The first half of 2015 saw Canada informally enter 'recession' with two quarters of negative GDP but then, everything bounced back and policy shifts were 'proven' effective. However, that dead-canadian-cat-bounce is over as Q2 2016 GDP growth just slumped 1.6% - double-dipping to the worst since Q2 2009. The problem with this plunge is that oil prices actually had their best quarter in 7 years as the economy tanked.
“This is a hidden problem in Japan’s economy,” said Akane Yamaguchi, an economist at Daiwa Institute of Research, who published a report on the issue in April. “Abe’s government has to fix it as this is the generation supposed to be in the prime of their working life.
American net worth just hit a record high $88 trillion, a number taken by the fawning media is evidence of how successful Obama's policies have been. However, when one looks beneath the surface, a "devastating" picture emerges: US inequality like no one has seen it before.
As the cracks in the vineer of central bank omnipotence grow ever wider, some brief reflection on the following three charts may awaken some 'animal' spirits of a different sort as the gap between fundamental reality and 'market' perception has never been wider...
In the US the year-on-year trend for productivity has turned negative . Most central bankers dismiss this fact as a short-term aberration. But the Japanese economy provides an example of what interest rates at or near zero can do to a large, developed economy. The answer is not much: not much real growth; not much inflation - and, together, not enough nominal GDP growth to repay historic debt should yields on sovereign debt ever return to normal.
Economist Paul Krugman is whining for more fiscal stimulus, his favorite pastime by far. Krugman’s target this time is Japan... "The average 5th grader understands it’s absurd to pay money for something guaranteed to be useless, but the average Keynesian economist doesn’t."
There’s a new feature to the Anything-Goes-and-Nothing-Matters economy: Nothing-Adds-Up... The fecklessness and stupidity of the elites has been epic, sacrificing everything to maintain the illusion of normality.
One day after all three US indexes hit record highs for the first time since December 31, 1999, US equity index futures, European stocks and Asian equities are little changed after the Nikkei jumped on the back of a Yen weakness, while China reported disappointing economic data and the PBOC suggested that the flood of new debt is slowing which pushed Chinese stocks higher by 1.6% on hopes of more stimulus.