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Germany's Economy Is Taking a Breather but Inflation Isn't, Bundesbank WarnsNov 22, 2021 - 07:37:03 PST
The German economy is taking "a breather" as a lack of goods and labour as well as new restrictions designed to fight the coronavirus pandemic put an end to its recent boom, the country's central bank said on Monday.
The United Nations on Monday pushed for urgent action to prop up Afghanistan's banks, warning that a spike in people unable to repay loans, lower deposits and a cash liquidity crunch could cause the financial system to collapse within months.
A greater number of countries are sliding towards authoritarianism, while the number of established democracies under threat has never been so high, the International Institute for Democracy and Electoral Assistance (IDEA) said on Monday.
Biden Picks Jerome Powell to Lead the Fed for a Second Term as the U.S. Battles COVID and InflationNov 22, 2021 - 07:27:16 PST
President Joe Biden made the announcement Monday morning following weeks of speculation that Fed Governor Lael Brainard could get the spot.
The Federal Reserve pulled off a magnificent manipulation of the junk bond market, facilitated a massive wealth transfer from savers to speculators, pocketed millions of dollars, and then washed its hands of the matter.In March 2020, as governments shut down the economy for coronavirus, the Fed slashed interest rates and launched a massive quantitative easing program. But that wasn't enough, so the central bank took the unprecedented step of announcing it would purchase $750 billion in corporate bonds, junk bonds, bond exchange-traded funds (ETFs), and junk-bond ETFs.
During a recent interview, Bank of Poland President Adam Glapiński said the central bank plans to add 100 tons of gold to its reserves in 2022.In 2018, the National Bank of Poland began aggressively adding gold to its reserves. Through the first half of 2019, the Polish central bank added more than 100 tons of gold, nearly doubling its reserves.
Peter Boockvar believes the Fed is cornered on inflation. Gold upside of $2,500 and Silver at $50 are certainly reasonable in this cycle. It doesn't matter whether it is Chair Jerome Powell or Lael Brainard.
Gold eased on Monday, hovering near a two-week low, weighed down by a firmer dollar.
'Cancerous to the West': Kyle Bass on the Risks of China's Digital Currency RolloutNov 22, 2021 - 05:48:09 PST
In this special episode, we sat down with Kyle Bass, founder and principal of Hayman Capital Management, and John ...
President Biden is expected to reveal as soon as this week his choice to lead the Federal Reserve, with Democrats divided over whether to offer Jerome Powell a second term or replace him with Lael Brainard.
China’s economy could enter a period of “quasi-stagflation” with relatively slow growth and excessively high producer-price inflation, said Liu Shijin, an adviser to the nation’s central bank.
The infrastructure act marked a defeat for a faction of progressive economists, but important elements of their modern monetary theory are accepted by much of the financial establishment.
“Generally speaking, inflation is running hot in countries where it slumped the most last year,” such as the US and Germany, said Sylvain Broyer, economist at rating agency S&P. It is also rising particularly fast in emerging economies, where currency depreciations have fed into higher local prices.
The Federal Reserve looks on course to consider a more rapid drawdown of its mammoth bond-buying program just weeks after it instituted a plan to scale the purchases back in a methodical manner.
Turkey’s Currency Crisis Raises Cost of Living, Threatens Financial System: WSJNov 22, 2021 - 05:36:02 PST
If the lira’s slide isn’t arrested, it poses a threat to the country’s banks and large companies, as the crisis drives up the prices of food and other essentials.
Soaring Fuel Prices Stoke Rush to Stockpile Firewood Across U.S.: BloombergNov 22, 2021 - 05:32:43 PST
Soaring prices for natural gas, propane and oil are pushing many to try heating their homes at least partially with old-fashioned wood
Consequently, central banks’ “signals” and “communications” arguably have caused confusion and excessive long-term economic pessimism. And as the BIS reports says, “these consequences are more severe the more the private sector and the central bank overestimate each other’s knowledge of the economy”.
Prices have been going up in a number of segments of the economy in recent months, and the public is taking notice.
Meanwhile, I am not optimistic about the impact Europe’s Covid outbreak will have on the unfolding global financial crisis. Once again, Covid brandishes nefarious timing. China-related contagion had already created vulnerability. Now, fledgling global “risk off” has de-risking/deleveraging increasingly impairing liquidity at the “Periphery.”
The Biden administration is reaching out to several countries, urging them to release crude oil from their Strategic Petroleum Reserves