Price gains are shooting higher across many economies worldwide as consumer demand, shortages, and other pandemic-related factors combine to fuel a burst of inflation. However, economists say it’s that exact burst that indicates today’s above-target inflation numbers won’t last. In other news, NBC’s Jim Cramer has highlighted several reasons as to why he’s worried about the stock market this month.
The Week via New York Times/Peter Weber
Inflation is high in most advanced economies. Economists say that’s probably a good sign.
“Price gains are shooting higher across many advanced economies as consumer demand, shortages, and other pandemic-related factors combine to fuel a burst of inflation,” The New York Times reports.
But the fact that “many economies are experiencing a price pop in tandem, even though they used vastly different policies to cushion the blow of pandemic lockdowns,” is a hopeful sign that today’s above-target inflation numbers won’t last.
The U.S., Britain, Canada, New Zealand, South Korea, and Australia don’t just have higher-than-wanted inflation, they also share labor shortages and other “oddities of the current economic moment,” the Times explains. “Commerce came to a sudden stop and then abruptly restarted when government relief payments padded consumers’ wallets, making people eager to spend even as manufacturers struggled to get back to full production and restaurants scrambled to staff back up.”
Read the full story, here.
The six reasons why Jim Cramer is concerned about the stock market in September
NBC’s Jim Cramer said Wednesday he sees a number of worrisome factors that are likely to contribute to market volatility in September, beyond just the fact it is a historically tough month for stocks.
Here’s what the “Mad Money” host is concerned about:
You can read the full story, here.
Kitco News/Anna Golubova
Equating crypto with monetary instruments ‘will bring nothing but harm’ – Kremlin
There is no reason for a country to recognize crypto as legal tender, according to Kremlin spokesman Dmitry Peskov, who added that Russia is not ready for such a step.
“It is certain that Russia is not ready for such steps. So far, there is not the slightest reason to [recognize cryptocurrencies],” Peskov told reporters this week.
Peskov warned that recognizing crypto as an official currency would only hurt the economy. “De facto, equating [cryptocurrencies] with monetary instruments will bring nothing but harm to the financial and economic system, if we are talking about full recognition as a means of payment,” he said.
Continue reading, here.