I Cannot Live on Tomorrow’s Bread

On April 19, the International Monetary Fund (IMF) released its annual World Economic Outlook, which forecasted a severe slowdown in global growth along with soaring prices.‘For 2022, inflation is projected at 5.7 percent in advanced economies and 8.7 percent in emerging market and developing economies – 1.8 and 2.8 percentage points higher than projected in … January’, the report noted. IMF Managing Director Kristalina Georgieva offered a sobering reflection on the data: ‘Inflation is reaching the highest levels seen in decades. Sharply higher prices for food and fertilizers put pressure on households worldwide – especially for the poorest. And we know that food crises can unleash social unrest’.

I Cannot Live on Tomorrow’s Bread

Related:

This Isn’t Putin’s Inflation

H/T: The New Dark Age

Old Normal vs New: From 1980s Neoliberalism to the ‘Great Reset’

Old Normal vs New: From 1980s Neoliberalism to the ‘Great Reset’

Many people waste no time in referring to this as some kind of ‘Marxist’ or ‘communist’ takeover of the planet because a tiny elite will be dictating policies. This has nothing to do with Marxism. An authoritarian capitalist elite – supported by their political technocrats – aims to secure even greater control of the global economy. It will no longer be a (loosely labelled) ‘capitalism’ based on ‘free’ markets and competition (not that those concepts ever really withstood proper scrutiny).

Inflation and financial risk

Is inflation coming back in the major capitalist economies? As the US economy (in particular) and other major economies begin to rebound from the COVID slump of 2020, the talk among mainstream economists is whether inflation in the prices for goods and services in those economies is going to accelerate to the point where central banks have to tighten monetary policy (ie stop injecting credit into the banking system and raise interest rates). And if that were to happen, would it cause a collapse in the stock and bond markets and bankruptcies for many weaker companies as the cost of servicing corporate debt rises?

Inflation and financial risk