Daily Brief – US Cost of Living

US Cost of Living

If Americans can tear their eyes away from POTUS’ foreign policy sorties being played out around the world on almost a daily basis on their TV screens, they will be focusing on expressing themselves at the now only 6 months away US Mid Term elections. The factor uppermost in the voters’ minds will be the inflationary impact on their cost of living. A quick study of the most expensive versus the most affordable US cities in which to live shows the marked discrepancy between the two ends of the scale. A salary to live comfortably is based on the 50/30/20 rule: 50% needs, 30% wants, and 20% savings. Unsurprisingly, the most expensive city and the one requiring the highest salary is New York at USD 159K whereas the most affordable city is San Antonio, Texas at USD 83K. Californian cities such as San Jose, San Diego, and San Francisco are all in the USD 135K plus bracket and Texas, Louisiana, and Tennessee are all sub USD 90K. If one has to live in the North East then Baltimore, Buffalo, and Philadelphia are all sub USD 100K. With US inflation having jumped to 3.8% in April from 3.3% in March voters are expected to express their dissatisfaction with their President 2 years in.

EUR/USD 1.1676.

US V China

As POTUS and president Xi square up to each other this week they will both be keenly aware for different reasons that while the US accounts for 25% of the global economy with a GDP of USD 30 trillion, China is at 17% with USD 20 trillion. Much has changed since President Trump last met with President Xi but the key change is that the gap in size between their respective economies is narrowing. The GDP per capita is USD 94K for the USA but USD 15K for China but there again there are 4 times as many Chinese as Americans. At USD 3.2 trillion China has the largest currency reserves of any country in the world, which gives China sufficient firepower to compete effectively in the key battlegrounds in 2026 of AI and military spending.

GBP/USD 1.3474.

Brazilian Meat

EU fans of Brazilian meat restaurants or Churrascarias, such as Tche Brasil in Brussels, Carnesa Churrascaria in Rome and Ibiza or Rodizio Grill in Frankfurt had better go along before September as their USP will evaporate then, as it is September when the EU will ban the import of Brazilian meat on the grounds that it does not meet EU requirements on antimicrobial use in animals. The bitterly EU resented EU-Mercosur Trade Agreement that became effective on May 1 may have seemed to be a victory for Brazilian farmers over their French counterparts, but when it comes to the EU and regulations, Brazil still has its L plates on.

GBP/EUR 1.1535.

Decoding Horse Statues

Urban myth waxes enthusiasm for the Hoof Rule: Both front hooves off the ground = rider died in battle; one front hoof off the ground = rider wounded in battle; 4 hooves on the ground = rider died of natural causes. Plenty of exceptions but in case it comes up in your pub quiz, the best example is the statue of General Andrew Jackson in Gettysburg National Military Park who sits astride his horse with 2 hooves off the ground and…he died at home.

EUR/JPY 184.62.

Home Before Dark

This day in 2008 Neil Diamond one time wedding singer, cantor, travelling music man and all-round legend scored a Number One with this album and at the age of 67 displaced other aging rocker Bob Dylan the previous oldest chart topper.

Home before dark
Before the night comes falling
The sun going down
And I can hear you calling

I followed my star
Just to be where you are
But I couldn’t get far
In the dark

Home before dark
Before the day deserts me
I looked for my truth
Knowing the truth might hurt me

Been traveling light
Just ahead of the night
To be getting home right
Before dark

I’ve been searching
Can’t explain it

Have a Great Weekend!

Discussion and Analysis by Humphrey Percy, Chairman and Founder

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