BC ECONOMY
Saved by @CodyyyGardner

Nice article from @MESandbu. This from a theme in sellside research before Christmas. Could the pandemic break secular stagnation & deliver a decade of strong growth?

 Historical evidence clear - pandemics are usually deflationary, causing lower r*. Big difference with wars, which usually cause r* to rise. Great Jorda et al paper on this https://t.co/f3a9O3Hw3c
Here is their main result
Historically, Wars destroyed both capital stock and labour force. Pandemics killed millions but left capital stock untouched. Covid-19 is neither of these things. Workforce hasn't plunged, capital stock untouched. Comparison with 1920s is a stretch. So precedent for today..
Some more recent evidence based on modern health crises shows only a short-lived boost to GDP, then weaker trend then before. See this Vox column https://t.co/NXZWP3QNlL
And their main result
The only lesson I would draw from 1920s is in the comparison between Germany/UK and France/US. The former went down the austerity route. Far from the "roaring 20s", they had a decade of deflation and unemployment. Politicians should know this by now...but maybe not 😉
So @MESandbu warns about danger of premature monetary policy tightening. But I think CBs are leaning heavily against such an error. They have internalised the 2010s, eff raising their inflation targets. The policy risk is on the fiscal side. Not sure politicians learnt anything
Bear in mind also that the 2020 recession compounded many of the underlying causes of secular stagnation: esp income/wealth inequality, corporate divergence (weak SMEs), monetary policy at lower bound and will leave a legacy of even higher corporate debt ratios

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A product which provides a fixed income which is better than FD & an upside like equity.

Should you invest in Real Estate Investment Trusts (REITs)?
A Thread 🧵👇


1/ REITs are a vehicle to invest in income-producing real estate properties managed by professionals.


2/ In India, we have REITs primarily focused on commercial real estate properties having 7-9% rental yields.

In listed REITs, Most of the completed properties are pre-leased to big companies.

Why no residential? As yields of 1-3% make them unattractive to investors.

3/ How do you get the benefit of such yield?

REITs have to distribute at least 90% of their taxable income to their shareholders.

Both listed REITs trade at 6-7% dividend yield (which is also tax-free)

4/ Moreover, 80% of their total value must come from completed & income-generating properties + it must avoid speculative land acquisitions.

What about debt then? There's a restriction there too.
Not more than 49% of the total equity.
ECONOMY
Vallachian Rex
Vallachian Rex
@VallachianR
Window dressing: : the act or an instance of making something appear deceptively attractive or favorable

Tens of thousands of of businesses shut down, economy in shambles, windows showing abandoned stores and restaurant are staring at you ugly when you are passing by. Now the same leftists responsible for this disaster think they found a solution to fix the ugliness they created.

This is the solution our Dem leaders have chosen to remedy the scars they created and the livelihoods they destroyed: apply some make-up. Make art installations in the windows of the abandoned stores and restaurants. Apply propaganda lipstick on the leftist pig and call it "art"

God forbid our leftist betters who run our cities would have thought of stopping this closure madness and helping people go back to work, re-opening stores and restaurants. That's not what they want. They want you to stay at home, afraid and dependent on their hand-outs.

In Socialist Romania during the years of the Ceausescu regime they did pretty much the same thing, only they didn't call it "art". The grocery stores and butcher shops were always empty, there was no food anywhere other that on the black market.
ECONOMY
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Richard Murphy
Richard Murphy
@RichardJMurphy
I keep hearing people complain that the ‘mainstream media’ does not understand economics and that we’re talked down to as if everything must be explained as if the economy is a household. In this thread I explain all you (and they) need to know. Economics in one thread then....

Very few people seem to understand how money is created. Mainly that’s because when they’re told it seems so simple that they can’t believe something that’s so important that we’re willing to pay a lot to get it is created so easily. This thread explains how money is created.

What this thread also explains is that if we understand money we can completely reimagine how the economy really works, which is the pathway to rebuilding from the mess we are in. Which makes this a pretty big deal. I make no apology for its length as a result.

Let’s start at the very beginning. A person goes into a bank and asks for a £1,000 loan. The bank checks them out, and agrees. And that is all that it takes to create new money. Money is just a promise to pay. That simple exchange of promises is all it takes to create it.

Most people think there must be something that backs up the value of money. Gold, most likely. But there isn’t. Money is just a promise to pay, and has been for almost 50 years now. Mutual promises to pay creates all the money we have.
ECONOMY
Sargoon
Sargoon
@SargoonK
True that all the people cherishing the support of IMF or WTO for farm reforms need to cool it down a bit, because that is a model we do not want to emulate to the t in India here.

But here are some issues that deserve to be better discussed by all:


1. People who say we are emulating the Western model of agriculture are way off with this assumption. The process of primitive accumulation, the alienation of their people from their land and the way these 'first-world' countries have pushed their people into Industrial sector +

+ was a merciless phase.
But the same assumption won't work for India, because we have always had a large workforce in agriculture, agri subsidies have always run high, protection has been the hallmark of agriculture and rural representation in the parliament has always been+

+ high. Still, it is our utter failure from the beginning that we have not been able to incentivize the movement of our people to other lucrative sectors.

2. This brings us to the another point of providing MSP on all the commodities and the demand side of the issue that we+

+ conveniently ignore. Here's the thing, Food prices in India have about 65-70% weight in calculating the Consumer Price Index and 25-30% of wholesale price index. These indices affect the general price level in the economy i.e. the inflation. If MSP is offered on all the+
ECONOMY
The Recount
The Recount
@therecount
Last month, Texas resident Royce Peirce paid $387.70 to heat his two-story house. This month, he owes $8,162.73 — and counting.

Amid freezing temperatures and another looming winter storm, Texans are facing a second crisis: astronomical power

Why are these energy bills so high? You can thank Texas’s power grid for that.

The U.S. is divided into three grids: one covers the eastern states, another the western states, and then there’s the Texas grid, ERCOT, which covers nearly the entire state.

Now you might be wondering: Why does Texas have its own power grid?

If you’re familiar with the state’s history and public policy, you probably already know the answer. In short, Texas has its own grid to avoid dealing with the federal

What we’re witnessing now is a collapse of the state’s power grid.

Amid freezing temperatures, the imbalance between Texas’s staggering electricity demand and its limited supply caused prices to skyrocket from $20 per megawatt hour to $9,000 per megawatt hour — a 450% increase.

One wholesale power supplier, Griddy, made a surprising decision.

CEO Michael Fallquist told Griddy’s 29,000 customers to abandon his service and switch providers: “We want what’s right by our consumers, so we are encouraging them to
ECONOMY

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SRI KALAHASTI KSHETRAM, CHITTOOR (AP)
#bharatmandir

Panchbhootasthalam representing vayu element, also called Dakshin Kailasha.
As per Shiva’s boon, Vayu is incarnated here as Shiva and worshipped as Kalahasteeswara.
The kshetram is also associated with Rahu and Ketu.


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@GunduHuDuGa


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Thrikkangode Sree Randu Moorthy Temple
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Very ancient temple but was covered with forest for many years.
Later two persons Chakki and Chaathan, while cutting trees their axe hit on the nearby
@SriramKannan77


Vigrahams and it suddenly started bleeding. Later Devaprashnam was held and thus found out that these were murthy's of Shiva and Vishnu which was worshipped long back. And thus temple is constructed here.
Om Namah Sivaye
Om Namo Narayanaya
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