US Economy

Despite the meteoric rise of China, the US economy still holds the crown for largest national GDP (by nominal standards). But as Chinese growth rates often exceed 6%, in the next decade they will likely surpass the US on this metric.

What’s the US economy like?

The US economy is a highly developed mixed economy, with services accounting for 80% of GDP.

As of now, the economy is also approaching full employment, with around a 96% employment rate. This in turn is putting upward pressure on inflation.

Is growth good?

While the US isn’t experiencing the growth it once knew, it is still expanding at a steady rate. The economy is strong today and has began to pick up after scraping through The Great Recession; growth this year is expected to come in somewhere between 2–3%, which is stronger than a basket of comparable economies worldwide.

It’s good news as well that the Fed is looking to wind down its balance sheet after a decade of unprecedented monetary aid in the form of quantitative easing.

With any luck, this and increasing interest rates will give the central bank some ammunition when it comes to the next recession, and the economy won’t be as damaged as post-2007 crisis.

Either way, you need to make sure your investments are on the right side. These articles can help you do that.

The Party’s Almost Over, ‘bout Bloody Time

I’m over hearing about the inverted US & UK bond yield curve. The warning signs of such an event occurring have been apparent for months now. And yes, I’ve seen the same, regurgitated retort about it predicting every major recession in the past 30 years…

S&P 500 in the Sell Zone Due to Options Expiry

June S&P 500 futures and options expiry is coming at the end of this week. I have found in the past that there is often a squeeze into expiry with a reversal back to the downside soon after. This expiry seems particularly interesting to me because of the underlying technical set up.

China Is Hoarding the Future…with Rocks

has China now got their weapon in this war…a couple of special rocks?About 80% of the tech rocks the US imports for military equipment and consumer electronics comes from China. Think they’re not going to use this as leverage against the US?

Will 5G Be the End of Globalisation?

There might not be any talk of missile threats yet, or of nations tip-toeing the line of nuclear war, but the tension is there all the same. Both nations are engaged in a very public war of words, with pursed lips and barely hidden animosity — with the US employing a strict tough love stance and China on the defensive.

The Next Anvil Waiting to Drop

As Trump continues to starve China of dollars, the Middle Kingdom might become more desperate. We’ve already seen them lower required reverse ratios for small lenders. This effectively lets them create more money with the current reserve assets they have.
Money Morning Australia