Crypto Mania: Behind the Hype of Cryptocurrencies | Four Corners

May 30, 2022 • Cryptocurrency is the hottest financial product in the world.

The hype is everywhere, with forms of the digital currency endorsed and advertised by celebrities daring you to invest in this brave new world.

Not everyone is convinced by the glossy ads and bold claims.

Four Corners investigates what lies behind the slick marketing and big promises to examine if it's a fad, a fraud or the future.

How Corporations Are Using Inflation to Take Your Money

May 31, 2022 • Don’t tell me corporations have no choice but to raise prices. Corporate profits are at a 70-year high. Stock buybacks are expected to reach $1,000,000,000,000 this year. News flash: They’re using inflation as cover to squeeze more money out of you.

This Age of Inflation Reveals the Sickness Ailing Britain’s Economy: Rentier Capitalism

THE GUARDIAN – OPINION: Ever since Thatcher’s monetarist medicine, profits have become all-but guaranteed for wealthy elites – and society has suffered

Inflation in the UK has hit its highest level in 40 years, particularly thanks to the dramatic rise in energy and food prices. This fact has provoked panic among some commentators and policymakers that Britain is about to relive the inflationary turbulence of the 1970s, and has prompted Rishi Sunak to announce a last-minute £15bn “cost of living package” partly funded by a one-off tax on energy companies. Andrew Bailey, the governor of the Bank of England, has already been the subject of outrage for suggesting that workers should show “restraint” in their pay demands, to prevent an upward spiral in wages and prices as seen in the 1970s. Right now, with inflation at 9% and employers expecting to increase pay this year by just 3%, Bailey should be able to relax on that front.

Inflation aside, the differences between Britain’s economy of 2022 and that of 40 years ago are stark. In 1982, unemployment hit a postwar record, at more than 3 million, as manufacturing employment plummeted. Today, Boris Johnson boasts of record low unemployment. Trade union coverage was still over 50% in 1982; today, it’s less than half that, and almost half of that again in the private sector. The inability of most workers to negotiate collectively for wage increases is one of the principal reasons why Bailey sounded so out of touch, and why comparisons with the 1970s miss the mark. » | William Davies | Monday, May 30, 2022

Bitcoin, ethereum ou tether… Pour les plus jeunes, argent facile et désillusions au pays des cryptomonnaies

LE MONDE : Malgré la forte volatilité des monnaies numériques, ils sont nombreux à investir dans la blockchain, tant par goût de l’argent facile que par défiance vis-à-vis du système bancaire classique.

Owen Simonin, alias « Hasheur », influenceur dans la sphère des cryptomonnaies, à Metz, le 17 janvier 2021. NICOLAS LEBLANC / ITEM
Lui s’est mis à investir dans les cryptomonnaies au début du mois de mai, à contre-courant, alors que le marché amorçait sa chute vertigineuse. A 19 ans, Arthur, étudiant en prépa HEC à Paris, une fois ses concours passés, cherchait « quoi faire de [sa] vie ». Il jette finalement son dévolu sur ces monnaies numériques, auxquelles se sont frottés avant lui plusieurs élèves de sa classe, passés en cours d’année des paris sportifs à la Bourse puis au bitcoin, la reine des cryptomonnaies. « Autour de moi, ceux qui en achetaient voulaient devenir millionnaires en deux heures. Moi, je m’y intéresse parce que c’est à la mode, dit-il, mais aussi parce que le bitcoin pourrait devenir la monnaie du futur. Peut-être qu’un jour on dira que le bitcoin a été aussi important que l’invention du chemin de fer. »

L’étudiant a acheté pour 500 euros de tether USD (USDT), un « stablecoin » (cryptomonnaie stable) qui vise à répliquer la valeur du dollar américain, après avoir passé de longues heures à lire des livres et à regarder des vidéos d’influenceurs. « J’aime bien me renseigner avant de jouer au loto, dit-il, et, à ce jour, je n’ai à peu près rien perdu. » » | Par Véronique Chocron | mercredi 26 mai 2022

Article réservé aux abonnés

International Sanctions Take Toll on Russian Economy | DW News

May 19, 2022 • The war in Ukraine has prompted huge financial sanctions against Russia. Despite the sanctions the Russian currency is astonishingly strong. Vasily Astrov from the Vienna Institute for International Economic Studies says the sanctions take longer to fully unfold.

Millionaires at Davos Say 'Tax Us More'

Millionaires Marlene Engelhorn and Phil White joined a Davos protest calling for higher taxes on the wealthy | PHIL WHITE
BBC: A handful of wealthy attendees gathered in Davos are calling on world leaders to tackle the cost of living crisis by pushing up taxes for people like them.

They took to the streets on Sunday alongside left-wing activists to call for fairer tax systems worldwide.

Political and business leaders are at the first in-person World Economic Forum (WEF) since the pandemic began.

But criticisms are mounting over the way the wealthy have profited in the last two years.

UK millionaire Phil White said: "While the rest of the world is collapsing under the weight of an economic crisis, billionaires and world leaders meet in this private compound to discuss turning points in history.

"It's outrageous that our political leaders listen to those who have the most, know the least about the economic impact of this crisis, and many of whom pay infamously little in taxes. The only credible outcome from this conference is to tax the richest and tax us now."

Mr White, who represents a group called Patriotic Millionaires, made his money as a business consultant. He said he was joining left-wing and anti-poverty campaigners calling for change at the annual meeting of influential business people and political leaders because the current economic system was failing.

Over the past decade, a growing number of millionaires and billionaires in the US and Europe have spoken out, calling for governments to impose higher taxes, including wealth levies on the richest.

While only a small number of millionaires were in Davos to attend the protest, the campaigners have sent an open letter to all Davos delegates, signed by millionaire supporters in several countries. » | BBC | Monday, May 23, 2022

Millionaires ask to pay more tax »

Coronavirus: Disney heir and Ben & Jerry’s call for higher taxes »

In Full: Former BoE Governor Warns of a "Very Unpleasant Period" Ahead

May 20, 2022 • Former Bank of England Governor Mervyn King blames central banks for fuelling the cost of living crisis by printing too much money during the pandemic.

King headed Britain's central bank from 2003 to 2013, and oversaw the start of its QE programme in March 2009 during the global financial crisis.

But in more recent years he has criticised the scale of central bank asset purchases, which were funded by newly-created money.

S&P 500 Falls into Bear Market Territory, Down 20% from January High: Live Updates

THE NEW YORK TIMES: Stocks have slipped for seven consecutive weeks, their worst stretch since 2001. The Federal Reserve’s attempts to bring inflation under control are a big reason stock prices are falling.

Stocks dropped on Friday, pushing the S&P 500 into a bear market for the first time since early in the pandemic, as investors feared the effects of higher inflation, rising interest rates and the risk of a recession.

The S&P 500 was down about 1.6 percent in intraday trading, pushing the benchmark index into bear market territory, a Wall Street term for a 20 percent decline from a recent peak — in this case, since Jan. 3. It is a symbolically important marker of investor pessimism, and the index would have to close the day at this level to officially enter a bear market.

The S&P 500 is also on track for its seventh consecutive weekly decline, an unusually long losing streak.

The pessimism in Wall Street has been prompted by fears about stubbornly high inflation and the Federal Reserve’s plans to increase interest rates in response, which could tip the economy into recession. The pandemic, Russia’s invasion of Ukraine and lockdowns in China have added to these concerns. Stocks cross grim threshold after a long slide. » | Jason Karaian and Coral Murphy Marcos | Friday, May 20, 2022

Big Tech Is Getting Clobbered on Wall Street. It’s a Good Time for Them.:Flush with cash, Facebook, Apple, Amazon, Microsoft and Google are positioned to emerge from a downturn stronger and more powerful. As usual. »

A Weak Euro Heads to an Uncomfortable Milestone: Parity With the Dollar: The euro hasn’t fallen below the one-to-one exchange rate with the U.S. dollar for two decades. But as economic risks grow, more analysts predict deeper lows for the shared currency. »

„Jetzt platzt die Blase“

Ein Händler an der New Yorker Börse | Bild: AP
ANGST AN DER BÖRSE
FRANKFURTER ALLGEMEINE ZEITUNG: An der Börse fallen die Kurse rasant. Manche Investoren sehen darin aber eine Chance – sie nutzen die aktuelle Situation, um zuzukaufen. Geht ihre Wette auf?

Es ist das Jahr 1999, die Börse, und vor allem die Technologiewerte, kennen kein Halten mehr. Vom September 1998 bis zum März 2000 steigt der Index der Technologiebörse Nasdaq um 170 Prozent. Kein Unternehmen ist zu teuer, keine Idee zu pompös. Der Börsenrausch inmitten der Dotcom-Krise brachte viele Gewinner hervor – und noch mehr Verlierer. Denn was danach kam, wissen deutsche Börsianer: der dramatische Zusammenbruch des Neuen Marktes.

Der Nasdaq erreichte erst 14 Jahre später seinen damaligen Punktestand wieder. Heute steht er mehr als 200 Prozent über dem Höchststand der Dotcom-Hausse. Seit dem vorläufig schwindelerregenden Hoch am Ende des vergangenen Jahres haben der Nasdaq und die darin enthaltenen Titel schon 29 Prozent an Wert eingebüßt – bei einem Minus von 20 Prozent beginnt üblicherweise der Bärenmarkt. Allein am Mittwoch verlor der breite US-Index S&P-500 4 Prozent, der Nasdaq-100 5 Prozent. Vor 20 Jahren erreichte der technologielastige Index seinen Tiefpunkt erst nach zwei Jahren mit einem Minus von 74 Prozent. » | Von Antonia Mannweiler, Redakteurin in der Wirtschaft | Donnerstag, 19. Mai 2022

Global stocks fall, with the S&P 500 nearing bear market territory: The S&P 500 was down 0.9 percent in early trading after falling 4 percent on Wednesday. Stocks in Europe were also sharply lower. »

US Stock Markets Fall Sharply as Investors Worry about Recession

THE GUARDIAN: Dow Jones sinks more than 1,100 points as S&P closes down 4%, its largest fall since June 2020, and Nasdaq loses 4.7%

The wild ride on the US stock markets continued on Wednesday with the Dow Jones Industrial Average sinking more than 1,100 points as investors worried about a looming recession.

All of the major US markets fell sharply, with the S&P closing down 4%, its largest fall since June 2020, and the tech-heavy Nasdaq losing 4.7%. » | Dominic Rushe in New York | Thursday, May 19, 2022

US Stocks Worst Day since 2020 amid Recession Worries

THE GUARDIAN: Recession fears are swirling through the markets again, as rising inflation and snarled supply chains hit economies, driving up the cost of living and hitting some company profits.

Last night, US stocks posted the biggest daily drop in almost two years, on concerns that economic growth will falter as central bankers look to raise interest rates to stem the surge in inflation.

Fed chair Jerome Powell’s determination to keep lifting borrowing costs until inflation falls meaningfully has rattled Wall Street, and is likely to push European markets lower today too.

The S&P500 fell more than 4% lower yesterday, Nasdaq slumped more than 5% and the Dow slid more than 3.5%. » | Graeme Wearden | Thursday, May 19, 2022

You Should Care about the Crypto Meltdown. Here’s Why. | Amanpour & Company

May 18, 2022 • This week, markets were shaken by plunging prices in cryptocurrencies. If you’re not an investor in crypto, you might wonder why it should matter. Instability in cyberspace, it turns out, could potentially impact the entire economy. Hari Sreenivasan gets the details from Stacy-Marie Ishmael, managing editor of crypto for Bloomberg. Originally aired on May 18, 2022.

Cryptocurrencies in Freefall: What Are the Ripple Effects? | DW News

Related links.

Elon Musk Tweets That His Twitter Deal Is On Hold

May 13, 2022 • Twitter shares dropped after Elon Musk tweeted he was putting the $44 billion deal on hold. CNN’s Rahel Solomon and Brian Stelter weigh in on what Musk's motivation could be.

Elon Musk annonce la suspension du rachat de Twitter, dans l’attente de détails sur la proportion de faux comptes : Le réseau social et le milliardaire avaient trouvé un accord le 25 avril. L’annonce d’Elon Musk a fait perdre à l’action du groupe environ 11 % dans les échanges électroniques précédant l’ouverture de Wall Street. »

Twitter takeover temporarily on hold, says Elon Musk: Tesla owner says $44bn deal has been paused until he gets more information about fake accounts »

Cryptocurrencies Melt Down in a ‘Perfect Storm’ of Fear and Panic

THE NEW YORK TIMES: A steep sell-off that gained momentum this week starkly illustrated the risks of the experimental and unregulated digital currencies.

A crash in cryptocurrency prices has wiped away more than $300 billion in value this week. | Samuel Corum for The New York Times
SAN FRANCISCO — The price of Bitcoin plunged to its lowest point since 2020. Coinbase, the large cryptocurrency exchange, tanked in value. A cryptocurrency that promoted itself as a stable means of exchange collapsed. And more than $ 300 billion was wiped out by a crash in cryptocurrency prices since Monday.

The crypto world went into a full meltdown this week in a sell-off that graphically illustrated the risks of the experimental and unregulated digital currencies. Even as celebrities such as Kim Kardashian and tech moguls like Elon Musk have talked up crypto, the accelerating declines of virtual currencies like Bitcoin and Ether show that, in some cases, two years of financial gains can disappear overnight.

The moment of panic amounted to the worst reset in cryptocurrencies since Bitcoin plummeted 80 percent in 2018. But this time, the falling prices have broader impact because more people and institutions hold the currencies. Critics said the collapse was long overdue, while some traders compared the alarm and fear to the start of the 2008 financial crisis.

“This is like the perfect storm,” said Dan Dolev, an analyst who covers crypto companies and financial technology at the Mizuho Group. » | David Yaffe-Bellany, Erin Griffith and Ephrat Livni | Thursday, May 12, 2022

Absturz von Tech-Aktien und Kryptowährungen: der Beginn einer neuen Ernsthaftigkeit an der Börse: Das viele billige Geld der Zentralbanken hat in den vergangenen Jahren dafür gesorgt, dass die Investoren immer grössere Risiken eingegangen sind. Die jüngsten Kursverluste könnten das Ende dieser Ära markieren. »

Why Oligarchs Choose London for Their Dirty Money | The Economist

May 12, 2022 • Britain is one of the best places in the world to launder dirty money. Our new film tells you why—and asks whether that's likely to change.

Grossbritannien steuert nach Brexit, Ukraine-Krieg und Corona auf eine Rezession zu

NEUE ZÜRCHER ZEITUNG: Die steigenden Lebenshaltungskosten sind in Grossbritannien ein grosses Thema. Die wirtschaftliche Erholung von der Corona-Pandemie hat schnell wieder an Schwung verloren.

Die Halbleiter-Knappheit sorgt dafür, dass in Grossbritannien in diesem Jahr so wenig Autos neu zugelassen werden wie 1988. Im vergangenen Jahr besuchte der britische Premier Boris Johnson die Nissan-Fabrik in Sunderland. | Jeff J Mitchell / Getty
Auf den ersten Blick hat sich das britische Wirtschaftswachstum im ersten Quartal lediglich verlangsamt. Das vom Statistikamt ONS gemeldete Plus von 0,8% wirkt respektabel. Volkswirte hatten im Schnitt zwar etwas mehr auf der Rechnung. Doch das wahre Ausmass der Entschleunigung erschliesst sich erst beim Blick auf die ebenfalls vorlegten monatlichen Daten. Sie zeigen, dass es im Januar noch zügig voranging. Bereits im Februar stagnierte das Bruttoinlandprodukt jedoch, und im März ging es bereits um 0,1% zurück.

Die Talfahrt könnte in eine Rezession münden

Die britische Wirtschaftsleistung bewegt sich zwar wieder auf dem vor der Pandemie erreichten Niveau, setzt aber schon wieder zur Talfahrt an. Noch will man bei der Bank of England das Wort «Rezession» nicht in den Mund nehmen. … » | Andreas Hippin, London | Donnerstag, 12. Mai 2022

An den Börsen liegen die Nerven blank: An den Aktienmärkten kehrt keine Ruhe ein. Der Crash auf Raten setzt sich am Donnerstag fort. Die europäischen Börsen verlieren wieder über 2 Prozent, auch in den USA geht der Ausverkauf weiter. »

A Wall Street, une sévère correction qui rappelle l’éclatement de la bulle Internet

LE MONDE : Du fait de la guerre en Ukraine, de l’inflation et de la hausse des taux, les indices plongent depuis janvier aux Etats-Unis. Les sociétés qui avaient profité des confinements s’effondrent.

Il est possible qu’un chiffre de l’inflation meilleur que prévu en avril donne un peu de répit aux marchés, mais la tendance demeure : Wall Street connaît une sévère correction, qui n’est pas sans rappeler l’éclatement de la bulle Internet, en l’an 2000. Le Nasdaq, l’indice riche en sociétés technologiques, a perdu 25 % depuis le début de 2022, tandis que le S&P 500 a reculé de 16 %. Cet indice a enregistré son plus mauvais départ annuel depuis… 1932. Les tradeurs tentent de se rassurer, notant que, dans de tels cas, la Bourse rebondit. Le pari n’est pas certain, Wall Street ayant, par exemple, poursuivi sa dégringolade en 1974 (– 30 % sur l’année), après le premier choc pétrolier, quand la planète découvrait la stagflation. » | Par Arnaud Leparmentier (New York, correspondant) | mercredi 11 mai 2022

Article réservé aux abonnés

Bitcoin im Abwärtstrend: Der Wert des Bitcoins hat sich seit November mehr als halbiert. Schon länger scheint das Interesse an Kryptoanlagen zu erlahmen. Nun belastet der Zusammenbruch des Stablecoins Terra. »

Blast from the past as currency speculators circle weakened pound: Analysis: Experts warn that sharp losses for sterling could drive up cost of imports and invite attacks on the currency »

Turkey Now Has World's 6th Highest Inflation Rate | DW News

May 6, 2022 • Prices in the country rose by almost 70 percent in April, according to new official statistics. The new figure gives Turkey the dubious honor of having the sixth highest inflation rate in the world. It comes as President Recep Tayyip Erdogan continues to insist interest rates be cut to stem inflation, the opposite of what conventional economists recommend. The rising prices are putting further pressure on Turks, who are struggling to make ends meet. We asked some people on the streets of Istanbul how inflation is impacting their lives.

Why It's Harder to Earn More Than Your Parents | The Economist

Nov 25, 2021 • In the 21st century it's got harder to earn more than your parents and to climb the social ladder. What's gone wrong, and what can be done to change this? Film supported by @Mishcon de Reya LLP

Recession: The Price Britain Will Pay to Control Inflation

THE GUARDIAN: Analysis: As the Bank of England raises interest rates the message is clear – the 1970s are back

Unemployment rising. Inflation above 10%. Energy prices soaring. Living standards squeezed. The message from the Bank of England was crystal clear: the 1970s are back.

The word stagflation was not to be found in the 100-plus pages of Threadneedle Street’s monetary policy report. Yet a period of weak growth and rapidly rising prices is precisely what the Bank says is in store for the UK. The current post-lockdown bounce will be short-lived and, in a real blast from the past, the economy will be driven into recession to bring inflation under control.

Nor is the pain likely to be over quickly. The economy is expected to contract by 0.25% in 2023 and remain weak in the next two years. Unless things take a marked turn for the better, the next general election will take place against a backdrop of weak growth and lengthening dole queues. » | Larry Elliot, Economics editor | Thursday, May 5, 2022

Bank of England raises interest rates as it warns of recession and 10% inflation: Rise to 1% is fourth successive increase and highest level since February 2009 »

Interest Rate Rise: Now UK Faces Prospect of a Recession

May 5, 2022 • Sky's Economic Editor Ed Conway says the Bank of England is warning a recession could be ahead, and this, combined with double-digit inflation and stalling growth, means a toxic cocktail for the economy.

Bank of England holds news conference as interest rate raised to 1%.

Warning of economic downturn as interest rates rise: The Bank of England has warned the UK faces a "sharp economic slowdown" this year as it raises interest rates to try to stem the pace of rising prices. »

Dr. Richard Wolff: Economic Update: Inflation - How Markets Fail

In this week's show, Prof. Wolff talks about Sri Lanka’s economic crisis as a global example, and how US billionaires escape taxation at our expense. In the second half, Wolff discusses how and why the market system produces inflations like today’s.

En Grèce, une grève de vingt-quatre heures contre l’inflation, qui bat des records

LE MONDE : Le gouvernement grec a octroyé des aides sociales d’un montant total de 4 milliards d’euros pour faire face à l’inflation galopante. Mais les syndicats et l’opposition de gauche jugent ces mesures insuffisantes.

Les services publics, les transports maritimes, ferroviaires et urbains ainsi qu’une majorité des entreprises privées de Grèce tournaient au ralenti, lundi 2 mai, en raison d’une grève générale de vingt-quatre heures à l’appel des syndicats du privé et du public pour protester contre la flambée des prix. Les transports en commun athéniens fonctionnaient comme un dimanche tandis que les supermarchés et les magasins étaient fermés en ce lundi férié, au lendemain du 1er-Mai.

Lors des traditionnels défilés de la Journée internationale des travailleurs dimanche, environ 9 000 manifestants ont arpenté les rues à Athènes, en réclamant du gouvernement grec davantage de mesures pour défendre le pouvoir d’achat face à l’impact de l’inflation sur les ménages. » | Le Monde avec AFP | lundi 2 mai 2022

The Rise and Fall of Kraft Cheese | ‘Rise And Fall’

May 28, 2021 • Kraft is an iconic brand, best known for its processed cheese slices and boxed macaroni and cheese. But as consumer tastes change and the Kraft brand loses value, what will happen to this American staple?

In the Name of Job Flexibility, ‘Uberisation’ Is Spreading Its Tentacles across Society

THE GUARDIAN – OPINION: From health workers to beauticians, cleaners to academics, the erosion of our rights at work is setting us back a hundred years

In the late 18th century, as the impact of the Industrial Revolution bit into the lives of the nascent working class, the high cost of fuel, one study notes, “forced inhabitants of many southern regions to abandon home cooking”. Fuel costs were much greater in the south than in the north. As a result, Frederic Morton Eden observed in The State of the Poor (1797), “the culinary preparations of the Northern peasant are so much diversified, and his table so often supplied with hot dishes”, whereas in the south, working-class families could not afford to boil or bake potatoes, so were forced to buy cheap white bread and eat dinner cold.

Because it was more expensive to cook at home than to buy shop-made bread, there were more bakeries per head of population in poor areas such as Hampshire than in richer regions such as Yorkshire. More than 200 years on and we’re back in a Britain in which many poor families are being “forced to abandon home cooking” because of the high cost of fuel. Not only has there been an explosion in the use of food banks, but many food bank users “are declining products such as potatoes and other root veg because they can’t afford to boil them”. » | Kenan Malik | Sunday, May 1, 2022

The Observer View on the Cost of Living Crisis

THE OBSERVER – EDITORIAL: Cabinet ministers’ glib shortcuts are dire response to economic crisis

Living standards are set to fall at their fastest rate since records began in the mid-1950s. Last month, the Office for Budget Responsibility predicted that real household incomes will fall by 2.2% this year, as energy and food prices increase but wages fail to keep pace with rising bills.

The impact will not be felt equally. For some, it will barely register. For other families, it will mean difficult decisions about what to cut back on. For others still, it will be profound, stretching precarious budgets in which there is already no give, forcing impossible choices between essentials such as putting food on the table and keeping the heating on, and sharpening the fear of the unexpected outlay that can trigger a debt spiral from which there is no escape. One estimate suggests lower-income households will face a drop in income of £1,300 this year. » | Editorial | Sunday, May 1, 2022