CHINA: ECONOMIC DATA RELEASED AFTER THE XX CONGRESS.

China: a Market Economy with Socialist Pretensions. Critiquing Xi’s Report to the XX Congress.

WHAT BANKING INCOME IN THE USA TELLS US ABOUT THE STATE OF THE US ECONOMY.

The US GDP Report was positive. But under the hood it was the weakest quarterly print this year. Additionally, the surprisingly low deflator raises questions as to whether the economy actually grew in real terms. The Implicit Price deflator YoY is 7%. But, over the same period the CPI was 8.32%, the PPI (Producer Price Index) was 12.8% and the IPI Import Price Index) was 7.5%, and when we weight them 68.2% 17.9% and 15.4% as a share of GDP, we arrive at a deflator of 9.12%. That almost wipes out the growth of 2.6% QoQ. It seems this was a quarter boosted by the export of guns and gas.

IN THE MARKETS WE TRUSST. A Brief Review of the UK Government’s U-turn in the face of the BOE’s intransigence.

The delusional Truss became the most short-lived Prime Minister in British history. Boris Johnson is trying to regain the Premiership. In the article I posed the question whether the populist wing of the Tory Party had been crushed or not? The answer is it has. Therefore, it is highly unlikely that Johnson will prevail especially now that the markets have stated they will not tolerate any further political instability.

US SEPTEMBER PAYROLLS, INFLATION AND RETAIL SALES.

CAPITALIST COST-PRICE BOTH SQUEEZES WORKERS AND DAMAGES OUR PLANET.

A WEAK CHINESE ECONOMY SET TO DOMINATE THE CCP CONGRESS ON THE 16th of OCTOBER.

This article examines the latest data on the Chinese economy including profitability, turnover, investment, retail sales, real estate and exports. It shows a weak economy that is likely to dominate the Congress, and in many ways, the difficult proposals to re-invigorate the economy will be more consequential than the leadership election itself.

errata: When annualizing the complex rate of return I mistakenly took August to be month 9 instead of 8. This is now corrected. The Rate therefore fell to 5.49% and not 4.88% as reported in the original. I have now corrected and replaced the article. What is important is that the trend remains unaltered.

REVIEWING THE CRISIS IN THE UK AND PROFITS IN THE USA.