Tag: economy

The White House Has Just Called For The Creation of a “Digital Dollar”

– Sepember 18, 2022

The United States is making progress toward the creation of a digital currency, which the administration of President Joe Biden believes would assist in enhancing the country’s position as a worldwide financial leader. It announced the issuance of a framework that outlines the regulation of digital assets, which includes bitcoin and other objects of value that exists purely in digital form.

The framework consists of a number of different approaches that may facilitate the management of these assets and make the digital asset space more resistant to fraud, or so they say.

Government agencies have been hard at work over the last six months, since since President Biden issued Executive Order 14067 on March 22 with the title “Ensuring Responsible Development of Digital Assets,” in order to develop the framework.

The framework recommends the establishment of a central bank digital currency (CBDC), also known as a central band for a digital version of the United States dollar, in order to facilitate the processing of digital transactions more easily. The CBDC has the potential to make possible an efficient payment system, create technical innovations, and facilitate cross-border transactions, all while fostering environmental sustainability, according to a fact sheet that has been released to describe how agencies have responded to the executive order.

In point of fact, digital U.S. dollars already do exist in commercial bank accounts all around the nation. These dollars are backed by reserves in accordance with a method of banking known as fractional-reserve banking.

The Federal Reserve insists that banks only keep a small percentage of their total deposit obligations in cash. Transactions are conducted digitally and do not entail the physical movement of “bags” containing cash.

A theoretical electronic dollar would, in the same way that the physical dollar is controlled, get the complete faith and support of the central bank.  Jerome Powell, the chair of the Federal Reserve, has said on many occasions that the primary objective of digital money issued by a central bank would be to do away with the need for cryptocurrencies.

https://themindunleashed.com

EU plans Sept 30 summit to greenlight emergency energy plans

– September 13, 2022

European Union energy ministers will attempt to approve new bloc-wide measures to pull down soaring gas and power prices at an emergency summit on Sept. 30, after Brussels announces the proposals this week.

The European Commission is drafting a package of measures aimed at cushioning individuals and businesses from surging energy costs that are stoking record-high inflation, hampering industrial activity and inflicting sky-high bills upon households ahead of winter.

Czech Industry Minister Jozef Sikela said on Tuesday EU countries’ energy ministers will hold an emergency summit, giving countries an opportunity to sign off on the EU proposals – and overcome the divisions between countries on the best way to tackle the crisis.

“On September 30, we will finish what we started last week,” Czech Industry Minister Jozef Sikela said in a tweet, referring to a meeting where EU ministers debated the energy measures.

“I have just convened another extraordinary Energy Council to discuss the Commission’s proposals for dealing with high energy prices,” Sikela said.

European Commission chief Ursula von der Leyen is expected to unveil the proposals in a speech on Wednesday – firing the starting gun on two weeks of intense negotiations, in which the EU’s 27 member countries will attempt to redraft the proposals into final laws that they can all approve.

A draft of the Commission proposals, seen by Reuters, would impose a cap on the revenues non-gas fuelled generators can make from selling their electricity, and force fossil fuel firms to share excess profits. Governments would be required to use the cash to help consumers and companies facing sky-high energy bills.

EU diplomats say there is broad support for the revenue cap for non-gas generators, as well as plans to impose electricity demand cuts. But countries are split over other ideas – including a gas price cap, which was not included in the draft Commission proposals.

https://www.ibtimes.co.uk

Inflation and Energy Crisis Barreling Towards Each Other

Stansberry Research – August 24, 2022

The following content is sponsored content by Stansberry Research.

The last time we had an energy crisis coupled with inflation (like we have right now) was the 1970s.

Back then, President Lyndon Johnson had begun massive spending and took on huge budget deficits to pay for the Vietnam war and his “Great Society” benefits: Medicare, Medicaid, Head Start, urban renewal, environmental issues, and new immigration policies, just to name a few.

Sure sounds a lot like today, doesn’t it?

Then…OPEC banned oil exports to the U.S. in October of 1973.

Gas prices quickly shot up 37 percent. Gas was rationed. Many stations ran out. Others locked up their pumps at night.

The ban on exporting oil to the U.S. lasted only five months—a tiny problem compared to what’s going on in the energy markets today—but by then the wheels of crisis were already in motion.

By 1974, inflation hit more than 11 percent, and the stock market (as measured by the Dow Jones Industrial Average) was plummeting.

After a few months, however, it seemed like the worst was over. Stocks soared about 48 percent starting in November of 1974.

But the bear market rally did not last.

It wasn’t long before stocks would collapse again, this time by more than 50 percent.

In total, this bear market would take the stock market down more than 72 percent.

Everyone wants to know what’s going to happen next in the markets and our economy. But few are looking at what happens historically when you pair inflation with an energy crisis—which is exactly what we are looking at right now.

Bill Bonner, co-founder of the world’s largest independent financial research firm, successful entrepreneur, owner of real estate on four continents, and business interests across the globe in over 12 countries, has prepared an analysis looking at the history and parallels of today in a unique forward-facing way.

In his nearly 50-year career, Bonner has made three big macroeconomic predictions.

Each one has ultimately turned out to be exactly right—although he was mocked each time.

And now, he’s making what he calls his: “Fourth and Final Prediction.”

It’s about two enormous trends (inflation and an energy crisis), which are barreling towards each other in America, like two runaway freight trains on the same track.

Bonner says: “The collision of these two inevitable trends will bring about some of the most difficult years in American history.”

https://www.breitbart.com

Leading economist says predictions for a mild recession are ‘delusional’ as severe financial crisis looms

ETH – July 26, 2022

Recession indicators are ringing and key commodities have plunged into a bear market, signaling a downturn may be on the horizon. And Nouriel Roubini dismissed hopes that an incoming recession will be shallow.

According to MSN, The famed economist, who called the 2008 financial crash, told Bloomberg that the economy is headed for a severe recession as well as a severe debt and financial crisis.

Roubini, also known as “Dr. Doom,” said debt ratios are historically high at 420% for advanced economies and climbing, while bailouts during the pandemic have resulted in “zombie corporations” that put the economy at risk.

In contrast, the stagflation seen during the 1970s was accompanied by low debt ratios, and the debt crisis during the 2008 financial crash saw falling inflation.

“This idea that it’s going to be short and shallow, it’s totally delusional,” Roubini said. His warning goes against other predictions on Wall Street for a mild recession, including those from Goldman Sachs, Morgan Stanley, Wells Fargo, Pimco, Nomura, and BlackRock’s Larry Fink.

https://endtimeheadlines.org

Digital ID bill sees action in the House and Senate

FCW – July 15, 2022

A bill from Rep. Bill Foster (D-Ill.) and its Senate companion would raise the federal government’s profile in the digital ID ecosystem.

A bill meant to ramp up federal government participation in the digital identity ecosystem is inching closer to passage. The bill is poised to be advanced by the House Committee on Oversight and Reform and a Senate version was just introduced.

The bipartisan “Improving Digital Identity Act” was first introduced by Rep. Bill Foster (D-Ill.) in 2020, but never never voted out of committee. It also didn’t get a Senate version in that session of Congress. Foster reintroduced the measure last year.

In the House, the committee recessed on Thursday before finishing officially recorded votes to report Foster’s bill and others out of the committee. That will happen when the committee picks back up on the markup, a committee aid confirmed with FCW.

Sen. Krysten Sinema (D-Ariz.) along with Cynthia Lummis (R-Wyo) introduced a Senate counterpart on Wednesday.

The bill includes a few deliverables but the main impact will likely be felt from its proposed policy shift that puts the federal government more squarely in the digital ID business.

The legislation pushes the federal government to use existing authority to help Amerians “prove who they are online,” by providing opt-in ID validation services that “augment private sector digital identity and authentication solutions.”

The bill would also set up a task force on digital identity and establish a grant program at the Department of Homeland Security to support the creation of interoperable identity credentialing systems for digital identity verification on the state and local level.

This all comes in the midst of a government still grappling with increased identity fraud since the start of the pandemic. Identity fraud losses shot up from $16.9 billion in 2019 to $56 billion in 2020, according to Javelin Strategy and Research.

https://fcw.com

Great Reset: Economically Crippled Germany Pushes ‘Climate Club’ Global Tax Scheme at G7

Peter Caddle – June 26, 2022

Germany is aiming to found a global “climate club” taxation scheme designed to force countries worldwide to adopt a hardcore green agenda.

Seemingly unhappy with just destroying its own economy, eco-crazy Germany is now reportedly aiming to found a so-called “climate club”, a group that would punish countries not perceived as green enough.

The country is pushing this next element of its climate Great Reset agenda despite the fact that it is already facing economic collapse, a situation which is due in part to its obsession with its own green agenda.

According to a report by public broadcaster Deutsche Welle, the German government will push for the genesis of the “climate club” at the latest meeting of the G7 in Bavaria, Germany, seemingly in the hopes of onboarding some of the other member countries into the new scheme.

The plan was originally the brainchild of eco-zealot American Professor William Nordhaus of Yale University, who has argued that the voluntary nature of previous climate agreements has been insufficient in achieving green goals. Under the scheme, member states set extremely aggressive climate targets, while punishing those outside the group by implementing climate tariffs on their goods.

https://www.breitbart.com

Jamie Dimon Warns of Economic ‘Hurricane’

John Carney – June 1, 2022

A few weeks ago J.P. Morgan Chase chief Jamie Dimon warned that there were storm clouds looming over the U.S. economy.

Now he wants to upgrade the storm forecast to a hurricane warning.

“I said there were storm clouds, big storm clouds. It’s a hurricane,” Dimon said at a conference Wednesday. “Right now it’s kind of sunny, things are doing fine, everyone thinks the Fed can handle it. That hurricane is right out there down the road coming our way. We don’t know if it’s a minor one or Superstorm Sandy. You better brace yourself.”

Dimon’s remarks were reported by Bloomberg News.

Dimon warned that the Fed’s plan to shrink its balance sheet, often referred to as quantitative tightening or QT, was also introducing new risks.

“We’ve never had QT like this, so you’re looking at something you could be writing history books on for 50 years,” Dimon added, according to CNBC.

The Fed has said it will begin to shrink its balance sheet this month by letting maturing bonds roll off at an initial pace of $47.5 billion per month. That is scheduled to double to $95 billion a month in September.

https://www.breitbart.com

Watch– Klaus Schwab Lauds Davos Elites: ‘The Future Is Built by Us’

Simon Kent – May 24 2022

Klaus Schwab, founder and executive chairman of the World Economic Forum (WEF), on Monday greeted members of the global elites gathered in Davos, Switzerland, with the salute: “the future is built by us… by a powerful community… as you here in this room.”

“History at a Turning Point: Government and Business Strategies” is the theme for the 2022 edition of the 51-year-old NGO lobbying organization founded by the German engineer and economist.

On the evidence delivered on day one at the famous Swiss ski resort, Schwab very much sees his organization at the forefront of shaping the world of tomorrow.

Unfortunately outsiders have not been consulted or invited to join the 2,500 people flown in from all around the world to be present.

Schwab was quick to praise those gathered before him in his welcoming address.

“The future is not just happening. The future is built by us, by a powerful community as you here in this room. We have the means to improve the state of the world, but two conditions are necessary,” Schwab outlined.

“The first one is that we act all as stakeholders of larger communities. That we serve not only self-interest but we serve the community. That’s what we call stakeholder responsibility. And second, that we collaborate.”

Schwab added climate change and preserving nature is something to urgently address while concerns about high inflation will affect how to look at the future of the global economy.

https://www.breitbart.com

Global economy on the brink of recession as investors are now less tolerant of monetary policy tightening

Strange Sounds – May 20, 2022

The global economy is “teetering on the brink of recession” as the war in Ukraine, Covid-19 lock downs in China and a hawkish US Federal Reserve weigh on activity worldwide, the Institute of International Finance said in a report.

In its latest forecast, the IIF estimates global gross domestic product to grow 2.2 per cent this year, with activities slowing to 0.5 per cent in the fourth quarter. The Euro area as well as emerging markets, excluding China, are anticipated to go into a recession by the end of the year.

“Since the statistical carryover from 2021 is 2.3 per cent, this is a de facto flatlining of global GDP,” the report said.

The IIF’s estimates are below the latest prediction from the International Monetary Fund, which has also lowered its growth forecast this year, due to the Ukraine war and inflation stoked by soaring commodity prices.

The IMF projects global growth at 3.6 per cent this year and next, down 0.8 and 0.2 percentage points from its January forecast, respectively.

With the possibility of a recession, market regulators must approach policy normalisation more cautiously, the IIF said.

“In the past, rising uncertainty and mounting recession risk have had important effects on investor psychology, making markets less tolerant of monetary policy tightening that is seen as no longer warranted,” the institute said.

It cited the Fed’s last rate hiking cycle in December 2018, which it was forced to end abruptly after the S&P 500 index fell sharply. Markets judged that hike to be “unwarranted”, given the escalating trade war between the US and China at the time, the report said.

https://strangesounds.org

Global Food Crisis: ‘Perfect Storm’ of World Hunger Thanks to the Ukraine Crisis and COVID Could Starve Millions

Peter Caddle – May 5, 2022

Millions are at risk of starvation thanks to COVID and the ongoing war in Ukraine, both of which have helped create a “perfect storm” of a global food crisis.

Experts have warned that millions of people across the world are on the brink of starvation thanks to a “perfect storm” of a global food crisis.

A report by the Global Network Against Food Crises — a multinational organisation founded by the European Union as well as various United Nations bodies — found that 2021 represented the worst year for world hunger, but that things could soon get a whole lot worse thanks to a wide variety of ongoing geopolitical problems.

According to the organisation’s annual Global Report on Food Crises, 193 million people face acute food insecurity in 2021, which they define as being in a state where a person’s food intake is so low as to put their lives or livelihoods in immediate danger.

By far the single largest cause of this food insecurity last year was conflict, while the issue of economic shocks and climate change came in as very distant second and third place causes respectively.

However, despite how bad things got last year, experts who participated in the creation and publication of the report now fear that things could get a whole lot worse in 2022 as a result of a wide number of ongoing crises.

“Acute hunger is soaring to unprecedented levels and the global situation just keeps on getting worse,” said David Beasley, a former Republican Party governor who now serves as the executive director of the World Food Programme.

“Conflict, the climate crisis, COVID-19 and surging food and fuel costs have created a perfect storm — and now we’ve got the war in Ukraine piling catastrophe on top of catastrophe,” he continued. “Millions of people in dozens of countries are being driven to the edge of starvation.”

https://www.breitbart.com