Tag Archives | the Fed

Asian Polyolefins Profits To Test 2012 Lows As Global Economy Slows

By John Richardson

PETROCHEMICALS are a great barometer for economic growth as they are the raw materials for so many finished goods. So, if petrochemicals producers see their profits slip, this provides an early signal that something is wrong with …

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US Stock Market Decline Highlights Consumer Spending, Income And Debt Risks

By John Richardson

THE SUSTAINABILITY of the US economic recovery rests on the willingness of people who cannot afford to spend money to continue to spend money.

In order to explain what I mean, let’s start with income and wealth …

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Asian Naphtha-PE Spreads Collapse By 80% As 2018 Challenges Build

By John Richardson

ASIAN naphtha-to-polyethylene (PE) spreads collapsed by 80% in the first week of January compared with December last year because of the failure to pass on the rise in naphtha feedstock costs resulting from higher oil prices.

In …

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Global Economy In 2018: Stimulus Withdrawal Threatens Complacent Outlook

By John Richardson

IN TODAY’S world of soar-away stock markets backed up by the notion that the sustained global economic recovery will not be derailed in 2018, there is a need to detail the major risks out there.

Today’s post …

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Stock Market Threats Far Wider Than Just North Korea

By John Richardson

LAST WEEK’S steep fall in global stock markets was of course the result of rising US-North Korea geopolitical tensions. Some $1 trillion was wiped off equity values. We obviously all hope that the geopolitical tensions will ease.…

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China’s “Minsky Moment” And The Global Economy

By John Richardson

HYMAN MINSKY was an American economist who focused his career on studying the causes of financial crises. He developed what he called a ‘financial instability hypothesis” which was based on the notion that long periods of stability …

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Income Stagnation And The Impact On The Global Economy

By John Richardson

HAVE the post-Global Financial Crisis (GFC) economic stimulus policies of the Western central banks worked? If your answer is yes, you might be heavily influenced by your economic circumstances.

Those who are convinced that everything is working …

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Anger Grows In The US Over Lost Economic Opportunities

By John Richardson

THE US Federal Reserve is increasingly coming round to the understanding that demographics shape demand.

Last week I heard about a research paper from the San Francisco Fed that made the same arguments that we made in …

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US Long-Term Interest Rates Tell The Real Economic Story

TEN-YEAR US TREASURY RATES UP UNTIL DECEMBER 15 2015

By John Richardson

AN important article in the New York Times almost gets there, but like so much coverage out there, misses the crucial conclusion: Demographics drive demand and there is …

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