“The World is Drowning in Debt – Again… Over the past 50 years, four tidal waves of debt have crashed down on the global economy – three of which ended in crisis… The fate of the fourth, which began in 2010, is yet to be determined. However, the evidence suggests history is already repeating itself…
“…global growth is slowing, which means countries can’t rely on expanding the economic pie to keep debts on a sustainable path… Emre Tiftik, a director at the IIF, believes countries have become addicted to debt.
““Right now most countries have a growth model that is completely based on borrowing,” he says.”
“The future we’ve been borrowing from has arrived.”
“Emerging-Market Companies at Risk With $400 Billion of Debt Due…
“Cracks are deepening for vulnerable emerging-market companies as global borrowing rates surge to the highest levels since the financial crisis, halting refinancing opportunities for $400 billion worth of a debt maturities coming due in the new year.”
“Get ready for more US debt sticker shock as Wall Street sees a bigger wave of Treasuries flooding the bond market.
“…the upcoming release is getting heightened market attention. In recent weeks, investor demand for Treasurys has shown signs of weakness just as the government’s ballooning deficits are flooding the market with more debt.”
“Payday lenders aim to evade federal probes as borrowers plead for help…
“Powerful financial firms that offer high-cost, short-term loans to poor Americans have blocked at least five federal investigations into their business practices since the start of last year, part of a broad and aggressive campaign by payday lenders to neuter or eliminate their chief watchdog agency in Washington.”
“Britain could be the tipping point for a ‘global reckoning’…
“…the UK… faces the highest debt interest bill in the developed world this year… Britain will spend £110bn, an astonishing 10.4pc of government revenue, on debt servicing during 2023 – the second largest item on the state balance sheet, after the NHS – due to our high share of inflation-linked gilts. The UK economy has stalled.”
“Credit crunch concerns hit highest level since 2008 [UK]…
“As inflation and rising interest rates squeezed balance sheets, 33pc of profit warnings in the third quarter of 2023 cited challenges securing credit, according to new data from EY. That is the highest percentage recorded since 2008 by the Big Four accountant’s quarterly profit warnings report.”
“How Britain descended into a state of total economic despair…
“Research shows that levels of pessimism across the UK are now greater than at the height of the pandemic and during the 2008 financial crisis… “There is a feeling now that we have levelled down and this is actually who we are – that things are just a bit c–p. The basic feeling is that everything is broken.””
“Councils in England facing bankruptcy as lack of housing pushes up costs…
“England’s housing crisis will push many local authorities into bankruptcy as the increasing cost of emergency accommodation for thousands of homeless families threatens to overwhelm council budgets, leaders have warned.”
“Animal refuges in Britain are ‘full to bursting’ as owners give up pets in cash crisis…
““It’s genuinely tough to see people bring their pets into us because of the cost of living,” says cattery and kennels manager Beccy Hill. “It’s not their fault they can no longer care for a pet. And it’s upsetting for the dogs – they come in really confused.””
“EU countries tell Brussels to tighten its own belt.
“In lean times, European Union countries aren’t keen to send more money to Brussels. That’s lowered expectations for a proposed top-up of the EU’s common budget by year’s end… The two-day leaders’ summit in Brussels this week brought those divisions to the fore…”
“Trade talks collapse between EU and Australia.
“Last-chance negotiations on a trade agreement between Australia and the European Union have fallen through, Australian Trade Minister Don Farrell said on Sunday. “Unfortunately, we have not been able to make progress,” Farrell said in a video statement after informal discussions between Canberra and Brussels.”
“The newest front in the US-China trade war? Japanese fish.
“The United States has for the first time begun buying Japanese seafood to supply its military there, a response to China’s ban on such products imposed after Tokyo released treated water from its crippled Fukushima nuclear plant into the sea.”
“Bangladesh opposition chief Alamgir arrested after clashes.
“Tens of thousands of protesters turned out over the weekend, calling for Prime Minister Sheikh Hasina’s resignation. One police officer was killed, as well as at least one protester. There are conflicting reports of why Mr Alamgir, 75, was arrested.”
“Argentina’s Massa Threatens to Cut Fuel Exports Amid Shortage.
“Argentina’s oil producers will be barred from exports unless they increase fuel supplies to address shortages in the country, Economy Minister and presidential candidate Sergio Massa said Sunday… “If the fuel supply is not resolved by midnight on Tuesday, companies will not be able to send out export ships starting on Wednesday,” Massa told reporters.”
“Panamanian protesters break into international port used by First Quantum Minerals.
“On the sixth day of protests against the recent approval of the mining concession for the Cobre Panamá copper mine, activists broke into the Punta Rincón International Port, in the northern Colón province, which is used by Minera Panamá to ship copper abroad.”
“In photos: Pro-democracy Guatemalan protesters remain defiant.
“With their country’s democracy in peril, thousands of Guatemalans have spent weeks blocking roads and marching to protest against top government officials for what they say are sham investigations into the political party of President-elect Bernardo Arévalo.”
“Hurricane Otis: Mexico troops tackle looting in devastated Acapulco.
“Some 17,000 soldiers and police have been deployed in the Mexican resort city of Acapulco, where there has been widespread looting since a powerful hurricane hit the region. Videos show people taking food and water from shops, while others walk away with expensive electronic items and clothes from shopping centres.”
“Mob storms Dagestan airport in search of Jewish passengers from Israel.
“In the past day, local people have besieged a hotel in search of Jewish guests and stormed the airport after reports emerged that a flight from Tel Aviv was arriving in the city. Passengers were forced to take refuge in planes or hide in the airport for fear of being attacked.”
“Fishermen in the Lebanese city of Tyre are among those counting the costs of war in the Middle East. As Israel and Hezbollah clash, it is too dangerous to sail into nearby fishing grounds.
“”Already our fish were scarce. Now we have the war,” said fisherman Imad Azuzu. “If we venture a little in the sea, we do so in fear.””
“Fierce clashes in Gaza as Israeli forces expand ground offensive.
“Palestinians in Gaza reported fierce air and artillery strikes early on Monday as Israeli troops backed by tanks pressed into the enclave with a ground assault that prompted more international calls for civilians to be protected.”
“UN says civil order ‘starting to break down’ as looting food, supplies begins in Gaza.
“Aid workers warned Sunday that civil disorder is starting to break down in Gaza after thousands of people looted flour and other basic survival items from warehouses and distribution centers. Facilities looted include a Deir al-Balah warehouse where the United Nations Relief and Works Agency stores supplies from Egypt.”
“Amid ongoing war, BP and Eni among firms awarded gas exploration licenses in Israel.
“Israel announced on Sunday that 12 licenses have been awarded to six companies, including British multinational oil and gas firm BP plc and Italian energy giant Eni, to explore and discover additional offshore natural gas fields.”
“Hedge Funds Pile Into Uranium Stocks Poised for ‘Dramatic’ Gains…
“Such investments remain controversial. Germany famously wound down its nuclear energy program after 2011, as then Chancellor Angela Merkel responded to the global trauma caused by the Fukushima meltdown. That decision has since drawn criticism…”
“They went hunting for fossil fuels. What they found could help save the world…
“They ran calculations and estimated the deposit could contain between 6 million and 250 million metric tons of hydrogen. That could make it one of the largest deposits of “white hydrogen” ever discovered, Pironon said. The find has helped fuel an already feverish interest in the gas.”
You can read the previous “Economic” thread here. I’ll be back tomorrow with a “Climate” thread.
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