Update: since this was written, the White House has denied it is preparing a 90-day ban, and Energy Secretary Chris Wright says nobody is considering a flat ban. But Trump and Bessent have both said restrictions are being looked at, and the economics below apply just as much to a partial ban. US diesel has …
For decades, Germany was Europe’s economic miracle. Low inflation, high growth and a reputation for the best manufactured goods in the world. German engineering was part of the national identity. But, in recent years, it has really struggled, and the political fallout is becoming quite serious. Germany is at the heart of European economy and …
“I used to think that if there was reincarnation, I wanted to come back as the President or the Pope… But now I would like to come back as the bond market. You can intimidate everybody.” This was said in the early 1990s, by an adviser to Bill Clinton. Thirty years later, rising bond …
Back in early March, in anticipation of rising jet fuel prices, I rushed to buy two air tickets to New York (August and October). The cheapest was Norse Air £500 August (very good deal) and £400 for October with a 3% discount for paying by bank transfer. I did buy with bank transfer but for …
Bond yields continue to rise. US 10 year Treasuries are now close to 5%, UK 30 year gilts just under 6%. But, the real problem is what is causing yields to increase. Oil has gone back above $100. And diesel prices are hitting records in the US. Last week the US Treasury Secretary, Scott Bessent, …
Real weekly pay in Britain has never been higher. It’s also just 5% above where it was in 2008 — eighteen years for a 5% pay rise. That gap is this entire video. Because the government are right that the UK grew faster than the rest of the G7 this year, and most people watching …
Last week, the price of diesel in the US hit $5.85 a gallon, beating the record of June 2022. This sharp rise in fuel price threatens everything from food prices to bond yields. Oil prices have risen this year, but at around $90 is not particularly remarkable. But, unlike 2008 when oil prices surged …
The last two weeks I spent in the US on holiday. I tend to take a break from economics and the news. Though, eating in a classic US diner, they have to show the news on tv screens (a very bad habit of US restaurants). Anyway, what was on TV but bond yields going up …