Author: M Barbu

The End of Magic Money

Inflation and the Future of Economic Stimulus

Two years ago, I predicted in Foreign Affairs that the COVID-19 recession, coming on top of the financial crisis of 2008, would lead rich democracies to redefine the outer limits of their monetary and fiscal power, ushering in an “age of magic money.” Because central banks had a long record of containing inflation, the penalty for profligacy would likely not materialize; supersized stimuli could coexist with stable prices. Of course, the success of this experiment would depend on the continued inflation-fighting credibility of central banks, the Federal Reserve foremost among them. “If the Fed loses its independence, the age of magic money could end in catastrophe,” I noted.

Why IRGC issue won’t go away

Even if the US terrorist designation is not lifted, and there is agreement on the JCPOA, the IRGC will still be the power broker of Iranian domestic politics.

As Qatar’s foreign minister visited Tehran Wednesday in an effort to follow up on talks to revive the Iran nuclear deal, there’s no indication the sides have come close to a resolution on the issue of removing the Islamic Revolutionary Guards Corps (IRGC) from the US terror list.

Russia vetoes UN measure renewing aid to northwest Syria

“People will die because of this vote,” US Ambassador to the UN Linda Thomas-Greenfield said of the Security Council’s failure to reauthorize the cross-border mechanism.

Millions of Syrian lives hang in the balance after Russia vetoed a UN Security Council resolution on Friday that would have kept humanitarian aid flowing for another year to Syria’s impoverished northwest.

Why IRGC issue won’t go away

Even if the US terrorist designation is not lifted, and there is agreement on the JCPOA, the IRGC will still be the power broker of Iranian domestic politics.

As Qatar’s foreign minister visited Tehran Wednesday in an effort to follow up on talks to revive the Iran nuclear deal, there’s no indication the sides have come close to a resolution on the issue of removing the Islamic Revolutionary Guards Corps (IRGC) from the US terror list.

Unprecedented inflation hammers Iran

Iranians have grown accustomed to high inflation and rising prices, yet recent macroeconomic trends are unprecedented.

Iran’s official inflation rate is reaching new highs. The Statistical Center of Iran (SCI) — the country’s main statistics agency — reported a monthly inflation rate of 12.2% and a point-to-point rate of 52.5% for the Iranian month ending June 21. Both are record numbers.

World looks away as oil disaster looms off Yemen’s coast

Time is running out to prevent what Yemen envoy Tim Lenderking warns will be a “massive oil spill the likes of which the world has not seen.”

Off the coast of Yemen lies an aging oil tanker that could rupture at any moment. Experts say it’s not a matter of if but when the FSO Safer leaks more than one million barrels of light crude oil into the sea — four times the amount spilled in the Exxon Valdez disaster of 1989.

Wanting the Iran Nuclear Deal for the Wrong Reasons

The EU partly wants the deal so it can buy oil and gas from the Iranian regime.

The EU also appears to want the nuclear deal in order not to lose its other economic relationships and trade with the ruling mullahs of Iran. Despite US sanctions, European countries are still trading with Iran; the Biden administration has yet to hold them accountable.