Here are highlights from July 2018,
Our three most read posts in July 2018
Do economic fundamentals matter anymore?
Eurozone Q2 2018 GDP up by 0.3% and European Union Q2 2018 GDP up by 0.4% as Household saving rate falls to the lowest in over a decade
Seasonally adjusted GDP rose by 0.3% in the Eurozone and by 0.4% in the European Union (EU28) during the second quarter (Q2) of 2018, compared with the previous quarter, according to a preliminary flash estimate published by Eurostat, the statistical office of the European Union.
Here’s how much money supply has grown for major economies in the past decade (2008 to 2018)
Broad Money M3
Broad money (M3) includes currency, deposits with an agreed maturity of up to two years, deposits redeemable at notice of up to three months and repurchase agreements, money market fund shares/units and debt securities up to two years.
U.S. Q2 2018 GDP estimated at 4.1% as personal consumption soars but wage growth collapses
Real gross domestic product for the United States increased at an annual rate of 4.1% in Q2 2018 according to the advance estimate released by the Bureau of Economic Analysis.
UK households have seen their outgoings surpass their income for the first time in nearly 30 years
Households in the United Kingdom have seen their outgoings surpass their income for the first time in nearly 30 years as per a release from the Office for National Statistics.
On average, each UK household spent or invested around £900 more than they received in income in 2017. The total amounted to almost £25 billion for all households in the UK. Households’ outgoings last outstripped their income for a whole year in 1988, although the shortfall was much smaller at just £0.3 billion back then.
Personal taxes in the United States now contribute a record 45.7% of total Federal government receipts
Personal taxes now contribute a multi-year record 45.7% of total Federal government receipts.
Contrary to popular belief – foreigners are not buying the bulk of United States federal government debt
The United States government is likely to run a record fiscal deficit this year due to lower tax receipts. And given deficits since 2001, Federal debt is soaring (chart below). In the immediate aftermath of the last recession, the Federal Reserve was a major buyer of U.S. Treasury bonds.
Since 2014 though, the Fed isn’t really a buyer of Treasury bonds. The question is who is buying federal government debt?
The European Union just posted a record trade surplus with the United States (and a record trade deficit with Russia) for the January to May 2018 period
The first estimate for the European Union exports of goods in May 2018 was €160.9 billion, down by 2.7% compared with May 2017 (€165.4 bn). Imports from the rest of the world stood at €160.7 bn, down by 1.4% compared with May 2017 (€163.0 bn). As a result, the European Union recorded a €0.2 bn surplus in trade in goods with the rest of the world in May 2018, compared with a surplus of €2.3 bn in May 2017. Intra-European Union trade rose to €294.7 bn in May 2018, +1.6% compared with May 2017.
In January to May 2018, the European Union exports of goods rose to €786.6 bn (an increase of 1.5% compared with January-May 2017), while imports rose to €795.7 bn (an increase of 1.6% compared with January-May 2017). As a result, the European Union recorded a deficit of €9.1 bn, compared with a deficit of €8.1 bn in January-May 2017. Intra-European Union trade rose to €1457.3 bn in January-May 2018, +4.6% compared with January-May 2017.
The youth economic dividend – does it really exist for the current day world?
We recently posted about population percentage for each country by age. The data was for 2016 from the World Bank and is the latest set of available data. We also wrote about the business of aging – how changing demographics are shaping the economic future in more ways than one. Here we explore if the youth economic dividend that many economists point to exists in the current world order.
Here is a map of population percentage for age below 15:
Continue reading “The youth economic dividend – does it really exist for the current day world?”
Some good quotes on money, finance and investing
This time it is different. Here are some good quotes on money, finance and investing:
“We live by the Golden Rule. Those who have the gold make the rules.” – Buzzie Bavasi
“What we learn from history is that people don’t learn from history.” – Warren Buffett
“A banker is a fellow who lends you his umbrella when the sun is shining but wants it back the minute it begins to rain.” – Mark Twain
“Sometimes your best investments are the ones you don’t make.” – Donald J. Trump
“Credit is a system whereby a person who can’t pay, gets another person who can’t pay, to guarantee that he can pay.” – Charles Dickens, Little Dorrit
Continue reading “Some good quotes on money, finance and investing”