Global economic activity has navigated higher costs well via income growth, savings drawdowns, debt, efficiency gains, slower margin growth, and selective price pass-through. But the longer the inflation hit persists, the greater the risk to growth—as this FT article on airlines discusses. #economy

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... more interesting is that no matter how they evolve, there are significant economic, financial, social, and geopolitical implications #economy #markets #tech #ai 2 of 2

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From the Financial Times: "Cracks are appearing in America’s debt-laden $10tn AI infrastructure boom as project delays, public backlash and shaky investor confidence bring a reckoning for the data centre build-out underpinning the US economy." IMO, what makes all these issues even ... 1 of 2

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This chart is from The Economist's article on "the fast-growing stock of AI-related debt." Without a matching rise in loanable funds, persistent rate pressure will likely crowd out rate-sensitive, non-tech sectors. #economy #markets #bonds #yields @economist.com

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Of note: French bond yields are surging today (Bloomberg chart), pulling European peers higher and spilling over somewhat into the US. As noted previously, this dynamic is worth monitoring: if it gains traction, the resulting two-way feedback loop could easily become a headache for many countries.

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