Good Morning from #Germany where #inflation pressures keep rising. Import prices were 32.7% higher in Aug YoY, the highest increase since Mar 1974. Energy imports were 162.4% more expensive YoY, +18.9% MoM. The largest influence had the price increase of natural gas w/+306.3% YoY pic.twitter.com/RYMmdAfUQN

— Holger Zschaepitz (@Schuldensuehner) October 7, 2022

WHAT? #Germany's relief plan could trigger UK-style bond meltdown in Euro nations. German Chancellor Scholz last week announced package worth €200bn designed to help w/soaring energy prices, including gas price brake & a cut in sales tax for fuel. https://t.co/mvXSWbV3xX pic.twitter.com/etIbCayew1

— Holger Zschaepitz (@Schuldensuehner) October 7, 2022

.@FT Re @BankOfEngland explaining the emergency intervention.
The good news is that the bold BoE action avoided a “meltdown”
Yet the demonstrated fragility of the system is a loud alarm to all those countries/companies/investors that overdosed on unconventional monetary policies pic.twitter.com/izsQrnjFl7

— Mohamed A. El-Erian (@elerianm) October 6, 2022

This is the estimated cost of a premature Fed pivot in terms of real weekly wages.

As of the 2nd quarter all pandemic gains have been lost. If the downtrend in real wages continues, wages will give up 20 years of gains by next Spring: pic.twitter.com/TuaHtOgjjn

— Mac10 (@SuburbanDrone) October 7, 2022

Base metal prices (pink sheets) are down by over 30% since March, 15% lower than in September 2021 all because of actual economics (see: China). But the only commodities Fed/ECB are paying attention to have nothing to do with the economy. You just can't make this up. pic.twitter.com/jrAooTkyAj

— Jeffrey P. Snider (@JeffSnider_AIP) October 7, 2022