It's the BLS that is in the Alternate Universe

With "Difusion" the shape can change but not the quantity of gas...

The question is..."why is America so good at creating Wealth with no output?".

The Answer is that Assets=Liabilities

A trade deficit is a Liability (Private Debt)

There is also a cyclical illusion of GDP growth (& productivity) caused by the mining cycle (falling marginal cost of Oil.)

You gotta love the irony in macro. Ignore the banks -they blow themselves up. Worry about inflation being too low, it hits 50-year highs. Ask for fiscal stimulus, now you cant rein it in. Core euro lectures the periphery for a decade, now they're the ones with the shit economies & unstable politics.

The yield on China's 10-year bond is now trading below 2%.

It has gotten there in a manner that should worry the Chinese government, and it has led some analysts to refer to the "Japanification" of China.

#economy #markets #China #bonds