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Great Graphic: High Costs of Consumption in China

February 09, 2013
The low cost of living in China is often confused with a low price for consumer goods. This Great Graphic from Economy Watch, shows that many consumer goods, particularly international brands, are more expensive in China.   Economy Watch drew from data on three different web sites:  e.weibo.com, East-West-Connect.com and sohu.com.  
To understand …
Great Graphic: High Costs of Consumption in China Great Graphic:  High Costs of Consumption in China Reviewed by Marc Chandler on February 09, 2013 Rating: 5
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Currency Positioning and Technical Outlook: Correction or Reversal?

February 09, 2013
Last week the euro was the weakest of the major currencies and the recently beaten up sterling and yen were the strongest.   A similar pattern was also evident in the dollar-bloc.  The New Zealand dollar had been the strongest and last week had was the weakest, with the Canadian dollar faring somewhat better.  The Australian dollar has been trend…
Currency Positioning and Technical Outlook: Correction or Reversal? Currency Positioning and Technical Outlook: Correction or Reversal? Reviewed by Marc Chandler on February 09, 2013 Rating: 5
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Draghi Strikes Again: Talk, but No Change

February 07, 2013
The euro fell to below our $1.34 corrective target in response to ECB President Draghi's comments.  However, bids near $1.3375 appears to have stemmed to rout, at least for the moment.  It is not clear yet, if the low is in place for the day.  However, we continue to believe this decline is corrective in nature and anticipate the resumption o…
Draghi Strikes Again: Talk, but No Change Draghi Strikes Again:  Talk, but No Change Reviewed by Marc Chandler on February 07, 2013 Rating: 5
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Great Graphic: Income, Wages and Productivity

February 06, 2013
This Great Graphic captures a key economic fact that shapes the political discourse.  Nearly every issue is informed by it.
It was created by a couple progressive think tanks and kudos to Michael Scherer from Swampville a Time blog for popularizing it. 
The social, political and economic implications of this chart are critical.
Yet, I suggest th…
Great Graphic: Income, Wages and Productivity Great Graphic:  Income, Wages and Productivity Reviewed by Marc Chandler on February 06, 2013 Rating: 5
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Great Graphic: Big Macs in the Euro Area

February 06, 2013
This Great Graphic was on the Bruegel blog.  It re-organizes he Economist's Big Mac Index to look at the euro area. 

Recall that what the Economist did was take the concept of purchasing power parity and make it, well, palatable.  The concept is that a basket of tradable should sell for the same price in different countries.  To the extent the…
Great Graphic: Big Macs in the Euro Area Great Graphic:  Big Macs in the Euro Area Reviewed by Marc Chandler on February 06, 2013 Rating: 5
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Nervous Market: Key Developments

February 06, 2013
The market isbecoming a little skittish ahead of tomorrow’s ECB. Although the euro’s recovery off the $1.3460 low yesterday was impressive, follow through buying has not materialized.The spread between US and German short-term rates, that is doing a good job of tracking the euro-dollar exchange rate, has stabilized and correcting the sharp move a…
Nervous Market: Key Developments Nervous Market:  Key Developments Reviewed by Marc Chandler on February 06, 2013 Rating: 5
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Great Graphic: Global Gini

February 05, 2013
This Great Graphic is posted in numerous places, but I saw it on Miles Corak's blog Economics for Public Policy.  Alan Kruger, the Chairman of the Economic Advisors of the President helped popularize it in a speech last year.    
It charts the inequality (horizontal axis) against generational income mobility (vertical axis).   Denmark, for ex…
Great Graphic: Global Gini Great Graphic:  Global Gini Reviewed by Marc Chandler on February 05, 2013 Rating: 5
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Spain: No Mas

February 04, 2013
The accusations of corruption against senior Popular Party officials, including Spanish Prime Minister Rajoy would not have necessarily been a market mover.   The accusations raise more questions than they answer.  However, Rajoy's denial may have deterred Asian traders early Monday, but European investors were more skeptical.  
Confidence in …
Spain: No Mas Spain:  No Mas Reviewed by Marc Chandler on February 04, 2013 Rating: 5
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Great Graphic: France Diverges

February 04, 2013
This Great Graphicwas posted on Sober Look and was taken from Markit and J.P. Morgan.  It depicts what we have sought to describe; namely the under performance of France.   
This chart shows the euro area manufacturing PMI and France's performance.    While activity in the area as whole is improving, France has continued to deteriorate.
We su…
Great Graphic: France Diverges Great Graphic: France Diverges Reviewed by Marc Chandler on February 04, 2013 Rating: 5
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