rose98734 (62)in #economy • 4 hours agoUS wage growth points to interest rates staying higher for longerThe Federal Reserve tends to monitor real wage growth for inflationary pressures. (Real wage growth is wage growth less inflation; if wages are rising in line with inflation…rose98734 (62)in #economy • 2 days agoThe Pensioner Crisis comes to GermanyThe world's first state pension was introduced in Germany in 1889. It was the brainchild of the legendary Otto von Bismarck and provided a state pension from the age of 70. In…rose98734 (62)in #economy • 4 days agoUS 10-year yields are heading up againThey're now at 4.29%. Here is the chart: source This is probably a good thing if you are the Federal Reserve and want consumer prices to fall. The recent uptick in CPI is…rose98734 (62)in #economy • 7 days agoThe decline in American inflation has stalledHeadline CPI rose to 3.2% and core CPI (which excludes energy and food) rose to 3.8%. The culprit was services, which rose strongly as suppliers passed wage costs on. Here's…rose98734 (62)in #economy • 11 days agoCould interest rates go UP?The markets are assuming that the Federal Reserve Bank, European Central Bank, Bank of England and others will cut interest rates. In their very worst case scenario, they think…rose98734 (62)in #economy • 14 days agoTop 10 US stocks as a percentage of the entire US stock marketPeople chat about how a handful of tech stocks dominate the US stock market, accounting for most of the market gains of the last five years. But how top-heavy has it got? Here…rose98734 (62)in #economy • 14 days agoJapan's Nikkei Index finally exceeds it's 1990 highIt has managed to smash past the 40,000 level. Here is the chart: source So what has caused this surge? Well, in April 2023, Warren Buffet visited Japan and disclosed…rose98734 (62)in #economy • 16 days agoOPEC extends it's production cuts...to offset the surge in US-produced oil. Here is the chart comparing Saudi, Russian and US oil production: source OPEC+ consists of 22 oil-producing nations plus…rose98734 (62)in #economy • 21 days agoCarbon Prices in Europe fallCarbon Pricing was a way for the market to deal with CO2 emissions. Say Company A was energy intensive and was thus producing way more CO2 than legally permitted. Instead of…rose98734 (62)in #economy • 22 days agoEuropean Natural Gas prices fall to 2021A big chunk of inflation in Europe was caused by a surge in natural gas prices due to the Ukraine war and the blowing up of the Russian gas pipelines in August 2022. Prior to…rose98734 (62)in #economy • 24 days agoThe real reason US growth was so strong last quarter: the trade deficit narrowedGDP tries to measure economic activity within a country. It's a simple formula; government spending + investment (new factories/machines/tech) + household expenditure +…rose98734 (62)in #economy • 26 days agoMalaysia's Ringgit plunges to a 26 year lowThe Ringgit is now at levels last seen in the late 1990's and the Asian Financial Crisis. Here's the chart: source The reason is that Malaysia's manufacturing has…rose98734 (62)in #economy • last monthGlobal Inflation RatesSome countries are suffering from outright deflation. Here's the chart: source In the past, deflation from enormous economies like China's, would have depressed inflation…rose98734 (62)in #economy • last monthCrop prices continue their downward trendA big part of the global inflation surge was caused by a rise in wholesale grain prices; particularly in 2022 when the Ukraine war meant that Ukraine's enormous wheat crop…rose98734 (62)in #economy • last monthThis chart explains why interest rate cuts will be delayedThe Federal Reserve (and other central banks) firmly believe that wage growth feeds into inflation. They will hold off cutting interest rates till wage growth moderates. Here is…rose98734 (62)in #economy • last monthThe average interest rate on US credit card balances is now 21.5%This is the highest rate charged since 1994, (the Federal Reserve interest rate in 1994 was 5.5%, same as it is now). Here's the chart: source Despite this eye-watering…rose98734 (62)in #economy • last monthGermany's energy intensive industrial sector continues to shrinkHere's the chart. The blue line is total industrial production, the red line is the energy intensive industrial production: source Some specific sectors like chemical…rose98734 (62)in #economy • last monthWhat has happened to Nigeria's currency?It has lost a a serious amount of it's value in the last year. Here's the chart: source Against Bitcoin it's done even worse; the Nigerian Naira has lost 72% of it's…rose98734 (62)in #economy • 2 months agoUS tax receipts were down in 2023 compared to 2022Here's the graph from the Federal Reserve: source Tax receipts in the third quarter of 2023 were $2.803 trillion. That's down compared to the $3.131 trillion received in…rose98734 (62)in #economy • 2 months agoThe rise in the US monetary base points to inflation rising againMonetarists believe inflation is a function of the quantity of money in circulation (the monetary base) and the velocity of money (how fast that money moves through the…