Month: July 2022

Cool Conundrum

07/15/2022

The Friday File: While economists fail to predict recessions, and more recently the rise in inflation, physicists are worse. They cannot figure out if hot water freezes faster than cold. Seems crazy, and seems easy to test, yet physicists are…

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Increasing Individuals

07/14/2022

According to the UN, global population will reach 8 billion on 11/15/22. While birth rates are falling, it expects the number of humans to peak at 10.4 billion in the mid-2080s, down 500 million compared to the 2019 projection primarily…

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Increasing Inflation

07/13/2022

The Y-o-Y increase in June CPI is 9.1%, up from May’s 8.6%, the worst reading since 11/81’s 9.6%. Core CPI is behaving arguably better, it’s up 5.9% Y-o-Y and has been falling since March, but worryingly M-o-M numbers are getting…

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Opposite Observations

07/12/2022

GDP in 22Q1 was -1.6% annualized, 22Q2 looks to come in at -2% annualized. Yet job growth in 22H1 was superb, averaging 456K/month. How can this be? Are firms hoarding workers despite falling sales because bosses expect a mild downturn…

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Embracing Employment

07/11/2022

June net job growth was much stronger than expected, and well above a sustainable pace at 372,000. Moreover, the labor force participation dipped by a tenth to 62.2%. The Fed will raise the Fed funds rate by another 75bps at…

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Good God

07/08/2022

The Friday File: In a recent poll 81% of Americans reported that they believe in God. This is down from 87% in 2017, 92% in 2011, is the lowest percentage ever, and is well down from the 94% to 98%…

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Powell’s Peril

07/07/2022

In early 1972, with the fed funds rate at 3%, the Fed began raising rates to quash inflation. By 11/73, the fed funds rate exceeded 10% and the economy entered a deep recession. The Fed continued raising rates ultimately pushing…

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Data Divergence

07/06/2022

The US economy can currently best be described as a Schrodinger Economy. On one hand, 22Q1 GDP was -1.6%, 22Q2 is likely to come in at no better than 0%, real incomes are declining, the yield curve is flat, equities…

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Concerned Consumers

07/05/2022
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Festive Fourth

07/01/2022

The Friday File: This July 4th 84% of the US population will be celebrating, unchanged from last year, and way up from just 76% in 2020. Independence fever was highest in 2013 when 90% celebrated. The baseline is 88%. 5%…

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