November 12, 2022

The last newsletter was November 1. That feels like yesterday after the intense week we have had supporting the OSBCU.

Time has become more normal now. So, here goes wrapping-up the week.

Headline inflation growth numbers seemed to ease at the end of the week causing the markets to spring to positive territory. This is more of a "fear of missing out" action than one that underlines reality.

Core inflation increased. This means that while the main basket of goods that allows economists to have some general proxy for "inflation" over the long term wobbled down a little, the reality for working people is their costs increased.

Housing and transport continue to cost more every month—especially compared to wage growth. Costs of "core goods" declined, but not enough that anyone would notice.

The "battle against" inflation is not won. And, in most cases, it has not even begun yet as government policies and central bank decisions are unaligned with the causes of the cost increases.

You may have forgotten that the world's governments are meeting in Sharm el-Sheikh from November 6 to 18.

We have already heard that it is not going very well.

From the 2022 Yearbook of Global Climate Action:

Despite agreements made at the 26th session of the Con- ference of the Parties (COP 26), we are still off track to reach a 1.5°C world. The Intergovernmental Panel on Cli- mate Change (IPCC) says that, in order to meet the Par- is Agreement goal of limiting temperature rise to 1.5°C, greenhouse gas (GHG) emissions need to be cut by 43 per cent by 2030, compared to 2019 levels. However, the latest NDC Synthesis Report revealed that the pledges of 193 Parties under the Paris Agreement will reduce emis- sions by only 0.3 per cent by 2030, compared to 2019 levels. Another estimate shows that we are heading to a warming of 2.4°C with 2030 targets and even higher, 2.7°C, with current policies. This temperature rise would have a devastating effect on every part of the planet.

The previous COP meeting outlined the realities of climate change to the collective hand-wringing and non-decisions to do anything about it. The solution we are told is through adaptation to climate change (an impossibility) and supporting private markets.

This round even adaptation is being set aside. Adaptation costs money. Specifically, it costs the advanced capitalist economies money as they have to help poorer countries invest in adaptation.

The answer from advanced capitalist countries is "we cannot afford to pay". Mostly because they have given almost the equivalent amount of money in profit subsidies over the previous years to capital leaving little money for anything else.

This collective shrug from the OECD members has not changed the facts on the ground, however.

The climate scientists have stated clearly that there is a basic, physical, and economic limitation to adaptation anyway:

• https://10insightsclimate.science/

Did not go as poorly for the Democrats as predicted by pundits, however that's an extremely low bar.

Things are still up-in-the-air as many races are still too close to call or require a re-vote.

The Georgia Senate race between Democratic incumbent Raphael Warnock and Republican candidate Herschel Walker is headed for a Dec. 6 runoff.

The best thing for the people who have some grasp on reality is this:

Disappointment and finger-pointing among Republican lawmakers who had expected a wave of victories heading into the election also threatened to inflame tensions between populists loyal to Donald Trump and establishment Republicans, complicating the task of unifying the party in Congress.

Latest from AP:

In the Senate, Mark Kelly, the Democratic incumbent in Arizona, won the race there, according to the Associated Press, so the party needs just one more victory to keep a narrow majority.

The Associated Press called five tight House races for Democrats on Thursday and Friday, declaring as winners Pat Ryan of New York, Jahana Hayes in Connecticut, Eric Sorensen in Illinois, Gabe Vasquez in New Mexico and Kim Schrier in Washington, underscoring the slender margin the GOP would have if it takes over the House.

There is more to say on this, but the reality is if you thought investment in Crypto was a sure thing or a safe bet or anything that suggests stability, good luck