In this episode Bitcoin MagazineIts “Fed Watch” podcast, hosted by Christian Carols and I, Ansel Lindner, gave an update on the Federal Reserve, the energy crisis in Europe and Asia, and the Chinese blackout. This is a very important time for the market and things are moving fast. This episode was recorded on 2nd September and things are moving so fast that we may have a completely different scenario at the time of release. For that reason, we’re going back to our short turn schedule of 2 turn hours.
News from the Federal Reserve
Our first Fed news item was the resignation of Rosegren, president of the Boston Fed, and Kaplan, president of the Dallas Fed, over allegations of internal business. This could cause a minor upheaval in the Fed, as both of these voter members were biased in monetary policy, meaning they preferred less convenient measures and faster tapping.
This leads us to talk about Fed Tapper. Powell told a meeting of the Federal Open Market Committee (FOMC) in September that the tapping would begin “soon”. Scholars are claiming that this means they will announce it at the next meeting in November, and we agree until the big situation changes (which is very possible).
Energy crisis in Europe and Asia
2 September It was a wide-ranging discussion of the current state of the energy crisis in Europe and Asia at that time, and we speculated about its causes. This crisis will affect different parts of the planet differently, that’s for sure, but the consequences could be dramatic. The UK has fewer shortages and more distribution problems, but continental Europe is facing a real shortage, even though it is one of its own. Over the years, aggressive environmental policies have kept it at bay.
Asia and Europe may seem like a disconnected crisis here, but they are very much connected. We have found a significant reason behind China’s trade war with Australia. Beginning in January, China has stopped buying coal from Australia, a change that has spread to the fuel market. The United States has taken some leeway from China, while Australia has found other markets for its coal in India and elsewhere. China was facing a deficit, so it probably bought more natural gas from Russia and Iran, which in itself would have run out of goods by 2020.
Things are rolling down the hill. This disconnection of supply was combined with the slowing of the supply chain to create a bidding war.