As the UK and Yoorp prepare for a set-to over Sausages, the real issue remains inflation vs deflation. Are rising PPIs in China due to speculation on commodities boosting prices, is inflation due to supply glitches, and are the longer-term threats of Central Bank taper, growing West-East tension, and the reality of pandemic debt likely to tip us back into a deflationary cycle?
The G7 agreement is being hailed as a great step forward, but will it ever happen? Janet Yellen’s call for higher rates is a clear sign the problem of financial asset inflation will finally be addressed – the question is how painful the treatment and taper tantrum will be? Not addressing financial asset inflation is a far bigger risk than the debt crisis many monetary traditionalists perceive has grown from government pandemic spending.
Boom Supersonic has “sold” 15 new aircraft to United Airlines. They are still in development, will be “sustainable” and “carbon-zero”, and make supersonic flight as cheap as cheap. Really? The laws of aerodynamics and economics don’t bend that easy! It might make a great SPAC or meme stock story, but if it ever flies….
The International Energy Authority (IEA) is grabbing all the climate change headlines with its demands for Carbon Zero by 2050 and increased spending on renewable energy. The IEA now represents the consensus – the received wisdom. How achievable are their targets? Or will economic reality and rising costs of climate abatement result in something very different? It’s easy to demand neutrality – but will be frighteningly difficult to achieve.
ESG tightened its grip on markets in a succession of wins over oil majors. Is that a good or bad thing? Probably better shareholders decide a company’s green objectives than them being set by bureaucrats, but there will be consequences.
Nothing to worry about… except Pandemic, Bonds, Inflation or Deflation, Record Container Prices and Geopolitics? Is there any chance of compromise and a deal on the US infrastructure package everyone agrees is necessary – or will it sink into the partisan swamp? And Cathie Wood talks up her investment strategies – but what’s the substance behind the leading Zeitgeist Investor?
Everyone loves a conspiracy theory, but what if the stories Covid escaped from a China virus lab take hold? We will never know the truth, but as the rumours multiply, they could trigger renewed trade-war. It could unravel China’s regional hegemony and trigger a dramatic reversal for the global economy -especially for China.
