Turkish lira crashes to ‘insane’ historic low after President Erdogan sparks sell-off

 Turkey's currency the lira continues to devalue against the dollar as the countries central bank inexplicably continues to slash interest rates even as inflation rises to double digits. The lira has been on a downward trend since 2018 after president Erdogan looked to boost the economy by slashing interest rates and with the onset of the pandemic the rates were further lowered. However lower interest rates come with inflation, which is now nearing 20 percent in Turkey. One would think that this would be a good time to start increasing interest rates but the central bank is looking to do anything but that. The central bank seems to be operating under the directions of the president who believes that higher rates will increase inflation while also slowing down growth and job creation. 

This inflation must be severely hampering the citizens goods to be able to buy basic goods as wages take time to adjust. The inflation is also bad for Turkey's foreign denominated debt which gets harder to pay off as the currency devalues.

source:https://www.cnbc.com/2021/11/23/turkish-lira-plummets-to-historic-low-after-erdogan-sparks-selloff-.html

New unemployment claims fall to 52-year low: Here are the best and worst states for jobs

 New unemployment claims fall to 52-year low: Here are the best and worst states for jobs 

By: Emily McCormick

https://finance.yahoo.com/news/the-best-and-worst-states-for-jobs-as-new-unemployment-claims-fall-to-52-year-low-171331472.html

“The number of Americans applying for first-time jobless claims reached the lowest level since November 1969, with the number of filings dropping to 199,000”. The economy has significantly improved since the highs induced by the pandemic. South Dakota was the state with the lowest insured unemployment rate. It is good to see that states are recording low unemployment rates, but there are still states who have not been able to turn it around as easily. States above the national average of 1.3% insurance unemployment rate are California, Nevada, Alaska, Hawaii, Illinois, Pennsylvania, and D.C. Insured unemployment rate is defined as the ratio of people on unemployment benefits divided by a state’s labor force. 

It is positive to see many states lowering their insured unemployment rate, but despite what state you live in I think it is important to look at the aggregate and look at the bigger picture looking at it as a whole country to get a better understanding of what is in store for the future. Workers hold a lot of power for the first time since labor unions have declined, workers still have the ability to not work and maintain their standard of living due to previous last year savings. If they do choose to work, workers are in high demand as there are still labor shortages and supply shortages.

Equities, oil prices, U.S. Treasury yields all drop on COVID variant fears

Shares tumbled on Wall Street on Friday as they reopened after Thanksgiving, while European stocks saw their biggest sell-off in 17 months and oil prices plunged by $10 per barrel as fears over a new coronavirus variant sent investors scurrying to safe-haven assets.

This news correlated with the World Health Organization (WHO) on Friday designating a new COVID-19 variant detected in South Africa with a large number of mutations as being "of concern," the fifth variant to be given the designation.

Unofficially, the Dow Jones Industrial Average (.DJI) closed down 2.53% at 34,899.34 in its largest percentage drop in more than a year. The S&P 500 (.SPX) lost 2.27%, its worst one-day drop since Feb. 25, and the Nasdaq Composite (.IXIC) dropped 2.23%, the biggest one-day route in two months.U.S. markets closed early on Friday after being shut all day on Thursday for the Thanksgiving holiday.

It is very interesting to note that far from being gone, the pandemic still very much affects the economy with every new information being found on it. One might not make a correlation between oil prices and the pandemic, but it continues to show its affect on multiple facets and industries.

America must prepare for war with China over Taiwan

 China’s massive investment in the People’s Liberation Army (PLA) may show China is preparing to fundamentally change the status quo and preparing for possible war with the United States over Taiwan. To deter China, the United States must rapidly build up its forces in the Pacific, continue to strengthen military alliances in the region to ensure access to bases in time of conflict, and accelerate deliveries of purchased military equipment to Taiwan.

Taiwan is of vital geopolitical importance to the United States. Its thriving democracy is one of the freest societies on the planet. As World War II U.S. Navy Adm. Ernest King said, Taiwan is the “cork in the bottle” for Japan. Whoever controls Taiwan will control Japan and the Republic of Korea’s shipping lifelines. Chinese control of Taiwan will give it enormous influence over both Japan and Korea, fundamentally altering the strategic calculus in East Asia and give China its long sought-after opportunity to Finlandize both countries. 

Given the tense relations between the US and China--two competing superpowers-- a potential war adds more to the mix.

India repeals the 3 Farm Laws

Prime Minister Narendra Modi recently repealed the 3 Farm Laws that have been a point of controversy for the Central Government.

The 3 farm laws collectively promised farmers profits by selling their produce in the free market, which was heavily constricted and controlled by the government through Minimum Support Price (MSP) and government-controlled wholesale markets. Loosening or removing these controls would've caused instability in the market for a few months, but they were expected to even-out and reach a equilibrium price like a free market is expected to.

However, the farmers, especially those from the northern states of Haryana and Punjab, where farmers held much bigger areas of land than those in the rest of the country, were not happy with the laws as they feared price dictation and control by companies.

The article linked describes why this was a missed opportunity for the Indian Government to finally improvise and urbanize the farming sector of the nation, but because of some communication and implementation missteps, the government faced the wrath of the largest sector of the economy and had to alas withdraw the laws.

Article link: https://www.business-standard.com/article/economy-policy/withdrawal-of-farm-laws-is-a-missed-chance-for-a-progressive-indian-society-121112200123_1.html

 

Brazil: Amazon sees worst deforestation levels in 15 years

Source: https://www.bbc.com/news/world-latin-america-59341770 

Brazil has hit its highest level of deforestation in the Amazon rainforest. According to the data, approximately 13,235 sq km (5110 sq miles) was lost during the 2020-21 period, which is the highest it has been since 2006.

Brazil’s space research agency has found that deforestation has increased by 22% in a year.

Brazil was amongst some of the nations that promised to end and reverse deforestation by 2030 during the COP26 climate summit. During the conference, many countries pledged to end and reverse the practice. The pledge included $19.2bn of public and private funds. Some of which will go to developing countries to restore damaged land, tackle wildfires and support indigenous communities.

The current figures are not a reflection of what has been happening over the past few months. President Jair Bolsonaro has encouraged agriculture and mining activities in the rainforest.

Broadway's Demise

 Since the pandemic hit, Broadway has taken a big hit due to the lack of revenue flowing in. This has become a worry for many production companies who invest into Broadway shows, making a risky business even riskier due to the pandemic. I am not a specialist when it comes to drama but I do know that the art form relies heavily on picking up revenue from audience attendances.

According to the article, "Crowds were still hesitant to return to recently reopened Broadway, and the producers and investors who spent $3.5m to bankroll Is This A Room and a sister play, Dana H., were not making enough." Similar to movie theaters, drama theaters are just beginning to open back up but it is not looking bright for the business. 

Broadway is already an incredibly risky business, investors rarely get back a return on their investment. I can see this as the last straw for the business as a whole and could cause an end to the historical art form, at-least on a large platform. Do you think Broadway and other drama theaters will be able to get themselves out of this hole or do you think this could be the end for many drama theaters across the globe?

Source: https://thehustle.co/the-economics-of-broadway-shows/