All Prices Rise, Republicans Threaten, and Dimon Is Perplexed

13 thg 10, 2021

All Prices Rise, Republicans Threaten, and Dimon Is Perplexed

The current energy crisis is a clear illustration of how everything bad that can happen happens almost simultaneously. Judge for yourself, this whole crisis began with the fact that the level of gas reserves in Europe was below the 5-year average. It would seem unpleasant, but tolerable. And then 33 misfortunes began, the end of which has not yet ended: the wind stopped blowing in the Server Sea and the power generation from wind turbines dropped sharply, then a fire and disabling of a key power cable in Britain, etc. etc. Of the latter, targeting in China led to a sharp decline in coal production in the country. Accordingly, hello the rise in coal prices, which by no means contributes to the resolution of the energy crisis. It seems that there is simply no end to this.

But the energy crisis is not the only problem in the world economy. And we are not talking about yesterday's extremely weak data on consumer sentiment in Europe (ZEW indices), and not even about a sharp decline in vacancies in the US (lost 600K), but about more global things. Last week, everyone seemed to have calmed down about a possible US default. But the Republicans decided to remind everyone that the problem has not been solved by word at all, it has simply been pushed back in time by a month and a half.

Republican leader McConnell wrote in an open letter to Biden that there would be no more votes in support of Democratic debt ceiling initiatives. So December 3 may well go down in history as another black day for the US stock market. Well, if everything does not cover much earlier.

In this light, we are interested in whose bubble will collapse faster and stronger - the stock market or cryptocurrencies. We would bet on the latter. Well, simply because there is at least an economy behind the stock market, albeit not capable of justifying the current insanely high prices. There is nothing behind the cryptocurrency market but human greed. In this regard, the head of JPMorgan Chase Jamie Dimon said the following: "I personally believe that bitcoin is worthless." We subscribe to every word and recommend selling cryptocurrencies, as well as shares on the US stock market.