Tsukuyomi http://tsukuyomi.biz/ Wed, 10 Aug 2022 00:46:31 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://tsukuyomi.biz/wp-content/uploads/2021/10/icon-120x120.jpg Tsukuyomi http://tsukuyomi.biz/ 32 32 To meet the public mood, Labor must reject our failed economic status quo – LabourList https://tsukuyomi.biz/to-meet-the-public-mood-labor-must-reject-our-failed-economic-status-quo-labourlist/ Tue, 09 Aug 2022 08:00:38 +0000 https://tsukuyomi.biz/to-meet-the-public-mood-labor-must-reject-our-failed-economic-status-quo-labourlist/

We must stop treating the cost of living crisis as a failure of management. This is effectively a national emergency and an indictment of the status quo. My constituents are rationally looking for real systemic change and not just better management of the economy. The cost of living crisis is fueled by the monopolization of the energy sector by private companies and inflation, caused not by stagnant wages but by excess profits and supply problems. Like the 2008 banking crisis, this is a man-made disaster and we can choose how we respond to it.

In Edmonton, I see the human consequences of this crisis every day; food banks already running out of food, unable to keep up with demand; full-time working parents unable to feed themselves and their children; families falling further and further behind on their rent with the threat of homelessness constantly on the horizon. Before the cost of living crisis, there were parts of my riding where more than half of the children lived in poverty. Now those numbers are set to increase.

The picture is similar in much of the country. Ordinary people who have done everything right find themselves pushed into poverty. Squeezed on one side by ruthless corporations and unsupported on the other by a state that the Conservatives have spent 12 years dismantling. People have followed the rules and are suffering anyway. The social contract is broken.

After decades of an economic consensus that has fundamentally failed, the people I talk to on the doorstep aren’t looking for better management of the status quo. They want real change. They found that economic growth, although sluggish, has not translated into higher wages and better living standards. After being ripped off for decades by private companies, they know that the privatization of essential services tends to benefit the millionaire owners of these organizations and not the consumers. They know the status quo is not working for them.

As a party, we must not let this moment pass. It is crucial that we understand that we are at an inflection point where public attitudes have fundamentally changed. It’s not 1997, and it’s certainly not 2010. The current wave of strikes enjoys broad public support. by YouGov last poll shows its support for the return of energy companies to the public sector at 60% with only 13% opposed. The language of austerity has largely lost its value as austerity itself has failed. State intervention, triggered by the pandemic, was and still is hugely popular.

This is why ordinary working people, represented by the Labor Party, are taking it upon themselves to organize and force change. From a summer of strikes to a consumer strike against energy prices, the country’s mood is changing.

Unless Labor responds to this appetite for real change, we risk being left behind. Simply being an alternative to government is not enough. My constituents don’t just want a change of government, they want a complete change. End of the privatization of essential services. Real solutions to working poverty. Fewer sound bites and more politics.

After the 2008 recession, voters watched as banks were bailed out while ordinary people suffered. Now the government is bailing out the bankrupt energy sector while millions choose between eating and heating. Unless we make it clear that the experiment in privatizing our energy sector has failed, we risk fueling the same cynicism that pervaded the electorate after 2008. Today, voters are faced with energy bills they cannot afford to pay in October, and no alternative is presented to them. It’s not good enough. We need to do more than manage the existing broken system – we need to show voters that we mean to change it.

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Is the economic system in recession? Top economics gurus weigh in https://tsukuyomi.biz/is-the-economic-system-in-recession-top-economics-gurus-weigh-in/ Mon, 08 Aug 2022 11:35:57 +0000 https://tsukuyomi.biz/is-the-economic-system-in-recession-top-economics-gurus-weigh-in/

‘We will need to have a function definition

FormallyThe NBER Definition of a recession Like “a significant decline in economic activity that spreads throughout the economy and lasts for more than a few months.” In fact, the latest quarterly Gross Domestic Product paper, which tracks the total well-being of the economic system, confirmed a Second consecutive contraction This 12 months.

Nevertheless, if the NBER pronounces a recession, it will take months to act. He can also imagine different items similar to the source of income and jobs.

What isn’t actually submitted if their paychecks don’t pass that long.

Thomas Philipson

Former Chairman of the White House Council This is Economic Advisers

That the nation is in a gray area. Philipson mentioned.

“Why do we let a university group decide? ” He mentioned. “We should have an objective definition, not the opinion of an academic committee.”

Consumers operate like we’re in a recession

For now, customers want to be excited about power is worth shocks And General inflation, added Philipson. “It’s impacting ordinary Americans.”

That’s all ! Federal Reserve Takes competitive strikes to limit inflation. “It will take some time for it to sink in,” he said.

“Powell is raising the federal funds rate, and he’s allowing himself to raise it again in September,” said Diana Furchtgott-Roth, an economics professor at George Washington University. Former Chief Economist at the Department of Labor. “He says all the right things.”

However, consumers are “paying more for gas and food, so they have to cut other expenses,” Furchtgott-Roth said.

“The negative news continues to pile up,” she added. “We are definitely in a recession.”

And then: “The path to a comfortable touch

Both experts agree that the long-term financial situation depends on the direction taken by the hard labor market.

Reduces Consumption is an important factor. Famous Philipson. “If companies can’t sell as much as they used to because consumers aren’t buying as much, then they’re laying off workers.”

The upside is that “we have twice as many job vacancies as unemployed, so employers won’t be so quick to lay off,” according to Furchtgott-Roth.

“It’s the path to a soft landing,” she said.

Here are three ways to budget for a recession

While record inflation has had a significant effect on all families. Each family will have a distinct degree of withdrawal based on source of income, financial savings, or job security.

Nevertheless, there are some There are several ways to organize For a recession, it’s common, in line with Larry Harris?, Fred V. Keenan Chair in Finance University Here’s Southern California Marshall School Here’s Business Former Chief Economist of the Securities And Exchange Commission.

Here is his recommendation:

  1. Streamline Spend much less. “If they expect to be forced to cut spending, the sooner they do it, the better off they’ll be,” Harris said. This may involve lowering some bills you don’t want or need, such as subscription services and products you’ve signed up for so far. Covid pandemic. If you don’t use it, lose it.
  2. Avoid amounts due at variable rates. More Playing cards on credit Variable annual interest rates show an immediate correlation with Fed rates. Anyone who is stable will see interest rates increase with each transfer through the benchmark. Fed. Homeowners with adjustable rate mortgages Credit trails for home equitywhich may be related to high fees, may also be affected. This makes it a particularly excellent time to spot outstanding loans you have obtained and spot whether refinancing Clever. “If there’s an opportunity to refinance at a fixed rate, do it now before rates go up any further,” Harris said.
  3. Consider investing additional cash in Series I bonds. These inflation-protected assets, which can be subsidized by the federal government, are virtually risk-free Pay an annual fee of 9.62% until OctoberThis is the easiest 12-month return record. Although you can easily acquire the silver once and cannot exploit it for at least a year. However, it will likely offer a better return than financial savings accounts or certificates of deposit that pay less than 2%. (Rates for online financial savings accounts, cash market accounts, and certificates of deposit are all on the rise, but it will take some time. These yields are aggressive with inflation.)
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The transition to the alternative to the USD will destroy the American economic system https://tsukuyomi.biz/the-transition-to-the-alternative-to-the-usd-will-destroy-the-american-economic-system/ Fri, 05 Aug 2022 14:24:00 +0000 https://tsukuyomi.biz/the-transition-to-the-alternative-to-the-usd-will-destroy-the-american-economic-system/

A stock photo



MINSK, Aug. 5 (BelTA) — The transition to an alternative to the dollar will mean the collapse of the economic system of the United States of America, Aleksei Avdonin, an analyst at the Belarusian Institute for Strategic Research (BISR), told V Time [On Point] online project on the BelTA YouTube channel.

“We all understand that the dollar is a kind of sham, an arrangement that allows the United States to print unbacked paper notes that are accepted by the whole world. Although in reality they are not supported by anything. The United States of America has done everything to nip in the bud any attempt to destroy the dollar system. Remember Gaddafi. He found himself in the crosshairs when he announced his plans to introduce a new gold-backed currency for North Africa. The transition to the dollar alternative would mean the collapse of the dollar system,” said Aleksei Avdonin.

He noted that after the start of the special military operation, Russia decided to switch to ruble settlements. “They pegged the rubles to the real equivalent of value – to gas. Thus, they gradually and systematically began to destroy the dollar system. The dollar is not pegged to gas or oil, and all the world knows this well. It is supported by the defense industry and the American armed forces. They in turn immediately destroy countries that declare alternative value equivalents, ”said the political scientist.

According to him, China, Russia, India and the countries of the Middle East are aware that everyone is fed up with the Anglo-Saxons. “They are fed up economically, they are fed up with their exploitation. The world should be different. And the president very clearly explained to the journalist from France-Presse that the citizens of European countries are waiting for the coming to power of national leaders. Those who will care about their people and do anything to earn the respect of their nation. If you talk to Germans, you will see a kind of adulation for Americans. At the same time, for example, Charles de Gaulle won the respect of the independent French nation of the United States of America. Why don’t they host US military bases like Germany does? Because de Gaulle did everything to rid France of the presence of the Americans,” said Aleksei Avdonin.

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Global experts discuss how to improve women’s economic status and provide market opportunities https://tsukuyomi.biz/global-experts-discuss-how-to-improve-womens-economic-status-and-provide-market-opportunities/ Fri, 05 Aug 2022 06:51:08 +0000 https://tsukuyomi.biz/global-experts-discuss-how-to-improve-womens-economic-status-and-provide-market-opportunities/

The experts on the panel were Leora Klapper from world Bank, Mayra Buvinic a gender and social development expert at Data 2x, Anna Ginchermanpartner at Consumer Centrix (CCX)and Ines MurrayCEO of the Women’s Financial Alliance.

Here is what was discussed;

The financial exclusion of women in developing countries and sub-Saharan Africa

To achieve the Sustainable Development Goals, the gender gap must be closed.

Women are financially marginalized by traditional banks when it comes to accessing financial services and products – mainly because they lack access to title deeds and ownership of assets as well as rates. of unrealistic interest.

They are less likely to have bank accounts and less likely to be offered loans, although the upkeep of home and family usually falls on their shoulders.

Giving women access to financial resources will lead to a better quality of life in these countries as they would use the money to send their children to school, take care of their health and provide adequate nutrition.

Also, women are more likely to save money and repay loans than men.

They all sat down virtually to discuss women’s access to digital money, market opportunities, loans and how the public economic energy sector and financial institutions can achieve the goals of gender equality and accelerating women’s economic power.

According to the World Bank, more people have access to banks and other financial institutions, “Globally, in 2021, 76% of adults had an account at a bank or regulated institution such as a credit union, microfinance institution or mobile money service provider.”

Additionally, digital financial platforms have increased the chances of people gaining access to financial services and products in Africa.

According to the World Bank, “In sub-Saharan Africa in 2021, 55% of adults had an account, including 33% of adults who had a mobile money account – the largest share of any region in the world and more than three times higher to the global average of 10% ownership of mobile money accounts.

However, women are still largely unbanked and there is no gender equality in financial inclusion.

The World Bank reports that “Globally, there is a gender gap in financial inclusion. Women are 7 percentage points less likely than men to have a bank account.

“Even when women have an account, they often struggle to get a loan for their business or other purposes, and are very likely to be underbanked.”

“Women are also more likely to be dissatisfied with banking services around the world. For micro, small and medium enterprises owned by women in emerging economies alone, the funding gap is estimated at US$1.7 trillion.

Data is everything. When it comes to increasing women’s access to financial resources, data matters! increase funding for gender data, improve the availability and quality of gender data, and also use gender data to drive smarter and more equitable policies.

With this data, the World Bank in developing countries can use this information to create policies and initiatives that can grant women greater access to financial services.

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Fed’s James Bullard expresses assurance that the economic system can reach a ‘comfortable landing’ https://tsukuyomi.biz/feds-james-bullard-expresses-assurance-that-the-economic-system-can-reach-a-comfortable-landing/ Wed, 03 Aug 2022 00:13:01 +0000 https://tsukuyomi.biz/feds-james-bullard-expresses-assurance-that-the-economic-system-can-reach-a-comfortable-landing/

St. Louis Federal Reserve Chairman James Bullard said on Tuesday he still believes the economy can avoid a recession, although he expects the central bank to want to keep raising rates. to monitor inflation.

“I think inflation got stronger than I expected in the second quarter,” the central bank legitimately said during a speech in New York. “Now that it’s happened, I think we’re going to have to go a little higher than what I said before.”

The Fed’s price range fee, which is the central bank’s benchmark, is most likely to drop to 3.75%-4% by the 2022 peak, Bullard estimated. It is currently between 2.25% and 2.5% after four price increases in these 12 months. The charge determines the extent to which banks set different prices for single-day loans, but powers many variable rate customer debt tools.

Still, Bullard said the Fed’s credibility in fighting inflation would help it avoid dragging the economy down.

Bullard compared the Fed’s current scenario to the problems central banks faced in the 1970s and early 1980s. Inflation is now working out the absolute best problems since 1981.

He said he was confident the Fed won’t have to drag the economy into a recession like then-Chairman Paul Volcker did in the early 1980s.

“Modern central banks have more credibility than their 1970s counterparts,” Bullard said throughout a speech in New York. “Because of this… the Fed and the [European Central Bank] may be able to deflate in an orderly fashion and achieve a relatively soft landing.

Lately, markets have been making the other bet, specifically that a hawkish Fed will raise rates so much that an economic system that has already persisted through consecutive quarters of damaging GDP expansion will slide into recession. Government bond yields were headed lower, and the spread between those yields has compressed, more often than not an indication that traders are skeptical of long-term expansion.

In fact, futures prices mean the Fed is expected to apply its fee increases this year with cuts as quickly as summer 2023.

But Bullard argued that how easy it is for the Fed to coax the economic system into a comfortable touchdown rests largely on its credibility, particularly whether or not money markets and the general public imagine the Fed has a desire to prevent inflation. He differentiated this from the generation of the 1970s, when the Fed decreed rate hikes in the face of inflation, but briefly reduced them.

“That credibility didn’t exist at the time,” he said. “We have a lot more credibility than before.”

Bullard will appear on CNBC’s “Squawk Box” Wednesday beginning at 7:30 a.m. ET.

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Job creation key for Laos to improve its economic status, says World Bank https://tsukuyomi.biz/job-creation-key-for-laos-to-improve-its-economic-status-says-world-bank/ Mon, 01 Aug 2022 12:29:00 +0000 https://tsukuyomi.biz/job-creation-key-for-laos-to-improve-its-economic-status-says-world-bank/

VIENTIANE, August 1 (Vientiane Times/ANN): Despite robust economic growth in Laos, job creation has been limited, according to a recent World Bank report.

This is largely because economic growth has been driven by capital-intensive sectors such as mining, energy and construction, which have not created enough jobs to meet existing demand.

The 2021 update of the Lao PDR Systematic Country Diagnostic highlighted how jobless growth prevents households from utilizing human capital and benefiting from economic growth.

“The majority of workers remain trapped in low-paying, low-quality jobs, either as self-employed workers or as unpaid family workers, especially in agriculture. Jobless growth disproportionately affects poor and vulnerable groups, leading to greater inequality that can fuel social instability,” the report says.

“A more inclusive growth model will require improvements in the business climate, socio-economic infrastructure, skills development and a well-functioning labor market.”

Creating more and better jobs requires a competitive private sector. Improved regional and national transport connectivity will improve access to international markets and facilitate integration into global and regional supply chains.

“Laos needs economic growth based on creating jobs, rather than borrowing and selling natural resources,” said Alex Kremer, World Bank Group Country Director for Lao PDR.

“The immediate priority is to increase state revenues. Otherwise, with debt repayments increasing every year, there will be less money available to invest in education, skills, local infrastructure and health – the sources of healthy economic growth.

Prosperous and resource-rich countries have effectively transformed their natural capital into human capital.

In Laos, the agricultural and forestry sector provides more than 60% of total employment. According to the World Bank, about two-thirds of the rural population depend on forests for food, fuel, fiber and medicine, and more than 39% of rural family income comes directly from non-timber forest products.

Although the development of hydroelectricity has stimulated growth in the industrial sector, it has created few jobs, while production in job-creating sectors has increased slowly.

Between 2012 and 2018, the wholesale and retail sector laid off the most almost exclusively self-employed workers, around 76,000 in total.

Although some of these workers may have moved into the hospitality industry where some jobs have been created, many have left the workforce altogether.

Unemployment rose from 4% in 2012 to 16% in 2018. The competitiveness of the manufacturing sector has eroded since the early 2010s, as labor productivity has not kept up with rapidly rising labor costs. labor and the compression of the profitability of manufacturing companies.

The World Bank report recommended that Laos should boost job creation through a more vibrant private sector and better connectivity infrastructure.

It is also essential for Laos to improve the labor market, education and health services help Laotians to access employment opportunities. -Vientiane Times/ANN

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Africa observes Women’s Day to affirm the social and economic status of women on the continent https://tsukuyomi.biz/africa-observes-womens-day-to-affirm-the-social-and-economic-status-of-women-on-the-continent/ Sun, 31 Jul 2022 15:41:00 +0000 https://tsukuyomi.biz/africa-observes-womens-day-to-affirm-the-social-and-economic-status-of-women-on-the-continent/



NNA |
Updated:
Jul 31, 2022 9:11 PM STI

addis ababa [Africa]July 31 (ANI): Africa celebrates Women’s Day on Sunday, a day dedicated to recognizing and affirming the role of women’s organizing in achieving Africa’s political freedom and advancing the status social and economic status of women on the continent.
July 31 is Pan African Women’s Day and 2019 marked the 57th anniversary of the Pan African Women’s Organization (OPAF), the AU’s specialized agency dedicated to gender equality and women’s empowerment. .
In his statement to commemorate the day, the Chairperson of the AU Commission, Moussa Faki Mahamat, inter alia noted the significance of the day by emphasizing that Pan African Women’s Day is a day to celebrate and recognize ancestors of Africa who fought valiantly for liberation and development. of this continent. He also reiterated the important role of African women who continue to be the backbone of our economies as farmers, entrepreneurs, traders, scientists and leaders in many other sectors.
The Chairperson noted that one of his priorities remains the full implementation of the Policy Organs’ call for gender parity among AU staff by 2025 and indicated that he will continue to ‘Demand the dignity and protection of all women and girls who have been forcibly displaced in Africa; noting that it is the collective responsibility of Africans to hold themselves and their leaders accountable to deliver on commitments to gender equality and women’s empowerment.
African Women’s Day provides a national, continental and global opportunity to remember and affirm the important role of African women in evolving a strong Pan-African identity, with shared values, goals and vision for the future. , as well as women being key contributors. towards realizing Africa’s inclusive growth and sustainable development agenda anchored in the AU’s vision of an integrated, prosperous and peaceful Africa
In 2019, the Heads of State and Government of the African Union designated July 7 of each year as “African Integration Day” to celebrate the major achievements made in the process of regional and continental integration, and also, to deliberate on key lessons learned, with a view to addressing the challenges faced.

African Women’s Day 2021 was celebrated under the theme “African Women in Arts, Culture and Heritage”.
The commemoration is also aligned with the declaration of the years 2020 to 2030 as the Decade of Financial and Economic Inclusion for Women. The overall goal of the Decade of Financial and Economic Inclusion for Women is that every woman can work, be paid and participate in the economy of her country.
This involves examining the regulatory, legislative and policy environment to determine what changes are needed to foster women’s financial inclusion and helping financial institutions adopt approaches that are tailored to women, as a distinct market segment, as well as their participation in key economic sectors including the creative and cultural industries
African Women’s Day provides an opportunity to celebrate and recognize the role and contribution of women in the creative economy and the creative and cultural industries and to encourage women to join the sectors as well as rally support on how to meet the challenges and unexplored opportunities for women.
This is also done to amplify the voices and visibility of women in the creative industry, including but not limited to – Challenging gender stereotypes and harmful social norms through arts, culture and heritage in order to increase retention and leverage the different components of culture to spread the message about protecting and promoting the rights of girls and women.
It also aims to promote the use of culture and the arts to demystify and de-stereotype the creative economy sector and to foster the participation of girls and women in the creative economy through studies in gender-sensitive humanities and to encourage exhibitions and galleries or museums to grant women equal opportunities in exhibiting works by female artists and to acquire more works of art produced by women.
Among other things, they advocate for women to access and occupy leadership positions in the creative economy sector, advocate for an enabling environment that supports the growth of professional women artists, including through academia, and expand resources for women in the creative economy, particularly financial and technical resources. (ANI)

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Political party handouts weaken economic system – Jammu Kashmir Latest News | Tourism https://tsukuyomi.biz/political-party-handouts-weaken-economic-system-jammu-kashmir-latest-news-tourism/ Sat, 30 Jul 2022 18:58:30 +0000 https://tsukuyomi.biz/political-party-handouts-weaken-economic-system-jammu-kashmir-latest-news-tourism/

The “architects” of the incitement of citizen voters to obtain gifts in return, having experimented with it in the electoral laboratory of a few states of the country in one or another form, of course, resulted in the victory of elections by such parties, but in the short term it has turned these states into a debt trap. The continuation of this “deal” or bargain accentuates the negative impact on the widening and deepening of this trap. In the long term, it depends on the recipients’ ability and willingness to work hard and probably sincerely. This is a kind of clumsy corruption with far-reaching consequences and should also be seen in this context. After all, why for free, what for free, who to pay for this “free” and its cost, is a serious question that should be seriously considered by the citizens of the country.
On the other hand, to brag that “our government” collects no taxes is to foster this corruption simply so as not to displease the voters, while those who cannot escape it or pay honestly suffer an emotional setback that all what was given for free was never out of the pocket of the political leaders but out of the pocket of the taxpayers. Electricity has been conveniently and easily turned into the proverbial “whip boy” by those politicians to whom basic economic principles appear perhaps redundant and absolutely non-optional, if not entirely superfluous. Electricity, whose cost of production as well as related transmission and infrastructure costs are increasing day by day, tops the list of freebies and competition exists among partisan politicians who advocate freebies as a way to achieve the seat of government to find out who would do it. to offer the extent of electricity to voters deemed to be “still poor” without paying the cost by them.
Thus, the fundamental variables of the economy and the economic system plunge into a cycle of arrhythmia and can lead to putting on hold the rhyme and pace of economic development of such a state/UT of the country. The condition of many states like Punjab, Rajasthan, West Bengal, Maharashtra, Kerala, Bihar, Tamil Nadu, Andhra Pradesh, Jharkhand, Uttar Pradesh etc. is that they have the highest debt burden in India and these states account for half of the total. expenditure by all the state governments assembled in India. The question remains as to who was going to fund the political luxuries and royalties of these politicians employing the pop lollipop of free electricity, monthly financial ex gratia payments to hundreds of thousands of people, free bus rides, free water, free metro/train travel, free medical facilities, free education, free ration and the list is endless. This amounts to muzzling almost all vital channels of economic development, improving infrastructure, and thwarting and suspending the introduction and implementation of various urgent projects.
There is, in the process, and what usually ensues, pressure on the central government to release funds to fund the cost of the gifts and if they don’t get as much as requested then they become victim of negligence and discrimination by these gifts that sponsor political leaders one resorts to. This not only generates avoidable political waste, clamor and uproar, but also an appetizing way for others to join in this “game” to win the election. A vicious circle is about to be created in the country if it is not regulated and stopped immediately. India’s Supreme Court is hearing PILs filed against the practice and therefore has called the gifts ‘serious’ and ‘irrational’ and asked the central government why they are reluctant to take a stand on the matter.
Since the Finance Committee plays a vital role in assessing the state of the finances of the Union and the State governments and giving recommendations on the distribution of tax revenue between the Union and the States and between the States themselves and that it is a constitutional body, can impose certain restraints on these hard-earned income luxuries. Not only that, Electoral Commission of India can penalize such political parties and even prohibit contestation of elections by such candidates based mainly on such promises or can regulate more and more such reliance like on spending limit for election campaigns. The most powerful tool and antidote against this opium is in the hands of the legislators themselves who make laws in Parliament against this practice. The question about this “golden” option is who will ring the cat because, perhaps, all lawmakers are in unison on issues affecting “all of them”. We therefore believe that the true holders of sovereign power being the voters of this country alone can end this practice by saying a big “no” and rightfully rejecting these “freebies” promising politicians while casting their precious vote.

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Yellen says economic system not in recession despite falling GDP https://tsukuyomi.biz/yellen-says-economic-system-not-in-recession-despite-falling-gdp/ Thu, 28 Jul 2022 19:20:24 +0000 https://tsukuyomi.biz/yellen-says-economic-system-not-in-recession-despite-falling-gdp/

Treasury Secretary Janet Yellen said on Thursday the US economy was in a state of transition, not recession, despite two straight quarters of unfavorable expansion.

The recession, Yellen insisted, is a “widespread weakening of our economy” that includes massive layoffs, business closures, family price lines and a slowdown in private sector employment.

“That’s not what we’re seeing right now,” she said throughout one-day information convention on the Treasury. “When you look at the economy, job creation continues, household finances remain strong, consumers are spending and businesses are growing.”

Those comments, however, came the same day the Commerce Department’s Bureau of Economic Analysis reported that gross domestic product, the broadest measure of monetary employment, fell 0.9% in the second quarter.

After a contraction of 1.6% in the first quarter, the 2 direct declines meet a commonly used definition of recession. The National Bureau of Economic Research, on the other hand, is the respectable arbiter of recessions, and it likely wouldn’t rule for months.

Yellen began his remarks with a list of management’s financial achievements, including an increase in nonfarm payrolls of more than $9 million.

But inflation has confirmed the most important obstacle, emerging at 9.1% in June while financial enlargement has failed to sustain itself. Consumer and retailer sentiment levels have plunged, with new surveys showing that a majority of Americans see the country as in a recession.

Yellen mentioned the weight that the high prices are increasing and said management is “laser-focused” to take care of the location.

“We have entered a new phase in our recovery focused on achieving steady and stable growth without sacrificing the gains of the past 18 months,” she said. “We know there are challenges ahead. Growth is slowing globally. Inflation remains unacceptably high, and it is this administration’s top priority to bring it down.

President Joe Biden and Yellen have each touted the odds of a brand new bill that Democratic lawmakers seem to have agreed on to fight inflation. The settlement aims to increase tax revenue, reduce drug prices and invest in renewable energy.

Yellen noted that while the Federal Reserve, which she chaired from 2014 to 2018, has “the lead role in reducing inflation, the president and I are committed to taking action to cut costs and protect Americans.” global pressures we face”.

The Fed has hiked rates four times this year, for a total of 2.25 equity issues, and will likely come online with more increases later in the year.

Yellen attributed the emerging inflation to the war in Ukraine, supply chain issues and the Covid pandemic. She did not talk about the effect the financial and monetary stimulus had on value pressures.

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Recession fears deepen as US economic system contracts again https://tsukuyomi.biz/recession-fears-deepen-as-us-economic-system-contracts-again/ Thu, 28 Jul 2022 17:02:46 +0000 https://tsukuyomi.biz/recession-fears-deepen-as-us-economic-system-contracts-again/

The U.S. economy shrunk for an immediate second quarter between April and June, executives confirmed Thursday, including the essence of recession fears in President Joe Biden’s jigsaw puzzle ahead of the mid-election -mandate.

Gross domestic product shrank at an annual rate of 0.9% in the second quarter, following a steeper decline in the first three months of the year, according to the Commerce Department.

Although no longer the authentic definition, two quarters of detrimental expansion are often seen as a powerful sign that a recession is underway, and a downturn in the planet’s largest economic system would have global consequences. , in addition to national political awards.

Mr Biden has insisted that the US economy is “on track”, despite the downturn, but his critics are sure to see the document as evidence of the veteran Democrat’s mismanagement.

After a decline of 1.6% in the first three months of the year, the document mentions that the slowdown in the last quarter was largely due to lower spending by executives in all respects and private financing of items, including vehicles. , and on residential construction, despite an increase in exports.

But private hospitality spending (PCE) continued to rise, albeit at a slower pace than in the previous quarter, the news confirmed.

The U.S. economy also continues to struggle with sky-high inflation, due to supply chain rumbles due to COVID lockdowns, as well as fallout from Russia’s war in Ukraine that has driven up meal prices. and gasoline.

Consumer prices hit 9% in June, the best in more than four years, while GDP news confirmed another key measure of inflation, the PCE value index, rose 7 .1% in the last three months, as in the January-March period.

The U.S. central bank raised interest rates aggressively — with the latest behemoth building on Wednesday — in an attempt to cool the economy and ease pressures on value.

“It’s no surprise the economy is slowing as the Federal Reserve moves to bring inflation down,” Biden said in a comment shortly after the GDP paper was launched.

“But even though we face historic global challenges, we are on the right path and we will get through this transition stronger and more secure,” he said, noting that “the U.S. labor market remains historically strong.” and that the economic system has created more than one million jobs before now 3 months.

It could be very strange that an economic system still comprising jobs at a rapid pace and with unemployment near an all-time high, falls into recession, and many economists say the dialogue of a downturn is more about when, no if.

That poses a big political headache for the president, who has seen his approval rating plummet in recent months as US households struggle to make ends meet due to soaring inflation.

Fed Chairman Jerome Powell agreed with Mr Biden and other economists who say the GDP numbers are inconsistent with other hard knowledge.

Mr Powell said on Wednesday he no longer believed the country had been in a recent recession because “there are too many sectors of the economy that are doing too well”.

Mike Fratantoni, chief economist of the Mortgage Bankers Association, was once among those who echoed Mr Powell’s view, saying “continued strength in the labor market and other signs of growth make it unlikely let it be called a recession”.

Mr Powell also said it was possible to ease pressures on value without causing a slowdown or a major rise in unemployment, although he said the trail to chain that needle was narrowing.

But economist Mohamed El-Erian mentioned on Twitter that the level of knowledge would “aggravate stagflation and flash the risk of recession red.”

This effect is also the person who sticks in the minds of traders and buyers.

Wall Street was once no longer satisfied with knowledge. After giant leaps in the wake of the Fed’s fee hike, all three major stock indexes were reduced in mid-morning buying and selling.

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