economics
Imported tag from Readwise
economics
countries and even regions are subject to market-related risks and shocks that can disrupt their behavior, just as companies are, and these risks are transmitted in the same way: through their capital structures. In fact any economic entity’s capital structure can be seen as a sort of volatility machine, one of whose main functions is precisely to
... See moreMichael Pettis • The Volatility Machine
.economics capital structure creating volatility for a company is similar to capital structure creating volatility for a country
it. We should have lowered the production of wealth and retarded economic and scientific progress.
Henry Hazlitt • Economics in One Lesson: The Shortest and Surest Way to Understand Basic Economics
One thing that struck me about their core insight - that AI is having a negative impact on AI-exposed occupations - is that it seems a lot like what we’ve seen in prior sectoral crashes.
For instance, construction employment had a nasty contraction after 2006. And employment in younger age categories plummeted even as the employment of older workers
... See moreChandar, Brynjolfsson, Chen • Canaries in the Coal Mine
In the 19th Century, the British and Russia fought for dominance in Central Asia. One of the theaters of this fight was Iran, and Britain generally prevailed. It used this power to create a monopoly on Iranian oil, kept most of the profits, and supported friendly governments, like the 1921 Pahlavi coup d’état, a pro-Western military man. In 1941,
... See moreTomas Pueyo • Why Did Israel Strike Iran Now?
Importantly, these barriers often strengthen over time, as high returns on capital throw off abundant free cash flow which is in turn reinvested in the business.
Edward Chancellor • Capital Returns
At the quarterly to annual scale however, the factors to price moves become more obvious.
The key factors are:
• GDP growth differentials;
• Interest rate differentials; and
• Capital flows
Peter Farac • A New Commodity Bull Market Must Come With a Weak US Dollar
Electricity becoming a “willing servant”—introducing washing machines, vacuum cleaners, and refrigerators—freed up hours of household labor in a way that let female workforce participation rise.
Morgan Housel • Same as Ever: Timeless Lessons on Risk, Opportunity and Living a Good Life
.fact .economics
Item #1: Fiscal Deficits
U.S. fiscal deficits were huge in 2020 and 2021, but contracted in 2022 as most of the emergency programs dwindled.
However, by 2023, fiscal deficits began rising again , mainly due to increased interest expense. This is where fiscal dominance became rather sustained: the Fed’s interest rate hikes, which were meant to slow
... See more