Post 338: Pepsi and governments lower the volume with further confirmation of our Special K economy

• Cheap funding has been the main cause of housing affordability crises.
• After two quarters of negative sales growth, luxury group LVMH creeps into positive territory.
• And after only one quarter of negative sales growth, Domino’s soars into positive growth territory.
  • Amazing what happens when you improve your customer value proposition.
• Pepsi’s volume has declined for thirteen straight quarters.
  • And prices continue to rise.
• London’s black cabs are increasingly under threat.
  • And a look back.
• Sales growth returns to Delta.
  • But still the K-Shaped economy.
• In Financial Ructions:
  • Yes, higher government spending results in lower economic growth.
    • A look at France.
  • And a look at Japan and how soaring debt to GDP ratios are inversely correlated with real wages.
  • Despite quantitative tightening, the Fed has been increasing its holding of securities with maturities longer than ten years.
• We finish our book review of Taxes Have Consequences:
  • Fed Chair Volcker’s restricting the money supply, combined with tax cuts set the stage for almost two decades of stellar economic growth
  • The Keynesian multiplier theory ignores the negative multiplier impact on the private side.
    • As well as ignoring the negative impacts of the substitution effect.
  • The authors believe that the optimal tax rate on the Laffer curve is in the sub-20% range.
    • Whatever it is, it’s a lot lower than the current tax rate here in Canada.
      • Thus our disastrous record on investment and productivity.