In some contrast to spending or even “demand”, the economic problem is and has always been the lack of income growth. The difference in economy between income and spending is debt. As noted earlier, it was clear that the asset bubbles, based on debt via eurudollar expansion, created a boost in overall “demand” as represented in GDP’s Real Final Sales [...]
The final revision to Q1 GDP changed very little, at least in its natural format given that there are benchmark revisions coming in less than a month that could significantly alter all of this. Even with “residual seasonality” there is every reason to suspect that the economy is weak even as compared only to the past few years. That seems [...]
Earlier in the year, China was the primary topic of conversation as its economy teetered upon the precipice of the great unknown, growth less than the “minimum”, while corporate defaults suddenly became somewhat contagious. At the time, monetarists globally were unconcerned despite the outward projection of a high degree of disorder because they “knew” the PBOC was “in control”, going [...]
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