Recent macroeconomic data from the United States should worry us. Amid the reopening and the biggest fiscal and monetary stimulus in recent history, and with all the possible tailwinds from policy decisions, consumer confidence has plummeted to the lowest level since 2016.
Retail sales have fallen sharply again in July, and the employment or industrial production data are far more than disappointing considering the level of stimulus and that GDP has returned to pre-pandemic level.

This year marks the 50th anniversary since Nixon suspended the convertibility of the USD into Gold. This began the era of a global fiat money debt-fueled economy. Since then, crises are more frequent but also shorter and always “solved” by adding more debt and more money printing.

Despite high domestic economic growth and solid global recovery, the Chinese market is down on the year. At the close of this article, the Shanghai CSI 300 is down 5% vs the S&P 500’s +18%, and in the past five years, it has risen 51%, a decent but modest figure compared to the S&P 500’s +103%.

This paper was published in the Journal of Economics & Management Research