“Global Debt Reaches a Record $226 Trillion.
“In 2020, we observed the largest one-year debt surge since World War II, with global debt rising to $226 trillion as the world was hit by a global health crisis and a deep recession [the deepest since the 1930’s].
“Debt was already elevated going into the crisis, but now governments must navigate a world of record-high public and private debt levels, new virus mutations, and rising inflation.”
https://blogs.imf.org/2021/12/15/global-debt-reaches-a-record-226-trillion/
“Central Banks Bet Economies Can Tolerate Omicron, Not Inflation.
“In the last couple of days, central banks in the U.S. and Europe have pivoted –- at varying speeds — toward tighter policy. They now see reining in prices as a higher priority than protecting output and employment from further pandemic fallout.”
“Fed to accelerate tightening, with as many as three rate hikes in 2022.
“As recently as March, the Fed wasn’t expected to raise rates until 2024. Now, the central bank could implement as many as three rate hikes next year.”
“[US] Food Charities Face Perfect Storm of Inflation and Labor Shortages…
“There’s inflation, of course, which has spiked to highs not seen in nearly four decades and has pushed up food prices. Then add to that: Labor shortages, supply chain blockages, stretched budgets and charitable giving fatigue —and some aren’t sure they can survive.”
“Bank of England Shocks With First Rate Hike Since Crisis to Combat Inflation.
“The Bank of England raised interest rates for the first time since the pandemic struck, setting aside the threat to the U.K. economy posed by record coronavirus cases to lead the global fight against surging inflation.”
“Inflation will push millions of Britons into a winter of acute economic pain.
“The Bank of England’s response to a spike in inflation – a rise in interest rates – is a disaster for those already living on the edge… the pain …will hit a new high in April 2022, when the national insurance rise comes in, along with an expected lifting of the energy price cap.”
“Eurozone business activity slows as Covid restrictions hit services sector, PMI shows.
“Business activity in the eurozone slowed after restrictions to tackle surging coronavirus infections hit the services sector, while there were signs of an easing in the supply bottlenecks holding back manufacturers, according to a closely watched survey.”
https://www.ft.com/content/1ad8ab64-1db0-4cac-a4bd-a30e961b5ab7
“Europe’s Energy Crisis Just Got Worse.
“On top of an ongoing natural gas crunch, Europe faces the winter season with reduced nuclear output in France, exacerbating the energy crisis and leaving large parts of the continent praying for a milder winter.”
https://oilprice.com/Latest-Energy-News/World-News/Europes-Energy-Crisis-Just-Got-Worse.html
“EU leaders spar over energy crisis, Covid restrictions…
“The last EU summit of the year ended at the stroke of midnight, with leaders sparring and ultimately failing to agree a common position on the bloc’s energy crisis.”
https://www.ft.com/content/455107ce-de8c-4236-97f6-8275710478bc
“EU leaders warned Russia of “massive consequences” if it invades Ukraine, the 27 said in a statement following a summit in Brussels on Thursday…
“Any further military aggression against Ukraine will have massive consequences and severe cost in response,” the statement read.”
““British, EU gas prices soar as less Russian gas expected on Friday.
“Benchmark British and European wholesale gas prices closed at record highs on Thursday after data indicated Russian gas exports to Germany through the major Yamal pipeline were not expected on Friday.”
“Rising prices threaten cheerless New Year for Russian families…
“The Kremlin has voiced concern about the rise in prices, which President Vladimir Putin has described as a sensitive issue for Russians, especially low-income families in far-flung regions.”
“A Chinese property company said today that it cannot get in touch with a money management firm that it gave over US$300 million (RM1.2 billion) for investment, the latest example of the country’s debt-crippled real estate sector’s woes.
“China Fortune Land Development said in a filing to the Shanghai Stock Exchange that it had recently “lost contact” with China Create Capital after handing over the money…”
“China Tells Evergrande to Prioritize Paying Workers, Suppliers.
“China Evergrande Group is prioritizing payments to migrant workers and suppliers as regulators urge the cash-strapped developer to head off any risk of social unrest, according to people familiar with the matter.”
“Brazil expels IMF office over growth forecasts…
““It has been years since they were needed here. They stayed because they like feijoada [black bean and meat stew], football, good conversation and, from time to time, to criticise and make wrong predictions,” said Paulo Guedes, Brazil’s finance minister.”
https://www.ft.com/content/5708a07a-11ce-4eb7-8e39-bd575e96ca03
“Clashes in Rawson [Argentina] after Chubut Legislature approves mega-mining project.
“Lawmakers in Chubut approve controversial project by 14 to 11; Arrests and injuries after police clamp down on protesters in Rawson; Legislation authorises mining – without the use of cyanide – in the region’s central plateau.”
“Mining protests grow in areas of Peru that heavily backed Castillo…
“A total of 42 socio-environmental conflicts – most of them related to the mining industry – are ongoing in that southern Andes region, where Castillo obtained more than 90 percent of the vote in some districts.”
https://www.laprensalatina.com/mining-protests-grow-in-areas-of-peru-that-heavily-backed-castillo/
“Indonesians protesting against mines run growing risk of ‘criminalization’.
“…the Kali Progo People’s Collective (PMKP)… says the mining operations have exacerbated the freshwater crisis in the district and created noise pollution. They also accuse the mining companies of forging their community consent documents…”
“Pakistan is ‘bankrupt’, says former chairman of apex tax authority.
“The former chairman of Pakistan’s Federal Board of Revenue Shabbar Zaidi has said that the country is “bankrupt” and it is better to recognise the reality than “living in illusion”.”
https://www.dailyexcelsior.com/pakistan-is-bankrupt-says-former-chairman-of-apex-tax-authority/
“Pakistan warns any economic collapse in Afghanistan will affect entire world…
“Shah Mahmood Qureshi said Pakistan has been reaching out diplomatically, sensitizing the world about the impending humanitarian situation; and hosting the OIC Foreign Ministers conference is an important step to this objective.”
“Many Turks Can’t Afford Bread, and Bakers Can’t Afford to Make It… The Istanbul municipality has significantly increased supplies of cheap bread from government factories, and the federal government has announced that it is providing subsidized flour to bakeries.
“Yet, in a sign of the depth of the economic crisis, bread sales are down and bakeries, forced to keep prices to the level set by the Chamber of Bakeries, warn that they are facing bankruptcy.”
https://www.nytimes.com/2021/12/15/world/europe/turkey-bread-prices.html
“Lebanese man dies after setting himself on fire…
“According to the Lebanese National News Agency, the citizen did this “to protest the difficult living conditions.” …Citizens struggle to provide basic commodities such as fuel and medicine.”
https://en.royanews.tv/news/33257/2021-12-16
“Airlines fly close to downwards debt spiral. Airlines are close to breaking the corporate credit card.
“Since 2019, the top six network carriers in the United States and Europe have loaded up with an additional $44 billion of net debt, more than their pre-pandemic EBITDA. Even with a return to normal in 2022 – an increasingly unlikely scenario – paying that off will take years.”
https://www.reuters.com/breakingviews/airlines-fly-close-downwards-debt-spiral-2021-12-15/
“The pandemic could soon mean a shortage of new airplanes, too…
“Beyond labor shortages, constrained maintenance capacity, and a still-significant portion of the world’s fleet parked, a previously unthinkable challenge faces the industry as the global economy marches on. We may not have enough airplanes.”
https://theaircurrent.com/analysis/pandemic-airbus-boeing-shortage/
“Global power generation from coal set to hit record level.
“In its annual coal report, the Paris-based [International Energy Agency] said global power generation from coal was set to jump by 9 per cent in 2021 to an all-time high of 10,350 terawatt-hours, after falling in 2019 and 2020.”
https://www.ft.com/content/ab8933bc-84f3-43dc-b5ef-cd259ef77a11
You can read the previous ‘Economic’ thread here. I’ll be back over the weekend with a ‘Climate’ thread.
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