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An old lady’s promise

An old lady’s promise | What | Scoop.it
IT WOULD be easy for debt-laden Britons to fret that the days of cheap money are coming to an end. The news is full of high prices, with politicians engaged in a...
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China manufacturing at 18-month high

China manufacturing at 18-month high | What | Scoop.it
China's manufacturing activity grows at its fastest pace in 18 months in October, adding to signs of a recovery in the world's second largest economy.
Ben McGuigan's insight:

Interesting article- learnt a new economic term: PMI measures private sector output by surveying private sector companies. The formula reads: (%that reported an improvement*1)+(%that reported no change*5)+(%that reported a decrease*0). (In productivity). If there is no change, the value will be 50, anything above 50 shows an improvement, and vice-versa.

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Labour pains

Labour pains | What | Scoop.it
ON AN enormous campus in Shenzhen, in the middle of China’s manufacturing heartland, nearly a quarter of a million workers assemble electronic devices destined for...
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ET: Companies are beginning to invest in technology and powerful equipment which is pushing labour out of the workforce. This will increase the PPF. This could also affect the minimum wage depending on Keynsian or classical curves.

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The perils of falling inflation

The perils of falling inflation | What | Scoop.it
WHAT is a central banker’s main job? Ask the man on the street and the chances are he will say something like “keeping a lid on inflation”. In popular...
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References the fact that inflation/deflation needs to be at a certain point, and that both deflation such as in Japan and excessive inflation are bad.

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China's Gold Hoarding Continues: Over 2,200 Tons Imported In Two Years | Zero Hedge

China's Gold Hoarding Continues: Over 2,200 Tons Imported In Two Years | Zero Hedge | What | Scoop.it
Paper gold in the developed world may trade based on the whims of marginal momentum chasers, and of course, the daytrading mood of the BIS gold and FX trading desk, but when it comes to physical gold and China's appetite for it, one word explains...
Ben McGuigan's insight:

As it becomes an economic powerhouse, China is investing huge amounts in buying plots of land, which it can do thanks to its balance of trade- in August it had a trade surplus of 28.6 billion. As population rises in the future it is likely that demand for land will rise (land being a finite resource and population rising) and therefore in anticipation of this China is investing in it, meaning it will have a huge advantage in PPF later. They are doing a similar thing with gold, anticipating that they will need it in the future.

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More sophisticated than you thought

More sophisticated than you thought | What | Scoop.it
PIRACY remains a concern for ships passing the Horn of Africa, even though the number of incidents has plummeted since 2011, when armed protection was beefed up on...
Ben McGuigan's insight:

Interesting article on how something illegal can actually be far more complicated than a simple criminal- Reminds me of freakonomics chapter on drug dealing. 

 

Economic theory:

-Competition for Qat is non-existent during heists and therefore the provider can charge high prices (" up to three times the market price"), as there are no substitute products.

 

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