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Russia has significantly ramped up gold exports to China as Western governments closed their markets to the precious metal over the war in Ukraine, media outlet RBC reported Friday citing Chinese customs data.
Dealing With Inflation Is Now an Urgent Issue, Bank of International Settlements Chief SaysAug 26, 2022 - 12:49:31 PDT
Central banks need to urgently tackle inflation and recognise that the supply shocks that are pushing prices higher could linger, keeping persistent upward pressure on prices, Bank for International Settlements General Manager Agustin Carstens said.
Dow Drops Over 1000 Points, Nasdaq Down More Than 3% After Powell Warns of Pain in Inflation BattleAug 26, 2022 - 12:41:24 PDT
“Reducing inflation is likely to require a sustained period of below-trend growth,” Powell said. “While higher interest rates, slower growth, and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses.”
The global economy's Waste Is Growth Landfill Economy is expiring, and we're ill-prepared to function without squandering resources via oh-so-profitable planned obsolescence, millions of vehicles sitting in traffic jams (more fuel wasted = higher GDP--we're growing!) and bridges to nowhere.
Inflation Expectations Nonsense. Powell also gave praise to Ben Bernanke and totally disproved economic theory regarding inflation expectations.
The Democrats’ new reconciliation bill isn’t just going to be the largest-ever expansion of a government agency. It’s going to be the largest expansion of the domestic police state in American history. Only a statist could believe that a federal government, which already collects $4.1 trillion every year—or $12,300 for every citizen—supposedly needs 80 battalions of new IRS cops.
"Abuse Of Power": WaPo & WSJ Slam Biden Student Loan Handout; Penn Wharton Sees Trillion Dollar CostAug 26, 2022 - 11:43:59 PDT
After the Biden administration announced its ham-fisted scheme to eliminate $10,000 in student loans for borrowers making less than $125,000 per year, and $20,000 for Pell grant recipients, the Washington Post and the Wall Street Journal editorial boards independently wrote about what a stupid idea it is.
Aug 26, 2022 - 11:29:17 PDT
The pandemic and war could cause structural shifts and the current period of very high inflation poses a significant risk that inflation expectations could become de-anchored.
Over the last three decades, the Fed and its counterparts have enjoyed wide latitude in trying to control inflation. Recent failures could soon put that independence to the test.
The BEA's Personal Income and Outlays report for July 2022 was weaker than expected on both the spending and income side. The saving grace from a GDP standpoint was a reported month-over-month inflation rate of -0.1 percent.
Federal Reserve Chair Jerome Powell signaled the US central bank is likely to keep raising interest rates and leave them elevated for a while to stamp out inflation, and he pushed back against any idea that the Fed would soon reverse course.
In this Big Question, we ask Jeffrey Frankel, Anne O. Krueger, Jim O’Neill, and Stephen S. Roach how steep the world economic downturn is likely to be.
There is no mystery as to how central banks got so far off the deep-end.
Aug 26, 2022 - 08:15:47 PDT
"Let's suppose that a year from now, the war in Ukraine is over and COVID-19 has left China, I could see deflation," he said.
The 19-nation economy will shrink by 0.1 per cent in the third quarter and 0.2 per cent in the fourth, the analysts predicted on Thursday (Aug 25) in a report to clients. Despite that, they upgraded their full-year outlook after a strong performance in the 3 months through June.
Aug 26, 2022 - 08:02:55 PDT
America’s allies in Europe are desperate for alternative supplies of fuel amid the Ukraine war, and U.S. producers are happy to provide what they can. So wouldn’t you know the Biden Administration now wants to limit fuel exports.
German power prices rise to €800 per megawatt hour for the first time, as fears over gas supplies intensify
The UK energy price cap has been hiked by 80% to £3,549 a year, government regulator Ofgem announced on Friday
UMich Inflation Expectations Ease Further, Consumer Sentiment Bounces Off Record LowsAug 26, 2022 - 07:57:07 PDT
Finally, while the market will focus on the drop in inflation expectations, here is what UMICH says about the drop: "Uncertainty over expectations rose considerably, particularly among lower-educated consumers."
Stagflation: Fed’s Powell Says Bringing Down Inflation Will Cause Pain to Households and BusinessesAug 26, 2022 - 07:50:29 PDT
Fed Chairman Jerome Powell said Friday that the fight against inflation will lead to a period of sluggish growth and cause pain to households and businesses.