Inflation grips the eurozone, hitting an all-time high of more than 10%.

Inflation grips the eurozone, hitting an all-time high of more than 10%.

Inflation grips the eurozone, hitting an all-time high of more than 10%.

The eurozone is witnessing violent economic fluctuations these days.
The matter is related to many events, the most important of which is the energy crisis,
which is almost stopping all the industrial gears on
which the great European countries are based.
With the approach of winter, things are getting more complicated.



successive financial crises

Japan 1998 and 2022 and violent interventions to stop tooth bleeding.









successive financial crises

Successive crises led to the poor state of the economy and the high ceiling
of inflation dreams to reach its highest level of 10%. Can you imagine,
after the disclosure of the consumer price index revealed by Eurostat on Friday,
which rose by 10% in September compared to last year,
exceeding analyst expectations,
which were in the range of 9.7% And this is in the poll conducted
by Bloomberg of economists?
It is worth noting that this is the fifth month in a row that
prices have exceeded the consensus of expectations.
Is the matter becoming unknown to analysts,
or are things hardly comprehended by the mind,
as events are now in the grip of food and energy?
After the index recorded The essential 4.8% reached its highest level,
exceeding all expectations and estimates.
The situation has become like oppression.
None of the economists and analysts can predict what comes next.

Despite this, officials have intensified their hawkish tendency
to rate hikes similar to the September 8 decision.


They also sought to differentiate the experience
of the eurozone from that of the United States,
insisting that inflation in their region is more supply-driven than the situation in the Atlantic,
which is driven by demand-driven consumer prices.
But I think that the matter will increase the concern of monetary
policymakers if another record reading is recorded.


Boris Vujic, the Croatian central bank governor who will join
the European Central Bank’s governing board in January,
warned in an interview published this week that “when inflation is high, close to 10%,
it can become a disease in itself as Russia tightens gas supplies.”



artical name Inflation grips the eurozone, hitting an all-time high of more than 10%.








For Europe

With winter approaching,
policymakers are preparing for a more difficult few months.

Price increases may accelerate further in some countries,

while the possibility of recession and decline in industrial indicators increases

for a long time until there is a radical solution to the crisis.


Where officials of the Organization for Economic Cooperation and Development expect
that inflation in the euro area next year could reach 1.6 points to 6.2%,
which differs from the view of the European Central Bank and exceeds all its expectations,
similar to what was taken by the President of the Central Bank Christine Lagarde that
her officials already have a risk of occurrence A higher the result next year 2023.


As the matter becomes more complicated,
and as the tight labor market leads to intensifying pressures,
as Eurostar reports, which showed in detail that unemployment has stabilized
at a record low level in September,
where it recorded 6.6%, but before the emergence of inflation data,
the majority of economists expect inflation to record a record result.

The month could reach 10% This was the expectation of four of
the forty who were surveyed by Bloomberg.


The matter does not stop here. The eurozone, in general,
is experiencing severe conditions during this period, as Germany,
which is the largest economy in Europe, has increased price growth much more than expected,
as the end of summer cuts on public transport and
fuel helped inflation reach 10.9% in Germany Which is the highest major rate
seen in the industrial economies of the Group of Seven
since the outbreak of the energy crisis in the country.

Italy, the Netherlands, and Belgium also witnessed a significant acceleration in prices.
The imbalance is sweeping the eurozone without controlling
inflation and reining in the energy crisis.


artical name Inflation grips the eurozone, hitting an all-time high of more than 10%.









Japan 1998 and 2022 and violent interventions to stop tooth bleeding.


Support does not come only from holding sessions or meetings,
it comes from within the ihram and the accounts.

Since Japan has support, which makes it dependent on foreign exchange reserves,
and of course, this reserve must be dealt with cautiously.
At the end of August, Japan had 1.17 trillion,
more than it possessed during April 1998,
and this ratio is equivalent to 2.4 times the value it deals with.
The currency market in Tokyo compared to 1.4 times in the previous intervention,
but the password in the course of things in America.
Whatever steps of unilateral solutions are temporarily supportive,
the radical solution is to support the United States so that things go in their proper place.



The Finance Ministry revealed on Friday that it spent 2.84 trillion yen
($19.7 billion) in September to slow the yen’s decline,
its first intervention to support the currency since 1998.



But despite all this, the yen achieved not bad gains of about 3.5% against the US dollar,
but the market is still in a state of violent volatility
and the voice of the US dollar is not louder
now because of the force it imposed on the currency market at present,
which pushes Japan wants to pump more currency again into the markets,
and I do not expect to hold out in these steps for long,
as Japan is supposed to take the matter from another perspective,
as buying more yen will not solve the problem in foreign currency reserves.
It is nothing but a weak wall that can collapse at any time. .
Without a radical solution and resorting to effective and strong
economic solutions to the crisis, it will remain.



Some analysts in the Tokyo Stock Exchange had expected us to reach 150 against the dollar,
and Masafumi, “an analyst and financial advisor at his partner Mizuho Securities in Tokyo,
had the same opinion, as he indicated that Japan could intervene a few more times,
but the yen will remain at the mercy of the Fed,
which Adheres to the method of raising interest rates.



artical name Inflation grips the eurozone, hitting an all-time high of more than 10%.









Also in light of these conditions,

Japanese Finance Minister Shunichi Suzuki indicated
that the country is ready to act again against excessive speculative activities.

Masato Kanda, his right hand, pointed out that Japan is warning against sharp moves
in the currency rather than seeking to defend a specific currency level such as 145.


This reminds us of the yen’s position from before, which did not exceed 1.35 in the old days,
and when it reached 144.35 dollars, this was It makes the debt a laughing stock,
and the intervention must be rejected, as after the intervention reached 140.33,
there is no doubt that the Asian tiger will never surrender to the American
behavior towards controlling the financial markets by raising interest rates,
even if it cost him to sacrifice foreign currency reserves.



It is worth noting that the dollar moved by just over 2 yen the day before
the Bank of Japan’s decision to the afternoon of the day of the intervention.

If Japan cites the detrimental effect of volatility again to justify
its move within the confines of the G7 agreements,
similar or greater intervention will likely be needed to justify further spending as Japan,
which has foreign reserves of $1.29 trillion as of August, is likely.
Among its most liquid foreign reserve assets,
it has deposits with foreign central banks and
the Bank for International Settlements amounting to $136.1 billion.


Moreover, Japan may have to sell some of its holdings of US Treasuries,
the Ministry of Finance has indicated.
Bank of Japan Governor Haruhiko Kuroda also made it clear again last week
that he will not raise interest rates for a long time while seeking stable inflation.
This stance will continue to put downward pressure on the yen,
even after it has fallen about 20% this year.
There is no doubt that government intervention is not effective as desired.



As the government can implement four to ten other interventions,
depending on the sale of assets and deposits,
which makes the yen increase and decline,
but rather will make Japan in a battle with itself in defense of the currency,
a trend to the bottom.



This is reminiscent of the old days when Japan intervened six times to support
the yen between December 1997 and June 1998,
the largest with 2.6 trillion yen on April 10. In the end,
the tide against the currency did not begin to turn until Japan jointly intervened
with the United States that year and this was the yen’s last resort.



I think that the tendency to intervene on the part of
the Bank of Japan may affect the temporary solution,
not the radical solution. On the part of the traders,
the idea of ​​intervention carried out by the country supports the currency behind it,
minds and mechanisms that do not allow it to collapse,
but in the short term because the treatment of the economy is the basis of the solution
that raises And it weakens its business in the long run.



artical name Inflation grips the eurozone, hitting an all-time high of more than 10%.