↑Emerging Markets Stock Index Fund is up by $2969 or+2.2%
↑Eurozone Stock Index Fund is up by $6,946 or +4.2%
↑US 500 Stock Index Fund is up by $7,905 or +2.1%
↑Global Small Cap is up by $5,457 or +3.5%
↑Growth fund is up by $1,715 or +2.2%
Total gains:$24,992
Observations:
Baltimore
bridge (aka Hyundai bridge, aka Francis Scott Key Bridge) replacement cost was
estimated at $300 million, while originally built at &60 million back in
1977. This represents about 3.5%
inflation a year. The calculation is done using official USA government figures,
if you believe them last year inflation was 3.4%.
The biggest
inflation factor is bureaucracy, inefficiency and kickbacks, as in 1978 one ton
of steel costs $330 and today it costs $700. Which is about 1.8% a year.
While the
current prices and exchange rates better capture a country’s relative economic
power, both China and India overtook the USA using purchasing power parity.
Its
interesting, how the USA outwit and outplayed EU by involving it international
conflicts, since 2006 EU share of worlds GDP fell by 9%, while USA’s share
stated the same:
Figure 1. Share
of global GDP per country.
This is not
without a worry, since the USA government debt is $34.4 trillion, currently the USA pays 14% of its federal
spending on servicing the debt or $726 billion, which is 2%. Federal rate is currently 5.5%., while
official inflation is 3.7%.
Good move is
that USA paused new export of liquefied natural gas projects approval. This
will help to keep inflation at bay somewhat.
On the personal
side, when I talk to my friends and colleagues a lot of people feel very optimistic
about how much they can work in the future. A lot of people just push it until
65 years old. The reality is that most
of the people retire by the age of 62 or earlier. A lot of people fixate on specific age because
its linked to state benefits (Medicare at 65, or state pension at 67 in western
Europe).
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