Thursday, November 27, 2008


Almost noone seems to notice that a drop of VAT from 17.5 to 15% is
not a 2.5% drop in the sales price but actually only 2.1%. You need to
divide 1.15 by 1.175 because VAT is on top of the seller's price.

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Wednesday, November 26, 2008


The graph shows the BRIC countries in the order their GDP per head in PPP terms relative to the EU average (left scale). An Indian has only 9% of the income of an average EU citizen compared to a 51% for a Russian. China has the fastest growth among this group. Growth rates for 2009 are projected to be much lower as the world is going into full recession.

Source: Economist, CIA Facts

War in the retail sector

There is a lot of talk about a war in the retail sector. I think this
kind of language is unneccesary and tireful. There are more important
things in the world than if market share drops by a tenth of a
percentage point. If conditions are so severe what will come next?

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Friday, November 21, 2008

Conservative's economic policy.

The Tories get a lot of opposition against their economic stance. But they have a point, if on Monday a spending spree is announced then it won't be effective because people will have to prepare for hard times in the future, when we will have to pack back all that borrowed money. Furthermore, why should the phenomenon which brought us into trouble - too much spending - help us out of it?

Thursday, November 13, 2008


It's official Germany is in recession as well. The whole talk about recession as being two consecutive quarters in negative clouds the whole picture. I think looking at annual growth is still more indicative of the strength of an economy. The Economist stats reveal that 2009 will be much worse than 2008 for most countries. UK is at the very bottom with -1%. Eastern Europe seems a safe bet next year.

Sunday, November 09, 2008

Credit crunch modelling

Mathematician Shaw from King's College London presents a model for the
post crunch world with extreme events

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