A Cycle: Financial Income Vs The Real Economy
There is a huge increase in income and wealth for the richest 1%, and a continued decline in income and assets for the poorest 10%. Politically speaking, this is a bombshell.
real economy
The Loop Of Debt Deflation
Monetary policy is not equipped to control the real economy and the financial economy at the same time. Its aim is to moderate the fluctuations in real variables, GDP, employment and prices. But this destabilises the financial market, fuels speculation and increases household and corporate debt with the banks.
The Long Goodbye
BEIJING | By Andy Xie via Caixin | What’s important in today’s financial world is perception, not substance. If you check out what important financial figures have proposed in the past, they have been good for forming bubbles, not for growing the real economy.People around the world will only begin to question their economic policymakers when they realize living standards are slowly worsening.
British AAA in doubt as high street turns ‘zombie’ under insolvency pressures
LONDON | The sterling on Tuesday was mostly unmoved by the light controversy between some of the top ratings agencies regarding the UK’s triple A qualification on its government debt issuance. That is the highest grade, only to be found over the so-called core European countries. A day had barely passed after Standard & Poor’s said the British AAA was solid, when Moody’s noted that an increasingly weak economy poses…
UK family graph: living with your parents
LONDON | Speaking of deterioration of the real economy: in 2011, nearly 3 million adults aged between 20 and 34 were living with a parent or parents, an increase of almost half a million, or 20 per cent, since 1997. The Office for National Statistics pointed out that this is despite the number of people in the population aged 20 to 34 being largely the same in 1997 and 2011….