Regular readers will know that I hate the term NAIRU – or Non-Accelerating-Inflation-Rate-of-Unemployment – which is a concoction invented by mainstream economists to maintain unemployment at elevated levels (to keep the working class in its place) and give cover to central banks to run monetary policies that redistribute income from poor to rich. If you search through my archives you will find many posts about this abomination. I am guessing with all the supply disruptions at present as a result of the illegal invasion of Iran, central bankers will start claiming interest rates will have to rise to curb the inflation. They will dress these claims up in some economic sophistry and the official speak will talk about NAIRUs and excessive demand pressures. Yet, in reality, there is no such justification. The rate rises will not get ships moving through the Strait of Hormuz more quickly, just as they did not get factories back to work during the early COVID period. Here is some analysis to support my point.
Globalisation
Reuters – US court blocks most Trump tariffs, says president exceeded his authority
A major blow to Trump’s economic and foreign policy. If he can’t get this overturned on appeal he will have lost leverage to negotiate trade deal with the rest of the world. Read the article […]
Finance
CNBC: ‘Driven to destitution’: Delivery riders in Britain are struggling as takeout orders plummet
Restaurant closures and a crashing economy has left riders across the UK struggling to make ends meet. Read here
EU politics
Moira Lavelle: Greece Just Elected the Most Right-Wing Parliament Since the Return to Democracy
Greece’s elections on Sunday brought a conservative majority — and seats in parliament for three far-right parties. With the collapse of the left-wing alternative to austerity, neofascist and ultra-Orthodox groups are pulling Greece to the […]
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