“Extreme heat has cost the global economy $16 trillion (best estimate for the period from 1992 to 2013), research shows… the costs of scorching temperatures is far higher than previously understood…
“Between 1992 and 2013, the world lost an estimated $16 trillion, on average, because of extreme heat fueled by the climate crisis …The losses were much higher in poor tropical countries, accounting for up to 6.7% of GDP per capita in the regions. Wealthier regions saw a 1.5% hit to GDP per capita.”
https://www.businessinsider.com/extreme-heat-cost-the-global-economy-an-estimated-16-trillion-2023-8
“In a warming world, is an air-conditioned future inevitable?
“For better or for worse, these power-hungry appliances are among the most common adaptations to a warming world. They have become a necessary tool for the survival of millions… But while they bring immediate, life-saving relief, air conditioners come at a cost to the climate crisis because of their enormous energy requirements.”
“Businesses see geopolitical tensions as the biggest threat to the global economy right now, according to the latest survey by Oxford Economics…
“In contrast, a similar survey in April found that nearly half the respondents viewed either a marked tightening in credit supply or a full-blown financial crisis as the top risk in the near term.”
“How bonds ate the entire financial system. A very short, very wild history of the market that will shape the next financial crisis…
“… in finance, risk is like energy. It cannot be destroyed, only shifted from one place to another. As it gets shunted around, its consequences can morph in little understood, even dangerous ways.”
https://www.ft.com/content/5631cc22-a04d-405c-9154-e307f938f8f3
“Kill debt-fuelled spending, before it destroys the West… The US’s debt woes are proof – we cannot borrow and spend our way out of every crisis…
“…the West can’t keep on borrowing forever with no consequence. It was only a few months ago that France also had its debt downgraded, while the Bank of Japan, presiding over the second biggest debt load, is struggling to control interest rates. The last fifteen years have seen an extraordinary explosion of debt…”
“The Risk Of Another Financial Crisis Is High And Rising [US]…
“Current economic dynamics are similar to those preceding the Global Financial Crisis, with national savings contracting and leading economic indicators suggesting a real GDP contraction. With US equity and housing valuations at extreme levels and total debt to GDP near all-time highs, the risk of another financial crisis is increasing.”
https://seekingalpha.com/article/4623170-risk-of-another-financial-crisis-is-high-and-rising
“Column: US manufacturing slowdown fails to rebuild diesel stocks [Worth reading Gail Tverberg’s latest article with this in mind]…
“[This implies that] the energy system is operating close to its maximum capacity. In the event of a soft landing followed by a re-acceleration of the business cycle, capacity constraints will re-emerge quickly and could lead to an early resurgence of inflation.”
“There Is A Financial Crisis Brewing In Offshore Wind Energy.
“The costs associated with U.S. offshore wind projects have risen by 57% since 2021 due to inflation in components and labor costs, as well as rising interest rates, leading to a large number of canceled or renegotiated deals. The recent cancellations of major offshore wind projects have erased billions of dollars in planned spending…”
“The bosses behind Britain’s multibillion-pound clean energy rollout have warned the government that the UK’s difficult economic circumstances and political uncertainty have taken a toll on investor confidence.
“About 20 industry bosses representing companies from across the sector attended a summit at No 10 to discuss their plans to invest more than £100bn in the UK economy.”
“EU must address wasted green energy and negative prices, says solar industry.
“The European Union needs to address curtailment wasting solar power potential and negative prices hitting the revenues of projects, a group of solar and renewable energy associations told the European Commission on Tuesday (1 August).”
“European IPOs fall to lowest level since 2009.
“The number of companies listing in Europe has slumped to the lowest level since the global financial crisis, underlining the dire state of the region’s market for initial public offerings amid an economic slowdown…”
https://www.ft.com/content/abaa645e-04c0-44fb-b963-ad24ab46f70d
“EU banks face liquidity checks next year after 2023 crises.
“European Union banks’ plans for surviving a major crisis without having to tap central bank money will undergo intense scrutiny next year, the bloc’s banking watchdog said. The need for credible options was reinforced after the Swiss central bank stepped in with a liquidity backstop for Credit Suisse in March…”
“Soaring prices are forcing Germans to cut back on food, report reveals.
“Tuesday’s figures show that many people in Europe’s economic powerhouse are struggling to buy meat, fish or vegetables. The statistics, requested by the opposition Die Linke party, show …nearly 10 million people in the EU’s most populous nation are often going without proper meals.”
“Germany sees spike in attacks on refugee shelters…
“The number of politically motivated attacks on refugee shelters in Germany has steadily increased since the beginning of last year, with 80 crimes reported in the first half of this year, mostly involving far-right activists.”
https://www.middleeastmonitor.com/20230802-germany-sees-spike-in-attacks-on-refugee-shelters/
“China pumps out coal plants at increasing pace to allay power-security fears, risking climate transition: Greenpeace.
“Coal-plant approvals in the first half of 2023 outpace 2022’s rate and exceed 2021’s total, according to Greenpeace research. Deepened reliance on coal risks sidelining development of key climate solutions, especially energy storage, that China needs to meet its carbon goals.”
“World battles to loosen China’s grip on vital rare earths for clean energy transition…
“Recent struggles by MP, Lynas and other companies to refine their own rare earths highlight the difficult task the rest of the world faces to break China’s stranglehold on the key group of 17 metals needed for the clean energy transition, interviews with more than a dozen consultants, executives, investors and industry analysts showed.”
“Hindu-Muslim riots expose risk at major Indian business hub.
“GURUGRAM, India – Hindu-Muslim clashes just outside the Indian capital this week have worsened religious fault lines in the region and exposed a booming business hub to threats of violence and disruption, authorities and analysts said. Seven people were killed and over 70 injured…”
“Turkey’s annual inflation hits nearly 50% in July…
“The Turkish Statistical Institute reported that annual inflation jumped by nearly 55% compared to the same period last year. The increase came after consecutive price and tax hikes as the country grapples with one of its worst-ever cost-of-living crises.”
https://www.al-monitor.com/originals/2023/08/turkeys-annual-inflation-hits-nearly-50-july
“Lebanon caretaker PM warns of total collapse if reforms not implemented…
“”Lebanon will not be able to secure medicine or pay salaries in foreign currency, in the event that the monetary and economic plan presented by the Acting Governor of the Banque du Liban, Wassim Mansouri, is not approved,” the caretaker prime minister said.”
“Number of hungry in Sudan rises above 20 million…
“The estimated number of people facing acute food insecurity in Sudan has risen faster than expected to 20.3 million, or 42% of the population, as a conflict between rival military factions deepens a humanitarian crisis, a food security body said.”
https://www.reuters.com/world/africa/number-hungry-sudan-rises-above-20-million-2023-08-03
“Major cities in Niger are facing rolling blackouts following last week’s coup in the West African country.
“The power shortages are a result of Nigeria cutting supplies to its northern neighbour, Niger’s electricity company Nigelec says. West African trade bloc Ecowas has put sanctions on Niger, but has not said if these include electricity supplies.”
https://www.bbc.co.uk/news/world-africa-66383119
“Tinubu meets labour unions as strike under way across Nigeria.
“Nigeria’s President Bola Tinubu met union leaders on the first day of a nationwide strike called by unions to protest against a fuel subsidy removal that has led to higher pump price of petrol, the head of the main labour federation has said.”
“Colombia’s Economic Woes Worsen As Cocaine Prices Plunge.
“Cocaine, a significant part of Colombia’s economy, is seeing falling prices, leading to economic instability and increased violence as illicit groups clash for control. The falling prices are causing economic hardship in rural areas where communities rely heavily on coca cultivation…”
“UN bodies call for urgent action over Panama’s Darién Gap migration route…
“The calls come after the Panamanian government revealed on Monday that 250,000 people took the perilous journey in the first seven months of 2023 – more than the entire total for last year… TThis year 55% came from Venezuela.”
https://www.theguardian.com/world/2023/aug/03/darien-gap-migration-panama-un-crisis
“Cuba bans company access to ATMs, limits cash transactions.
“The Cuban Central Bank issued rules this week banning state and private businesses from using ATMs and limiting cash transactions between them, as it seeks to tame runaway inflation and off-the-books business amid a grave economic crisis.”
https://uk.sports.yahoo.com/news/cuba-bans-company-access-atms-173406770.html
“Wall Street ‘Vultures’ Want Puerto Rico To Pay Even More For Electricity That Doesn’t Work…
“Now it’s up to a federal court to decide whether Puerto Ricans should fork over even more money to pay down the debt and interest the state-owned Puerto Rico Electric Power Authority owes to the Wall Street equivalent of loan sharks.”
https://uk.news.yahoo.com/wall-street-vultures-want-puerto-140536317.html
“‘Limitless’ energy: how floating solar panels near the equator could power future population hotspots [Hmmm].
“Vast arrays of solar panels floating on calm seas near the Equator could provide effectively unlimited solar energy to densely populated countries in Southeast Asia and West Africa.”
“Is this the week that Net Zero died?
“… public support for goals like Net Zero are a bit like world peace or ending poverty: almost everyone likes the idea, but no one wants to pay for it. Politics, of course, is waking up to this — and given the fact that most politicians are opportunists and not ideologues, there is a growing probability that we are witnessing the end of Net Zero as a goal.”
https://unherd.com/thepost/is-this-the-week-that-net-zero-died/
You can read the previous “Economic” thread here. I’ll be back tomorrow with a “Climate” thread.
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 an enormous help as the cost-of-living crisis ratchets up here in the UK.
The threat of debt to human security is highly overrated and over hyped. Some alternative voices even propose debt jubalees to debtors.
There is a very simple way to provide a relief to debtors. It is called inflation. When you get down to it inflation is a tax on savings and a subsidy on debt. Inflation becomes a problem only when it gets so high that prices change sicnificantly even before orders can be filled. Such things have happened before. Fear of such a thing is not completely groundless. But I would bet in the not to distant future resource shortages would much more likely be a cause runaway inflation than national debt levels. I would also bet that politicians would be much more likely to blame runaway inflation on national debt levels than on resource shortages because it will allow the people in control to hide what is actually happening to be able to try to continue to carry on business as usual a little bit longer.
Ahh one other thing, if one knows for sure what the inflation rate will be at some future point one can scam the system. I would not be surprised to learn that some well connected people actually have the ability to do that.
As collapse gathers its momentum, I suppose it’s to be expected that the lunatic choir at unhinged would worm its way into polite conversation.
“Globalists, “ “Trump, “ “benefits of CO2,” “WEF” – come on gang, you how to sing these idiot hymns from the unhinged commenters that Pan-O has helpfully supplied here at the end.
Unhinged and crazy and whatnot is in the eye of the beholder my friend . I have seen for years now as many a valid argument with the extreme (green) left and right wing , as I have seen in the ” never make any real decision European middle ” of the 1990-2020 era
Is racism or just stop oil crazy ? Perhaps . Isnt it even more crazy to casually keep writing ‘policy ” for steady growth in middle class consumerism, to spread that around the world for 8 billion plus people ? Or to expect Europe to just fit in one to two billion people incoming in a couple of decades , or to keep building houses , when even in rich countries there is no more ground water of water connections left for m
The real crazy , for me , was the decades of middle ground policy, all the gutmensch people never wanting to harm any interest or morals
There is no crazy like right-wing crazy. Unhinged.com gets the top prize for denier-crazy.
To be fair to your points, the oddly chosen duo of “racism” and Just Stop Living is also to be faulted, each in their own way. You, for example, are as African in origin as any person born in Africa today. And oil happens to have become our bloodstream.
What to do about the poor nativists of Europe? In a couple of decades, they’ll be clinging to feral survival tactics just like the migrants they are murdering today.
Relative sanity in an insane world has a lot to recommend it. No false equivalency sobbing for right-wing murder slugs necessary.
Martin, the whole species looks pretty bonkers to me, and I don’t exclude myself from that for a minute. Just being a human is pretty crazy-making; being a human trying to function within a global civilisation at peak complexity and starting to break up under the duress of energy/financial/eco/resource-constraints even more so!
RE: “Major cities in Niger are facing rolling blackouts following last week’s coup in the West African country.”
I think that this coup is a big deal. France gets a lot of its Uranium from Niger (and from Russia. OOPS). Now that the military has taken control of the country from the (democratically elected) western puppet that was in charge, from where will the Uranium originate?
“Evacuation flights have now started to arrive in Europe. Some 262 French citizens touched down in Paris early on Wednesday amid anti-French sentiment in the country.
The coup has prompted demonstrations against the former colonial power, with the French embassy coming under attack.
France says it has no plans to repatriate about 1,000 French soldiers …”
Oh, yes. The people of Niger hate the colonizers with very good reason (Niger exports the Uranium that keeps the lights on for a significant amount of Europe, but has no power plants of its own.) but the French soldiers will stay as will the 2000 or so from the US. Meanwhile, it is China and Russia that are trying to extend their imperialism to Africa. Riggggghhhht.
The uranium does sound like it could be an issue for the EU:
“Niger supplies 15 percent of France’s uranium needs and accounts for a fifth of the EU’s total uranium imports… the coup in Niger could be a challenge for Europe’s uranium needs in the longer term, just as the continent is trying to phase out dependency on Russia.”
https://www.politico.eu/article/niger-coup-spark-concerns-france-uranium-dependency/
Because Russia and China have not ever pulled any neo colonial grand schemes in africa in the last 30 years . And aren’t the dominant geopolitical force now in many african countries ?
You are out of reality pinata , seriously. Never been to africa yourself I’d take it , that would explain a lot . I’ve been to most corners
Meanwhile, Europe, with all its faults , is expected to keep on making amends for a colonial past by being the sole target for the major refugee stream . Saudi arabia puts their endless money in buying fussball stars and spreading Wahabism
I am reminded of an incident from many years ago. I was flying out of Phoenix where I lived at the time and much to my chagrin a gregarious gentleman sat down in the next seat. Despite my efforts to appear very uninterested in him by studying the tarmac he launched into a long diatribe about how wonderful his lifestyle was ending with, “I just love the desert.” I naively thought that we may have something in common and asked him where in the desert he went. He said with a somewhat puzzled expression, “No, I played golf.” To which I replied, “So, you don’t know anything about the desert. Why do you love it?”
No doubt the gentleman thought that he knew everything about Arizona because he spent a week in a luxury golf resort in Scottsdale.
It appears that the west is loosing control of the resources in the Sahel. If so, it is a very big deal indeed.
How can the world have any economic problems when permanent tax breaks for the rich, bailouts of failing corporations & their stockholders, ZIRP for the same, money printing out of thin air, Central Banks, owned by banks, control over economies by up & down changing interest rates have worked out so well for the privileged?
“Socialism is for the rich,capitalism is for the rest of us.”
How can a $33,000,000,000,000 national debt be paid off with only $2,500,000,000,000 in actual currency? I may be stupid but I’m no fool. All we have to do is print $50,000,000,000,000 & we will all be in the black & everyone will be paid off. U.S.A!, U.S.A!, U.S.A!
What does one call someone that can’t pay cash for their new car, latest cell phone, plastic crap & processed food on credit cards, etcetera, etcetera, etcetera?
Not stupid but merely foolish? Collection agents soon to be appearing at debtors doors. A minus credit rating is not a virtue.
I’m entitled & deserve everything I desire. I will not do without! 😉
TR, you sound like a discerning person, and so I must ask: May I pay you Tuesday for a hamburger today?