Nothing to act on now ... but worth paying attention too.
The Seychelles is a African country of 97,000 off the coast of Tanzania. It is one of the richest countries in the world. The country is full of expensive cars and high fashion, think Beverly Hills.
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Seychelles has FULLY vaccinated over 60% of its population, thanks to its wealth. The country has been using the Chinese Sinopharm and AstraZeneca inoculations.
It leads the world with the highest parentage of a population fully vaxxed.
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But here is the concerning part ... Seychelles cases are spiking. Remember the majority of country has been vaxxed
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The B.1.351 variant, first identified in South Africa late last year, was found in the Seychelles in February
AstraZeneca’s vax appeared to be less effective against that variant in a study, and South Africa halted plans to use those injections.
"Mailed money" has changed the personal income landscape of the US. PI shot up to $24 trillion, 27% yoy. We have never seen anything close to this before.
Wages are the largest component of PI. Econ argue against inflation without wage gains, stimulus has filled that gap.
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To further underscore how much this stimulus has meant, the next chart shows that 33.8% of all personal income in the last year was “mailed” from the federal government.
This even exceeds to records set with last year’s CARES Act.
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This money is piling into savings. The current savings rate is now 27.6%.
The broader service sector has an impediment that herd immunity/reopening might not solve.
This chart shows the Kastle Indices of the percentage of major metropolitan office usage. It is still at just 25%.
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Why do we need to return to an office? How much a week? What is better served commuting in an office everyday versus the way we have it's been done the last year?
This is a nice way to say that comm real estate is in trouble and herd immunity might not fix it.
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Airline travel is about 2/3s back to pre-pandemic levels. Leisure travel is near 100% back.
But, if we do not return to the office 8 hrs/5 days business travel is not returning to pre-pandemic levels anytime soon, unless leisure is about to soar to new highs.
Yesterday the March Deficit numbers were reported. The 100 million $1,400 stimulus charts blew out the deficit.
As this chart shows, the last 12-months the deficit was a hard to understand $4+ trillion. As a % of GDP it was an equally hard to understand 19%
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How big is this deficit?
The next chart shows the surplus/deficit as a percentage of GDP for more than 225 years. The current deficit is now the second-highest in history. Only World War II produced a larger deficit.
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March 2020 hit a milestone of sorts. Only 46% of the rolling 12-month deficit is now financed by taxes (bottom panel).
How did this happen? See the top panel. Spending (blue) has gone vertical and tax receipts (orange) have actually fallen.
By their nature, cryptocurrencies and decentralized finance (DeFi) are decentralized and permissionless. We are not sure how they would be ‘outlawed’, as Dalio describes in this story.
His example of gold being banned was only possible because of the government’s centralized system. Governments could ban the exchange of fiat for cryptocurrencies, but the DeFi system is being built to work on its own merit, with no ties to fiat.
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Furthermore, countries that attempt to outlaw cryptocurrencies would risk their seat at the table. As the chart below shows, crypto adoption is highest among impoverished nations, lowest in the developed world.