Category Archives: Economics

The “Dusenberry Effect” In The U.S. Economy

Just saw this chart on Zero Hedge yesterday, which takes me back to the days of graduate school and an unfinished Ph.D. dissertation. One part of the “Dusenberry Effect” basically states that consumers do not give up their consumption patterns … Continue reading

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QOTD: Risk

You want to take risk when others are fleeing from it, not when they’re competing with you to do so. …But it’s precisely when people can’t see what it is that could make things turn down that risk is highest, … Continue reading

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The “Firming” Global Recovery

The IMF upgraded their view of the global economy, while slightly downgrading U.S. economic growth due to lack of fiscal progress. The Global Economy Maintains Momentum The cyclical recovery continues. Growth outturns in the first quarter of 2017 were higher … Continue reading

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This Rhyme Is Different: Base Money > M1

“History doesn’t repeat itself but it often rhymes.” –  Mark Twain (maybe) We have been speaking a lot about how the liquidity in the market today is different than in the past.   The chart below reflects this better than … Continue reading

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COTD: Amazon Eating Retail

(COTD = Chart of the Day) It’s important to note that Amazon still only boasts a 5 percent share of total retail sales, excluding food, across the country, according to data from the U.S. Census Bureau, Sanderson said. – CNBC … Continue reading

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Economist Personality Traits

Studies of personality traits common to various disciplines have discovered that economics, like engineering, tends to attract people with an unusually strong preference for order, and a distaste for ambiguity. – The Guardian

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The Health Care Bill And The Fallacy Of 18% Of GDP

The American political system may just be about to wake up and inching torward bipartisanship. The failure of the Republicans to “repeal and replace” Obamacare after seven years of pounding the table is a “big fail.” After controlling both houses … Continue reading

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COTD: Starbucks Latte Cross-Country Index

The folowing chart illustrates the price of a tall Starbucks Latte across countries based on the relative prices of other goods.  Note it’s more than just a currency purchasing power parity measure such as the Big Mac Index. But how … Continue reading

Posted in Charts, Economics, Uncategorized | Tagged , | 1 Comment

History’s Biggest “Butterfly Effect” Occurred On This Day

The butterfly effect is the concept that small causes can have large effects. Initially, it was used with weather prediction but later the term became a metaphor used in and out of science. In chaos theory, the butterfly effect is … Continue reading

Posted in Economics, Geopolitical, Uncategorized | Tagged , , | 15 Comments