TLDR and TLDL: Today I take a look at the Government’s decision, finally and rightly, to regulate card fees to save retailers $74m a year. Also, watch out below for the US stock market’s wobble this morning because US inflation figures were a bit higher than expected.
Briefly elsewhere in our political economy
An Auckland property company that took millions in taxpayer funds to house the homeless has left Inland Revenue and landlords out of pocket after going into liquidation.
A new government consultation on the future of New Zealand's infrastructure sets the stage for a dramatic realignment of the roles and responsibilities of central and local government
.@msdgovtnz is considering "a number of civil and criminal prosecutions" against businesses who defrauded the $14b Covid wage subsidy. Another 550 investigations still ongoing.
In the global political economy
Over 100 former Republican officials will sign a letter declaring that if the Republican Party does not break with former President Donald Trump and change course, they will back the creation of a third party
A growing number of gas stations along the East Coast are without fuel as nervous drivers aggressively fill up their tanks following a ransomware attack that shut down the Colonial Pipeline, a critical artery for gasoline.
Here's how we got to this point.
🔴 War, live on television
Astonishing live coverage from Youmna Al Sayed in #Gaza, as she anticipates the bombing of a media building behind her… and then it happens.
@afinighan picks up in the studio while she takes cover.
🇮🇱 💥 🇵🇸
US CPI inflation far stronger than exp in Apr on base effects & reopening bottlenecks
CPI +0.8%mom/+4.2%yoy,core +0.9%m/+3%y
Fed likely still inclined to see it as transitory given reopening bottlenecks,but infl+higher bond ylds are a near term risk for shares
(EvercoreISI chart)
"The Fed will have to monetize it. I believe it will have horrible implications for the dollar ... it's more likely than not within 15 years we lose reserve currency status," says legendary investor Stanley Druckenmiller.
Signs o’ the times news
Other notable views
#COVID19 has had devastating global consequences. My fellow @TheIndPanel co-chair @HelenClarkNZ and I share a package of bold and essential reforms to stop future disease outbreaks from becoming another global crisis. #LastPandemic
A budget announcement that allows international students to work unlimited hours in hospitality and tourism presents puzzling contradictions. It is consistent with a troubling 25-year trend | OPINION @StephenClibborn @ChrisFWright #Auspol #Budget2021
The CCP propaganda system is vast & now incorporates Western social media. It has helped reshape perceptions of the PRC🇨🇳 and "creates hopelessness that anything can be done about what China is doing to our democracies.” My comments to @AP @ekinetz
apnews.com/article/asia-p…
The long interview w/ @nfergus about “Doom: The Politics of Destruction.” He’s as good an interview as he is a historian. If you listen, you will also buy (and should) “Doom”if you care at all about the ongoing pandemic: amazon.com/Doom-Politics-…
Some fun things
The sun rose at 7:20 today in Wellington and will rise tomorrow at 7:21.
Dawn chorus: Five years of profitable delay