Crises..

 

The global economy continues to be weakened by the Russia/Ukraine war through significant disruptions in trade, food and fuel price shocks.  All of which are contributing to high inflation and subsequent tightening in global financing conditions by central banks around the World.

Inflation reached or exceeded 9% in US and Europe, and to curb this disaster, recession started to become an expectation. It is not if, but when.

The disrupted trade in food and energy will bring the world economy to its knees. Russia is the world's third-biggest petroleum producer and a leading exporter of natural gas, fertilizer and wheat. Farms in Ukraine feed millions globally. The resulting inflation has rippled out to the world.

But with that, the sanctions on Russia and the Russian sanctions on EU and US. is dragging the various economies into recession which this time will be worse than 2008.

One wonder, why? Just a thought.

Loss...

 

 Federal Reserve's fight to squash inflation will cause the US economy to start losing tens of thousands of jobs a month beginning early next year, Bank of America warns.

Although the jobs market remained surprisingly strong in September, the Fed is working hard to change that by aggressively raising interest rates to ease demand for everything from cars and homes to appliances.

The pace of job growth is expected to be roughly cut in half during the fourth quarter of this year, Bank of America told clients in a report Friday.

As pressure from the Fed's war on inflation builds, nonfarm payrolls will begin shrinking early next year, translating to a loss of about 175,000 jobs a month during the first quarter, the bank said. Charts published by Bank of America suggest job losses will continue through much of 2023.

History..

 

In 2015, the Greek prime minister Alexis Tsipras repeatedly said that Greece would seek to mend ties between Russia and EU through European institutions, also said Greece was not in Favour of Western sanctions imposed on Russia, it risked the start of another Cold War.^[167]

A number of business figures in France and Germany have opposed the sanctions. The German economy minister Sigmar Gabriel said that the Ukrainian crisis should be resolved by dialogue rather than economic confrontation,^] later adding that the reinforcement of anti-Russian sanctions will "provoke an even more dangerous situation... in Europe".

Paolo Gentiloni, the Italian minister of foreign affairs, said that the sanctions "are not the solution to the conflict".^[1In January 2017, Swiss economics minister and former president of Switzerland Johann Schneider-Ammann stated his concern about the sanctions' harm to the Swiss economy.

Fed..

  

Federal Reserve officials signaled they are more concerned about doing too little to rein in soaring US inflation than doing too much and doubled down on plans to tighten monetary policy, so it constrains the economy, according to an account of their latest meeting. 

 Minutes from the September meeting at which the Fed implemented its third-consecutive 0.75 %-point rate rise underscored the high bar for the central bank to back off in its historically aggressive campaign to bring prices under control.

 According to the account, central bankers remain committed to “purposefully” tightening monetary policy in the face of “broad-based and unacceptably high inflation.”

So, Money has to come out of your pocket, one way or another.  

Just a thought.

CPI..

 

Consumer prices in the US rose more than expected last month in a sign that the inflation fight in the world's largest economy is far from over.

Inflation, the rate at which prices rise, was 8.2% in the 12 months to September, down from 8.3% in August.

Despite the fall, the figure was still higher than forecast.

Inflation in the US is being closely watched as the US central bank's efforts to tame the problem push up the dollar and global borrowing costs.

On the other hand, the White House Administration just continue it's failed sanctions on Russia which is causing food shortage and tripled the cost of Natural Gas, leading many European countries into recession.

Cause/Effect..

 

Despite their best efforts, the world’s economic authorities seem to be becoming increasingly resigned to the fact that inflation cannot be tamed without triggering a recession. 

Federal Reserve chair Jerome Powell warned that the central bank is prepared to “bring some pain.” And after the rate hike on Wednesday, he admitted that the chances of avoiding a recession are “likely to diminish,” and an uptick in unemployment is probably on the way. 

“We have got to get inflation behind us,” he said. “I wish there were a painless way to do that. There isn’t.”

Comment:

1- The White House wanted to enact few bills with 10 Trillion dollars as Biden became a president and the party is looking for extra spending.

2- A year earlier, a fake denial of the creeping inflation as the Party claimed it's "Transitory"

3- Biden's cancelled Keystone pipeline XL, then Nord Stream 2. That followed by problems and slow delivery of Nord Stream 1, to Europe.

4- Hate towards the Russian people. US lead the G7 to enact sanctions against Russia for the Russia/Ukraine War. 

5- Russia placed sanctions on EU, as a result, prices of oil, natural gas skyrocketed, shortage of food, and inflation took off. As a result, prices of energy skyrocketed in the UK and Europe, Inflation intensified, and Recession is looming.  Just a thought.

Fear..

 

Scrambled..

 

While more than $13 trillion in market cap has been erased from the Russell 3000, the Bespoke analysts noted that five individual stocks have seen their market caps fall by more than $500 billion — Microsoft Corp., Google parent Alphabet Inc. Facebook parent, Amazon.com Inc., and Apple Inc. AAPL, 

Eighteen stocks have seen their market cap fall by more than $100 billion, including names like Tesla Inc. TSLA, JPMorgan Chase & Co., and Home Depot Inc., while five names on the list — Meta, Nvidia Corp, Netflix, Adobe Inc. and Paypal Holdings Inc. down 60% from their 52-week highs.

Total Loss up todate is 36 trillion Dollars.

Retirement..

 

The White House wants to run a fake story about who to blame for anything. It is Putin, It is the Ukraine defending Democracy, it is Trump, it is the Saudi,  Just a "Blaming Game" thought.

Kind of..

 

The Writing on the Wall..