Wednesday, July 20, 2022

Macroecon 19, UK and Canada inflation rates, Biden admin's 'expensive gas is beneficial'

Today, UK and Canada released their June 2022 inflation rates. UK's 9.4% is another 40-years high, highest since 1982.


Canada has 8.1%, 39-years high, highest since 1983.

BoJo (Boris Johnson) was forced to resign as UK PM last July 7 on his many personal scandals plus uncontrolled inflation because he wanted so much to "save the planet." 

Canada high inflation not because they have stopped buying cheap Russia oil-gas, Canada is a major oil producer. But partly because PM Trudeau has penalized farming and fertilizer production via nitrogen emission control or cap, "to save the planet",

You cut fertilizer use, you cut agri mass production, 100%, that simple. Organic farming, zero chemical fertilizer is nice and beautiful, see Sri Lanka great example,

In italy, PM Mario Draghi offered to resign last July 14 over his coalition's failure to control high inflation, among others. Italy inflation of 8.0% June 2022 is 36-years high, highest since 1986.

So far 2 leaders knocked down. US and EU sanctions are supposed to impoverish Russia and force Putin to be knocked out of power. Did not happen, the opposite happened, so far, it's 2-0 for Putin.

All European countries with 30, 40-yrs high, even 49-years high inflation rates like Germany (7.6% in June, 7.9% in May, highest since 1973), they reduced or stopped buying Russia oil, gas, coal. 

India inflation is 8-years high (7.0% in June, 7.8% in April, highest since 2014).
China inflation is 2-years high, 2.5% in June, highest since July 2020. These two big countries buy cheap, discounted oil-gas from Russia.

It is important that movement of commodities like energy should be separate from movement of troops and bombs. Free trade should be separate from war.

Last Monday afternoon July 18, there was a BSP-UPSE lecture by Dr Thorsten Beck, Prof. of Financial Stability, European University Institute, France, about "Prospects for financial stability in the new normal."

I was on the road that afternoon, couldn't tune in but I heard from some UPSEAAns that Dr Beck talked about the need for more ESG, agh. And talking about financial stability from financially unstable France -- inflation rate June 2022 5.8%, highest since 1985 or 37 years ago. Maybe they want France inflation to be 40 yrs high like UK and US, or 49 years high like Germany, or perhaps 60 years high, before they realize that ESG means environmental socialist garbage?

Meanwhile, the Biden team and US Dems are the real planet saviors, not the Europeans. Here, US Transport Sec. Pete Buttigieg arguing that expensive gasoline is nice and beneficial, will force more people to ditch their gasoline-powered cars and shift to electric vehicles.

Yes, go go go, Buttigieg and Biden, climate czar John Kerry and energy advisor Amos Hocstein, Commerce Sec Gina Raimondo and Treasury Sec Janet Yellen. What a fantastic team of planet saviors.

Meanwhile in 2021, 80% of US electricity generation came from fossil fuels (61%) and nuclear (19%) and only 20% from renewables (of which 12% from wind+solar),

So anti-fossil fuel US planet saviors will soon force their huge tractors and harvesters, monster backhoes and bulldozers, huge long trucks, to become electric. Very nice.

See also:
Macroecon 16, US inflation classmates in March 2022, April 19, 2022
Macroecon 17, Germany's near half-century inflation rate, May 31, 2022
Macroecon 18, More gobal price instability, June 12, 2022
Free Trade 70, Free trade should be separate from war, July 05, 2022.

No comments: