I have two topics I want to highlight this morning. First, there are the US housing inflation numbers from Case Shiller, which are at a 7-year high. Then there is the fiscal drag in the US, Denmark, the UK, the Euro Zone and Canada. What I see everywhere here is continued faith in monetary policy and a lack of faith in fiscal policy. And I believe this is important in terms of predicting policy and economic outcomes.
First let's look at housing in the US. The larger composite-20 Case-Shiller house price index showed house prices up 10.9% year-on-year in the US. That is serious house price inflation. It well outstrips 1.1% CPI inflation from April 2012 to April 2013 for example.
Think about it this way: if you put 10% down on a house, you have just doubled your return in one year. If you ge...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.