Despite efforts by the US Treasury Secretary to prop up the Argentine peso, including interventions and potential financial aid, Argentines remain unconvinced, leading to continued dumping of the currency. These interventions, while initially providing temporary relief, have pushed short-term interest rates to unsustainable levels and have not restored faith in the peso. With an upcoming election potentially impacting President Milei’s free-market agenda, the market anticipates a devaluation, as the current exchange rate does not reflect Argentina’s inflation, and capital flight persists. Experts suggest that a devaluation is seen as inevitable, with the size of the decline potentially dependent on election outcomes.
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Tariffs Are Way Up. Interest on Debt Tops $1 Trillion. And DOGE Didn’t Do Much.
Well, this is quite a picture we’re looking at, isn’t it? We’ve got tariffs on the rise, the interest we’re paying on our national debt is breaking the $1 trillion mark, and, according to some, DOGE – presumably referring to something implemented or influenced by a particular political group – didn’t exactly deliver as promised. Honestly, it feels like we’re sifting through a tangled web of cause and effect, where the consequences of certain actions are only now starting to fully manifest. The whole situation is unsettling.… Continue reading
Russian government plans to raise value-added tax (VAT) to 22% in 2026, alongside other tax reforms, are expected to accelerate inflation. Deputy Governor of the Russian Central Bank, Aleksei Zabotkin, anticipates the VAT increase will add 0.6-0.7 percentage points to the consumer price index, as it is Russia’s main turnover tax. The government also plans to lower the threshold for the simplified taxation system (STS) and abolish tax breaks for IT companies. These measures, coupled with existing tax hikes and declining oil and gas revenues, are intended to fund the war against Ukraine and address a soaring budget deficit.
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Russia’s Putin denies economy is stagnating, as evidence suggests otherwise, and this is a narrative that feels increasingly familiar. It’s like a broken record, where the leader insists everything is fine while the facts on the ground tell a different story. The similarities between this and certain situations in the US are striking. It seems the denial of economic realities has become a common tactic in some leadership circles.
The current economic situation is, frankly, concerning. Reports indicate that Russia is planning to significantly increase its borrowing, likely to offset the massive government spending. This spending is, at least in part, propping up the economy, so without it, things could get much worse, and rapidly.… Continue reading
Evergrande, once China’s largest property developer, has been delisted from the Hong Kong stock market after its spectacular downfall. This marks the end of the road for the company, which was built on massive debt and saw its valuation plummet by over 99% after the onset of the crisis. The company’s collapse, fueled by over $300 billion in debt and regulatory changes, has significantly impacted China’s economy, contributing to a property slump and decreased consumer spending. Experts predict more property firms will likely collapse, suggesting the crisis is far from over.
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The Consumer Price Index indicates grocery prices rose 2.2 percent in July compared to the previous year, putting a strain on consumers. Essential items like coffee, ground beef, and eggs have seen notable price increases, with the latter still up over 16 percent despite a decrease due to the avian flu. These rising costs are partially linked to tariffs on aluminum and steel, impacting the prices of canned goods and beverages. Fortunately, because only a small fraction of food is imported, only a portion of grocery items are subject to further tariffs.
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A new report by the Center for Macroeconomic Analysis and Short-Term Forecasting (CAMAC) warns that Russia’s economy is teetering on the brink of stagflation, with a potential recession looming in the second and third quarters of 2025. The report cites slowing GDP growth (1.4 percent in Q1 2025), high inflation (9.8 percent), and weakening consumer demand as key contributing factors. This precarious situation is exacerbated by falling investments and construction projects. To mitigate the crisis, the report recommends tackling inflation and stimulating investment, while the Central Bank of Russia maintains a tight monetary policy despite cutting its key interest rate.
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Trump’s recent call to scrap the debt limit is a bold move that sparks a whirlwind of reactions and interpretations. The proposal immediately throws into question the very nature of fiscal responsibility, especially considering the context of his past pronouncements and actions.
The idea itself – eliminating the debt limit – has merit for some. It’s argued that having Congress approve the budget and then separately authorize exceeding that budget is redundant and inefficient. It essentially means Congress votes to spend money and then votes again on whether to pay for the spending they’ve already approved. This process creates an artificial bottleneck where the government could potentially default on its financial obligations, triggering a global economic crisis, based purely on a procedural technicality.… Continue reading
In Russia, the cost of making borscht has dramatically increased, reflecting broader economic pressures. Key ingredients like potatoes (up 166.5%), onions (up 87.2%), and cabbage (up 56.8%) have seen substantial price hikes year-over-year. This “borscht index,” a common measure of economic well-being in the region, highlights significant inflationary pressures on staple foods. While beet and tomato price increases were more moderate, the overall impact on the cost of this popular soup is substantial.
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John Q. Hosedrinker 
Matt Underwood