading. I may come back to it later, but not wanting to delay getting it out there, go to the link above. The article was sent to me because of the bit on global warming but there is much more to it that might be of interest to readers.
*******************************
This is an interesting study -- the economic benefits of unconventional oil and gas production. In addition to the direct benefits measured in revenue for the federal and state governments, the study also pointed out the top ten states whose employment numbers benefit most from unconventional oil and gas production -- but with a twist: none of the ten are oil and gas producers.
The top 10 non-producing states in terms of jobs are New York, Illinois, Michigan, Florida, New Jersey, Minnesota, North Carolina, Georgia, Missouri, and Wisconsin.Florida? Minnesota? Wisconson? Hmmm... I assume there's a good chance that New York will eventually be added to the list of producers. Hopefully.
*********************
Here we go again! Canadian company considering building a railroad to carry oilsands products to an Alaskan port.
Alison Redford’s cabinet is expected to decide in January whether the government will spend $10 million to study the idea of building a rail line to ship oilsands products from northern Alberta to a port in Alaska.
The money would help pay for a $40-million study that will investigate the feasibility of a proposed 2,400-kilometre rail line to carry landlocked oilsands products from Fort McMurray to Delta Junction, Alaska.
From there, Alberta’s oil would flow through the Trans-Alaska Pipeline system to the Valdez Marine Terminal, and on to booming Asian markets.
Speaking of Minnesota in the Top Ten. I wonder how Minnesotans who do a 2-week shift in ND then come home for 2 wees are counted.
ReplyDeleteIf they are not counted in the data, then Minnesota has benefited far more from oil than that study shows.
I have beat this drum elsewhere (carpe diem) and nobody seems to know where those types of jobs are counted.
You are absolutely correct. I think the jobs are counted in North Dakota but a fair amount of the salary is/wages are spent by family members back home in Minnesota, Idaho, Texas, or Louisiana. And Wyoming.
DeleteHaving said that, they may also be counted in the state where the company is headquartered. For example, it is said that Continental Resources has so many employees, but they are spread around the country.
Be that as it may, you are correct: North Dakota is contributing much more to the national economy than anyone can imagine. Both you and I have talked about that often.