Global Central Bank Balance Sheets

Global Central Bank Balance Sheets Global central bank balance sheets have grown to $21 trillion, roughly equivalent to the GDP of the United States. Image: Real Investment Advice

Does U.S. Productivity Increase Under Trump?

Does U.S. Productivity Increase Under President Trump? The answer is yes, because businesses have invested. Even if Net Domestic Investment to GDP is in a long-term downtrend, that’s good news for the U.S. economy. Keep in mind that it is a key factor in extending the business cycle. US Productivity has increased, because US companies have invested,…

U.S. Budget Deficits and the U.S. Dollar

U.S. Budget Deficits and the U.S. Dollar Pretty good correlation between U.S. budget deficits and the U.S. dollar over the past 30 years. The chart suggests that the U.S. dollar should weaken over time. You may also like “U.S. Twin Deficits (% of GDP) Lead Real Trade Weighted Dollar Index by Two Years” and “U.S. Dollar…

Dollar Index vs. MSCI Emerging Markets Relative Performance

Dollar Index vs. MSCI Emerging Markets Relative Performance Interesting chart showing the correlation of -0.89. Emerging markets could soar if the U.S. dollar falls. You may also like “Twin Deficits (% of GDP) Lead Real Trade Weighted Dollar Index by Two Years.” Image: Paolo Cardena

Is U.S. Household Debt a Problem?

Is U.S. Household Debt a Problem? Not really, right now. Actually, the level of household debt alone does not tell an accurate picture of the current situation. However, U.S. household debt to GDP is much lower, U.S. household debt service payments as a percent of disposable personal income  and U.S. household financial obligations as a percent…

Where Does Inflation Come From?

Where Does Inflation Come From? Mainly inflation comes from excess money supply growth. There is too much money in the system chasing too few goods and services. Over the long term, Nominal GDP = Money Supply x Velocity of Money = Inflation + Real Economic Growth “Inflation is always and everywhere a monetary phenomenon.” –Milton Friedman. You…

Watch Warren Buffett’s full interview with CNBC’s Becky Quick

Watch Warren Buffett’s full interview with CNBC’s Becky Quick In this interview, Warren Buffett speaks about rail road, Berkshire Hathaway, economic slowdown, yield curve, recession, stock vs. bond, airlines & automotive industry, capitalism, inequality, benefits of free trade, IPOs, entertainment industry, Apple, American Express, Wells Fargo, real estate commission, philanthropy with 2% of GDP, odds,…