Enemy..

 

Italy..

 

ITALY is considering a new state of emergency, highlighting the deteriorating economic situation linked to the war in Ukraine, according to media reports.

A looming energy crisis combined with fears the country is sliding into recession has led the Italian government to consider the measures.

Italy only ended a two-year stare of emergency on March 31 after the country finally recovered from a period of economic stagnation due to the Covid-19 pandemic.

But economists have warned that a spike in energy and food prices will hit spending power and lead to a decline in domestic demand.

War in Ukraine and sanctions on Russia along with the decision to cut off the Russian gas supply have had a serious impact on Italy’s struggling economy.

It is estimated that half a million workers could lose their jobs if Italy completely halts gas supplies from Russia.

Last year’s recovery, after the Italian economy contracted by 9 per cent in 2020, has been wiped out by the restrictions imposed on Moscow.

Bosses’ association Confindustria has said Italy is heading for recession while the government revised its growth projection down from 4.7 per cent to 3.1 per cent last month.

Earlier this week he called for reforms to the European Union to enable it to deal with a growing economic and energy crisis faced by the bloc.

The European Commission proposed an EU-wide ban on all Russian oil imports by the end of the year.

The people, in Democratic States elect their democratic leaders to create crisis and mismanage it. God help us all

Hint..

 

UK borrowers can expect to face higher interest rates as a result of the Truss government’s tax and spending decisions during its six weeks in power, the governor of the Bank of England has warned.

Despite the U-turn on corporation tax on Friday that saw the sacking of Kwasi Kwarteng as chancellor, Andrew Bailey said the extra stimulus provided in last month’s mini-budget would add to inflation and force the Bank into tougher-than-expected action.

Bailey said he had impressed on the new chancellor, Jeremy Hunt, the need for the public finances to be sustainable and that there had been a “clear and immediate meeting of minds”. Hunt used his first interview to stress mistakes made by Truss would require “difficult decisions” to be made.

Sound Familiar. Just a thought.

Brewing..

 

Concern over inflation in Europe has been brewing even before Russia invaded Ukraine in February. While some argued it was transitory, others warned that it was a sign of a deeper crisis. Now, half a year since the start of the war in Ukraine, a new debate is gripping Europe: is a recession inevitable?

Every passing day seems to foreshadow a downturn. After Moscow decided to temporarily suspend its gas supply to Germany, gas prices surged to €295 per Megawatt-Hour. 

Business activity in Germany and France contracted in August due to falling demand and rising prices. The euro hit a new 20-year low against the dollar, making it more expensive to purchase energy on international markets, which is paid with the greenback. 

The Germany’s central bank, Bundesbank, forecast that inflation, which stands at 7.5%, will hit double digits in fall. And the severe drought sweeping Europe has led to a decline in hydroelectric production when it is needed most. The drought has also led to record-low water levels in rivers such as the Rhine, where some vessels cannot pass, a problem that is causing major disruptions to water freight.

Just a thought.

Assistance..

 

Taken together, congressional authorizations of military and nonmilitary aid to Ukraine are now around $50 billion. 

For some perspective, consider these figures: Among top recipients of U.S. military assistance in 2020, Israel received $3.3 billion, Afghanistan $2.8 billion and Egypt $1.3 billion. The totality of U.S. military aid spread across 157 nations amounted to $11.6 billion. 

The Ukraine military outlay for 2022 is now more than three-fourths of that figure — and there are still more than four months left in 2022. There are almost certainly more shipments of weapons to come.

Millions of refugees fled the war..

Are we helping the Ukraine?  Just a thought.

Buckle up..

 

 After a week hosting the International Monetary Fund’s annual gathering of economic leaders, Managing Director Kristalina Georgieva summed it up for the 190 member countries: “Buckle up, and keep going.”

As the talks ended in Washington on Saturday, finance ministers and central bankers seeking to sustain the world economy’s shaky recovery from the pandemic worried Russia’s invasion of Ukraine and Sanctions back and forth, continue to destabilize Europe and stymies efforts to boost growth.

Just a thought.

Adjusted..

 

Cain..

 

 Ukraine’s tangled political history with Russia has its counterpart in the religious landscape, with Ukraine’s majority Orthodox Christian population divided between an independent-minded group based in Kyiv and another loyal to its patriarch in Moscow.

On the other side of religion:  Cain, a farmer, became enraged when the Lord accepted the offering of his brother, a shepherd, in preference to his own. He murdered Abel and was banished by the Lord from the settled country. Cain feared that in his exile he could be killed by anyone, so the Lord gave him a sign for his protection and a promise that if he were killed, he would be avenged sevenfold.

A brother is killing a brother?

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.