Purchasing power parity theory – Kent Tribune http://kenttribune.com/ Fri, 11 Jun 2021 10:54:21 +0000 en-US hourly 1 https://wordpress.org/?v=5.7.2 https://kenttribune.com/wp-content/uploads/2021/05/icon.png Purchasing power parity theory – Kent Tribune http://kenttribune.com/ 32 32 How to curb the genius of inflation in Pakistan https://kenttribune.com/how-to-curb-the-genius-of-inflation-in-pakistan/ https://kenttribune.com/how-to-curb-the-genius-of-inflation-in-pakistan/#respond Fri, 04 Jun 2021 05:07:46 +0000 https://kenttribune.com/how-to-curb-the-genius-of-inflation-in-pakistan/

The phrase “Nothing can be said certain except death and taxes” is attributed to Benjamin Franklin and is widely accepted as true around the world. But in Pakistan, the term taxes can be excluded and replaced by inflation (mehangai in Urdu).

Since independence, inflation to varying degrees has been a constant in the national economy. The price of international commodities like gold, silver, gas, petroleum products, etc.) fluctuate up and down depending on the international market.

Read more: Unusual and unprecedented food inflation in Pakistan – What is driving it?

The rise in consumer price index (CPI) which is represented by a theoretical basket of goods, including consumer goods, services, medical care, and transportation costs, however, is inevitably on the rise – once prices rise, they rarely fall .

The genie of inflating when taken out of the bottle cannot be put back in place – the key, therefore, is to control the rate of release. Economists believe a modest inflation figure indicates a healthy economy and deflation, where the CPI is negative, could prove to be bad.

Given these economic fundamentals, the government should not be expected to lower the CPI, but rather that its rise will be kept at a manageable level.

Read more: Pakistan’s economic recovery remains fragile, World Bank

Reduce the negative impact of inflation

The prices of goods and services by themselves are not precise indicators of the strength of the economy. For example, the cost of a liter of fuel in Pakistan today is around 108 Pak rupees while in the UK it is around 1.33 pounds sterling (around 300 Pak rupees).

Based on the purchasing power parity formula, the per capita income of UK citizens is around eight times that of Pakistanis, meaning that for UK citizens the cost of fuel is actually about about a third of what it is for the people of Pakistan.

Read more: Pakistan’s credit profile reflects economic strength: Moody’s

In the free hybrid economy that exists in Pakistan, the state should only control the prices of items over which it has an exclusive monopoly (gas, fuel, electricity, railways and a few others in Pakistan) and the rest Pricing should be based on the market forces of supply and demand.

The state, however, must ensure the stability of the currency and take concrete steps to prevent hoarding, smuggling and cartelization by private entities. Inflation would then hopefully remain under control.

To reduce and offset the negative impact of inflation, the key would be to improve the purchasing power parity of one’s currency by increasing the national income per capita. Our economists have listed the steps and measures needed to achieve higher per capita income, and these must be implemented in letter and spirit.

Read more: Pakistan economy progress map

Air Cdre (retired) Jamal Hussain served in the Pakistan Air Force from 1966 to 1997. He was awarded Sitara-e-Basalat for his service in 1982. He regularly contributes articles on defense issues in the Pakistan’s Defense Journal, Probe Magazine (Dhaka – Bangladesh) and national newspapers including Dawn, The News and The Nation. He is the author of two books on “Air Power in South Asia” and “The Dynamics of Nuclear Weapons in South Asia”. The opinions expressed in this article are those of the author and do not necessarily reflect the editorial policy of Global Village Space.

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Globalization in transition – Central Bank https://kenttribune.com/globalization-in-transition-central-bank/ https://kenttribune.com/globalization-in-transition-central-bank/#respond Thu, 27 May 2021 09:59:08 +0000 https://kenttribune.com/globalization-in-transition-central-bank/

This article is part of the IFF China 2021 Report

Globalization is in transition – but there are at least two recent moments in history that we can draw parallels with.

After the fall of the Berlin Wall in 1989 and the dismantling of the Soviet Union in 1991, the power of the markets led to the free flow of goods and services and to an increase in the diffusion of international investment. Foreign direct investment (IDE) has enabled the strengthening and expansion of global supply chains across a range of product sectors.

Marcos Troyjo - IFF China Headshot 2021 1-03

Marcos Troyjo

Many countries have contributed to the production of everyday objects. Take, for example, a volleyball ball – the leather would come from Germany, the glue from Thailand, and the marketing from Brazil. Inputs from different countries, united by global supply chains, seemed to illustrate that – increasingly – free trade and open markets were the way to go.

It also reinforced another trend during this period: the establishment and deepening of regional integration processes, including the European Union, the North American Free Trade Agreement, the Association of Nations of Southeast Asia and Mercosur in South America. This regional integration could be seen as a lead to strong globalization trends to suspend their efforts.

From 1989 until the global financial crisis that erupted in 2007-08, the world underwent deep globalization. After 2008, a new, more protectionist phase of globalization began, a phase less open to world trade – which is now growing more slowly than the world GDP – and there has been a revival of old import substitution policies. A number of countries are adopting local containment measures that allow fewer international transactions of goods, resulting in greater concentration of trade within each territory. In this new phase of globalization lurks the risk of de-globalization.

With so much disconnection in the world, the question today is: will de-globalization persist or are we going to move into something different? I have the impression that globalization is changing again. There is no clear vision of what the world will look like in the future; however, three important avenues must be considered.

First, the purchasing power and the relative economic weight of various countries are changing. The Group of Seven (G7) has a handset GDP, measured in purchasing power parity terms, of about $ 40 trillion. However, in the seven emerging economies of Brazil, China, India, Indonesia, Mexico, Turkey and Russia – known collectively as the E7GDP is $ 53 trillion.

Emerging markets are increasing their trade with each other. For example, in the first 10 months of 2020, Brazil exported more to Bangladesh than to all Scandinavian countries combined. Emerging economies will represent a larger share of the global economic pie, and the E7 will ultimately exercise more economic weight in the world GDP that the G7 has traditionally.

The second characteristic concerns the way in which global value chains are being hijacked by the growing presence of emerging economies. This phenomenon is much broader than global supply chains, as consumption will also be affected. China, for example, has become one of the most important sources of IDE.

Geopolitics is a major driving force in reconfiguring these new supply chains, but other factors are more important, such as the natural evolution of some of the world’s largest economies. Take the example of China. As a young diplomat at the Brazilian Ministry of Foreign Affairs, I undertook research in the science and technology division. My research took into account the share of countries devoted to research and development (R&D) and innovation. In the early 1990s, China spent about 0.2% of its GDP at R&D. Today it is more than 2%, almost reaching the average for member states of the Organization for Economic Co-operation and Development.

China is no longer a low-cost country or just a manufacturer of low-value-added products. On the contrary: it is the world leader in so many advanced technologies. As a result, some lower value-added economic activities have migrated from China to geo-economic neighbors such as Vietnam, Indonesia, Myanmar, Pakistan, Bangladesh and India.

It is a phenomenon which is not new in history. In the 1970s and 1980s, the “Asian Tigers” – Hong Kong, Singapore, the Republic of Korea and Taiwan – replaced Japan as low-cost, low-wage manufacturers in the region. But this time around, China is a bigger economy and therefore is likely to have a much wider reach.

International trade and investment agreements also influence the re-routing of global value chains. In November 2020, 15 Asia-Pacific countries signed the Comprehensive Regional Economic Partnership. In a trading system where the term “international” applies to the exchange of goods even at the intra-firm level, it is not surprising that these trade agreements influence investment flows. Ambitious countries also promote national economic reforms that allow their economies to become more business-friendly and open to business. IDE.

We should no longer think of traditional physical infrastructure as separate from technology

Talent takes center stage

The last problem that has an impact on globalization is that of talent. In this context, talent means going beyond the economic theory of comparative advantage. Countries need to ask themselves: “What can I do besides what I am already very good at?” It is a complex challenge that some at the World Economic Forum call “talentism”. From such a perspective, we no longer live in the era of capitalism but in a world of talent because human talent has become the most essential factor of production.

So how do development banks, like the New Development Bank (NDB), contribute positively to this metamorphosis of globalization? They have a major role to play and must focus on three key areas.

The first is infrastructure. We should no longer see traditional physical infrastructure as separate from technology. New infrastructure must meet not only the needs of the 20th and 21st centuries, but also the demands of what will be the fourth industrial revolution – or Industry 4.0. Development banks should focus their activities on responding not only to the demands of the past, but also to those of the future.

Second, the traditional approaches of certain business models – export driven / nationally driven, public sector led / private sector led – will be redefined. Multilateral development banks should be part of this discussion.

Finally, in a world where international cooperation is so needed, development banks provide the necessary framework in which countries can come together and work constructively on areas of common interest, and thus help to write a virtuous next chapter. of globalization.

This article is part of the IFF China 2021 Report, which draws primarily on content provided by the China-based think tank, the International Finance Forum, and is published in association with the Central Bank.

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Chemtrade Logistics Income Fund declares distribution for May 2021 https://kenttribune.com/chemtrade-logistics-income-fund-declares-distribution-for-may-2021/ https://kenttribune.com/chemtrade-logistics-income-fund-declares-distribution-for-may-2021/#respond Thu, 20 May 2021 13:45:00 +0000 https://kenttribune.com/chemtrade-logistics-income-fund-declares-distribution-for-may-2021/

Bloomberg

Meme Stocks, SPAC bounce: ‘Reddit raiders are at it again’

(Bloomberg) – Investors are rediscovering their appetite for speculative fringes of the market. and AMC Entertainment Holdings Inc. – the poster children of this year’s Reddit boom – are booming. Interest in special purpose acquisition companies has resumed with Chamath Palihapitiya’s blank check firms leading the way. And Bitcoin and Ether are on the rise after last week’s cryptocurrency bonfire. While the catalyst is unclear, retail traders appear to be driving the action. Dealers are plastered all over social media with individual investors trying to pump their bets on Twitter, Reddit’s WallStreetBets, and Stocktwits discussion boards. AMC was among the most actively traded stocks on Wednesday. “It seems retail-oriented to me.” Memes Are Forever As the S&P 500 is practically flat this month, shares of Reddit favorites GameStop and AMC are skyrocketing. Including Wednesday’s gains, GameStop is up 40% in May while AMC has jumped 95% over the same period. The stock pair was among the best performers in a basket of 37 so-called same stocks tracked by Bloomberg in May. . As a group, Wednesday’s 7.7% rally marked its best session since the retail mania gripped the market in March. -market losses this year, according to S3 Partners. With the movement of retail investors picking up momentum and with both stocks having high short interest, there is potential for short-term squeeze, said S3 Partners CEO of predictive analytics Ihor Dusaniwsky, by email. the strength of the stock price, ”he said. They had seen mark-to-market losses of around $ 475 million for the month of May alone before the last spike, according to data from S3 Partners. Nearly half of the record volume of the initial public offering in 2021.Virgin Galactic Holdings Inc., a space tourism company that merged with one of Palihapitiya’s SPACs, jumped 22% this month after a sharp decline earlier this year. The gains in the stock, popular with day traders, came after a successful test flight and could breathe new life into the once hot SPAC market. Openoor Technologies Inc., another SPAC associated with Palihapitiya, has surged in recent days after have fallen. at its lowest level since August. Meanwhile, two closely watched SPAC ETFs – the Defiance Next Gen SPAC Derived ETF (SPAK) and Morgan Creek-Exos SPAC Originated ETF (SPXZ) – are both up more than 10% from the lows at the start of the month. the brothers have taken investors on a wild journey this month. As Bitcoin fell 54% from its February high, more than 700,000 traders saw their accounts liquidated within 24 hours, according to data from Bybt.com. Many fans of the notoriously volatile asset class used the decline as a buying opportunity. Bitcoin, the world’s largest digital asset, is off its all-time high of nearly $ 65,000. But he managed to recover gains from a recent low of around $ 30,000. On Wednesday it hovered around the $ 40,000 level, meaning it is up about 30% from that low a week ago. Meanwhile, the second largest cryptocurrency Ether has risen about 58% since its May low of $ 1,732. (Updates to S3 data in seventh paragraph.) More stories like this are available on source bloomberg.com. © 2021 Bloomberg LP

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First Merchants Corporation announces cash dividend https://kenttribune.com/first-merchants-corporation-announces-cash-dividend/ https://kenttribune.com/first-merchants-corporation-announces-cash-dividend/#respond Tue, 11 May 2021 07:00:00 +0000 https://kenttribune.com/first-merchants-corporation-announces-cash-dividend/

TipRanks

Billionaire Israel Englander Bets On These 2 Penny Stocks

Let’s talk about the risk, the reward and the pennies. The three are linked, of course. There is no reward in the stock market without taking some risk – and penny stocks offer investors the optimal combination of the two. Pennies are the cheapest stocks on the public market, usually priced below $ 5 per share. At such a low stock price, even a small gain – an increase in the stock price of just a few cents – can quickly translate into a high percentage return. However, there is a but here. Critics point out that there could be a reason for the favorable price, whether it’s poor fundamentals or overwhelming headwinds. So how are investors supposed to determine which penny stocks are about to rise in importance? Tracking the activity of the investment titans is a strategy. Enter Israel “Izzy” Englander, who is widely known for his impressive stock picking abilities. Englander expressed his interest in the stock market from a young age and in 1989 co-founded the Millennium Management hedge fund with Ronald Shear. Using a wide array of strategies involving a variety of predominantly liquid asset classes, Englander was able to take the $ 35 million the fund was created with and turn it into a $ 45 billion Wall Street monster and more. With an estimated net worth of $ 9.6 billion in 2021, it’s no wonder Wall Street focuses on the guru when he makes a move. With all of this in mind, we used TipRanks’ database to take a closer look at the two-penny stocks that Englander recently picked up. The platform revealed that the two Buy-rated tickers also gained support from some members of the analyst community. T2 Biosystems (TTOO) We will start in the healthcare sector, where T2 Biosystems is working to revolutionize diagnostics. The company offers diagnosticians and medical laboratories a range of devices based on its T2 Magnetic Resonance (T2MR) technology to quickly and accurately diagnose a variety of septic diseases. As the company notes, sepsis kills more people each year than AIDS, breast cancer and prostate cancer combined. Quick and accurate diagnosis is the key to patient survival, and this is the niche T2 aims to fill. The company’s technology allows for diagnostic blood tests with results available within hours, compared to the 1 to 5 days currently taken by most medical laboratory tests. Available test products include the T2Bacteria panel and T2Candida panel, which are the only blood tests approved by the FDA for septic agents that do not need to wait for a blood culture. A T2SARS-CoV-2 panel is also available, using upper respiratory tract samples. T2 has an active product pipeline, with rapid diagnostic tests on the drawing board for a variety of diseases. Upcoming products include the T2Cauris panel and the T2Resistance panel. These test products are currently for Research Use Only (ROU) in the United States. The T2Lyme panel, which will allow a faster diagnosis of difficult-to-determine Lyme disease, is at an early stage in its development. All T2 products operate on the same T2Dx instrument, allowing interchangeability in the laboratory environment. The device offers a simple user interface and works with only 4 ml of whole blood. T2 boasts that its device is used in more than 200 hospitals around the world. In the first quarter of 2021, T2 saw its revenue increase 173% year-over-year to $ 7 million. This was due to a 345% year-over-year increase in product revenue, to $ 4.7 million. The use of sepsis testing in the United States increased 85% year-on-year in the quarter, showing growing acceptance of the device and technology. Izzy Englander is among those who have high hopes for this health name. In the first quarter, Englander’s Millennium raised over 1.36 million TTOO shares, now valued at $ 1.5 million. This brought Englander’s stake in the company to 2.68 million shares, with a market value of $ 2.9 million. Canaccord’s 5-star analyst Charles Duncan also considers himself a fan. Duncan gives the TTOO shares a buy rating and a target price of $ 3.50. This target reflects his confidence in TTOO’s ability to grow by 212% over the next twelve months. (To see Duncan’s track record, click here) “YoY growth in T2 product revenue of + 345% is a positive data point for the company’s post-pandemic business strategy, which is being sustained by a shift to just under 10 direct sales reps in the first quarter. . We see the acquisitions of Cepheid, BioFire, GenMark and Luminex as validation that the hospital laboratory is an attractive industry segment, given the desire of clinicians (and patients) to move from centralized testing strategies to a more decentralized approach. . With these four companies off the table, T2 should benefit from the scarcity value. On the other hand, a more aggressive approach to commercial execution should marry well with a growing awareness of antimicrobial resistance and sepsis, in a post-pandemic environment that prioritizes the diagnosis of infectious diseases, “he said. Duncan noted. It turns out other analysts have high hopes as well. With 4 Buy and 1 Hold, the word on the street is that this stock, which currently costs $ 1.10 apiece, is a strong buy. Additionally, the average price target of $ 2.83 places the upside potential at 156%. (See TTOO stock analysis on TipRanks) Sesen Bio (SESN) The second stock we are looking at, Sesen Bio, is a pharmaceutical company. Sesen works in the cancer treatment segment, developing antibody-drug conjugate therapies. The program takes a fusion protein, tumor-binding approach targeting antibodies against cytotoxic proteins. the only protein molecule that kills cancer cells with minimal toxic effects on the body – and that generates a complementary response from the patient’s natural immune system. Sesen’s pipeline currently includes a drug candidate, vicineum, which is under investigation on multiple leads simultaneously. The primary pathway, which has completed clinical trials and initiated the Biological License Application (BLA) process, is for the treatment of muscle non-invasive bladder cancer. The BLA was accepted for filing by the FDA last February, and the company is on track for potential approval on August 18, 2021. European approval of vicineum for the treatment of bladder cancer is expected early in this year. 2022. The company’s other pipeline projects are in stages. Vicineum is being studied as a treatment for head and neck cancer and is in phase 2. Other avenues of investigation remain at preclinical stages. Clinical-stage biopharmaceutical companies are always highly speculative, and in this case, Englander has not hesitated to speculate. In the first quarter, his company bought 987,926 shares of SESN, increasing its stake in the company by 156%. Englander’s stake in Sesen is now valued at $ 2.9 million. On the SESN for HC Wainwright, 5-star analyst Swayampakula Ramakanth also sees an opportunity. “Given the favorable benefit / risk profile of Vicineum demonstrated in the phase 3 VISTA study, we believe the drug has a high likelihood of receiving regulatory approvals from the FDA and EMA. Sesen is actively preparing for the potential launch of Vicineum. The company has selected Syneos, a leading contract sales organization, as a partner to build and manage a 35-person sales force to target approximately 2,000 high BCG prescribers. We expect the drug to be commercially available upon approval. sales of $ 516 million by 2030E, up from $ 9 million in 2021E, ”said Ramakanth. Ramakanth’s comments support his buy rating on the stock, as does his $ 8 price target. At current valuations, this target implies an upside potential of 170% for the next 12 months. (To see Ramakanth’s track record, click here) Sometimes captions can slip under the radar; it attracted only two recent analyst reviews. Both agree, however, that this is a buy-to-buy stock, which is the consensus of the moderate buy consensus. The shares are priced at $ 2.94 with an average price target of $ 7.50 which suggests a 155% rise in the coming year. (See SESN Stock Market Analysis on TipRanks) For great ideas for trading penny stocks at attractive valuations, visit TipRanks Best Stocks to Buy, a newly launched tool that brings together all the information about TipRanks stocks . Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

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Hitting pots to scare off the virus https://kenttribune.com/hitting-pots-to-scare-off-the-virus/ https://kenttribune.com/hitting-pots-to-scare-off-the-virus/#respond Mon, 03 May 2021 07:00:00 +0000 https://kenttribune.com/hitting-pots-to-scare-off-the-virus/

IT IS hard to overstate the hold of Covid-19 on India.

WhatsApp bristles with messages about this or that friend and family member with the virus, while there are angry messages about how the central government has completely failed its citizens.

This hospital is running out of beds and this hospital is running out of oxygen, as Prime Minister Narendra Modi and his cabinet shy away from it.

Thirteen months after the World Health Organization (WHO) announced the world was in the midst of a pandemic, the Indian government is staring into the headlights like a pierced animal, unable to move.

While other countries are well advanced in their immunization programs, the Indian government is resting and watching a second or third wave land heavily on the Indian people.

On Monday, May 3, 2021, the country recorded more than 400,000 cases in 24 hours, the tenth consecutive day of records.

Keep in mind that in China, where the virus was first detected at the end of 2019, the total number of cases detected is less than 100,000.

This peak in India has raised eyebrows: is it a new variation, or is it the result of a failure to manage social interactions (including the three million pilgrims who gathered this year at the religious festival Kumbh Mela ) and vaccinate enough people?

At the heart is the utter failure of the Indian government, led by Modi, to take this pandemic seriously.

A glance across the world shows that governments that ignored WHO warnings have suffered the worst devastation from Covid-19.

From January 2020, the WHO had asked governments to insist on basic hygiene rules – washing hands, physical distance, wearing a mask – then later suggested screening for Covid-19, contact tracing and social isolation.

The first set of recommendations does not require immense resources. The Vietnamese government, for example, took these recommendations very seriously and immediately slowed the spread of the disease.

The Indian government has acted slowly, despite evidence of the dangerousness of the disease. On March 10, 2020, before the WHO declared a pandemic, the Indian government reported around 50 cases of Covid-19 in India, with infections having doubled in 14 days.

The Indian Prime Minister’s first major act was a 14 hour curfew, which was dramatic but not in line with WHO recommendations.

This ruthless lockdown, with four hours’ notice, sent hundreds of thousands of workers on the road to their homes penniless, some dying by the side of the road, many carrying the virus to their towns and villages.

Modi executed this lockdown without checking with his own services, whose advice could have warned him against such a hasty and unnecessary act.

Modi has taken the whole pandemic lightly. He urged people to light candles and bang pots, make noise to scare off the virus. The lockdown kept spreading, but there was nothing systematic, no national policy that can be found anywhere on government websites.

In May and June 2020, the lockdown continued to expand, even though it made no sense for the millions of working-class Indians who had to go to work to survive on their daily wages.

A year after the start of the pandemic, there are now million people in India with detected infections, with , 000 people have been confirmed dead from the pandemic.

You have to write words like “detected” and “confirmed” because the mortality data in India during this pandemic has been totally unreliable.

The consequences of the transfer of health care to the private sector and the underfunding of public health have been devilish.

For years, advocates of public health care, such as the “people’s health movement” Jan Swasthya Abhiyan, have called for more public spending on public health and less reliance on for-profit health care. These calls have fallen on deaf ears.

Indian governments spent very small amounts on health – 3.5% of GDP in 2018, a figure that has remained the same for decades.

India’s current health expenditure per capita, by purchasing power parity, was 275.13 in 2018 – roughly the figures for Kiribati, Myanmar and Sierra Leone.

This is a very low number for a country with the kind of industrial capacity and wealth of India.

At the end of 2020, the Indian government admitted that it had 0.8 doctors per 1,000 people and 1.7 nurses per 1,000 people. No country the size and wealth of India has such low ratios of medical personnel.

It’s getting worse. India has only 5.3 beds per 10,000 people, while China, for example, has 43.1 beds for the same number.

India has only 2.3 intensive care beds per 100,000 people (compared to 3.6 in China) and has only 48,000 ventilators (China had 70,000 in Wuhan alone).

The weakness of the medical infrastructure is entirely due to privatization, where private sector hospitals run their system on the principle of maximum capacity and do not have the capacity to handle peak loads.

The optimization theory does not allow the system to cope with power surges, because in normal times it would mean that hospitals would have excess capacity.

No private sector will voluntarily develop excess beds or excess fans. This is what inevitably causes the crisis of a pandemic.

Low health spending translates into low spending on medical infrastructure and low salaries for medical staff. It is the wrong way to run a modern society.

Shortages are a normal problem in any society. But India’s shortages of basic medical supplies during the pandemic have been scandalous.

India has long been known as the “pharmacy of the world” because its sector of the pharmaceutical industry masters the reverse engineering of a range of generic drugs. It is the third largest manufacturer in the pharmaceutical industry.

India accounts for 60 percent of global vaccine production, including 90 percent of WHO measles vaccine use, and India has become the largest producer of pills for the US market. But none of this helped during the crisis.

Vaccines against Covid-19 are not available to Indians at the necessary rate. Indian vaccinations will not be completed until November 2022.

The government’s new policy will allow vaccine manufacturers to raise prices, but not produce quickly enough to meet needs (India’s public sector vaccine factories are inactive).

No quick large-scale purchase is contemplated. There is also not enough medical oxygen and promises of capacity building have not been kept by the ruling party.

The Indian government exported oxygen, even when it became clear that the national reserves were depleted (it also exported valuable injections of Remdesivir).

On March 25, 2020, Modi said he would win this Mahabharat – the 18-day battle depicted in India’s epic legend – against Covid-19 in 18 days.

Today, more than 56 weeks after this promise, India looks more like the bloody fields of Kurukshetra (1.66 million are said to have died in this battle), where thousands of people had died, the war not even being in halfway.

This article was published on people-world.org. Vijay Prashad is an Indian historian, editor and journalist. His latest book is Washington Bullets (Monthly Review Press).

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Indian government watches COVID destroy its people https://kenttribune.com/indian-government-watches-covid-destroy-its-people/ https://kenttribune.com/indian-government-watches-covid-destroy-its-people/#respond Thu, 29 Apr 2021 07:00:00 +0000 https://kenttribune.com/indian-government-watches-covid-destroy-its-people/
Illustration by Paresh nath at Cartoons Cagle.

For Ashish Yechury (1986-2021), journalist.

It’s hard to overstate the hold COVID-19 has over India. WhatsApp is full of messages about this or that friend and family member sick with the virus, while angry messages about how the central government has completely failed its citizens are increasing rapidly. This hospital is running out of beds, and this hospital no longer has oxygen, while Prime Minister Narendra Modi and his Cabinet dodge the problem.

Thirteen months after the World Health Organization (WHO) announced the world was in the middle of a pandemic, the Indian government continues to stare straight into the problem like a deer in the headlights, unable to move or to move. act while moving closer to the impending disaster. While other countries are well on their immunization programs, the Indian government is resting and watching a second, possibly third wave land heavily on Indians.

On April 21, 2021, the country registered 315,000 cases within a 24 hour period. This is an extraordinarily high number. Keep in mind that in China, where the virus was the first detected at the end of 2019, the total number of cases detected amounted to less than 100,000.

Modi said he would win this Mahabharat against COVID-19 in 18 days. 56 weeks later, the Indian people are suffering under an indifferent leader.

This tip raised eyebrows: is it a new variant, or is it the result of a failure in the management of social interactions (including the 3 million pilgrims who collected at this year’s Kumbh Mela) and to attract enough people vaccinated on time.

Either way, at the heart of the problem is the complete failure of the Indian government, led by Prime Minister Modi, and its inability to take this pandemic seriously.

Contempt

A glance around the world shows that governments that failed to follow WHO guidelines, regulations and warnings have suffered the most from COVID-19. Since January 2020, the WHO has called on governments to insist on basic hygiene rules– Hand washing, physical distance, wearing a mask, etc. – and later make suggestions on testing for COVID-19, as well as contact tracing and social isolation.

Insisting on basic hygiene rules does not take enormous resources. The Vietnamese government, for example, has taken these recommendations very seriously, resulting in a slower spread of the virus.

The Indian government has acted very slowly. On March 10, 2020, the Indian government had reported around 50 cases of COVID-19 in India, with infections doubling in 14 days. The first major act Prime Minister Modi’s response to the virus, was a Janata 14 hour curfew. A dramatic act, but not fully in line with WHO recommendations.

This ruthless lockdown, given with just four hours’ notice, sent hundreds of thousands of workers on the road at home, penniless, some even dying by the side of the road, and most carrying the virus with them to their towns and villages. Prime Minister Modi executed this lock without check with his own services, whose advice might have warned him against such a hasty and truly unnecessary act.

Prime Minister Modi has taken the whole pandemic lightly, with no regard or respect for the science behind the WHO’s suggestions and recommendations. He even urged people to light candles and bang pots at one point, hoping to use the noise to scare off the virus.

There was no national policy that could be found on any of the government websites. In May and June 2020, the lockdown was extended, although it made no sense for the millions of working-class Indians who were still going to work, surviving only on their daily wages.

A year after the start of the pandemic, there are now 16 million people in India with detected infections, with 185,000 people confirmed dead from the pandemic. You should write words like “detected” and “confirmed” because mortality data in India during this pandemic has been totally. unreliable.

Consequences of privatization

The consequences of the transfer of health care to the private sector and the underfunding of public health have really been felt. For years, advocates of public health care, such as the Jan Swasthya Abhiyan, called for more public spending on public health and less reliance on profit-driven health care.

These calls have fallen on deaf ears.

Indian governments spent very little on health—3.5% of GDP in 2018, a figure that has remained the same for decades. India’s current health expenditure per capita, by purchasing power parity, was 275.13 in 2018, around figures from countries like Kiribati, Myanmar and Sierra Leone. This is a very low number for a country with the kind of industrial capacity and wealth of India.

At the end of 2020, the Indian government admitted that it has 0.8 doctors, and 1.7 nurses, per 1,000 Indians. No country of India’s size and financial worth has such a low ratio. And it gets worse.

India only has 5.3 beds for 10,000 people. In China, for example, they have 43.1 beds for the same number of people. India only has 2.3 intensive care beds per 100,000 people (compared to 3.6 in China) and only 48,000 fans. China had 70,000 ventilators only in Wuhan.

The fragility of India’s medical infrastructure is entirely due to privatization, where private sector hospitals run their system on the principle of maximum capacity without the ability to handle peak loads. Because this would mean additional capacity in “normal” times, the optimization theory in private hospitals does not prepare the system for crises. No private sector will voluntarily develop excess beds or excess fans.

This only worsens the crisis in the event of a pandemic. Low health spending translates into low spending on medical infrastructure and low salaries for medical staff. Truly a bad way to run a modern company.

Vaccines and oxygen

Shortages are a normal problem in any given society. But India’s shortages of basic medical supplies during the pandemic have been downright scandalous.

India has long been known as the “pharmacy of the world” as the pharmaceutical industry sector has successfully reverse engineered a wide range of generic drugs. It’s the third largest manufacturer in the pharmaceutical industry. India accounts for 60% of total global vaccine production, including 90% of the measles vaccine used by WHO, and India has to become the largest producer of pills for the US market.

But none of this helped during the crisis.

COVID-19 vaccines are not readily available to Indian citizens despite being produced locally. Indian vaccinations will not be complete until November 2022.

In addition, a new government policy will allow vaccine manufacturers to increase prices, but will not force them to produce the vaccine quickly enough (India public sector vaccine factories are idle). No large scale rapid supply is on the horizon, there is also not enough medical oxygen and the promise of capacity building has been dissatisfied by the ruling party.

The Indian government was export oxygen, even when it has become clear that domestic reserves ran out (he also exported from Remdesivir injections).

March 25, 2020, Modi said he would win this Mahabharat—This epic battle – against COVID-19 in 18 days. Today, more than 56 weeks after that promise, India is more like the bloodstained fields of Kurukshetra, where thousands of people lay, the war not even half-time.

Vijay Prashad
Independent Media Institute

This article was produced by Globetrotter.

]]> https://kenttribune.com/indian-government-watches-covid-destroy-its-people/feed/ 0 India’s Covid-19 disaster continues to grow https://kenttribune.com/indias-covid-19-disaster-continues-to-grow/ https://kenttribune.com/indias-covid-19-disaster-continues-to-grow/#respond Wed, 28 Apr 2021 07:00:00 +0000 https://kenttribune.com/indias-covid-19-disaster-continues-to-grow/

– Against Punch / Gwydion M Williams

For Ashish Yechury (1986-2021), journalist.

IT IS hard to overstate the hold of COVID-19 on India. WhatsApp bristles with messages about this or that friend and family member with the virus, while there are angry messages about how the central government has completely failed its citizens. This hospital is running out of beds and this hospital is running out of oxygen, as Prime Minister Narendra Modi and his cabinet shy away from it.

Thirteen months after the World Health Organization announced the world was in the midst of a pandemic, the Indian government is staring into the headlights like a pierced animal, unable to move. While other countries are well advanced in their immunization programs, the Indian government is resting and watching a second or third wave land heavily on Indians.

As of April 21, 2021, the country recorded 315,000 cases over a 24-hour period. This is an extraordinarily high number. Keep in mind that in China, where the virus was first detected at the end of 2019, the total number of cases detected is less than 100,000. This tip has raised eyebrows: is it a new variant, or is it -this the result of a failure to manage social interactions (including the three million pilgrims who gathered at Kumbh Mela this year) and to vaccinate enough people.

The utter failure of the Indian government, led by Prime Minister Modi, to take this pandemic seriously is at the heart.

Contempt

A glance around the world shows that governments that ignored WHO warnings have suffered the worst devastation from COVID-19. From January 2020, the WHO had asked governments to insist on basic hygiene rules – washing hands, physical distance, wearing a mask – then later suggested screening for COVID-19, contact tracing and social isolation. The first set of recommendations does not require immense resources. The Vietnamese government, for example, took these recommendations very seriously and immediately slowed the spread of the disease.

The Indian government has acted slowly despite evidence of the dangerousness of the disease. On March 10, 2020, before the WHO declared a pandemic, the Indian government reported around 50 cases of COVID-19 in India, with infections having doubled in 14 days. The Indian Prime Minister’s first major act was a 2pm Janata curfew, which was dramatic but not in line with WHO recommendations. This ruthless lockdown, with four hours’ notice, sent hundreds of thousands of workers on the road to their homes penniless, some dying by the side of the road, many carrying the virus to their towns and villages. Prime Minister Modi executed this lockdown without checking with his own departments, whose advice could have warned him against such a hasty and unnecessary act.

Prime Minister Modi has taken the whole pandemic lightly. He urged people to light candles and bang pots, make noise to scare off the virus. The lockdown kept spreading, but there was nothing systematic, no national policy that can be found anywhere on government websites. In May and June 2020, the lockdown continued to expand, even though it made no sense for the millions of working-class Indians who had to go to work to survive on their daily wages. A year after the start of the pandemic, there are now 16 million people in India with detected infections, with 185,000 people confirmed to have died from the pandemic. You have to write words like “detected” and “confirmed” because the mortality data in India during this pandemic has been totally unreliable.

Consequences of privatization

THE consequences of the transfer of health care to the private sector and the underfunding of public health have been devilish. For years, advocates of public health care, such as Jan Swasthya Abhiyan, have called for more public spending on public health and less reliance on profit-oriented health care. These calls have fallen on deaf ears.

Indian governments spent very small amounts on health – 3.5% of GDP in 2018, a figure that has remained the same for decades. India’s current health expenditure per capita, by purchasing power parity, was 275.13 in 2018, roughly the figures for Kiribati, Myanmar and Sierra Leone. This is a very low number for a country with the kind of industrial capacity and wealth of India.

At the end of 2020, the Indian government admitted that it had 0.8 doctors per 1,000 Indians and 1.7 nurses per 1,000 Indians. No country the size and wealth of India has such a low medical workforce. It’s getting worse. India has only 5.3 beds per 10,000 people, while China, for example, has 43.1 beds for the same number. India has only 2.3 intensive care beds per 100,000 people (compared to 3.6 in China) and it has only 48,000 ventilators (China had 70,000 in Wuhan alone).

The weakness of the medical infrastructure is entirely due to privatization, where private sector hospitals run their system on the principle of maximum capacity and do not have the capacity to handle peak loads. The optimization theory does not allow the system to cope with power surges, because in normal times it would mean that hospitals would have excess capacity. No private sector will voluntarily develop excess beds or excess fans. This is what inevitably causes the crisis of a pandemic.

Low health spending translates into low spending on medical infrastructure and low salaries for medical staff. It is the wrong way to run a modern society.

Vaccines and oxygen

SHORTAGES are a normal problem in any society. But India’s shortages of basic medical supplies during the pandemic have been scandalous.

India has long been known as the “pharmacy of the world” as the Indian pharmaceutical industry sector is adept at reverse-engineering a range of generic drugs. It is the third largest manufacturer in the pharmaceutical industry. India accounts for 60 percent of global vaccine production, including 90 percent of WHO measles vaccine use, and India has become the largest producer of pills for the US market. But none of this helped during the crisis.

COVID-19 vaccines are not available to Indians at the necessary rate. Indian vaccinations will not be complete until November 2022. The government’s new policy will allow vaccine manufacturers to raise prices, but will not produce fast enough to meet needs (India’s public sector vaccine factories are inactive) . No quick large-scale purchase is contemplated. There is also not enough medical oxygen and promises of capacity building have not been kept by the ruling party. The Indian government exported oxygen, even when it became clear that the national reserves were depleted (it also exported valuable injections of Remdesivir).

On March 25, 2020, Modi said he would win this Mahabharat – this epic battle – against COVID-19 in 18 days. Today, more than 56 weeks after that promise, India is more like the bloodstained fields of Kurukshetra, where thousands of people lay, the war not even half-time.

CounterPunch.org, April 26. Vijay Prashad, Indian historian, journalist and commentator, is the Executive Director of Tricontinental: Institute for Social Research and the Editor-in-Chief of Left Word Books.

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Government failure and privatization of health care driving India’s COVID crisis – people’s world https://kenttribune.com/government-failure-and-privatization-of-health-care-driving-indias-covid-crisis-peoples-world/ https://kenttribune.com/government-failure-and-privatization-of-health-care-driving-indias-covid-crisis-peoples-world/#respond Mon, 26 Apr 2021 07:00:00 +0000 https://kenttribune.com/government-failure-and-privatization-of-health-care-driving-indias-covid-crisis-peoples-world/

A COVID-19 patient receives oxygen in a car provided by a Gurdwara, a Sikh place of worship, in New Delhi, India on Saturday April 24, 2021. The oxygen shortage in India has become so severe that it gurdwara began offering free breathing sessions with shared tanks with patients waiting for a hospital bed. They arrive in their cars, on foot or in three-wheeled taxis, desperate for a mask and tube attached to the precious oxygen tanks. | Altaf Qadri / AP

For Ashish Yechury (1986-2021), journalist.

It’s hard to overstate the hold COVID-19 has over India. WhatsApp bristles with messages about this or that friend and family member with the virus, while there are angry messages about how the central government has completely failed its citizens. This hospital is running out of beds and this hospital no longer has oxygen, while Prime Minister Narendra Modi and his cabinet shy away.

Thirteen months after the World Health Organization (WHO) announced the world was in the midst of a pandemic, the Indian government is staring into the headlights like a pierced animal, unable to move. While other countries are well advanced in their immunization programs, the Indian government is resting and watching a second or third wave land heavily on the Indian people.

On Sunday April 25, 2021, the country recorded 354,531 cases over a 24-hour period, the fifth consecutive day of records. Keep in mind that in China, where the virus was first detected at the end of 2019, the total number of cases detected stands at less than 100,000. This peak in India has raised eyebrows: is it a new variant, or is it the result of a failure in the management of social interactions (including the 3 million pilgrims who collected at this year’s Kumbh Mela religious festival) and at vaccinate enough people?

At the heart is the utter failure of the Indian government, led by Modi, to take this pandemic seriously.

Contempt and derisory responses

A glance around the world shows that governments that ignored WHO warnings have suffered the worst devastation from COVID-19. From January 2020, the WHO had asked governments to insist on basic hygiene rules – washing hands, physical distance, wearing a mask – then later suggested screening for COVID-19, contact tracing and social isolation. The first set of recommendations does not require immense resources. The Vietnamese government, for example, took these recommendations were very serious and immediately slowed the spread of the disease.

The Indian government has acted slowly, despite evidence of the dangerousness of the disease. On March 10, 2020, before the WHO declared a pandemic, the Indian government reported around 50 cases of COVID-19 in India, with infections doubling in 14 days. The first major act Prime Minister of India was a 14 hour curfew, which was dramatic but not in line with WHO recommendations.

This ruthless lockdown, with four hours’ notice, sent hundreds of thousands of workers on the road from their homes, penniless, some dying by the side of the road, many carrying the virus to their towns and villages. Modi executed this lock without check with his own services, whose advice could have warned him against such a hasty and unnecessary act.

Health workers and relatives carry the body of a COVID-19 victim for cremation in Jammu, India on Sunday, April 25, 2021. Crematoriums and cemeteries in India are overwhelmed by the devastating new outbreak of infections . | Channi Anand / AP

Modi has taken the whole pandemic lightly. He urged people to light candles and bang pots, make noise to scare off the virus. Lockdown continued to be expanded, but there was nothing systematic, no national policy that could be found anywhere on government websites. In May and June 2020, the lockdown continued to expand, even though it made no sense for the millions of working-class Indians who had to go to work to survive on their daily wages.

A year after the start of the pandemic, there are now over 17 million people in India with detected infections, with 185,000 people confirmed dead from the pandemic. You have to write words like “detected” and “confirmed” because the mortality data in India during this pandemic has been totally unreliable.

Consequences of privatization

The consequences of the transfer of health care to the private sector and the underfunding of public health have been devilish. For years, advocates of public health care, such as the Jan Swasthya Abhiyan, called for more public spending on public health and less reliance on profit-driven health care. These calls have fallen on deaf ears.

Indian governments have spent very little the amounts on health – 3.5% of GDP in 2018, a figure that has remained the same for decades. India’s current health expenditure per capita, by purchasing power parity, has been 275.13 in 2018, around the figures for Kiribati, Myanmar and Sierra Leone. This is a very low number for a country with the kind of industrial capacity and wealth of India.

At the end of 2020, the Indian government admitted that it possesses 0.8 doctor per 1000 Indians, and he possesses 1.7 nurses per 1,000 Indians. No country the size and wealth of India has such a low medical workforce. It’s getting worse. India possesses only 5.3 beds per 10,000 inhabitants, while China, for example, has 43.1 for the same number. India possesses only 2.3 intensive care beds per 100,000 people (compared to 3.6 in China), and it has only 48,000 ventilators (China had 70,000 ventilators in Wuhan alone).

The weakness of the medical infrastructure is entirely due to privatization, where private sector hospitals run their system on the principle of maximum capacity and do not have the capacity to handle peak loads. The optimization theory does not allow the system to cope with power surges, because in normal times it would mean that hospitals would have excess capacity. No private sector will voluntarily develop excess beds or excess fans. This is what inevitably causes the crisis of a pandemic.

Low health spending translates into low spending on medical infrastructure and low salaries for medical staff. It is the wrong way to run a modern society.

Several funeral pyres of COVID-19 victims burn on land that has been converted to a crematorium for mass cremation in New Delhi, India on Saturday, April 24, 2021. | Altaf Qadri / AP

Vaccine and oxygen shortages in “the world’s pharmacy”

Shortages are a normal problem in any society. But India’s shortages of basic medical supplies during the pandemic have been scandalous.

India has long been known as the “pharmacy of the world” as the Indian pharmaceutical industry sector is adept at reverse-engineering a range of generic drugs. It’s the the third-The largest manufacturer in the pharmaceutical industry. India accounts for 60% of global vaccine production, including 90% of WHO measles vaccine use, and India has to become the largest producer of pills for the US market. But none of this helped during the crisis.

COVID-19 vaccines are not available to Indians at the necessary rate. Indian vaccinations will not be completed until November 2022. The government’s new policy will allow vaccine manufacturers to increase prices, but not produce quickly enough to meet needs (India’s public sector vaccine factories are inactive). No large scale rapid supply is on the cards. There is also not enough medical oxygen and the promises of capacity building have been dissatisfied by the ruling party. The Indian government was export oxygen, even when it has become clear that domestic reserves ran out (he also exported from Remdesivir injections).

On March 25, 2020, Modi mentionned that he would win this Mahabharat – this epic battle – against COVID-19 in 18 days. Today, more than 56 weeks after that promise, India looks more like the bloody fields of Kurukshetra, where thousands of dead lay, with the war not even at halftime.

Globetrotter / Distribution of peoples

Related story:

India ravaged by pandemic swept away by protests demanding vaccines


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Vijay Prashad


]]> https://kenttribune.com/government-failure-and-privatization-of-health-care-driving-indias-covid-crisis-peoples-world/feed/ 0 The dollar’s purchasing power drops sharply to an all-time high, but it’s much worse than the CPI shows https://kenttribune.com/the-dollars-purchasing-power-drops-sharply-to-an-all-time-high-but-its-much-worse-than-the-cpi-shows/ https://kenttribune.com/the-dollars-purchasing-power-drops-sharply-to-an-all-time-high-but-its-much-worse-than-the-cpi-shows/#respond Tue, 13 Apr 2021 07:00:00 +0000 https://kenttribune.com/the-dollars-purchasing-power-drops-sharply-to-an-all-time-high-but-its-much-worse-than-the-cpi-shows/

If the homeownership component of the CPI mirrors the Case-Shiller Home Price Index, the CPI would go up 5.1%! Not to mention the prices of new and used vehicles, which I’m talking about nonetheless.

By Wolf Richter for WOLF STREET.

The Consumer Price Index jumped 0.6% in March from February, the largest month-over-month increase since 2009, according to the Bureau of Labor Statistics today, and was up 2.6% from a year earlier, after rising 1.7% in February.

The infamous base effect, which I discussed last week in anticipation of what’s to come, was partly to blame: The CPI fell in March of last year, which created a base lower for today’s annual comparison. In the 13 months since February of last year, which eliminates the base effect, the CPI rose 2.3%.

  • The prices of durable goods continued to rise, increasing by 3.7% compared to a year ago (purple line);
  • The prices of non-durable goods, which are mainly food and energy, including gasoline, jumped 4.2% (green line);
  • The prices of services increased by 1.8%. That’s the big problem, which accounts for two-thirds of the overall CPI. It is dominated by a measure of homeownership costs, which, ridiculously, as house prices skyrocket, has only climbed 2.0% from a year ago. More on that in a moment.

Consumer price inflation means the loss of the purchasing power of the consumer dollar, and hence the loss of the purchasing power of dollar-denominated labor. And purchasing power thus measured fell 0.5% in March from February to a new all-time low, according to BLS data. Given the Fed’s insistence on perma-inflation, the dollar’s purchasing power continues to decline from a record high to a record low:

But wait, it’s much worse …

The three main consumer price indexes – CPI of durable goods, non-durable goods and services – over the long term, give a fascinating picture of what is happening with the CPI itself. These indices, shown below as an index value, and not as a percentage change from year to year, were set at a value of 100 in 1982-1984. Since:

  • The services CPI has risen steadily (red line below).
  • The non-durable goods CPI rose until around 2012, then hovered in the same range, but now appears to be outside that range (green line below).
  • Durable goods The CPI peaked in 1996 and has trended downward since then, even as real prices for most durable goods, especially big ticket items like vehicles, have jumped. The recent increase in the durable goods CPI barely registers in the long-term decline (purple):

Services CPI held back by homeownership costs, which have skyrocketed in real life.

Housing costs – rent and homeownership costs combined – weigh about a third of the overall CPI and about half of the services CPI. Primary residence rents (representing 7.8% of the overall CPI) rose only 1.7% in March compared to a year ago. In fact, rents have jumped in many markets and plunged in the more expensive markets. So the national rent increases of 1.7% could be close.

The problem with the CPI is the homeownership component, the “home owner’s equivalent rent,” which accounts for 24% of the overall CPI. It is based on surveys of homeowners’ estimates of the value of their home. rental for. And that “owner-equivalent rent” CPI in March rose only 2.0% year-over-year (red line).

But the Case-Shiller Home Price Index, which is based on the pair-selling method and has a better understanding of the reality of the housing bubble, climbed 11.2% year-over-year. (purple line).

Had the homeownership component of the CPI increased in line with the Case-Shiller index, the headline CPI would have jumped 5.1% year-over-year – nearly double the rate published by 2.6%!

And just when you thought it couldn’t get any worse …

The long-term decline in the durable goods CPI is of course a mirage in terms of the real prices paid for durable goods – anyone who has ever paid for durable goods knows this.

This is due to the increasingly aggressive use of “hedonic quality adjustments”. As a product is improved and the price increases, this price increase is then attributed to the additional costs of the quality improvements, and is therefore excluded from the CPI, because the CPI is supposed to follow the trend. loss of purchasing power of the dollar, and not the costs of product improvement.

The theory is that you pay more because the product is better. This is true for consumer electronics and motor vehicles, which have improved dramatically in all respects over the past 20 years. But the aggressive application of hedonic quality adjustments leads to bizarre results, including the decline in the long-term CPI for durable goods that weighs down the overall CPI.

The CPI for new vehicles – even as the largest dealer group in the United States brags to Wall Street about the record prices and profit margins it gets – has not changed at all in the past two month and only increased by 1.5% compared to last March. year, and has barely increased since the mid-1990s:

For reality check and for your amusement, here is my annual F-150 and Camry Price Index, representing the MSRP of the top-selling truck and top-selling car in the United States from model year 2021 to model year 1989. year. The green line shows the annual CPI of new vehicles:

The shock and hedonics of used vehicle prices.

The used vehicle CPI is also subject to aggressive hedonic quality adjustments, but there are times when prices skyrocket so quickly that they even exceed hedonic quality adjustments – and it took a long time. .

The used vehicle CPI rose 0.5% in March from February, after four consecutive months of month-over-month declines. These declines were likely due to hedonic quality adjustments that eventually caught up with prices that went haywire from July of last year and soared historically in the vast liquid wholesale market as well as the retail market. .

Compared with March of last year, the used vehicle CPI was still up 9.4%, after double-digit price increases at the end of last year. The chart shows this peak which peaked in October of last year and has since given up on giving up some of the earlier gains. But this recent drop has not been confirmed by actual market prices, which remain scorching.

It should also be noted that despite the surge, the used vehicle CPI has remained below levels of 20 years ago, even though actual used vehicle prices have skyrocketed. The March 2021 index was 5.4% lower than the index value in March 2001. That’s the power of aggressive hedonic quality adjustments:

And there is more inflationary pressure in the pipeline as companies report soaring costs and are able to pass those rising costs on to their customers. Read… Producer prices explode

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Is America Weaker Than China? https://kenttribune.com/is-america-weaker-than-china/ https://kenttribune.com/is-america-weaker-than-china/#respond Thu, 01 Apr 2021 07:00:00 +0000 https://kenttribune.com/is-america-weaker-than-china/

The United States “is no longer qualified to speak to us from a position of strength”, sung the imperious senior diplomat of the People’s Republic of China, to US Secretary of State Antony Blinken at a particularly frigid meeting in Anchorage, Alaska.

To the credit of Joe Biden’s administration, it appears he is taking the potential threat China poses to the United States more seriously than it did during the controversial 2020 presidential campaign.

Yet one must ask an uncomfortable question: what if China’s representatives are right? As my colleague David P Goldman reports, “US influence is fragile in several key Eurasian nodes and China has the capacity to injure the US in retaliation for US efforts to build an alliance to contain it.”

In other words, as America spasmodically pivots towards Asia, China shifts sensibly to its west – and the reason China even attracts powers along its western periphery is China’s growing power. .

Part of the problem is perception. The way that American policymakers measure national power is insufficient for the 21st century. Chinese academics, in my opinion, have developed a much better method for analyzing the competitive power of a nation state.