Or choose individually:
- If China Keeps Growing, High Oil Prices Will Crush Us
- Why The Gold-To-Oil Ratio Suggests Oil Could Go A Lot Higher
- The Consumer Dies Again
- Here’s Who Really Gets Slammed By Taxation
- It’s Official, Goldman Sachs Isn’t A Loathsome Vampire Squid Anymore
It'd be great to inhabit a world where all economic growth were positive sum. They grow, we grow, everyone's happy.
But where there's a shortage of key resources, not everything is so rosy.
This chart, put together by HedgEye, shows a nice correlation between Chinese oil imports (measured in tons) and the price of oil, though obviously the price of oil swings more wildly.
If China keeps growing -- and really, how will it not? -- oil seemed destined only to go in one direction.
One remarkable aspect of the recent runup in oil is that it's decidedly not the result of a weak dollar. That was not the case in 2007 and 2008 when oil was going nuts, and New York restaurants were pricing their menus with euro symbols.
There's no surefire way to measure oil ex-dollars, but measuring it in gold is a reasonable approach, since it's the anti-currency. So let's look at little further.
At the end of 2008, the number of barrels you could buy with one ounce of gold surged to ridiculous highs, the combination of a deflationary collapse (the oil drop) and global fear (the gold spike). But look since 2000 and the trend is clear. One ounce of gold is buying you less and less oil. We appear to be reverting to trend. Oil can go a lot higher.
Here it is, folks, the chart to break a million retailers' hearts.
It's the Fed's latest consumer credit reading, and after starting to come back, total outstanding consumer credit has fallen right back down, with a monster month-over-month decline.
Here's why government spending is really out of control.
First of all, half of Americans don't even pay income taxes, but it gets worse. If we look at total federal taxes, 20% of Americans pay 70% of taxes, as shown below. 40% of Americans pay 95% 85% of federal taxes.
Yet when it comes to deciding how these tax dollars are distributed, those that pay 85% of the taxes are outnumbered by the 60% who pay just 5% 15%. Thus, when it comes to the politics of government spending, most Americans are arguing about how to use other people's money. No wonder nobody wants to see real spending cuts.
(According to the 2006 data from the Congressional Budget Office's latest tax burden release.)
In Goldman's latest 10-K, the company cited reputational risk as a major threat to its business. All those articles about how it was a 'Vampire Squid' and such, the company worried, threatened to take a toll on the bottom line.
But the sun is coming out.
According to YouGov's BrandIndex, which measures consumer attitudes towards major brands, Goldman is turning a corner. While Goldman is still perceived negatively, attitudes are up strongly. And if you're inclined to look at this technically, the chart shows a clear breakout.
Someone give Lucas Van Praag a raise!
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