“Have Central Banks Overheated The Climate? [Picture from record-rainfall in Beijing today]
“…It is correct, I think, to say that both the existence of QE (as a sign that economies and financial systems were too fragile and required monetary morphine) and manifest climate damage, are warning signs that the world economy is reaching the limits of modus operandi, and possibly its very existence.”
https://www.forbes.com/sites/mikeosullivan/2023/07/29/have-central-banks-overheated-the-climate/
“We bailed out the banks but we’re not prepared to bail out the planet….
“In their different ways, recent events in the US and the UK show just how difficult it will be to put the global economy on a saner and more sustainable course. Problem number one is that politicians struggle to think beyond the next election.”
“The world is burning – stop pretending everything is fine…
“The main parties are ever-more short-termist, committing to net zero but dropping these policies as soon as they cost anything, or become unpopular… We are all potential climate refugees. Just pray you don’t live on a flood plain.”
“The shift from owning to renting goods is ushering in a new era of consumerism… [The author is trying to spin this as a consumer preference and a positive shift.]
“At a time filled with economic instability driven by a wealth of factors, including the long-lasting effects of COVID-19 and the war in Ukraine, consumers continue to shift their consumption habits to align with these economic shocks.”
“Shipping giant CMA CGM paints gloomy outlook as profit plummets.
“CMA CGM SA sketched out a sombre outlook for the shipping industry, with the world’s third-largest container line saying freight rates remain weak and a steep slump in US demand for goods out of China isn’t over.”
“A Record $90 Billion in Ship Orders Loom Over Boom-Bust Industry.
“The world’s biggest shipping companies are plowing their pandemic windfalls into orders for new vessels on an unprecedented scale, making an industry known for hair-raising cycles of boom and bust more vulnerable in the latest downturn.”
“Unicorns see their green pastures dry up around the world.
“The number of freshly minted unicorns — unlisted companies valued at $1 billion or more — is plummeting worldwide as investors have become more risk-averse amid concerns about a potential economic slowdown caused by monetary tightening in the U.S. and elsewhere.”
“Wall Street Braces for the Great Loan Tightening…
“The great credit tightening is finally approaching on both sides of the Atlantic, if the latest surveys of bankers are anything to go by… Thank restrictive monetary policy and bank turmoil for creating headaches for borrowers across the globe, from mom-and-pops to blue-chip companies.”
https://uk.finance.yahoo.com/news/wall-street-braces-great-loan-190000049.html
“‘Vicious cycle’: Heat waves ramp up global burning of fossil fuels.
“The United States is setting records for natural gas consumption this week at the power plants that keep the nation’s air conditioners humming, according to estimates from S&P Global Commodity Insights.”
https://www.washingtonpost.com/climate-environment/2023/07/28/natural-gas-heat-waves-climate/
“First new US nuclear reactor in 3 decades may well also be its last.
“The US nuclear energy industry is on the brink of a watershed moment. When Plant Vogtle unit 3 finally delivers commercial electricity to the Georgia power grid, it will be the first nuclear reactor the country has built from scratch in more than three decades… there are no other traditional large-scale light water reactors under way in the US.”
https://www.ft.com/content/5d8e0c6c-59c9-4b40-806f-604889dd5fb6
“How the ghost of 1990s property crash returned to haunt Sweden.
“The banks are closely watching the country’s mid-sized property firms, several of whom are lumbered with a debt mountain built during a decade of rock-bottom interest rates and virtually free money.”
“Denmark and Sweden are seeking to limit the burnings of the Koran and other holy books as the two Scandinavian countries face a growing diplomatic crisis.
“The Danish and Swedish prime ministers spoke on Sunday to try to find ways of countering strong freedom of speech laws that have permitted repeated burnings of holy books.”
https://www.ft.com/content/a6bdfbdf-c51a-430e-960b-84dfac1a8743
“Why We Should Pity the Bank of England…
“Among the major global central banks, they both face the most intricate monetary policy challenges. However, unlike the Bank of Japan that acted last week and is able to contain the immediate damage from policy hesitancies and possible missteps, the BOE doesn’t have the luxury of time to experiment with policy responses.”
“Britain tests ‘the kindness of strangers’ as gilts lose their lustre.
“…Buying British still has a premium. That’s bad news for the Government. With the national debt mountain now equivalent to the size of the economy, higher borrowing costs are dragging on the public finances… the implications for taxes, spending and the upcoming election are huge.”
“Millions of families are borrowing to cover basic bills and expenses, according to analysis that warns Britain is entering a dangerous new phase of the cost of living crisis.
“Interest rates are expected to rise again this week and there are warnings about a “timebomb of debt” among poorer households.”
“Germany grapples with economic turmoil amid energy crisis & industrial decline.
“Germany, the largest economy in Europe, is facing serious challenges as its economy grapples with ongoing struggles. As concerns rise about the potential impact on Europe’s overall prosperity, the nation’s growth engine seems to have sputtered.”
“Hot rocks: German cities dig deep for green [geothermal] energy.
“Ever since Olaf Scholz’s government unveiled a law earlier this year banning gas-fired boilers in new houses, the question of how Germans should heat their homes has risen to the top of the political agenda… Cities across Germany are now frantically trying to figure out how to comply with the new law…”
https://www.ft.com/content/8561d309-0668-43d7-80f8-ec075cb0e402
“While Everyone Else Fights Inflation, China’s Deflation Fears Deepen.
“While the rest of the world tussles with inflation, China is at risk of experiencing a prolonged spell of falling prices that—if it takes root—could eat into corporate profits, sap consumer spending and push more people out of work. Its effects would ripple across the globe…”
“China factory activity shrinks in July, adding to pressure to reverse economic slump…
“A purchasing managers’ index issued by the national statistics agency and an industry group improved to 49.3 from June’s 49 on a 100-point scale but was below the 50-point level that shows activity contracting.”
“How China’s hidden debt risk ‘comes from its system’, and why local governments are beholden to Beijing.
“…deteriorating finances across the country, particularly in its poorest provinces such as Guizhou, have raised the spectre of a looming local government debt crisis. Beijing sees the potential for a meltdown in China’s predominantly state-owned banking system as a “grey rhino” risk – big, obvious and neglected.”
“Bangladesh police clash with protesters calling for PM to resign.
“Bangladesh police have fired rubber bullets and teargas to disperse stone-throwing crowds blockading main roads in the capital, Dhaka, in a protest demanding the prime minister’s resignation… clashes between police and protesters took place in at least four locations in the city.”
“Sri Lanka’s fishermen face double whammy of climate and economy…
“Inflation is the most pressing challenge to small-scale fishers right now, said Santhalingam Thanusanth, a fisheries and fish biology scientist at the National Aquatic Resources Research and Development Agency (NARA).”
“In a climate-ravaged Indian village, marginalised farmers sing about ‘floating in tears’ after years of erratic weather…
“To convey their desperation at the lack of rain and the changing weather pattern, Mandal and two other local farmers have written some 50 songs in Bengali, encapsulating the challenges of economically and socially marginalised farmers in the Sundarbans…”
“Pakistan Struggles With Economic Collapse And Extremism.
“Pakistan’s current turmoil is a result of economic collapse, legal challenges against its former Prime Minister, strained relations with major powers and an inability to ensure security against extremist groups. All this has raised concerns for the stability of the country and the region.”
https://www.fairobserver.com/world-news/pakistan-struggles-with-economic-collapse-and-extremism/
“Pakistan police suspect Islamic State in bomb blast that killed at least 44…
“Police said the explosion at a rally on Sunday afternoon for the conservative Jamiat Ulema-e-Islam party (JUI-F), a government coalition partner, was carried out by a suicide bomber who detonated his explosives vest close to the stage where several senior leaders of the party were sitting.”
“Desertification: An Existential Crisis For Iran.
“Temperatures in Iran are hitting record highs, rivers and lakes are drying up, and prolonged droughts are becoming the norm… The desertification of Iran is occurring at a staggering pace… there are fears that a huge segment of the population might eventually have no option but to flee the country entirely…”
“A fire at an electricity substation in southern Iraq triggered a nationwide power outage Saturday, authorities said, just as demand peaks amid the searing summer heat.
“Electricity is a sensitive political issue in Iraq as despite the country’s huge oil reserves, its dilapidated power grid is incapable of meeting peak demand and Iraqis endure hours-long outages every summer.”
“Thousands take to streets in Gaza in rare public display of discontent with Hamas.
“Several thousand people briefly took to the streets across the Gaza Strip on Sunday to protest chronic power outages and difficult living conditions, providing a rare public show of discontent with the territory’s Hamas government. Hamas security forces quickly dispersed the gatherings.”
“Powerless and dejected: Egypt’s small-business owners hit by electricity crisis…
“Weam Al-Sayed, who works in a small women’s accessories shop, said: “We lose customers during power cuts as they cannot bear being in an unair-conditioned place. “I estimate the losses in the past two weeks to be around 20,000 pounds per week — a significant amount compared to the shop’s income. I pray the power outages don’t persist.””
https://www.arabnews.com/node/2346366/middle-east
“‘We can’t endure this’: Migrants suffer in extreme Tunisian heat…
“Amid the relentless heat, life in the Tunisian capital has slowed to a crawl. Cold tap water runs hot and unprotected food spoils. Stray dogs and the city’s ubiquitous cat population compete for every patch of shade. And when the evening comes, there is little respite.”
“UN Says 19,000 Sudanese Refugees Face ‘Critical Challenges’ Arriving in South Sudan.
“The United Nations says 19,000 refugees and asylum-seekers have fled to South Sudan since Sudan’s military and paramilitary started fighting on April 15, and that those numbers are expected to more than double by the end of the year.”
“West African migrants buried in unmarked graves on coast of Senegal…
“Bodies wash ashore or are found by fishermen at sea, then are buried by authorities with no clarity as to whether the deaths are documented or investigated as required by Senegalese and international law, according to lawyers and human rights experts. Most of the families of those buried will never know what happened to their relatives.”
“Soldiers Fire On Hungry Grain Store Looters In Nigeria’s Adamawa.
“Soldiers have opened fire on crowds of young people as they raided food stores in North East Nigeria. The raids on government owned grain stores in the cities of Yola and Jimeta in Adamawa State were reportedly triggered by fuel-price-induced economic hardship and hunger.”
“Peru police clash with protesters as President Boluarte seeks expanded powers.
“During an Independence Day speech in Lima, Boluarte said she would request legislative powers from Congress for 120 days to fight crime. She said she was open to reverting Congress to a two-chamber legislature from a single-chamber format.”
“Chocolate inflation won’t quit as the wholesale cocoa cost soars to the highest level in over a decade…
“…production in West Africa, a region that accounts for two-thirds of the world’s bean harvest, is faltering. Heavy rains and a rot-causing disease have ravaged crops there, sparking concerns about supply. Bean processing has also slumped around the world.”
https://fortune.com/2023/07/29/chocolate-inflation-wholesale-cocoa-west-africa-ghana-production/
“Funding crisis cuts off food aid to millions as acute hunger surges worldwide, UN says.
“he United Nations has been forced to cut food, cash payments and assistance to millions of people in many countries because of “a crippling funding crisis” that has seen its donations plummet by about half as acute hunger is hitting record levels, a top official said Friday.”
You can read the previous “Economic” thread here. I’ll be back tomorrow with a “Climate” thread.
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Hello Pan
I once looked into the Vogtle Electric plant. I couldn’t open the article, but there was plenty to read. Surely, like the new generation EPR plants in France and the UK, it is an accumulation of problems, cost overruns, techinical setbacks and funding problems various. Very interesting especially as France is now going to decide on their future ‘energy’ supply where electricity is concerned in September. All projects, fossil dependent from the cradle to well beyond the grave over a period from construction to demolition of at least 120 years! What can happen in 120 years 🙂 You can say they are optimists those French but eh I would rather call it frivolous. I follow extensively the ups and downs of the first experimental generation of nuclear power plants in the Netherlands (Doodewaard) and France ( Brennillis )Those have been very interesting short stretches where the end is far from insight.
In the Netherlands it is partly about an endless legal battle over who actually has ownership obligations, the original production company has changed hands many times and is still leading to an endless fight over closure and demolition costs that will continue until sometime in the middle of this century. In France, it is the state that pays for the costs but even there the file is endless and very complex with all kinds of compensation claims.
It’s a fascinating world those steam turbines powered by uranium combustion 🙂 I would say don’t! I am already looking forward to this autumn when the ‘fantasy’ debates here start erupting and the cost-benefit analyses will be made. It will give me a circus with this effectively bankrupt state-owned company
https://en.wikipedia.org/wiki/Vogtle_Electric_Generating_Plant
120 years. Yeah. The thing about that…
In the end their is alot of fraud and swishy numbers to try to justify to keep this system alive. I suspect more flying unicorns will try to come to save the day.
I’ve been following news on the increasing use of the Chinese yuan lately, (and de-dollarisation) but probably don’t know enough to assess the validity of the news I’m reading – anyone here able to comment?
https://markets.businessinsider.com/news/currencies/dedollarization-dollar-dominance-china-yuan-bolivia-argentina-brazil-south-america-2023-7
Rain, so far there has been a slow erosion of dollar dominance since the turn of the century and the latest OMFIF survey suggests that trend will continue (with geopolitics so labile, though, who can say we won’t see sharper moves?):
“Research by the Official Monetary and Financial Institutions Forum (OMFIF), a UK central banking think-tank, found that reserve banks managing close to a combined $5tn of assets expect the dollar to continue to decline as a proportion of global reserves at a “gradual” pace. However, it will still account for 54 per cent of the total in 10 years’ time, compared with 58 per cent currently, the survey found.
“Reserve currencies are foreign assets held in large quantities by central banks for international payments and to support local currencies… The dominance of the dollar has gradually declined in recent decades as the role of the US in global trade has waned, while the freezing of over $300bn worth of Russian central bank assets last year sparked fresh calls among some of the world’s largest emerging economies to shift away from the US currency. At the turn of the century the dollar accounted for more than 70 per cent of global reserves, according to IMF data…
““The sense of de-dollarisation is in line with the historic trend over the last ten years,” said Nikhil Sanghani, managing director at OMFIF. “Reserve managers are telling us there’s unlikely to be a major trend from that path.””
https://www.ft.com/content/a395a35d-3a3e-4523-90d2-40ff50fec899