World economy talk

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tumaas ang savings during pandemic lockdowns

US gov't gave everyone stimulus checks

Advance Child Tax Credit and Economic Impact Payments - Stimulus Checks | USAGov

COVID-19 Stimulus Checks for Individuals

The IRS issued three Economic Impact Payments during the coronavirus pandemic for people who were eligible:

$1,200 in April 2020

$600 in December 2020/January 2021

$1,400 in March 2021

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since wala na stimulus checks and cost of living keeps rising (inflation)

kinain ang savings and kahit tumaas ang sweldo kulang parin

in order to live kailangan i-charge sa credit card

Credit card balances jump 13% as inflation outpaces wage growth

Wages are rising — and yet not enough to keep up with the soaring cost of living.

Although average hourly earnings are up 5.1% from a year ago, prices have been rising much faster. The Consumer Price Index, which measures the average change in prices for consumer goods and services, jumped a higher-than-expected 9.1% in June, the fastest pace in over four decades.

To bridge the gap, more consumers are relying on credit cards to get by, which has helped propel total credit card debt to $890 billion.

Overall, credit card balances rose 13% in the second quarter of 2022, notching the largest year-over-year increase in more than 20 years, according to a report from the Federal Reserve Bank of New York.

[Athrunzala]

Just Days After Phasing Out New Gas Cars, California Says "Avoid Charging EVs" Amid Potential Blackouts

Just Days After Phasing Out New Gas Cars, California Says "Avoid Charging EVs" Amid Potential Blackouts | ZeroHedge

[Athrunzala]

California achieves "renewable" energy for just FOUR SECONDS, while using fossil fuels to make it work

Brighteon

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meanwhile...

another third world currency falling against the dollar

"The British pound slid to its lowest level against the U.S. dollar since 1985, a reflection of the U.K.’s dire economic situation. Investors are braced for sterling to weaken even further to a nadir not seen in more than two centuries"

[Monseratto]

Coal Prices Soar to Record High As World Scrambles for Energy

[Monseratto]

FOREX Yen skids past 142 per dollar, sterling clings onto early gains | Reuters

The rate-sensitive Japanese yen continued tumbling on Tuesday, falling past 142 per dollar, while sterling and the euro tried, and in the euro's case failed, to recover from multi-year lows against the dollar hit the day before.

The dollar climbed 1.07% on the yen to 142.1, a fresh 24-year high. The dollar is up 23% against the Japanese currency so far this year.

[Athrunzala]

FedEx CEO says he expects the economy to enter a 'worldwide recession'

[Monseratto]

Credit Suisse Trust in Singapore trial admits it failed to flag rogue transfers | The Straits Times

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Fed meeting Sept 20-21

Merrill Lynch:

"We think the Fed will read the incoming data as justifying another large 75bp rate hike, bringing the target range for the federal funds rate to 3.0-3.25%. We think the Fed will signal a terminal funds rate of 4.0-4.25% early next year, 37.5bp higher than in June. We expect the FOMC statement to say that monetary policy will be moving into restrictive territory and the committee expects it to remain there “for some time”, similar to the tone of Chair Powell’s remarks at Jackson Hole. In the press conference, Powell is likely to emphasize that the “overarching goal” of monetary policy is the restoration of price stability, even if doing so requires a hard landing. Updated projections are likely to send a similar message, with less growth, higher unemployment, and a more restrictive policy stance suggesting the window to a soft landing has narrowed further."

Goldman Sachs:

"We have raised our fed funds rate forecast by 75bp over the last two weeks, and now expect that the FOMC will hike by 75bp in September, 50bp in November, and 50bp in December to reach our terminal rate forecast of 4-4.25% by the end of 2022."

[Athrunzala]

Europe is facing ECONOMIC HELL, & America is close behind

[Athrunzala]

Legendary investor Stanley Druckenmiller warns there is a ‘high probability’ the stock market will be ‘flat’ for an entire decade

Legendary investor Stanley Druckenmiller warns there is a “high probability” the stock market will be “flat” for an entire decade | Fortune

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speaking of the yen...

the dollar pulled back against the yen yesterday after going above 145

fell as low as 140/141



the BOJ intervened (they sold dollars)

TOKYO, Sept 22 (Reuters) - Japan intervened in the foreign exchange market on Thursday to buy yen for the first time since 1998, in an attempt to shore up the battered currency after the Bank of Japan stuck with ultra-low interest rates.

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^^^

that's unusual coz the BOJ usually intervenes when the yen becomes too strong (they weaken the yen to keep exports competitive)

guess they're concerned USDJPY will reach 150 so they signaled to the forex market "don't bet on it"

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Markets on monday should be interesting

rumor credit suisse and deutsche bank are in trouble

it's all over twitter

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market narrative shift

thinks Fed will be less hawkish

risk assets are bid

[kagalingan]

^
in layman's term?

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market narrative was the Fed will keep raising rates = bad for risk assets (like stocks)

today Australia's central bank rate hike only 25bp

market interpretation = central banks are close to peak and will soon stop

that's good for stocks

boom

[Athrunzala]

Russia ready to help poor nations battle hunger – Putin

“We fully provide the domestic market with basic products that people need, we are successfully resolving the issues of food security and, moreover, we are increasing export opportunities. We are ready to make our own contribution to overcoming global food problems and provide the necessary assistance to the poorest, developing countries,” the president said.

Russia ready to help poor nations battle hunger – Putin — RT Business News

[uls]

speaking of the yen...

the dollar pulled back against the yen yesterday after going above 145

fell as low as 140/141



the BOJ intervened (they sold dollars)

146



will the BOJ intervene again?

we'll find out