We’ve Said It Before – Is China Fiddling The Figures?

China

When you happen to be the second largest economy in the world – after the US – it’s a fairly safe bet that you want the rest of the world to believe that you are going to keep going for ever – and maybe become the BIGGEST economy in the world. Fifty years ago, China […]

Drop In Demand For Commodities Is Worrying Many

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Some 2,000 workers at the massive United States Steel plant near St Louis are wondering if they will still have a job by Christmas. Based in Granite City, the plant has for many years produced steel pipes for the oil industry. It obtains raw materials from the mining areas in Minnesota, and its customers are […]

Regulators Want New Rules for $13 Trillion Treasuries Market

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U.S. regulators said this week that the $13-trillion bond markets may require additional oversight in order to prevent any instability caused by a “never-ending competition for more speed.” Federal Reserve Governor Jerome Powell said that the currency structure of the Treasuries market provides advantages to traders who are engaged in high-speed trading through the use […]

Is China Set to Slash its Global Growth Rate?

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On Monday, China will report its third-quarter GDP figure. Consensus expectations anticipate that the National Bureau of Statistics will report a 6.8% figure, down from a previous annualized estimates of 7.0%. A group of observers have suggested that China’s figures are not only going to fall short of expectations, but any numbers reported by the country’s data […]

The Slow Motion Inflationary Wreck

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By now pretty much everyone likely has gotten the hint that inflation around the world is struggling.  Did I say struggling?  Perhaps that is a mischaracterization…it’s downright appalling.  Looking at the breakdown of inflation figures for this month, the major economies of the world have beat expectations on only 2 out of a possible 26 […]

Whither The Fed Next?

Fed

Will they? Won’t they? The market is totally confused about the intentions of the Federal Open Market Committee. Hardly surprising, really, since the FOMC seems to be as confused as everyone else. Looking at the US economy in the short term, it has to be said that it is heading in the right direction. Upwards […]

China Data Worse Than Expected, But May Be Light At The End Of The Tunnel

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Imports in China fell by 20.4% in September, year-on-year whereas analysts had been prepared for a fall of 15%. However, exports only fell by 3.7%, when forecasts had expected 6.3% Overall, this produced a trade surplus of $60.34 billion. More figures are due out later in the week. The GDP figure for the third quarter […]

The Fed Wants Inflation UP? Why?

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That is a very good question. Inflation simply increases prices. Who in their right mind wants to pay more for goods and services? It seems crazy, on the face of it. After all, for years the aim has been to get inflation DOWN and keep it down. Suddenly, they want to get inflation UP. Why? […]

Four Things You May Not Have Known About The Economy

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On Tuesday, the Tax Policy Center issued figures estimating that 77.5 million US households pay no federal income tax at all, for one reason or another. That is 45.3% of all American households. However, this figure has actually gone down since 2013 when the estimates were first issued. At the time, it was estimated that […]

When Is Full Employment Full Employment?

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Many people suffer confusion about the employment rate. For instance, the US Federal Reserve describes full employment as the point at which only 5.0% to 5.2% of the working population is unemployed. Currently, the unemployment rate is at 5.1% so in one sense you could argue that we have full employment. However, as with anything […]