“Soaring gas prices could lead to global famine – Russian pressure on the market will have a devastating effect on fertiliser costs and crop yields…
“Strategic planners have spent decades worrying about World War III but they were missing the point. War, when it comes, will have some 20th-century features but probably won’t be fought in multiple interlocking theatres. Rather, the fighting will be swift and confined — but the victims will be worldwide.”
https://www.thetimes.co.uk/article/soaring-gas-prices-could-lead-to-global-famine-np892fg7r
“Food prices climbed during the second year of the pandemic — and climate disasters contributed…
““We live in a global food system,” says Sean Smukler, chair of agriculture and environment at the University of British Columbia. “I can’t imagine that there are many places in the world where production in one location doesn’t impact the price and availability of food in another location in the world.””
“Here’s Why Rising Food Prices are Here to Stay…
“Politicians can get away with an astonishing level of corruption and incompetence, and their citizens will tolerate it. But if enough people struggle to put food on the table for their families, trouble is coming.”
https://www.valuewalk.com/heres-why-rising-food-prices-are-here-to-stay/
“A gauge of commodities soared to an all-time high as geopolitical tensions boosted energy prices, worsening fears of inflation around the world.
“The Bloomberg Commodity Spot Index, which tracks 23 energy, metals and crop futures contracts, rose 1% on Wednesday, topping an October record. The index has doubled since sinking to a four-year low in March 2020.”
“Cost of living: Oil hits $90 a barrel for first time since October 2014.
“Worries about the impact of conflict in Ukraine as well as violence in the Middle East and broader concerns over oil production levels have added to a rally in the price since it slumped to less than $20 during the pandemic.”
“U.S. Clears Second-Largest Ever Loan of Oil From Strategic Reserve…
“The U.S. Department of Energy announced the loan of 13.4 million barrels of crude oil from its strategic reserve as part of a renewed effort by the Biden administration to contain oil prices that have surged to their highest level since 2014.”
“Federal Reserve signals March for first rate increase.
“The US Federal Reserve has signalled it will begin lifting interest rates in March, with chairman Jerome Powell insisting on Wednesday (Thursday AEDT) that monetary tightening will not upset the country’s robust labour market recovery.”
https://www.afr.com/policy/economy/federal-reserve-signals-rate-increase-soon-20220127-p59rji
“IMF sees potential for further market turbulence as central banks hike rates.
“Central banks’ moves to tighten monetary policy and curb rising inflation could push riskier stocks deeper into the red even as policymakers pledge a smooth transition, the IMF’s Tobias Adrian, financial counsellor and director of monetary and capital markets, told CNBC’s Geoff Cutmore.”
“The specter of stagflation haunts US stock market…
“…consumers are refusing to pay the higher prices… Consumers may spend less altogether, especially as inflation erodes their savings, and as the prospect of tighter money batters their stock portfolios.”
https://menafn.com/1103598553/The-specter-of-stagflation-haunts-US-stock-market&source=26
“UK car production plunged to its lowest level since 1956 last year as a shortage of semiconductor chips piled further pressure on an industry battered by the pandemic…
“…the industry still faces a growing challenge from a surge in energy costs of up to 70%, according to the Society of Motor Manufacturers and Traders.”
“Millions of British households have defaulted on essential payments this month, with many pushed to the brink as the cost of living crisis deepens.
“More than 2.5 million families have failed to pay either their mortgage, rent, loans, credit cards or bills so far this year, research by campaign group Which? found.”
“French EDF workers strike over government efforts to keep prices down.
“Workers at EDF, France’s biggest electricity provider, are striking today (January 26) in protest against government measures designed to prevent consumer tariffs from rising.”
“How Germany went from Europe’s economic locomotive to its laggard…
“Much of the recent underperformance of Europe’s largest economy stems from its greater exposure to global supply chain bottlenecks that have hit manufacturing, as well as a weaker recovery in household spending, economists said.”
https://www.ft.com/content/cc0d9886-4912-4887-97aa-a9f4d3507bef
“Germany Weighs Creating National Gas Reserves to Prevent Winter Shortages.
“Germany is considering creating government-controlled natural gas storage sites as it tries to prevent another shortage of the fuel ahead of next winter, Economy Minister Robert Habeck said.”
“Nord Stream 2 gas pipeline won’t open if Russia invades Ukraine, says US.
“The Nord Stream 2 pipeline between Russia and Germany will not move forward if Russia invades Ukraine, the US state department has said, in a significant strengthening of the west’s previous position on the strategically vital gas supply.”
“Putin Has The Power To Intensify Europe’s Energy Crisis.
“So far European leaders “have spent tens of billions of euros trying to shield consumers from record-high energy prices, and themselves from voters’ wrath” according to reporting and analysis by Reuters, but the efforts are going to fall far, far short of the economic fallout continuing to batter European consumers.”
“Turning up the heat on Europe’s fuel poverty crisis.
“With millions of Europeans having to make the desperately tough choice between eating and heating this winter, Real Economy travels to Bulgaria to see how EU funding is helping support families with a hot meal so they can direct their savings towards their other vital needs.”
https://www.euronews.com/next/2022/01/26/turning-up-the-heat-on-europe-s-energy-poverty-crisis
“‘Hunger Crisis’ Threatens Migrant Camps in Greece.
“Humanitarian groups are sounding the alarm over a rapidly escalating hunger crisis in Greece’s migrant camps. Aid workers say that the camps have been lacking sufficient food for months, with children crying over their extreme hunger.”
https://greekreporter.com/2022/01/26/hunger-crisis-migrant-camps-greece/
“Turkey Sees Energy Crisis Worsen Amid Russia-Ukraine Tensions.
“Turkey is still in dire need of additional natural gas volumes, which at present are mainly coming from Russia. Until now, domestic demand growth has been met by additional supply from Gazprom… With Russian dwindling, the Iranian supply cut is coming at a very bad time.”
“Iraq’s electricity supply is suffering severe disruptions because of natural gas shortages — a crisis that underscores the weakness of the country’s energy infrastructure and its overreliance on Iran for imported fuel and power.
“The gas shortages have knocked out about 6,500 MW of power generation capacity, according to an Electricity Ministry official.”
https://www.iraqoilreport.com/news/power-crisis-worsens-with-domestic-gas-supply-disruptions-44399/
“Uzbekistan: How a power outage sent a country into meltdown… The way the utilities system is designed meant that a whole series of related essentials were quick to fail…
“After a little while, people began growing worried. The water pressure dropped. Then the gas stopped flowing into homes. When the heating turned off, anxiety turned to alarm.”
https://eurasianet.org/uzbekistan-how-a-power-outage-sent-a-country-into-meltdown
“Property Crisis Means Chinese Cities Sell Land to Themselves.
“Across China, local government financing vehicles have replaced cash-strapped property developers as the biggest buyers of land for real estate development, stoking fresh concerns over the ability of these off-balance sheet borrowers to repay a debt pile that tops $8.4 trillion…”
“Sri Lanka in talks with bondholders to avoid default, says finance minister…
“Basil Rajapaksa, finance minister, told the Financial Times in an interview that the government was “negotiating with everybody” and “trying all our options” to avoid default and alleviate the economic crisis.”
https://www.ft.com/content/21217f9e-9c4c-4483-968c-25433e62d9c0
“Nepal Oil declares itself bankrupt as Kathmandu’s tourism dependent economy hits a new low…
“Sharp spike in prices in Nepal is hurting its common citizens. What is worse is that many believe that prices will further rise in the coming months especially with the state owned Nepal Oil declaring itself bankrupt just a few days ago.”
https://www.daijiworld.com/news/newsDisplay?newsID=919493
“Economic Activity in Myanmar to Remain at Low Levels, with the Overall Outlook Bleak.
“Myanmar’s economy and people continue to be severely tested by the ongoing impacts of the military coup and the surge in COVID-19 cases in 2021 [with] an expected 18 percent contraction of the economy in the year ended September 2021…”
“Malaysia, Thailand face prospect of stagflation.
“Classic stagflation was a phenomenon that hit the world in tandem with the oil supply shocks of 1973-74 and 1978-79. Stagflation is a condition where the economy is experiencing high inflation, recession and high unemployment, all at the same time.”
“Chile Escalates Inflation War With Biggest Rate Hike in 20 Years.
“Chile delivered its biggest interest rate hike since 2001 in a shock decision and signaled borrowing costs will continue to rise higher than many investors had expected amid renewed urgency to drag inflation to target.”
“Community Organizing in Peru Tackles Hunger in Pandemic.
“It’s nine o’clock in the morning and Mauricia Rodríguez is already peeling garlic to season the day’s lunch at the Network of Organized Women of Villa Torreblanca, one of more than 2,400 solidarity-based soup kitchens that have emerged in the Peruvian capital in response to the worsening poverty…”
https://havanatimes.org/features/community-organizing-in-peru-tackles-hunger-in-pandemic/
“Cuban peso in free fall against the dollar…
“The peso’s free fall is bad news for a population that for two years has confronted a grave economic crisis and unusually severe shortages of food, medicine and other goods… The Cuban peso was trading at nearly 100 to the dollar on the informal market Tuesday.”
https://www.reuters.com/world/americas/cuban-peso-free-fall-against-dollar-2022-01-26/
“A man who held up a bank to withdraw his own money has been hailed as a hero by Lebanese furious at capital controls that are preventing them from accessing their savings amid a financial collapse.
“Abdallah Assaii is accused of holding seven staff hostage at a bank in Lebanon’s Bekaa Valley last week, dousing them in petrol and threatening to set them alight unless they provided him with $50,000 from his account.”
https://www.telegraph.co.uk/world-news/2022/01/26/man-has-raid-bank-get-money/
You can read the previous ‘Economic’ thread here. I’ll be back tomorrow with a ‘Climate’ thread.
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