La Palma Erupts
La Palma volcano has erupted in the Canary Islands. There’s not much good video yet, and what you can find isn’t as interesting as this:
The very low possibility of a mega-tsunami reaching the United States and Europe means that this probably won’t happen. But it’s worth knowing what “could” happen.
One thought on “La Palma Erupts”
I think the financial markets are ‘erupting’ and a ‘mega-tsunami’ is about to hit the economies of industrial nations. After all, you can only run a financial system on fraud for so long….and then it unravels.
Of course, the signs of unravelling emerged quite a while ago -arguably 2007/2008 or even 1999/2000- but the money-printers have managed to prop things up for well over a decade. -arguably two decades That has resulted in an even bigger catastrophe being constructed in every aspect of life: more pollution, more overpopulation, more unsustainable ‘development, loss op biodiversity and loss of ice etc.
‘Interesting times’ get ever more ‘interesting’.
‘Worries about spreading contagion from troubles in China’s property market is sending global equity markets into their steepest decline in months.
But the sentiment fall is broad, affecting currencies, interest rates, and commodities.
Meanwhile, Canada is voting today in Federal elections that could well tip their internationally-popular prime minister out of office on the basis that he has been ineffective at home. Canada’s currency is falling.
And the market sell-off comes as both Japan (Old Age Day) and China (Mid-Autumn Festival) have had long holiday weekends. But that has not stopped angry investors in property developer Evergrande turning out to continue their besieging of the company’s offices, even holding some managers hostage. The firm can’t sell assets fast enough to service its impending bond payment obligations. The company blamed “ongoing negative media reports” that “have dampened the confidence of potential property purchasers”. There is no sign yet of a Beijing bailout.
China’s central bank is to issue a regular policy statement tomorrow and it may move to try and quell the crisis. The US Fed will be watching closely too, and they report in next on Thursday.
Elsewhere in the world there was not a lot of economic data released, but one lone bit deserves attention – German producer prices. They rose much more than expected in August, and are up +12.0% from a year ago. The month-on-month rise from July was at an even faster pace. German industry hasn’t faced pressure like this in almost 50 years.
A good part of those cost pressures are from freight in the global supply chains, and that is not easing off with the Baltic Dry index rising yet again, now at a new 12 year high.
But there are reports that the iron ore price fell almost -10% yesterday alone, especially on futures markets.
Separately, just how far Hong Kong has slipped down the Beijing rabbit hole is revealed as Hong Kong police seized goods intended for prisoners held on democracy charges on the basis that M&Ms and baby powder were “security risks” “inciting subversion”.
In Australia, RBA analysis suggests climate change could cut property prices across a major part of Sydney’s northern suburbs with many homeowners there facing declining equity in their houses and rising insurance costs.
And staying in Australia, there were another 935 new community cases in NSW reported yesterday with another 826 not assigned to known clusters, and these numbers are lower than recently. They now have 13,604 active locally acquired cases. Victoria reported another 567 new cases yesterday, so worse there. Queensland is reporting zero new cases. The ACT has 30 new cases again. Overall in Australia, more than 47% of eligible Aussies are fully vaccinated, plus 25% have now had one shot so far.
However, anti-vax agitation is apparently rife in building trades union ranks, bursting into rowdy protest in Melbourne yesterday.’……