Tag Archives: credit growth

Summary The US budget deficit is $214 billion in August 2018; this is a net add of income to the private sector and a bumper month. The good news is that dollars are being added to the economy by the Federal government, allowing the private sector to post a $214 billion surplus. Further, net inflows are expected for the rest of the year from the Federal government and private credit growth. Private credit growth is a big surprise, growing strongly despite Fed rate rises. Seeking...

We present twelve reasons that could sustain a further euro appreciation to $1.40 or even 1.50 in the upcoming two to four years. The main one is that Germans are net global creditors and Americans net debtors. This is reflected in fiscal and monetary policy and in investors' behaviour. The post was written in December 2013, but the arguments are still valid today and will continue to be valid in the future.