US Economy Falters in the Face of Global Competition

Heh. Has it come to this? Sweden, that notorious bastion of socialism, is a better place to do business than the United States.

So it has…at least according to the World Economic Forum (WEF), the outfit that puts on the big annual shindig for the rich and powerful in Davos, Switzerland.

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The Rise, Fall, and Rise of Disaster

The US Department of Agriculture may have some usefulness. Projecting future prices isn't one of them. In 2005, it looked five years ahead and saw a bushel of wheat selling for $3.50. Last week, the price rose to more than twice that much.

Why? God himself is to blame. Not since 1880 has Russia been so dry. And not since Napoleon's invasion has Moscow suffered so much soot. The government banned wheat exports and prices shot up to their highest point in 51 years. In the curious way that one thing lead to another, Napoleon's Russian Campaign grew out of the French Revolution like a forest fire out of a careless barbecue. The revolution stirred up enemies on all France's frontiers. When Napoleon had finished with them all, he had to reach farther – all the way to the banks of the Moskva River – to get his fingers burnt.

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US Economic Outlook Only Facing One Direction

Another week gone by. Nothing has been learned. Nothing has been proven. Nothing has been decided.

In the markets, we mean. It looks like the stock market is finally rolling over. After a big drop on Wednesday, the Dow followed up with a modest drop yesterday – down another 58 points.

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US Treasury Secretary a True Believer in Economic Recovery

Welcome to the Recovery!

Stocks rose 44 points on the Dow yesterday. Oil stuck at $82. Gold rose $8. No clear trend on Wall Street.

“Welcome to the recovery,� says the headline in The New York Times.

What is this? Some kind of joke? No, it's America's Secretary of the Treasury, Mr. Timothy Geithner…

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US Data Beats Estimates… Economic Outlook Still Bad

Judgment day has arrived for Euro banks

I will start off this morning's Pfennig with a note from Chuck who is wrapping up his presentations at the Agora Financial Investment Symposium in Vancouver. Chuck will be flying home later this morning, but sent me the following last night before turning in:

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5 Ways to the US Government Can Fix the Economy

A pop quiz: How much money did the US government inject into the American “financial system� from June 30, 2009, to June 30, 2010?

Drumroll…

$700 billion.

That's right…the same amount promised to the financial system in TARP, back in 2008, when they were literally on the brink of destruction. Over the last 12 months, as the S&P 500 rose as much as 30% (up about 15% now, after the summer correction), evidently banks, brokers and lenders needed another $700 billion… just trust ‘em…really.

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A Few Reasons Why This Depression Will Be Even Greater

“This is the Greater Depression…and it's going to be worse…far worse…than the Depression of the '30s,â€? said Doug Casey.

“We're just in the eye of the hurricane now. It seems calm. But the other side of the storm is going to hit soon. And it's going to be much worse…â€?

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No Quick Recovery for the US Economy

Stocks were flat yesterday. Gold fell $3.

The news was mixed.

The big debate is between those who think the authorities are being too tight and those who think they are being too loose. Broadly, Europeans are on one side. Americans are on the other. The Europeans are tightening up. The Americans are letting rip. They're both wrong, as far as we're concerned.

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Emerging Markets vs. Submerging Economies

We’re back in Paris. The flight on Air France was long, but not disagreeable. It was even better in the First Class cabin. Not that we were in it. But we were curious about the people who were.

Usually, on the Air France flight from Washington to Paris, you see a few rich people. You also see some people you wonder about. Typically, there is an African diplomat…or a hack bureaucrat from an international agency. Sometimes you will see a hip-hop star…or a fashion model. Or just someone who lucked into an upgrade.

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