The Swedish parliament has been taken over by the anti-globalist right, which is a good sign for individualism as well as decentralized governance.
"Fed Watch", a macro podcast that is true to bitcoin's rebellious nature, is called "Fed Watch". Each episode examines current macro events from around the world, with a focus on central banks, currencies, and we challenge mainstream and Bitcoin narratives.
This episode features CK and me discussing the August consumer price index (CPI), some surprising Chinese economic data, and the bitcoin and ether prices.
You can watch this episode on YouTube or Rumble
Listen to this episode:
- Apple
- Spotify
- Libsyn
- Overcast
CPI's Shelter and Food Components
After covering some charts like the S&P 500 and the German DAX, as well as European natural gas futures, this week's big topic is the U.S. CPI data.
This episode focuses on the U.S. CPI report, which is from the Bureau of Labor and Statistics. CPI's shelter and food components are particularly important. The rate at which food prices increased declined, which I interpret to mean that there has been a peak in food-price rises. The CPI also covers shelter costs. It is the largest single cost by weight and has been increasing. In the episode, however, I highlight a few reasons shelter is a poor indicator. It is most likely 18-24 months behind other price indicators.
The podcast's main message for CPI is to emphasize month-overmonth changes and not year-overyear. You'll think prices are increasing at 8% annually if you only look at year-over-year rates. However, they have been growing less than 1% over the past two months. This is a huge difference.
China Exports And Oil Demand
We are proud to have been at the forefront of the China crisis since its inception on "Fed Watch". We were pointing out China's obvious economic decline and weak geopolitical position when others were – and are – on the China rising bandwagon.
They aren't getting any better. We received reports this week that Chinese exports are on the verge of a steep decline. According to the South China Morning Post article, instead of seeing the peak season for Chinese exports due to the coming holiday season in Europe and the U.S., Chinese exporters claim they are seeing an amount that looks more like the "off-season."
"This decline reflects falling freight demand, both due to excess inventories by some importers as well as inflation decreasing spending among some consumers and as other people shift to other goods and services as the pandemic recedes," Judah Levine of Freightos, head of research, said. To avoid delays, many retailers placed peak season orders earlier than usual.
Their exports are falling, but so is their oil demand. A report explaining that China's oil consumption has dropped for the first time in two years was something I saw.
"The primary downward pressure on oil prices over the last few days was a report by China that China's annual oil demand could shrink for the first-time since 2002 due to Covid restrictions under Beijing’s zero-Covid policy."
This is in line with my prediction that the world will reach peak oil demand within the next two decades. Deglobalization and associated economic contraction are the main drivers of falling demand. The world now consumes approximately 100 million barrels of oil daily. With the deglobalization depression, it is possible to see this drop to 90 million barrels per hour and continue to do so for many years.
Anti-Globalists, Nationalism and Populism
The last segment of the show gives an update on Europe's political situation. The Swedish elections are over and the anti-globalist left has taken control. This result seemed unexpected. Sweden, a country known for being left-leaning and considered a stronghold for European-brand socialism today, has moved quickly against global Marxists.
There are two other important elections before the year ends. Italy is where the Brothers of Italy with their anti-globalist alliance are set to take control of a super-majority of their parliament. The United States midterms will see anti-globalists expected to gain control of both the Houses of Congress.
This is a huge swing against the Marxism in Washington, Washington, and Brussels. This is a good sign for individualism and decentralized governance, as well as the rise of neutral currency.
This guest post is by Ansel Lindner. These opinions are not necessarily those of Bitcoin Magazine or BTC Inc.
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By: Ansel Lindner
Title: As The China Crisis Deepens, It’s Clear That The Globalists Are Losing
Sourced From: bitcoinmagazine.com/markets/china-crisis-deepens-globalists-are-losing
Published Date: Sun, 18 Sep 2022 01:00:00 GMT
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