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.
Geopolitics
Avi Shlaim: Israel, From Genocide to Self-Destruction
The genocide in Gaza radicalizes Zionism’s long-standing colonial project. But Israeli leaders’ open rejection of any future possibility of a Palestinian state have undercut their own international legitimacy. Read Article HERE
Climate Crisis
Prof John Beddington, Prof Steven Berry, Wolfgang Cramer, et al: EU must not burn the world’s forests for ‘renewable’ energy
A flaw in Europe’s clean energy plan allows fuel from felled trees to qualify as renewable energy when in fact this would accelerate climate change and devastate forests Read here
Economics
Politico – Trump to EU: Play ball or ‘we’re going to tariff the hell out of you’
US president says EU is ‘maybe, in certain ways’ tougher than China. Read here
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