Today’s Summer Reading collates the most interesting and provoking charts posted on MacroBusiness throughout 2011:
First we have Rumplestatskin’s chart comprising the real (adjusted for inlation) after tax – RAT – returns on term deposits for Australian investors, showing have savers have been punished for over 10 years:
As The Unconventional Economist shows, this secular shift in lower rates and thus savings has now reversed back to the long term trend – but will rates?
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The Prince then showed US military expenditure since 2001: Rumplestatskin shows why a Sovereign Wealth Fund, modelled off the Norwegian version, is not a current (sic) option for Australia just yet: Delusional Economics back in August showed how Australia’s housing market was in a slow melt, which has continue apace throughout the year, contrary to pundit’s expectations: The Unconventional Economist shows why the banks reliance on foreign short term debt means a crisis in Europe does matter:
The Prince , annoyed at punditry and officialdom stating the economy is growing “at trend” dug through the real data, measured by GDP growth per capita, to find 10 year growth is 1.5% annualised, but post-GFC growth is only 0.9%, after tremendous monetary, fiscal and external stimuli:
There’s nothing certain in life but death and taxes, or as The Prince showed, LOTS of taxes:
The Unconventional Economist says we are all Keensians now – why? Private credit – the elephant on the second floor completely ignored by mainstream economists and officialdom, who gloat about Australia’s low public debt:
And here’s the chart that started his discussion: The Unconventional Economist models Australian demographics and their affect on asset prices (particularly housing), with this medium growth scenario chart showing the ratio of net buyer/sellers negative and falling by the end of this decade:
Which leads on to The Prince ‘s exposition of an uber-bull’s call for the ASX200 to double well before that time, on the realisation that a price earnings ratio of 11 for stocks is the norm, not 15 which was an aberration during the Baby Boomer Boom:
From Wilson HTM
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