Supply chain problems remain more persistent than most policymakers have publicly stated they expected. However, these results should not be surprising. Government leaders in developed economies continue to distort all the necessary elements needed – demand, supply, transport and labor – to introduce stagflationary forces upon the global economy.
For the first time ever, Federal Reserve chairman Jay Powell has issued a stand-alone video statement. The topic of the video is digital currencies where he comments on cryptocurrencies, stablecoins and central bank digital currencies.
China has expanded its crackdown on cryptocurrencies by declaring that all activities related to digital coins are “illegal”. The People’s Bank of China and other government agencies targeted overseas cryptocurrency exchanges specifically on Friday, declaring that it was illegal for them to provide online services to residents in China.
The economy is a complex finely-tuned instrument. Unfortunately, many politicians view the economy as a simple "Off/On" switch. In this interview, we examine a few of the factors driving the changes to supply and demand we are witnessing.
Policymakers have pushed inflation at any cost with the most aggressive monetary policy in decades and it took a normal recovery after the re-opening to prove why inflation is always a monetary phenomenon: In 2020 G7 central banks increased money supply well above demand and faster than ever since 2009. This led to massive inflation spikes in essential goods and services. The rhetoric of “transitory” inflation and “supply chain disruptions” has been rapidly debunked.
Persistent default fears eclipsed efforts by China Evergrande Group's chairman to lift confidence in the embattled firm on Tuesday, as Beijing showed no signs it would intervene to stem any domino effects across the global economy.
