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.
EU politics
German Foreign Policy: EU Home Alone
USA and Russia negotiate arms control – without the participation of Germany or the EU. US experts recommend avoiding two-front war against Russia and China. Read Here EU foreign affairs chief Josep Borrell is alive […]
Climate Crisis
Steve Keen: The future is carbon coin
With alternative coins flourishing and Central Banks designing their own digital currencies, there is a potential hard-backed currency which cannot be ignored: carbon. Using carbon to back a global currency would redistribute wealth, incentivize low […]
EU politics
Patrick Maynard: Germany’s Support for Ukraine Faces Doubts on the Home Front
NATO’s Vilnius summit is placing fresh demands on Germany to increase its military aid to Ukraine. Foreign Minister Anne Baerbock speaks stridently of the West’s role in the war — but Germans are increasingly reticent […]
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