inflation

Financial Crisis in the Making: Rising Oil and the Crashing Pound

Antonio Graceffo

On September 26th, the British pound lost nearly 5% of its value overnight, hitting a 37-year low. After months of continual devaluation, the pound is now worth 21% less than it was at the beginning of the year. The pound’s sharp decline has been blamed on the release of Britain’s new mini-budget, which included major tax cuts, energy price caps, and direct payments to citizens to help them cope with record levels of inflation.

China’s Economy Teeters While Xi Tightens His Grip

Antonio Graceffo

Over the past decades, the Chinese economy has been growing, at breakneck speed, largely fueled by tremendous export volumes, massive debt, and over-reliance on the real-estate sector. Now, manufacturing is suffering under ongoing coronavirus lockdowns, energy shortages, and supply-chain disruptions. The debt bubble seems about to burst, and the real-estate industry will be the first casualty, with ripples eventually being felt throughout China and the rest of the world.

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