Why is everyone so angry? How can socialism possibly be on such a rise, particularly among younger people around the world? Why are Americans suddenly dying off? According to one study, two-thirds of millennials are convinced they are doing worse when compared to their parents’ generation. Sixty-two percent say they are living paycheck to paycheck, with no savings and no way to get any (though they also tend to “overspend” when compared to other age groups). Worst of...
Read More »If American Federalism Were Like Swiss Federalism, There Would Be 1,300 States
In a recent interview with Mises Weekends, Claudio Grass examined some of the advantages of the Swiss political system, and how highly decentralized politics can bring with it great economic prosperity, more political stability, and a greater respect for property rights. Since the Swiss political system of federalism is itself partially inspired by 19th-century American federalism, the average American can...
Read More »If American Federalism Were Like Swiss Federalism, There Would Be 1,300 States
Authored by Ryan McMaken via The Mises Institute, In a recent interview with Mises Weekends, Claudio Grass examined some of the advantages of the Swiss political system, and how highly decentralized politics can bring with it great economic prosperity, more political stability, and a greater respect for property rights. Since the Swiss political system of federalism is itself partially inspired by 19th-century American federalism, the average American can usually imagine in...
Read More »Talking Global Macro Investing With A 25-Year Market Veteran
- Click to enlarge By Chris at www.CapitalistExploits.at If you were rich, successful, and intelligent – which often, not always, go hand in hand together – where would you live? The last time I was in the Rockies, I remember thinking to myself. You know what, if it weren’t for the fact it’s so damn far from the beach I could actually live here. It’s really quite lovely....
Read More »Talking Global Macro Investing With A 25-Year Market Veteran
By Chris at www.CapitalistExploits.at If you were rich, successful, and intelligent - which often, not always, go hand in hand together - where would you live? The last time I was in the Rockies, I remember thinking to myself. You know what, if it weren't for the fact it's so damn far from the beach I could actually live here. It's really quite lovely. Bite-your-hand-to-stop-you-from-crying-out-loud-lovely and if, like me, you're a sucker for snowboarding, then it's pretty hard to be...
Read More »Burkhard Varnholt: “Internet has killed inflation”
Why is inflation so low and what is driving the stock market? Find out here. The world economy is growing and stock markets are rising ever higher. However, inflation and capital market yields remain low. Burkhard Varnholt, Global deputy chief investment officer at Credit Suisse, explains the...
Read More »Silver Economy – Investing for Population Aging
Senior population is expected to grow to more than 2 billion people by 2050. Aging society means gains for companies focused on seniors: healthcare and insurance sectors are expected to benefit in particular. The population aging is a global fact. It will strongly influence markets and economies...
Read More »Sources of Low Real Interest Rates
In a (December 2015) Bank of England Staff Working Paper, Lukasz Rachel and Thomas Smith dissect the global decline in long-term real interest rates over the last thirty years. A summary of their executive summary: Market measures of long-term risk-free real interest rates have declined by around 450bps. Absent signs of overheating this suggests that the global neutral rate fell. Expected trend growth as well as other factors affecting desired savings and investment determine the neutral...
Read More »Ageing Economies Grew Faster
That’s what Daron Acemoglu and Pascual Restrepo document in an NBER working paper. Figure 2 [below] provides a glimpse of the relevant pattern by depicting the raw correlation between the change in GDP per capita between 1990 and 2015 and the change in the ratio of the population above 50 to the population between the ages of 20 and 49. … even when we control for initial GDP per capita, initial demographic composition and differential trends by region, there is no evidence of a negative...
Read More »Determinants of (Low) Real Interest Rates
On his blog, James Hamilton summarizes a Bank of England working paper by Lukasz Rachel and Thomas Smith on the determinants of low real interest rates.
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