THE UK AUTUMN FINANCIAL STATEMENT. Optimistic days are here again or not.

CAPITALISM IS NOT COPING!

CHINA CURRENT RATE OF PROFIT and US retail data filled with false positives.

Chinese GDP data was released shortly. GDP at 4.9% for Q3 came in below expectations of 5.2% and represented a mere 0.2% increase on Q2. The only data point to beat expectations was retail sales but that was to be expected when ‘official’ RPI data came in at a paltry 0.7% for September.

WILL THERE BE A SEVERE CORRECTION OR EVEN A STOCK MARKET CRASH THIS OCTOBER?

I have replaced the original posting because I failed to factor in subsidies when calculating the profit margins of US non-financial corporations. I have now corrected for this.

October has come and gone. The markets have survived a collapse in GDP growth, a compression between short and long term interest rates, the lack of growth in revenue and earnings between Q2 and Q3 instead concentrating on comparisons with 2020, the compression in margins in three quarter of companies reporting and so on. It appears a much bigger shock is needed.

THE UK RATE OF PROFIT FROM BLAIR TO JOHNSON. Why a high wage economy is out of reach.