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What does the fundamental crisis of Western markets look like?
Direct Translation via Google Translate. Edited.By Pavel Kukhmirov [Sevastopol] Producer prices (PPI) in the euro area soared 37.2 percent in April compared to the same month a year earlier. According to Interfax , this is evidenced by the data of the Statistical Office of the European Union (Eurostat). The rise accelerated from 36.9 percent in March and became the highest in the history of the index calculation. At the same time, analysts on average expect an even more significant increase - by 38.5 percent. The peak of inflationary pressure in European countries has not yet been passed, experts say. Frankly crisis phenomena occur not only in the European market. They erupted throughout the modern West. Not only on it, but on it in the first place. There is an increasing impression that the sanctions served only as a trigger for something that was long overdue. For example, the US stock market is literally in a fever: the indices of exchange activity have fallen by 20 percent from their November peaks, starting a new long “bearish trend”. And it's not just swings: the S&P 500's current streak of weekly falls is literally the worst since 1932. That is, from the very depths of the Great Depression. And this is just one example, and there are many. The US financial sector is rammed not only by sanctions wars and record inflation. And adding to the situation of tension is also the inept actions of the US Fed, which raises rates, hoping to somehow keep up with inflation. At the same time, the head of the Fed, Mr. Powell, is already openly declaring his inability to guarantee a soft landing for the economy. And this can be understood in such a way that the US economy, addicted to cheap money, may simply not be able to withstand the growth of rates and tightening the screws in the monetary sphere. The ruling Democrats are trying to somehow stop the rise in inflation by passing in Congress an “anti-price hike act,” which allows Biden to declare an “economic emergency” and freeze the prices of some essential goods. The measure for America is simply unprecedented - the "market" no longer decides. And it is already clear that such a policy in the conditions of American capitalism will instantly lead to a new wave of deficits. The US is already promising fuel shortages this summer, the busiest time of the year for the transportation industry. Which obviously also threatens with a large-scale crisis in the field of truckers, which can simply bring down all logistics. And now the head of the US Treasury, Yellen, is scaring the entire planet in advance with the prospect of stagflation, accompanied by a collapse in the economy and rising prices. And it also scares the world with hunger, from which 1.5 billion people could suffer. And few doubt that the threats are real. There is nothing surprising in the fact that the current situation in Western markets is compared to the Great Depression. Now the liberal world order is facing a fundamental crisis. The strongest in the last 90 years. And it may very well be that everything that happens is just the beginning. Pavel Kukhmirov is a former Donetsk militiaman and a current resident of Rostov, Russia. His call sign is "Shakespeare." Posted by: badanov 2022-06-04 |
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