Tag: recovery

Trump monetary policies feed ‘K-shaped’ recovery, polarizing society

A shuttered business is shown in the Brooklyn borough of New York City, the US. Photo: AFP

Sky-rocketing US federal debts, rock-bottom interest rates and concerns about an upcoming resurgence of the coronavirus pandemic coupled with the winter influenza are hyping up skepticism that the “K-shaped” economic recovery in the world’s largest economy is now an ongoing reality. 

The bellwether of the economy’s health – the trading price of the US currency – is now near its lowest level in 28 months, down more than 10 percent from its 2020 peak against a number of its global peers. 

On Friday, the Chinese currency, the yuan, jumped a massive 1.3 percent in onshore trading and hit a 17-month high against the US dollar, catching up with gains in its offshore counterpart during the week-long National Day holidays. Clearly, the yuan’s strength foretells the dollar’s decline. 

The bearish investors of UBS, Goldman Sachs, Societe Generale and other major investment banks are forecasting more losses for the dollar if the Trump administration cannot take speedy and decisive measures to contain the virus and stop the US economy from plummeting into a deep recession, which seems highly unlikely to the investors. 

To add to this, some economists have predicted the dollar will plunge another 20 percent against other global currencies in the coming 12 months. Whether market speculation that the US dollar will crash and lose its prominence as the global reserve currency, will become a reality is yet to be seen. 

Feeding the dollar’s weakness are the precarious American economic fundamentals, under the watch of the Trump administration. Among them, the rapidly surging federal debts and a faltering recovery of US manufacturing and service sectors, despite the Federal Reserve’s near-zero interest rates policy to stimulate the industries, are hard nuts to crack. 

It seems US President Trump and his administrative team aren’t able to resolve the above problems, despite his chest-thumping and assertion that he was a business genius and real estate tycoon before running for the White House. 

The US Congressional Budget Office stated that for fiscal year 2020, which ended September 30, the federal deficit hit $3.13 trillion, thanks to the gap between what the country spent ($6.55 trillion) and what it took in taxes ($3.42 trillion) for the year. The US federal deficits have now already exceeded the size of the US economy, coming in at roughly 103 percent of GDP. 

Beginning this spring, the US government spent more than $4 trillion to help stem the economic pain on American workers and companies, which were caused by sudden and widespread business shutdowns. 

In the coming years, US federal spending is almost certain to outpace revenue as the heavily indebted country will have to invest in bailouts of failing enterprises and employers struggling in the pandemic fallout, on social welfare and education, and on defense and American troops in order to maintain its position as a military superpower. But interest payments on federal debts alone are expected to consume an ever-growing

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Society Notebook: Recovery Month rally goes to the movies

After seven years of annual Recovery Month rallies at Deering Oaks park, Portland Recovery Community Center moved this year’s celebration of sobriety to the big screen at Saco Drive-In, followed by a screening of the 1985 treasure-hunting classic “The Goonies.”

“We were trying to see how we can safely gather and remember that we’re all connected, even if it is from the safety of our cars,” said Executive Director Leslie Clark. “We celebrate being free from addiction. And what can be more fun for the family than ‘The Goonies?’ ”

More than 130 carloads pre-registered for the free event, including vanloads of residents from some Portland-area sober homes, for a 45-minute program followed by the feature film.

“I’m so glad we can celebrate this year,” said Liz Holder, a peer support specialist. “Look at how happy people are to see each other after so many months.”

The program was streamed on Facebook, too, and included musical performances by Myles Bullen, the Worst and Lake Over Fire; instructions on how to make an origami fish for a community art project; and stretch breaks by Sea Change Yoga.

During the Recovery Countdown, adapted for the drive-in, carloads honked their horns and flashed their lights as the livestream counted down from decades of sobriety all the way to 1 day.

“I’m so Zoom’ed out, so this is like a meeting for me and sort of in person,” said Nancy Wolach of Old Orchard Beach.

“This is seeing a movie in comfort,” said Paul Gross of Portland, cozied up in the back of pickup with Tatia Tyler of Westbrook.

“I just pulled these cushions off my couch,” she said.

Amy Paradysz is a freelance writer and photographer based in Scarborough. She can be reached at [email protected].


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Albanese proposes government spending to aid recovery in budget reply speech

In his budget reply speech, Anthony Albanese has flicked the switch from “we’ll have policies before the next election” to “here, have three policies”.



a man wearing a suit and tie: Photograph: Mick Tsikas/AAP


© Provided by The Guardian
Photograph: Mick Tsikas/AAP



a man wearing a suit and tie looking at the camera: Anthony Albanese says Labor will lift the childcare subsidy, map a plan to encourage more trains and modernise the grid, lowering energy prices and creating jobs.


© Photograph: Mick Tsikas/AAP
Anthony Albanese says Labor will lift the childcare subsidy, map a plan to encourage more trains and modernise the grid, lowering energy prices and creating jobs.

So what were the big ideas the Labor leader unveiled on Thursday night?

Rewiring the nation

Labor will invest $20bn (off budget) to establish a government-owned entity, Rewiring the Nation Corporation, to rebuild and modernise the electricity grid.

Think of it as the NBN Co of the electricity grid, a government body to make investments in infrastructure we all use that delivers an economic benefit but may not be built quickly (or at all) by the private sector.

Related: The arts sector is already suffering. This year’s budget just pours salt on the wound | Leya Reid

The corporation will make investments and partner with industry to deliver the Australian Energy Market Operator’s integrated system plan – a blueprint promising to transform the grid from one designed to deliver coal-fired electricity from centralised power plants to one that integrates a higher mix of renewables.

The system plan, released in July, identified projects such as the Marinus Link interconnector to Tasmania, the HumeLink transmission line and the Central-West Orana renewable energy zone transmission link as priorities.

It suggested that renewable energy may at times provide nearly 90% of electricity by 2035; and that 26 gigawatts of new large solar and wind farms and six and 19 gigawatts of dispatchable power will be needed to replace 15 gigawatts of coal-fired generation that is scheduled to shut.

According to Labor, fixing transmission is technology neutral but the grid will deliver “renewables as the cheapest new energy source” – lowering costs for electricity consumers.

Albanese said by “using the commonwealth’s ability to borrow at lower interest rates, it will be done at the lowest possible cost”. The corporation will have a mandate to recover its real costs, not to deliver a commercial return or profit to government.

Albanese said the policy will deliver a boost to the economy of “up to $40bn and create thousands of new jobs”.

According to AEMO, that $40bn benefit will be realised under the fastest-paced “step-change scenario” in which “consumer-led and technology-led transitions occur in the midst of aggressive global decarbonisation and strong infrastructure commitment”.

Childcare subsidy boost

Albanese said the childcare system “penalises the families it’s meant to help” because “for millions of working women, it’s simply not worth working more than three days a week”. That’s because the combination of tax and the cap on childcare subsidies can mean an extra day’s care costs more an extra day’s earnings.

Labor will:

  • Scrap the $10,560 annual childcare subsidy cap.

  • Lift the maximum childcare subsidy rate to 90%.

  • Increase childcare subsidy rates and taper them for every family earning less than $530,000.

Under Labor’s plan, families earning

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Powell Warns of Weak Recovery Without Enough Government Aid

“Too little support would lead to a weak recovery, creating unnecessary hardship for households and businesses,” Powell told a virtual conference hosted by the National Association for Business Economics. “By contrast, the risks of overdoing it seem, for now, to be smaller. Even if policy actions ultimately prove to be greater than needed, they will not go to waste.”

U.S. stocks dropped and bond yields were flat after his remarks.

Powell and his colleagues at the U.S. central bank cut their benchmark interest rate to near zero in March at the onset of the coronavirus pandemic. They’ve pledged to keep rates low until the economy returns to maximum employment and have been urging Congress to pass additional fiscal stimulus on top of the roughly $3 trillion already authorized to keep the outlook for continued economic recovery intact.

Lawmakers have been debating additional aid since the end of July, when the enhanced unemployment benefits that were authorized in March expired, but have so far failed to come to an agreement. Democrats have been pushing for a bigger spending package while Republicans want a smaller one; Powell didn’t explicitly reference either party’s position in his prepared remarks.

“The recovery will be stronger and move faster if monetary policy and fiscal policy continue to work side by side to provide support to the economy until it is clearly out of the woods,” Powell said.

Meanwhile, coronavirus cases are on the rise across the country again, posing a renewed threat to the economy — a risk Powell alluded to in his remarks. His comments echoed those of his European Central Bank counterpart, Christine Lagarde, who warned in an interview published Tuesday against governments winding down aid amid ongoing outbreaks.

“Consumption held up well through August after the expiration of expanded unemployment insurance benefits, indicating that savings from transfer payments continue to support economic activity,” Powell said. “Still, since it appears that many will undergo extended periods of unemployment, there is likely to be a need for further support.”

Fed officials recently announced they would redefine their 2% inflation target as something to achieve on average over time, which means allowing inflation to rise above the target following periods like the present where it runs below the target. The Fed’s preferred measure of inflation showed prices rose 1.4% in the year through August.

“Declining inflation has been a persistent factor for some time,” Powell said while answering questions after the speech. “We are still seeing downward pressure on inflation, and I think it’s appropriate for central banks, and certainly the Fed, to take that into account and move to a framework that is robust to that.”

(Updates with additional comments from Lagarde and Powell beginning in seventh paragraph.)

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Powell Warns of Weak U.S. Recovery Without Enough Government Aid

“Too little support would lead to a weak recovery, creating unnecessary hardship for households and businesses,” Powell said in the text of a speech for a virtual conference hosted by the National Association for Business Economics. “By contrast, the risks of overdoing it seem, for now, to be smaller. Even if policy actions ultimately prove to be greater than needed, they will not go to waste.”

Powell and his colleagues at the U.S. central bank cut their benchmark interest rate to near zero in March at the onset of the coronavirus pandemic. They’ve pledged to keep rates low until the economy returns to maximum employment and have been urging Congress to pass additional fiscal stimulus on top of the roughly $3 trillion already authorized to keep the outlook for continued economic recovery intact.

Lawmakers have been debating additional aid since the end of July, when the enhanced unemployment benefits that were authorized in March expired, but have so far failed to come to an agreement. Democrats have been pushing for a bigger spending package while Republicans want a smaller one; Powell didn’t explicitly reference either party’s position in his prepared remarks.

“The recovery will be stronger and move faster if monetary policy and fiscal policy continue to work side by side to provide support to the economy until it is clearly out of the woods,” Powell said.

Meanwhile, coronavirus cases are on the rise across the country again, posing a renewed threat to the economy — a risk Powell alluded to in his remarks.

“Consumption held up well through August after the expiration of expanded unemployment insurance benefits, indicating that savings from transfer payments continue to support economic activity,” Powell said. “Still, since it appears that many will undergo extended periods of unemployment, there is likely to be a need for further support.”

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Merkel Vows Government Support for Germany’s Virus Recovery

(Bloomberg) — Chancellor Angela Merkel said the government will support Germany’s tentative recovery from the fallout of the coronavirus crisis “with all its strength.”



A sign tells customer to put a mask on at a fruit and vegetable stall at Viktualienmarkt in Munich, Germany, on Thursday, Sept. 24, 2020. The Bavarian capital city has imposed a five-person limit on gatherings and made mask wearing mandatory in certain public areas in central Munich.


© Bloomberg
A sign tells customer to put a mask on at a fruit and vegetable stall at Viktualienmarkt in Munich, Germany, on Thursday, Sept. 24, 2020. The Bavarian capital city has imposed a five-person limit on gatherings and made mask wearing mandatory in certain public areas in central Munich.

Europe’s largest economy is showing signs of improvement, but the scale of the damage justifies Germany’s unprecedented borrowing and spending, Merkel said in a video statement to Germany’s BDI industry lobby in Berlin on Tuesday. But the powerful group slammed the government for not doing enough to bolster competitiveness.

“Indeed, things have been gradually improving since May,” she said. To support this trend, “new debt under extraordinary circumstances is unavoidable — and justifiable in these times.”

Merkel’s government responded to the crisis this year with an aggressive trillion-euro fiscal response, retreating from years of budget discipline to pull the country out of its deepest recession in decades. The spending will continue in 2021, when Berlin plans 96.2 billion euros ($113.4 billion) in new borrowing, as constitutional debt restrictions remain suspended.

Read more: Two-Speed Europe Sees Germany Thriving as Rest of Region Suffers

As Europe heads into the winter months, Germany’s economy has held relatively stable. Unemployment declined for a third month in September, propped up by the government’s wage-subsidy program that has helped support close to 4 million furloughed workers. Merkel’s cabinet has extended the aid, known as “Kurzarbeit,” through the end of 2021.

But as the pandemic flares up again, rising restrictions have curtailed the services sector, and Germany’s Bundesbank expects this year’s recovery to proceed at a slower pace, calling for fiscal support across the 27-member European Union.

Too Much Bureaucracy

Video: Russian Coronavirus Cases On The Rise (QuickTake)

Russian Coronavirus Cases On The Rise

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Dieter Kempf, the head of the BDI, warned that spending wasn’t enough to fix Germany’s economy and called on the government to clear bureaucratic obstacles and prevent climate targets creating an excessive burden for companies.

“We need a state that creates the framework to make us more competitive,” he said, adding that climate goals are important but that industry needs sufficient time and resources to adjust.

Armin Laschet, one of the contenders to succeed Merkel after she steps down next year, backed that call. On Friday, he plans to present a proposal to the country’s upper house of parliament, with 48 measures that aim to fortify Germany’s economy and streamline its bureaucracy.

The move is part of an effort to bolster his profile. Laschet’s main contender to lead Merkel’s Christian Democratic Union and potentially run for chancellor in next year’s election, is Friedrich Merz.

Read more: Merkel’s Old Foe May Finally Get a Chance to Undo Her Legacy

The former BlackRock Inc. director is seen by many party delegates as the more business-friendly

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Iran university professor and government advisor says ‘ordinary Iranians’ are praying for Trump’s recovery

In the days since President Donald Trump was diagnosed with the novel coronavirus and subsequently transferred to the Walter Reed National Military Medical Center (WRNMMC), one Tehran-based sociology professor has taken to social media to depict the “two groups” of Iranians “praying” for the infected commander in chief.

“It is not surprising that Donald Trump has been hospitalized for coronavirus; anyone, including the president of any country, can get sick. But it is very strange that those in Iran, among the people whose lives have suffered the most since Trump’s presidency, wish him well,” wrote Mohammad Fazeli, an Iranian sociologist and assistant professor at Tehran’s Shahid Beheshti University, who is also reported to serve as an advisor to the Iranian Minister of Energy and is the deputy director of the Research Center of the Presidential Office, in an Instagram post over the weekend. “I have seen people wishing Trump was released from the hospital safe and sound since morning.”

In his post, Fazeli depicted two distinct groups of Iranians turning to divine intervention to propel the president’s recovery.

“The first group of Trump praying people are often ordinary people who think that although the Trump presidency and the return of sanctions and maximum pressure have caused terrible damage to the Iranian economy and made life difficult for the people, there is no hope for reform inside,” he explained. “Except for external pressure. The economic fundamentals, rethinking governance practices, and turning away from wrong paths.”

POMPEO: U.S.’ FULLY PREPARED’ AGAINST ‘MALIGN ACTORS’ AS TRUMP BATTLES CORONAVIRUS

As for the second group of “Trump health praisers,” Fazeli characterized them as Iranians “who think that his possible death from Corona will increase Joe Biden’s chances of victory, and the opening up of the economic situation and even the psychological impact of this victory will improve the situation of Hassan Rouhani’s administration, and this is not what they like.

“This situation raises a big question for our rulers. The rulers should think about what they have done to bring the first group of worshippers to the point where they hope to exert pressure from their enemies in order to find an opening in their present life and future prospects,” Fazeli surmised. “The second group of Trump health advocates is afraid that his death will lead to an opening in the government and improve its image.”

In this photo released by the official website of the office of the Iranian Presidency, President Hassan Rouhani adjusts his face mask in a meeting of the national headquarters of the fight against the COVID-19, in Tehran, Iran, Saturday, July 18, 2020. He estimated as many as 25 million Iranians could have been infected with the coronavirus since the outbreak's beginning, citing an Iranian Health Ministry study that has so far not been made public, the state-run IRNA news agency reported. Writing in Farsi at top right reads, "The Presidency." (Iranian Presidency Office via AP)

In this photo released by the official website of the office of the Iranian Presidency, President Hassan Rouhani adjusts his face mask in a meeting of the national headquarters of the fight against the COVID-19, in Tehran, Iran, Saturday, July 18, 2020. He estimated as many as 25 million Iranians could have been infected with the coronavirus since the outbreak’s beginning, citing an Iranian Health Ministry study that has so far not been made public, the state-run IRNA news agency reported. Writing in Farsi at top right reads, “The Presidency.” (Iranian Presidency Office via AP)

SPOTLIGHT ON WALTER REED MEDICAL CENTER BRINGS BACK POWERFUL MEMORIES FOR US WOUNDED WARRIORS

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Bolton Wanderers midfielder Dennis Politic gives positive update in recovery from serious knee injury

Injured Bolton Wanderers midfielder Dennis Politic has revealed an operation has been a success as he continues his rehabilitation back to the pitch.

The 20-year-old is poised to be ruled for the entire campaign after injuring his knee in pre-season during the 6-0 victory against a Loughborough University side.

The Romanian damaged his anterior cruciate ligament in the game and is due to be out for the League Two campaign Wanderers have just begun.

Politic made his Bolton debut last season in the opening day League One defeat against Wycombe Wanderers and went on to play 30 times for the Trotters in all competitions, scoring five goals along the way.

Politic has now posted on his public Instagram account after going under the knife for an operation.

And the procedure has been a successful one, with Politic posting along with pictures of him giving a thumbs up from his hospital bed: “Thank God operation has been a success. Road to recovery starts now.”

Speaking last month, Bolton boss Ian Evatt said the Trotters are prepared to be without Politic for this season.

But he stressed that pressure will not be put on the 20-year-old to return sooner that might be advisable, adding that the club and his team mates will be there to support his rehabilitation every step of the way.

He told the club website at the time: “The most important thing now is that we do not rush him and that the rehabilitation process is done properly to allow him to get fully up to speed.

“He’s a young lad with a great future ahead of him, so it is vital that we do not risk any further injury or detriment to his career by asking him to set targets that might not be achievable.

“It is equally important that as a staff, team-mates and a club, we are there for Dennis and offer him every single bit of support that he needs – practically, physically and mentally.

“I want to make sure he gets everything he needs to make a complete and successful comeback and that he feels the love around him from the whole club as he undergoes his rehab.”

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Society, The Key To Abuse Recovery

An excellent corporate citizen is a company that first views the importance of being a very good citizen as an integral part of their core enterprise. It’s not the so called Western stereoypical and most feared, female supremecist society that many bullshit about; I mean, we don’t even know what a real female supremacist society in all its full potential would be like given our so referred to as organic differences.

It is patrairchal rule that’s holding back human progress, our world can never become a better place whereas males continue to rule it. I can’t perceive why after five thousand years of patriarchal history why individuals can’t see this. Really the Family Man makes Peter Griffon look smarter and fewer like an a-gap then a lot of people I meet then most days.

One could proceed time and again to argue that given our male supremacist society that most all know and love so nicely, that it could be precisely like that, however I naturally beg to vary, because till we live in such a society there is no certainty that’s nor could be convincing sufficient to help that perspective, because until such a society comes into existance the place we will really measure and look at in comparison both feminine supremacist matriarchy and our present patriarchy there could be no certainty of it. Nevertheless, I don’t perceive what chances are you’ll be gaining here by persistantly arguing with individuals whom you will never agree with and who may also by no means agree with you in return, I imply, do you’re keen on being in pointless battle with individuals who’s views of the world are totally different from yours?

Agree that equality and equal rights between male and female gender persons is wholesome and could be mutual settlement between partners typically verge toward male or feminine side of the bipolar tension developed between female and male gender expressive partnering that occurs, apart from more uncommon relations amongst three or more or two ladies and a person or two males a woman or three males or three ladies.

Below this legislation, NSW police have the ability to take youngsters dwelling if they are liable to becoming involved in anti-social behaviour, thus upholding the view that the kid is of paramount concern. Nonetheless, he believes that identifying causes of primary deviation is comparatively unimportant, because it has little consequence on the particular person’s social status and self-perception.…

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