The United States: According to Moody’s, “the US already stands out as one of the most highly leveraged governments.” Moreover, leverage and the interest burden are both expected to spike over the next decade (second chart below). The only thing that keeps the rating agencies from downgrading US federal debt (for now) is the strength, the diversification, and the flexibility of the US economy
Equity Markets: Stock investors remain concerned about the US economy overheating, pushing inflation and rates higher. That’s why the correlation between economic activity and the stock market has broken down.
Rates: Oil prices are starting to pull inflation expectations lower.
The United Kingdom: The trade balance in goods continues to deteriorate.
Energy Markets: US natural gas futures have tanked again on warmer weather expectations.
Cryptocurrencies: Below is an infographic on relative financial transaction speeds.
Food for Thought: Boys and girls’ science career expectations.
Edited by Joseph N Cohen
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Thanks to Josh Marte (@joshdigga), Matt Garrett (@MattGarrett3), Joseph Cohen (@josephncohen), Ycharts.com, S&P Global, and Moody’s Investors Service for helping with the research for the Daily Shot.
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