In this week’s recap, Marcello talks about an interview with Robert Kiyosaki in which he discusses the possible collapse of the US economy and the stock market, supporting the idea of seeking other safe havens away from stocks. The gasoline shortage crisis in the United Kingdom foreshadows the possible social conflicts that could be caused by a major crisis. Following the German parliamentary elections, the Social Democratic Party (SPD) has taken the majority of the government.
On Thursday, the UK announced that the gas station crisis, caused by an acute shortage of truckers, was now under control, but many pumps were still closed in London, leaving motorists searching or queuing for hours to fill up their tanks. British ministers have repeatedly said the crisis is easing, although on Wednesday they ordered soldiers to start driving fuel tankers.
Germans have elected a new parliament. Setting up a government and selecting a new chancellor to take time. Until then, Angela Merkel will remain in office. The Social Democrats (SPD) have become the strongest party, just ahead of Merkel’s conservatives (CDU). A surge in votes has made the Greens potential kingmakers, along with the pro-business Free Democrats. Olaf Scholz of the SPD says he wants to build a coalition with the Greens and FDP before Christmas. Armin Laschet of the CDU has also claimed a mandate to try to form a government.
China’s energy crisis becomes the latest jolt to global supply chains as factories in the world’s biggest exporter are forced to save energy by cutting production. The disruption comes as producers and shippers scramble to meet demand ahead of the year-end shopping season, grappling with supply lines that have been disrupted by rising raw material costs, long delays at ports, and a shortage of shipping containers.
Global markets are shaken by fears of persistently high inflation, slowing growth, and rising interest rates. In September, eurozone inflation rose 3.4% on an annual basis, the highest since September 2008, up from 3% in August. Rising energy costs accounted for much of the increase, but bottlenecks in transportation and production also contributed, pushing durable goods prices up 2.3% from August.
Taiwan’s Defense Minister Chiu Kuo-cheng said Monday that the island needs to have long-range, precision-guided weapons to adequately deter China, which is rapidly developing its military systems to attack the island. Taiwan this month proposed extra defense spending of nearly $9 billion over the next five years, including on new missiles, while warning of an urgent need to upgrade weaponry in the face of a serious threat from China, which claims Taiwan as part of its territory.
Ford accelerates push toward electric vehicles with new US plants; Evergrande Group shares rose Wednesday; 3/4 of Venezuelans now live in extreme poverty; Dollar Tree shares rise after ending its $1 policy; failure to reach agreement in US Congress could trigger financial collapse.