Post 189

A snapshot of what’s going on in the world’s economy.  Financial Ructions and book reviews can be a bit more technical so feel free to skip them.  See disclaimer at the end of this note.

Summary

  • There are still a lot of companies continuing to increase their prices even if it results in lower volumes of sales: charging more and selling less.
  • Some companies are seeing strong advertising sales so things could be turning in some areas and car sales are still strong.
    • But things like laptops are still declining at a double-digit rate.
  • More evidence that the economy is really slowing in Europe.
  • Interest rates are still rising: US, EU and Japan.
    • But many individuals and corporations have locked in low interest rates and so are not yet feeling the pain, but some are.
  • Governments in the US and Canada are growing as a percentage of the economy in terms of employment and spending.  It juices shorter-term numbers like GDP but destroys productivity growth and the evidence is in, particularly in Canada.
  • Another chapter from Hazlitt.