“Relations between the US and China were poor even before the visit of the House of Representatives speaker to Taiwan. Now they have the potential to turn very nasty indeed – with significant consequences for the global economy.”
https://www.theguardian.com/business/2022/aug/03/nancy-pelosi-taiwan-global-economy-us-china
“Ministers from the 13-member group and its allies, led by Russia and known as Opec+, met on Thursday at a closed-door video meeting and rubber-stamped an increase in output that is the equivalent of 86 seconds, or 0.1%, of global oil demand.”
https://www.theguardian.com/business/2022/aug/03/opec-oil-output-biden-production-barrels
“US household debt surpassed $16 trillion for the first time ever during the second quarter, the New York Federal Reserve said Tuesday. Even as borrowing costs surge, the NY Fed said credit card balances increased by $46 billion last quarter.”
https://edition.cnn.com/2022/08/02/economy/consumer-credit-borrowing-surge/index.html
“On the eve of the latest decision on interest rates by the Bank of England, the Resolution Foundation thinktank said price pressures were likely to be stronger and last longer than the Bank had previously forecast.”
“Amid the Tory leadership contest, the British government appears to have all but stopped functioning… with Boris Johnson disengaged, a skeleton Whitehall operation of ministers and officials is keeping the show on the road.”
https://www.thetimes.co.uk/article/energy-crisis-could-become-a-poll-tax-moment-ptkpvjzpq
“Petrol stations may have to ration fuel at the pumps for only essential workers if there are oil shortages this winter. The government’s emergency energy group is discussing contingency plans in the event of fuel shortages caused by the ongoing war in Ukraine.”
https://www.todayfm.com/news/emergency-plans-being-considered-in-case-of-fuel-shortages-1368701
“To prevent widespread closures, the government has tried to reduce demand by modifying the price cap measure introduced last year that has kept prices low.”
“A debate has been sparked after Spain’s government moved to prevent offices, shops and other venues from setting air conditioning below 27°C in the summer. It is part of plans to cut the country’s energy consumption and limit dependency on Russian gas.”
“A bellwether for Europe’s largest economy because it caters to Germany’s small and medium-sized companies, Commerzbank said it would expect to set aside another 500 million euros ($509 million) to 600 million euros for bad loans as a result.”
““Due to the close links between the chemical industry and downstream sectors, a further deterioration of the situation is likely to result in the collapse of entire supply and production chains,” it said.
https://www.cnbc.com/2022/08/02/covestro-warns-of-supply-chain-collapse-as-gas-concerns-mount.html
“The French utility said late Tuesday that power stations on the Rhone and Garonne rivers will likely produce less electricity in the coming days, but there will be a minimum level of output to keep the grid stable. A heat wave is pushing up river temperatures, restricting the utility’s ability to cool the plants.”
“As much of Europe bakes in a third heatwave since June, fears are growing that extreme drought driven by climate change in the continent’s breadbasket nations will dent stable crop yields and deepen the cost-of-living crisis.”
“The threat to India’s rice production comes at a time when countries are grappling with soaring food costs and rampant inflation. Total rice planted area has declined 13% so far this season due to a lack of rainfall in some areas, including West Bengal and Uttar Pradesh…”
“Social tensions in Argentina have experienced and in crescendo in tandem with the value of the alternative peso-dollar exchange rates which have been reaching record highs as of late—which means the value of the peso has never been lower—to the point where massive protests and looting are no longer out of the question.”
“Last October, thousands of coca leaf growers stormed the country’s main coca market in La Paz following violent clashes with security forces. The Adepcoca market has become the center of a dispute between two groups of coca growers — one loyal to the government, the other opponents — since last year.”
“As Nigeria prepares for general elections next year that promise to be one of the most keenly contested in its history, evidence is emerging that the economy faces a double whammy: an empty treasury and rapid decline… the reported balance on the gross external reserves has long concealed problems.”
““While the city is aware of the situation regarding the power in the area, technicians are unable to attend to the problem in the area as it remains volatile, thus putting their lives in danger,” the municipality said.”
“Opposition lawmakers and economists have questioned the reliability of the TUIK figures, claims TUIK has dismissed. Polls show Turks believe inflation is far higher than official data.”
“Several heavily damaged grain silos that became a grim symbol of the disaster collapsed last week, and more are dangerously close to coming down, experts warn… The mega-blast was a nightmarish moment in the chaotic history of Lebanon, which is mired in its worst-ever economic crisis marked by blackouts, runaway inflation and widespread despair.”
“Palestinians living in the overcrowded Gaza Strip are reeling in a heatwave made worse by power cuts that leave them without electricity for as long as ten hours a day, Reuters has reported. Residents complain of not being able to sleep because there is no electricity to power fans.”
https://www.middleeastmonitor.com/20220803-gaza-residents-hit-by-heatwave-and-lengthy-power-cuts/
“Thousands of Iraqi protesters have occupied the parliament in Baghdad’s Green Zone for the past five days, the latest political turmoil to strike the war-scarred country… Nearly two decades after a US-led invasion toppled Saddam Hussein, and 10 months on from the latest elections, the impasse has left Iraq without a new prime minister or president.”
“As the city struggles with rain and crumbling infrastructure, frequent power outages and loadshedding — at times for 12-16 hours a day — are making life impossible for Karachiites.”
https://www.dawn.com/news/1702886/agonising-outages-hit-karachiites-as-ke-power-plant-develops-fault
“Thanks to the global surge in commodity prices amid the Ukraine war and Covid-related disruption, business is booming at Afghanistan’s coal mines. This gives the Taliban a crucial revenue stream as the militant group — after seizing control a year ago — seeks to revive an economy shattered by international isolation and sanctions.”
https://www.ft.com/content/772460fc-5c7b-46ac-ae95-4d59daf3fc87
“The world faces the possibility of a series of economic collapses that could destabilize the lives of millions of people… In the worst-case scenario, “we could head into a complete dystopia,” an “apocalypse” for some of the world’s poorest countries…”
You can read the previous ‘Economic’ thread here. I’ll be back tomorrow with a ‘Climate’ thread. NB: I am away from the computer next week visiting my parents but back on Monday 15th, so my final thread before then will be on Saturday. My apologies for any inconvenience and a huge thank you to my donors and subscribers for helping to keep the ever inflating wolf from my door.
If you found value in this content, please help me continue this work by becoming a patron of my work via Patreon. And if you are already a subscriber or have donated – thank you! It is a huge help, especially as the cost of living crisis is biting here in the UK.
How refreshing, not one single reference to the Covid vaccine!
Startling overview of the economic turmoil in the world, exasperated by the increasing climate events that appear to kicking in as Dr James Hansen warned decades ago.
I take it you are over the whole covid issue, Vincent. I have some sympathy with that!
It may yet crop up from time to time (in the context of Chinese lockdowns, for example), and the “jarring” effects of the pandemic/lockdowns on supply-chains, labour forces etc., as well as debt accrued in that period, are still an ongoing story – but I think we have bigger fish to fry now.