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
Reuters: EU court rules against tribunals settling intra-EU disputes
This is a very important case, as it starts to erode the authority of arbitration tribunals, in this case in the EU. Apparently this could affect law suits with corporations outside of the EU. Interesting is […]
EU politics
Jordi Solé, Josep-Maria Terricabras and Ramon Tremosa: Spain wants revenge. But arresting Catalan leaders only gives us strength
BRAVE NEW EUROPE is publishing information concerning Catalan independence according to its motto “Expertise with a radical face”, providing information and analysis that one rarely finds in the mainstream press in Europe. Read here
Economics
Shaun Richards: What will happen to economies in 2023?
That is really rather a mess as we know it rallied into the 132s. Anyway this leads me to my first two thoughts. Number one is that inflation levels will fall as we head into […]
Be the first to comment