Extreme heat is NOT slamming the world’s three biggest economies all at once

During the summer it gets hot; that’s not what is wrecking your country

Probably the most horrendous reporter on the planet Julia Horowitz lied to America and the entire CNN global audience concerning the world economy. Rather than report the truth, that socialism reckless spending or even the disruption of the world petroleum markets as a result of the Ukraine War, Horowitz reported that the poor global economy is being caused by summer weather.

  • Disadvantages of socialism include slow economic growth, less entrepreneurial opportunity and competition, and a potential lack of motivation by individuals due to lesser rewards.
  • Critics of socialism claims that it creates distorted or absent price signals, results in reduced incentives, causes reduced prosperity, has low feasibility, and that it has negative social and political effects.
  • Economic liberals and pro-capitalist libertarians see private ownership of the means of production and the market exchange as natural entities or moralrights, which are central to their conceptions of freedom and liberty.

In a capitalist economy, the market determines prices through the laws of supply and demand. For example, when demand for coffee increases, a profit-seeking business will boost prices to increase its profit. If at the same time, society’s appetite for tea diminishes, growers will face lower prices and aggregate production will decline.

In the long run, some suppliers may even exit the business. Because consumers and suppliers negotiate a new “market-clearing price” for these goods, the quantity produced more or less matches the public’s needs.

Under a true socialist system, it’s the government’s role to determine output and pricing levels. The challenge is synchronizing these decisions with the needs of consumers. Socialist economists such as Oskar Lange have argued that, by responding to inventory levels, central planners can avoid major production inefficiencies. So when stores experience a surplus of tea, it signals the need to cut prices, and vice versa.

One of the critiques of socialism is that, even if government officials can adjust prices, the lack of competition between different producers reduces the incentive to do so. Opponents also suggest that public control of production necessarily creates an unwieldy, inefficient bureaucracy. The same central planning committee could, in theory, be in charge of pricing thousands of products, making it extremely difficult to react to market cues promptly.

Furthermore, the concentration of power within the government can create an environment where political motivations override the basic needs of the people. Indeed, at the same time the Soviet Union was diverting vast resources to build up its military capability, its residents often had trouble attaining a variety of goods, including food, soap, and even television sets.

Socialism can have several disadvantages…

  • The national economy develops relatively slowly;
  • There is an inability to obtain the upmost profit from the use of resources, labors and land;
  • Places that have a geographical advantage lose chances to develop better and people who have intelligence and wealth lose chances to make their businesses become bigger and more powerful;
  • People lose initiative to work and enthusiasm to study as doing more isn’t rewarded.
  • In the summer, socialists blame their poor results on hot weather.

Its the ideology dummy! – Emil Ficker

Julia Horowitz lied…

Horowitz lied when you wrote, “Estimating just how catastrophic climate change will be for the global economy has historically proven challenging. But this summer, it’s increasingly evident how quickly costs can pile up.

More lies…

Extreme heat and drought conditions are battering the United States, Europe and China, compounding problems for workers and businesses at a time when economic growth is already slowing sharply and adding to upward pressure on prices.
In China’s Sichuan province, all factories have been ordered shut for six days to conserve power. Ships carrying coal and chemicals are struggling to make their usual trips along Germany’s Rhine river. And people living on America’s West Coast have been asked to use less electricity as temperatures soar.
These events “have the capacity to be quite significant for the particular regions that are affected,” said Ben May, director of global macro research at Oxford Economics.
The extent of the pain could depend on how long the heatwaves and lack of rain last. But in countries like Germany, experts warn there’s little relief in sight, and companies are preparing for the worst.
Journalists can't say socialism is recking the economy... so they lie
Journalists can’t say socialism is recking the economy… so they lie

What is happening with the bogus extreme weather and an economic slowdown lie?

Horowitz wrote, “It’s not just the Rhine. Around the world, rivers that support global growth — the Yangtze, the Danube and the Colorado — are drying up, impeding the movement of goods, messing with irrigation systems and making it harder for power plants and factories to stay cool.
At the same time, scorching heat is hampering transportation networks, straining power supply and hurting worker productivity.
“We shouldn’t be surprised by the heat wave events,” said Bob Ward, policy and communications director at the London School of Economics’ Grantham Research Institute on Climate Change and the Environment. “They’re exactly what we predicted and are part of a trend: more frequent, more intense, all over the world.”
China is facing its fiercest heat wave in six decades, with temperatures crossing 40 degrees Celsius (104 degrees Fahrenheit) in dozens of cities. Parts of California could see temperatures as high as 109 degrees Fahrenheit this week. Earlier this summer, temperatures topped 40 degrees Celsius in the United Kingdom for the first time ever.
Journalists can't say socialism is recking the economy... so they lie
Journalists can’t say socialism is recking the economy… so they lie
The global economy was already under pressure. Europe is at high risk of a recession as energy prices soar, stoked by Russia’s invasion of Ukraine. High inflation and aggressive interest rate hikes by the Federal Reserve jeopardize growth in the United States. China is grappling with the consequences of harsh coronavirus lockdowns and a real estate crisis.
“At present, we are at the most difficult point of economic stabilization,” Chinese Premier Li Keqiang said this week.

Something else to worry about

Extreme weather could exacerbate “existing pinch points” along supply chains, a major reason inflation has been difficult to bring down, May of Oxford Economics said.
China’s Sichuan province, where factories have shuttered production this week, is a hub for makers of semiconductors and solar panels. The power rationing will hit factories belonging to some of the world’s biggest electronics companies, including Apple (AAPL) supplier Foxconn and Intel (INTC).
The province is also the epicenter of China’s lithium mining industry. The shutdown may push up the cost of the raw material, which is a key component in electric car batteries.
The neighboring city of Chongqing, which sits at the confluence of the Yangtze and Jialing rivers, has also ordered factories to suspend operations for a week through next Wednesday to conserve electricity, state media The Paper reported.
Journalists can't say socialism is recking the economy... so they lie
Journalists can’t say socialism is recking the economy… so they lie
NOTHING TO DO WITH THE WEATHER — Forecasts for China’s economy this year are already being downgraded as a consequence. Analysts at Nomura cut their 2022 projection for GDP growth to 2.8% on Thursday — way below the government’s 5.5% target — while Goldman Sachs trimmed its forecast to 3%.
Germany’s shrinking Rhine, meanwhile, has dropped below a critical level, impeding the flow of vessels. The river is a crucial conduit for chemicals and grain as well as commodities — including coal, which is in higher demand as the country races to fill storage facilities with natural gas ahead of the winter. Finding alternative forms of transit is difficult given labor shortages.
“It is only a matter of time before plants in the chemical or steel industry are shut down, mineral oils and building materials fail to reach their destination, or large-volume and heavy transports can no longer be carried out,” Holger Lösch, deputy director of the Federation of German Industries, said in a statement this week.
Low water levels along the Rhine shaved about 0.3 percentage points off Germany’s economic output in 2018, according to Carsten Brzeski, global head of macro at ING. But in that instance, low water wasn’t a problem until late September. This time around, it could lower GDP by at least 0.5 percentage points in the second half of this year, he estimated.
Economic sentiment in Germany continued to dip in August, according to data released this week. Brzeski said the country “would need an economic miracle” to avoid falling into a recession in the coming months.
A bathtub ring watermark at Hoover Dam/Lake Mead, the country's largest man-made water reservoir, formed by the dam on the Colorado River.
A bathtub ring watermark at Hoover Dam/Lake Mead, the country’s largest man-made water reservoir, formed by the dam on the Colorado River.
In the American West, an extraordinary drought is draining the nation’s largest reservoirs, forcing the federal government to implement new mandatory water cuts. It’s also forcing farmers to destroy crops.
Nearly three quarters of US farmers say this year’s drought is hurting their harvest — with significant crop and income loss, according to a survey by the American Farm Bureau Federation, an insurance company and lobbying group that represents agricultural interests.
The survey was conducted across 15 states from June 8 to July 20 in extreme drought regions from Texas to North Dakota to California, which makes up nearly half of the country’s agricultural production value. In California — a state with high fruit and nut tree crops — 50% of farmers said they had to remove trees and multiyear crops due to drought, which will affect future revenue.
Without significant investment in upgrading infrastructure, costs will only keep rising, Ward of the London School of Economics noted. And the impact may not be incremental.
“There are signs these heat episodes are not just becoming slightly more intense and frequent over time. It’s happening in a kind of non-gradual way, and that will make it more difficult to adapt,” Ward said.

The Disadvantages of Socialism

Austrian school economists, such as Friedrich Hayek and Ludwig Von Mises, have argued that the elimination of private ownership of the means of production would inevitably create worse economic conditions for the general populace than those that would be found in market economies. Without the price signals of the market, they state that it is impossible to calculate rationally how to allocate resources.

Economic liberals and pro-capitalist libertarians see private ownership of the means of production and the market exchange as natural entities or moral rights which are central to their conceptions of freedom and liberty. They, therefore, perceive public ownership of the means of production, cooperatives and economic planning as infringements upon liberty. Some of the primary criticisms of socialism are claims that it creates distorted or absent price signals, results in reduced incentives, causes reduced prosperity, has low feasibility, and that it has negative social and political effects.

Critics from the neoclassical school of economics criticize state-ownership and centralization of capital on the grounds that there is a lack of incentive in state institutions to act on information as efficiently as capitalist firms because they lack hard budget constraints, resulting in reduced overall economic welfare for society. Economists of the Austrian school argue that socialist systems based on economic planning are unfeasible because they lack the information to perform economic calculations in the first place, due to a lack of price signals and a free-price system, which they argue are required for rational economic calculation.