Your Job Isn’t Going to China — John Rubino 8-29-23

In their bi-weekly sit-down, Kerry Lutz and John Rubino discussed various economic issues, including the mixed labor market data, challenges facing the housing market, and the real estate problems in China. They noted that wage inflation is becoming a problem in certain sectors, while the labor market in general seems to be weakening. Home sales are frozen, and mortgage rates have spiked, which effectively doubles the monthly cost of a house if the house price doesn't come down.

They also discussed the challenges facing the housing market, particularly for baby boomers who have not downsized from their large homes. Additionally, they discussed the potential impact of Airbnb on the housing market, with a potential deluge of inventory from Airbnb units pouring onto the market in the event of a slowing economy.
The conversation then shifted to the complexities of China's currency crisis and the challenges it poses for the country's economy. They also explored the potential consequences of China's demographic issues, including a shrinking population and a shortage of women. The conversation then shifted to the possibility of the BRICS countries creating a shared trading currency backed by gold, which would provide stability for bilateral trade.

They also talked about the flight of wealthy Chinese citizens and the need for a free-floating reserve currency. Finally, they discussed the situation in Russia and Ukraine, with Lutz and Rubino discussing the potential for a cataclysmic event and the dangers of war.
Labor market data is mixed, with unions getting double-digit wage increases while job openings (three-month drop of 1.5 mill) and payrolls getting revised way lower.  

Key Points
Home sales also revised way lower. Housing is frozen, other than cash buyers. 

China is trying to reflate a real estate bubble, failing so far. 

Bitcoin spikes on good news about an ETF approval

Biden is getting closer to impeachment. Lately it's been about his fake email addresses and what kinds of deals he did with them. 

The BRICS inducted Saudi Arabia, UAE and Iran. Wow. 

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