News, Rumors and Opinions Sunday AM 2-13-2022
US consumers are 'in a deep funk': What that means for the economy
Alexandra Semenova·Reporter Fri, February 11, 2022
As concerns around inflation soar, American consumers’ outlook on the trajectory of the U.S. economy has deteriorated, worrying some experts that negative attitudes could dampen expenditure and put a dent in economic growth.
The University of Michigan’s closely-watched consumer sentiment index fell to 61.7 in early February, hitting the lowest level since October 2011. January saw a reading of 67.2.
Recent declines in the measure have been driven by weakening personal financial prospects amid rising inflation, less confidence in the government's economic policies, and the least favorable long-term economic outlook in a decade, the University of Michigan said in its latest report Friday.
The reading follows fresh CPI data out Thursday that showed U.S. inflation accelerated last month in the fastest rise since 1982, with prices across a wide range of goods and services soaring further amid lingering shortages and supply chain disruptions.
“Incredibly, the consumer is polling negatively on almost everything when it comes to the economy, and if their confidence doesn’t improve, the economy could be headed towards the cliff of recession,” FWDBONDS chief economist Christopher S. Rupkey said in a note.
“We almost have to recheck our figures because the consumer is clearly in a deep funk and if they decide to call it quits then the economic growth we have seen is going to fade fast.”
Notably, the February decline was spurred by a decline in households with incomes of $100,000 or more. Among this cohort, their Sentiment Index fell by 16.1% from last month, and 27.5% from last year, the report said, also indicating the Sentiment Index reflects the onset of a sustained downturn in consumer spending.
Typically, increasing consumer sentiment is predictive of increased consumer spending, while if consumers become less certain about their financial prospects, they could be likely to spend less money.
“A downbeat consumer in retreat risks sending the economy over the cliff if they don’t start spending more at the shops and malls,”
************
Courtesy of Dinar Guru
RVAlready One thing to remember in these crazy revaluation stories: The Iraq public have been shown the new lower denomination notes. In order for those notes to be effective, the CBI must reduce the exchange rate to less than 10 to 1.
Mike Cottrell [via PDK] The word I am getting since yesterday is that the hierarchy at the very top is saying this is “Imminent” …I have been hearing words like this for a long time...but, last week was very interesting as we got more and more things that led us to believe this was about to happen...So I am excited because I see a lot of things happening that will cause this to occur. It will take place on its own accord. They can pull the plug or push the button at any time…events are converging where they need to flip the switch…and its going to be soon.
************
TNT:
Tishwash: The supposed path of economic reform (2/13)
There has been much talk about the paths of economic reform in a country rich in its wealth and poor in its services. Isn't it time for correction? Let us draw an acceptable picture of a supposed and expected change in the course of economic reform, in a way that we can remedy the collapses that the country's economy is facing due to the absence of rational performance in managing the economic file.
One of the priorities required to achieve a clear path of economic reform is to ensure that the next government’s program includes direct institutional building through the selection of a ministerial cabinet that includes competencies and specializations capable of implementing the requirements of sound institutional building and restructuring the state’s departments by placing the right man in the right place.
Institutional building requires serious laws that do not allow any decisions and procedures that hinder this structure, and these laws are among the duties of Parliament. Moreover, one of the requirements of reform is to reduce luxury expenditures for ministries and other institutions, including ineffective diplomatic missions.
This is what concerns an aspect of the administrative reform that must be achieved in advance and a correct start to restructuring government institutions and building them again according to specializations and placing the right man in the right place. The main task that the prospective government is supposed to undertake is to adopt clear policies in managing public money and eliminating waste and corruption by supporting and activating regulatory institutions, especially the acclaimed Financial Supervision Bureau. It is useful here to point out that the current oil prices are encouraging to move towards a new path of reform through the development of a solid plan to revitalize and activate economic activity aimed at diversifying sources of income, and I think that this relates to revitalizing the productive sectors.
The financial abundance achieved as a result of the high oil prices requires directing part of it to enhance investment allocations while not expanding operating expenses, in addition to creating sovereign investment funds, in order to achieve the goal of properly managing money and achieve the desired development goals.
One of the challenges that the next government and parliament will face is how to deal with the advancement of human resources, by modifying the educational path and health services, in order to respond to the changes and requirements of the new era that occupies the entire world. Perhaps the experience of Singapore in correcting the course of its economic reform is the best example to be followed, which through these concepts (ie setting priorities) has managed to become the third richest and advanced country among the world’s countries in various fields, so it is necessary to benefit from its outputs. link
Iraq News IQD Investment Vs. Wall Street Wealth Formula
Edu Matrix: Feb 13, 2022
Iraq News IQD Investment vs. Wall Street Wealth Formula Why Wall Street is Upset With The IQD Investment. The IQD investment upsets the formula for wealth.