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The European Union seems to be warming to the idea of direct sanctions on Russia’s energy industry, slapping a ban on imports of coal for starters. The United States is releasing 180 million barrels of crude, and several IEA members are releasing another 60+ million barrels. And Saudi Arabia just hiked its prices for all buyers. Much higher oil prices may be around the corner.
Big oil company executives go to Capitol Hill to talk about high energy prices. "Big oil is profiteering from our continued reliance on this volatile global commodity," said Representative Frank Pallone, a Democrat from New Jersey, who heads the House Committee on Energy and Commerce, at the start of a congressional hearing on the issue.
Jeremy Grantham has a fresh warning about Russia’s invasion of Ukraine: oil-price spikes of this magnitude have always triggered recessions, and the global economy is at risk of much bigger challenges in the coming decades as finite commodities become scarce.
Russian coal and oil paid for in yuan is about to start flowing into China as the two countries try to maintain their energy trade in the face of growing international outrage over the invasion of Ukraine.
Japan’s central bank has stuck to aggressive government debt purchases, rock-bottom interest rates and near-zero long-term bond yields. The costs of this approach keep rising as a weak yen is at odds with the need for more consumer spending and ending the deflationary mindset.
Growth rates in the euro zone could dip into negative territory this year and European Central Bank policy tightening to bring down high inflation in the near term risks crashing the economy, ECB board member Fabio Panetta said on Wednesday.
Apr 7, 2022 - 05:51:03 PDT
“And with the current levels of imported inflation, in order to hold headline inflation to 2%, we would need domestic inflation to be deeply negative. In other words, we would induce domestic deflation,” he added.
Higher interest rates making historic debt levels unsustainable means that debt deflation is the very probable conclusion. When that process starts, economies can enter a deflationary spiral which will mean lower asset prices.
Apr 7, 2022 - 05:43:44 PDT
Well, the US have gone from “fastest economic recovery in history” to real GDP growth of less than 1% (Atlanta Fed GDPNow for Q1). In addition, the flexible price CPI less food and energy is a whopping 20%.
Inflation is the biggest threat to Joe Biden’s presidency. Prices are rising nearly 8% per year, and could go higher still before Federal Reserve rate hikes or other measures bring some relief to family budgets. But inflation isn’t the only risk Biden faces, and a key cohort of voters have another major complaint: student debt.
U.S. first-time unemployment claims are expected to come in around 200,000 in the latest weekly data, with the rate of layoffs and firings staying relatively low compared to pre-pandemic averages.
If the world depends upon the U.S. Shale Industry to save the day by bringing on a lot more oil production... GOOD LUCK with that. Unfortunately, the Red Queen Syndrome is now catching up to the U.S. Shale Patch as the rapid decline rate will make it difficult for the industry to grow production...
Investors are building fresh long position in gold “Geopolitical risk continues to remain the key price driver, which would see strong appetite for safe-haven demand.”
Speech by Agustin Carstens, General Manager of the BIS, International Center for Monetary and Banking Studies, Geneva, 5 April 2022
Apr 6, 2022 - 12:39:25 PDT
Chairman of the Joint Chiefs of Staff Gen. Mark Milley warned Congress on Tuesday that the chances of a “significant international conflict between great powers” are increasing. Milley warned that both China and Russia are threats to the so-called “rules-based” global order.
“As the U.S. dollar becomes more weaponised, there is an incentive to convert more FX reserves into yuan,” underlined SEB’s Victorino. “In the case of Russia, earlier restrictions imposed following the annexation of Crimea in 2014 led to the significant diversification of Russia’s foreign reserves away from U.S. dollars...
If Poland Hosts US Nukes, Russia Will Station Nuclear Weapons Along Western Border: KremlinApr 6, 2022 - 12:22:01 PDT
As fully expected, Kremlin spokesman Dmitry Peskov on Wednesday blasted Poland's offer to the United States of its 'readiness' to host nuclear weapons for NATO. The recent words of Deputy Prime Minister of Poland Jaroslaw Kaczynski were widely reported this weekend.He told Germany's Welt Am Sonntag newspaper: "If the Americans asked us to store American nuclear weapons in Poland, we would be open to it."
Chairman of the Joint Chiefs, Gen. Milley, told Congress that NATO needs to build more permanent bases on Russia's border in response to the Ukraine conflict and that the conflict will last years. More US troops on Russia's borders will act as a "deterrent." The military-industrial-Congressional complex is no-doubt thrilled.
Budapest has stated it won’t support sanctions that may affect Russian energy imports, adding the country is prepared to pay rubles for gas
In an article about the potential for a peace deal between Ukraine and Russia, the Washington Post admits that some within NATO want to prolong the war for as long as possible.