The Laird Economics Report: “the economy is improving across the globe.”
We are pleased to provide InvestorIntel readers with the latest edition of The Laird Economics Report — hot off the digital press, so to speak. Each month, The Laird Economics Report examines where we are today, based on a detailed presentation of economic indicators with some historical context. This comprehensive downloadable monthly report — prepared by financial expert Jim Laird — compiles a plethora of key economic data in one easy-to-understand summary.
In this month’s report, it seems as though everyone has his or her head around the notion that “the economy is improving across the globe.” China isn’t blowing up with a hard landing and the power transition went smoothly. Europe still has horribly bad unemployment, Spain and Greece in particular, but it seems stable. The UK is on an absolute tear lately — and it seems we hear rumblings of yet another housing bubble. The US is done punching itself in the head for the time being, while its economy slowly improves. There is increasing talk of stagnant growth across the world. It’s been a long recovery process from the 2008-2010 horror show, but lately we’ve seen some big names talking about how low global demand just can’t seem to fix itself. There are bubbles here and there, but global inflation (or lack thereof) seems to be an indicator that demand is just too low. Note, however, that it used to be globalization’s job to keep inflation low — and that was viewed as a good thing. Now, not so much. As resource demand is driven in a large part by growth, we are seeing global sentiment shift away from the Canadian dollar — lots of predictions of a USD$0.80-$0.90 dollar going forward. If Canada can’t grow its way out of its problems, maybe a quick 10%-off sale on everything in Canada will do the trick here? This month’s report intentionally ignores the continuous stream of housing bubble articles… for now.
In next month’s edition, Jim Laird will begin tracking the US Taper (the US Federal Reserve’s reduction in the size of its bond-buying program; otherwise known as quantitative easing). The Fed’s quantitative easing, which was designed to stimulate the economy, has served the secondary purpose of supporting financial market performance in recent years and remains fully intact at a pace of USD$85 billion per month.
The Laird Economics Report
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