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.
Economics
Notayesmanseconomics’s Blog: Euro area money supply data looks worrying again
The monetary data suggests not only that the “Euroboom” is over but that the trajectory looks downwards. Read here
Economics
Eurostat: Eurozone Striving to lead the World in Stable Deflation
Only for the third time in its history, the eurozone had had four consecutive months of deflation. Many EU politicians are calling for the re-introduction of austerity in the hopes of increasing the eurozone’s efforts […]
Climate Crisis
Bloomberg: Shell Ditches U.K. Oil Project in Win for Climate Activists
Again, governments did not stop this (Let’s here it for the oh so progressive SNP). Read here Flickr – Creative Commons Attribution-Share Alike 2.0 Generic
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