A Note, and Financial News
Note: I'm not going to be chasing events, future predicting, or getting near the American political shit-show. This letter is meant to be entertaining education or educational entertainment, whichever pays more. I need a much bigger audience to continue for any length of time, so please feel free to send far and wide anything you find of interest, or post on any media you choose.
Thanks
Joe
The Financial Times this morning was a pretty good state of our finance times:
US inflation soars to 7% for first time since 1982
"Year-on-year rise in CPI comes as Federal Reserve lays the groundwork for tighter policy amid soaring prices”
Companies raise $100bn on global debt market in brisk start to 2022
“Global corporate bond issuance reached $101bn in the year to January 7, with US deals reaching a record pace.”
Federal Reserve prepares to shrink $9tn balance sheet after pandemic largesse
“The US central bank now holds just under $9tn of assets, more than double the amount compared with early 2020 when it embarked on an unlimited bond-buying programme to prop up markets.”
Inflation in rich economies surges to a 25-year high
“The annual pace of consumer price growth in the OECD group of developed nations hit 5.8 per cent in November according to data released on Tuesday, up from just 1.2 per cent in the same month the previous year and the highest rate since May 1996.”
Argentina heads towards latest IMF deadline with little sign of progress
“While talks are ongoing with the IMF, the government must also find a way to convince a fractious new congress to approve its plan to restructure some $40bn owed to the international lender, as part of a record-breaking $57bn bailout in 2018.”
Key Bund yield on brink of turning back above zero
“Upheaval in eurozone debt markets has left benchmark German borrowing costs on the cusp of climbing above zero for the first time in nearly three years.”
A debt soaked industry:
US oil production set to eclipse previous record despite climate push
“Government body forecasts crude output at 12.4m barrels a day in 2023 despite green pledges.”
And best for last, an unsuspecting straight man, errr woman, sets up a well delivered punchline:
High inflation is ‘severe threat’ to US jobs recovery, Powell warns
When asked by Democratic Senator Elizabeth Warren about big corporations raising prices, Powell said it could reflect the fact that demand was “incredibly strong”.
“They are raising prices because they can,” he added.
Funny, funny stuff.