Planet Money Puzzler

We wanted to lay out a strange puzzle for you on today's podcast, then answer it tomorrow. But we forgot to mention it. So here it is:

Where is all the U.S. currency?

According to the Federal Reserve the total amount of U.S. currency out there is about $900 billion. We're talking real currency, dollar bills, $100's, $20's etc.

That works out to about $3,000 per person. Ok now open your wallet, how much do you have? Not a lot, right? So where is all the cash?

Don't look it up on the internet, that's no fun. Just think about it. We'll have the answer on Morning Edition and a longer extended-dance-remix on the podcast for Friday.

-- David Kestenbaum

5:25 PM ET | permalink

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Who Has A Job? Who Doesn't?

I talked with All Things Considered's Melissa Block today about how hard it is to figure out how many people are employed or unemployed in the US.

This week --as happens every month-- we get a confusing stream of data.

Yesterday, the payroll company ADP gave its Employment Report, based on the actual paychecks going out for 400,000 of their clients. They recently revised their statistical methods, after years of folks mocking them for generally being pretty lousy at predicting what the overall national numbers would show. Let's hope so. This week, they're report said that nearly 700,000 people lost jobs last month.

Continue reading "Who Has A Job? Who Doesn't?" »

-- Adam Davidson

4:39 PM ET | permalink

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In Search of $200 Mittens

According to prosecutors alleged ponzi schemer Bernard Madoff mailed jewelry and other expensive items to family members as Chanukah gifts, violating the terms of his bail agreement. As New York Times writer Alex Berenson describes it:

Sixteen watches, including diamond-encrusted timepieces from Tiffany and Cartier. Four diamond brooches. Two sets of cuff links. An emerald ring. These are a few of Bernard L. Madoff's favorite things.

It sounds like a bold move. But Madoff's lawyer argued that a lot of the items were no more than $25 cuff links and $200 mittens.

$200 mittens? Really?

Continue reading "In Search of $200 Mittens" »

-- Caitlin Kenney

4:09 PM ET | permalink

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Deflation Pricing Is Here

A new retail strategy.

Simon Johnson

 

Economist Simon Johnson of Baseline Scenario passed along this ad, noting the title, "Deflation Special."

-- Caitlin Kenney

1:57 PM ET | permalink

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Banking On The Falling Pound

Sean writes from Edinburgh:

I had €1.57 left over from trip to visit a mate of mine who was studying in Brescia, Northern Italy.

Had I changed it back as soon as I returned to Edinburgh I'd have £1.16, however I was too lazy. This has proven to be a fiscally prudent move, typical of my thrifty Scottish upbringing. Due to the falling pound it is now worth £1.73, meaning I'm nearly 50% up. Cause for celebration I'm sure you'll agree.

Coupled with falling house prices across the UK, this has led me to believe that by the end of 2009, my €1.57 should buy me a nice flat in the center of Edinburgh, and maybe some nice curtains.

-- Caitlin Kenney

12:09 PM ET | permalink

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The Dog Ate My Job

Adam is going to be talking on All Things Considered tonight about how hard it is to measure something as seemingly simple as the unemployment rate.

You get a sense for things when you look at one of the surveys the labor department uses. Here's one of many questions it asks:

Continue reading "The Dog Ate My Job" »

-- David Kestenbaum

11:59 AM ET | permalink

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What You're Reading

Joe sends this story about China cutting back on buying U.S. debt.

Thomas Beckett suggests 3 as an economic indicator, as in the number of U.S. states that suffered a crash in their electronic unemployment claims systems.

And Brent passes along this list from the Twitter feed The Media is Dying -- it's the top 10 messiest layoffs of 2008.

-- Caitlin Kenney

10:33 AM ET | permalink

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Hear: Russia, Russia Everywhere

Lighting up in southern Algeria.

Geoff Porter, Eurasia Group

 

Today on Planet Money:

If you're an American and your gas stove won't light, you start by calling a repair company or checking to make sure you paid the bill. If you're a European, you might start by blaming Russia.

Russia's state-owned Gazprom appears to have cut the supply of gas to neighbors from Romania to Austria. It's the second time in recent years that Russia has turned off the spigots. Meanwhile, in Africa, Nigeria is burning off 20 billion cubic meters of natural gas a year -- because it has no way to ship the stuff to market.

As Eurasia Group analyst Geoff Porter tells it, some in Europe would like to build a pipeline from Nigeria through Niger and Algeria, then across the Mediterranean to France. It's a bit of a pipe dream, but one player has shown some interest in the region -- Russia's Gazprom.

After the jump, more photos from Porter, plus a map from Eurasia Group.

Download the podcast; or subscribe. Intro music: Mates of States "Get Better." Find us: Twitter/ Facebook/ Flickr.

Continue reading "Hear: Russia, Russia Everywhere" »

-- Laura Conaway

4:57 PM ET | permalink

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Is The Crisis In Our Heads?

Partly it is, or it may be. We talked about this a bit on the radio, but the basic idea is that when we're worried about the future we tend to spend less, which can backfire.

Say you don't buy that new car, then maybe the auto manufacturers have to lay someone off, and that someone then can't go hiring your company to do whatever it does. And on and on...

The idea is called the Paradox of Thrift. Paul Krugman, the Nobel Laureate and New York Times columnist, talks about it here.

Some free-market types disagree, arguing "Consumers Don't Cause Recessions." From that link: "My friend Bill Anderson actually derives sustenance from his hatred of Paul Krugman; at lunch one time, Bill skipped a sandwich and instead just bought a New York Times."

-- David Kestenbaum

1:38 PM ET | permalink

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'Shockingly Awful' Job Numbers

The payroll company ADP made headlines today with its new report on unemployment. ADP says the private sector lost 693,000 jobs last month (Read the report in full).

It's worth nothing that this is one report by one player. After the jump, one take by one economist, Ian Shepherdson of High Frequency Economics, who says he's waiting for official numbers but meanwhile uses words like "shockingly awful."

Bonus: Jobless claims swamp computer systems.

Continue reading "'Shockingly Awful' Job Numbers" »

-- Laura Conaway

12:19 PM ET | permalink

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