It used to be 'I am not an epidemiologist'; and now we can flip to 'I am not a criminologist'. In any case, there is huge interest in the topic of the rise in crime in 2020 in US cities, for basic reasons of safety, and well as for political reasons.
Below, some basic charts...
Here, we project full year crime counts in major categories in NYC using the growth observed in the first eight months of the year, to allow comparison with previous (full) years.
There are major spikes in key categories (auto larceny: 59.6%, burglary: 42.9%, murders: 34.6%, as has been widely reported. But some other categories are falling (rape: -24.6%, felony assault: -3.7%)
It is surprising, perhaps, given commentary, that overall crime counts have not spiked (although admittedly, in a year with lockdown, it may be hard to do a simple comparison like that)
When I posted some basic numbers last week, I was asked for longer history (still working on that). For background, the charts here focus on relatively recent history, which does not include the huge decline in crime in the 1990s, as discussed here: theatlantic.com/politics/archiβ¦
Looking at data since 2000 only will make the recent spikes look bigger than a longer perspective (as illustrated in the four figures referenced in a past tweet)
The key test will be the crime rates in the final months of the year for NYC, when activity (presumably) starts to normalize, more people return to offices, inhabitants return from 'summer getaways' etc.
The trends in the coming (somewhat more normal months), relative to the months of lockdown/protests/ riots, will be the key. They will tell a more indicate picture of what a new steady state may look like. That will be a good time to crunch the raw data for a balanced take. END
indicate = indicative...(sorry)
β’ β’ β’
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Everybody knows the details of US used car prices, the technicalities of the rent calculation, and even the oddities around obscure CPI components such as medical services...
but perhaps it is better to look at the big picture (global trends and China)...
- just a few of charts
The trend in global core inflation is almost back to normal (chart above)
And when you look at China, you think; should we not worry about deflation?
Headline CPI is as negative as in the covid shock, and almost as negative as in the CFC shock
And when you look at the latest China data, things are getting worse (assuming that you do not like deflation)
Despite the re-opening in 2023, the Chinese economy is observing greater deflationary effects, with momentum getting incrementally more severe in recent months.
The higher for longer narrative is looking increasingly stale
(a few big picture charts)
First, the global trend in core inflation momentum is very clear. The worst is certainly behind us...
Second, while some economies have shown greater resiliency to higher rates than expected, global credit is very weak, especially vs 2022, but also vs pre-covid trend.
I have been travelling, so only commenting on the terrible Chinese FDI data with a few days delay, even if it one important topic I care a lot about
Thread...
First, net FDI flows (counting both inflows and outflows) are now sharply negative, and it is the Chinese liabilities (the investment by foreigners into China, that is driving the swing)
- $66bn now
vs
+$100bn in Q1 2022
MASSIVE swing
Second, digging into the inflows, we can break the data into Greenfield FDI and reinvested earnings by combining SAFE and MOFCOM data.
The negative reinvested earnings (multinationals repatriating their earnings out of China, rather than reinvesting) is a key factor...