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The Global Debt Problem… kicking cans down the road just ends up at some point with a pile of cans that can no longer be kicked. But politicians aware of mounting obligations and still doing the can-kicking believe that will be their successors’ problem, and you never know, something might turn up…

“…the imminent failure appears to be that of using monetary inflation to puff financial markets. Once they stall on the back of rising bond yields all these debt obligations will end up being wiped out in a collapse of the fiat currencies along with the financial markets with which their fortunes have become firmly linked.”

https://seekingalpha.com/article/4418358-the-global-debt-problem


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Yellen tells world’s big economies: spend big, danger lurks:

“U.S. Treasury Secretary Janet Yellen on Thursday warned of the risk of a permanent divergence in the global economy in the wake of the COVID-19 crisis, and urged major economies to inject significant new fiscal support to secure a robust recovery.”

https://www.reuters.com/article/us-imf-world-bank-usa-yellen/yellen-tells-worlds-big-economies-spend-big-danger-lurks-idUKKBN2BV1SU?edition-redirect=uk


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In 2020, there was an epic collapse of demand. Now, the problem is supply… Just a few months ago, the US faced an enormous shortage of demand for goods and services, which threatened to prolong the pandemic-induced downturn long beyond the point at which the virus was contained.

“The central economic problem of 2021 is looking like the polar opposite… “The global economy is vulnerable because it never really recovered,” said Nada Sanders, a professor of supply chain management at Northeastern University.”

https://www.seattletimes.com/business/economy/in-2020-there-was-an-epic-collapse-of-demand-now-the-problem-is-supply/


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Inflation Has Gone K-Shaped in the Pandemic Like Everything Else… Low-income Americans bore the brunt of job losses when the pandemic arrived. Now they’re getting hit hardest by price increases as the economy recovers.

“Some of the biggest price hikes of recent months, for example, have come in gasoline… Food-price inflation is running at more than double the headline rate, and staples like household cleaning products have also climbed.”

https://www.bloombergquint.com/business/inflation-has-gone-k-shaped-in-the-pandemic-like-everything-else


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US expresses concern as Russia ‘sends ballistic missiles’ to Ukraine border.

“The United States on Thursday said it was discussing Russia’s military build-up near the Ukrainian border with Nato allies as fresh reports showed Russia deploying ballistic missiles to the area.”

https://www.telegraph.co.uk/news/2021/04/08/us-expresses-concern-russia-sends-ballistic-missiles-ukraine/


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The consequences of Boris Johnson’s careless Brexit are playing out in Belfast:

“This week’s violence is an ominous sign that leaving the EU took a wrecking ball to the Good Friday agreement.”

https://www.theguardian.com/commentisfree/2021/apr/09/boris-johnson-brexit-belfast-violence-eu-good-friday-agreement


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ECB Steps Up Warnings to EU Not to Delay Joint Recovery Stimulus

“Bank of Italy Governor Ignazio Visco called the European Union recovery fund “crucial” in an interview with Bloomberg TV, and Executive Board member Isabel Schnabel said separately that a long delay would be a “disaster.””

https://www.bloomberg.com/news/articles/2021-04-09/ecb-s-schnabel-warns-of-economic-disaster-if-eu-aid-delayed


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Coronavirus impact on Spain’s economy is worse than we feared:

“Spain’s government has slashed its forecast for an economic recovery during 2021, blaming a Covid-induced contraction in the first quarter and delays to the arrival of EU rescue funds.”

https://www.theolivepress.es/spain-news/2021/04/09/coronavirus-impact-on-spains-economy-is-worse-than-we-feared/


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Almost half of Italian businesses structurally at risk:

“Around 45% of Italian firms involved in productive sectors are structurally at risk. This is one of the major findings of a new report on the competitiveness of productive sectors in Italy released by the bureau of statistics ISTAT on Wednesday.”

https://www.presstv.com/Detail/2021/04/08/648995/Almost-half-of-Italian-businesses-structurally-at-risk


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Italy and Greece risk post-pandemic debt crunch… Italy, Greece and other heavily indebted eurozone countries risk a financial crunch after the pandemic because of the cost of fighting Covid, analysts have warned.

“Mounting debts risk spooking investors and driving up borrowing costs…”

https://www.telegraph.co.uk/business/2021/04/08/italy-greece-risk-post-pandemic-debt-crunch/


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Unrestrained rises in property prices may pose the biggest threat to the Australian financial system, according to Australia’s central bank…

“The fear, say the RBA and financial experts, is that if prices ultimately fall to any significant degree heavily indebted institutions and households could face a financial crisis.” [Same applies to the UK, Sweden, Canada and I’m sure many other places, too].

https://www.abc.net.au/radio/programs/pm/booming-property-and-share-markets-a-risk-to-financial-stability/13296594


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ILO: Pandemic caused 26-million job loss in Latin America, Caribbean

“Roxana Maurizio, a specialist in labour economics at the ILO, warned that in 2021 “there could be a significant increase in the unemployment rate, when the millions of people who had stopped participating in the labour force return to the work.””

https://newsday.co.tt/2021/04/09/ilo-pandemic-caused-26-million-job-loss-in-latin-america-caribbean/


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Brazil sets record daily COVID-19 death toll, Senate to probe Bolsonaro government’s response

“Brazil on Thursday set a daily record of 4,249 COVID-19 deaths, with overwhelmed hospitals running low on supplies and the senate about to open an investigation…”

https://www.reuters.com/article/us-health-coronavirus-brazil/brazil-sets-record-daily-covid-19-death-toll-senate-to-probe-bolsonaro-governments-response-idUSKBN2BV38Z?il=0


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Mexico, Argentina urge debt relief for middle-income nations:

“Mexico and Argentina call for international debt relief for middle-income countries home to many of the people pushed into extreme poverty by the coronavirus pandemic… The nations said that middle-income countries have been forgotten…”

https://www.batimes.com.ar/news/economy/mexico-argentina-urge-debt-relief-for-middle-income-nations.phtml


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Exit of Cuba’s last Castro brings curtain down on revolutionary era

“Cuba’s last Castro is set to leave the political stage, as Fidel’s 89-year-old brother Raúl cedes power to a younger generation at next week’s communist party congress which must also tackle a dire economic crisis and growing political dissent.”

https://www.ft.com/content/37aca940-7eaf-4c85-a216-f9916644da57


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Currency Collapse Mirrors Turkmenistan’s Extreme Economic Woes

“When the exchange rate of Turkmenistan’s national currency, the manat, fell to 40 to the dollar on the black market on April 3, it was more than 11 times the long-standing official rate of 3.5 manats per dollar. It was also an all-time low…”

https://www.rferl.org/a/currency-collapse-turkmenistan-economic-woes/31193958.html


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Foreign lenders cutting ties with Lebanon’s central bank:

“Foreign lenders including HSBC and Wells Fargo are cutting ties with Lebanon’s central bank, sources familiar with the matter told Reuters news agency, underlining the country’s international isolation as it reels from economic crisis.”

https://www.aljazeera.com/economy/2021/4/8/hsbc-wells-fargo-cut-ties-with-lebanons-central-bank-report


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Don’t Lend to Our Government, Debt-Weary Kenyans Demand of IMF:

“Some citizens in East Africa’s biggest economy don’t want any more loans for their government, saying a lot of the cash will be embezzled by state officials, and are signing online petitions to the Washington-based lender.”

https://www.bloomberg.com/news/articles/2021-04-09/don-t-lend-to-our-government-debt-weary-kenyans-demand-of-imf


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Food crisis worsening in West Africa after COVID-19 and attacks:

“Nearly 20 million people are starving in West Africa and the Sahel region as the vast area is torn by conflicts and the coronavirus pandemic, experts warned Thursday. The situation could worsen between June and August…”

https://www.dailysabah.com/world/africa/food-crisis-worsening-in-west-africa-after-covid-19-and-attacks


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China’s producer prices climbed in March by the most since July 2018 on surging commodity costs, adding to worries over rising global inflation as the pandemic recedes.

“The producer price index rose 4.4% from a year earlier after gaining 1.7% in February, the National Bureau of Statistics said Friday…”

https://www.bloomberg.com/news/articles/2021-04-09/china-s-march-producer-prices-jump-most-in-more-than-two-years


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Global Food Costs Keep Climbing in Threat to Consumer Wallets… The global food-price rally that’s stoking inflation worries and hitting consumers around the world shows little sign of slowing.

“…a United Nations gauge of global food costs rose for a 10th month in March to the highest since 2014.”

https://www.bloomberg.com/news/articles/2021-04-08/global-food-costs-keep-climbing-in-threat-to-consumer-wallets


You can read the previous ‘Economic’ thread here. I’ll be back on Monday with a “Climate” thread.

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