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- š¾ 46.5% jobless?
š¾ 46.5% jobless?
Geopolitics Hound
August 16, 2023
Good morning, readers!
The China-Russia duoās latest economic actions show that their friendship truly has āno limits.ā When oneās economy suffers, the other follows.
Todayās geopolitics hotspots:
China to stop publishing youth jobless data
China announced on Tuesday that itās not publishing the unemployment rate for young people (ages 16 to 24), which reached a record high of 21.3% in June. But surely they canāt simply announce this and call it a day, right? What is its official reason?
According to Chinaās National Bureau of Statistics:
āThe main reason is because the economy and society are continually developing. Statistics work needs to keep improving.ā
In other words, they need to āimproveā the way the youth jobless numbers are calculated.
šļø More bad news
Chinaās own professor seems to believe the numbers are worse though. Peking University economics professor Zhang Dandan published an article last month in the Chinese financial magazine Caixin that the real figure could be as high as 46.5% if it includes those who are neither in school nor actively looking for work.
The article has since been censored.
š Private sector survey
Even the state-run China News Service reported last week that a private sector survey recorded around 47% of graduates returned home within 6 months of graduation in 2022.
Scrambling to stop the Russian currencyās free fall
Russia is facing a dire economic crisis, as its currency continues its dramatic slide against the USD. On Tuesday, the central bank scrambled to make an emergency interest rate surge of 3.5%, taking it to a hefty 12%.
The Russian currency hit 1 ruble to a penny on Monday, continuing a dramatic decline of more than 25% since the beginning of the year.
š¤ Why the fall?
Currently, Moscow is splurging on its military ambitions while also gradually feeling the impact of Western sanctions on its energy exports. The central bank defeatedly admits that Russiaās demand outpaced its economic outputāincreasing inflation and eroding āthe Rubleās exchange rate dynamics through elevated demand for imports.ā
š«µš» Blame game
But President Putinās economic adviser, Maksim Oreshkin, is wagging his finger at the central bankās overly lenient monetary policies, adding that it has āall the tools necessaryā to stabilize the frenzy.
š° Why it matters
Rubleās depreciation:
makes imports more expensive, which fuels inflation and erodes the purchasing power of ordinary Russians.
makes it harder for Russia to repay its foreign debt, which is mostly denominated in USD or euros.
wavers investor & business confidence, potentially triggering a capital exodus and throwing economic growth into jeopardy.
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š¬š§ UK:
3 Bulgarians busted for being Russian spies. A major national security investigation led to their arrest charging them with possessing fake IDs and working for the Russian security services.šµš± Poland:
The largest military-muscle flexing since the Cold War. Warsawās sent a clear message to Russia by staging a massive military parade showcasing state-of-the-art weapons systems and 2,000 soldiers from NATO countries.šÆšµ Japan:
Kishida fails to mention Japanās WWII war crimes. On the 78th anniversary of Japanās WWII defeat, PM Kishida renewed his peace pledge but failed to mention Japanās heinous wartime aggression in Asia.šøš© Sudan:
Sudan is spiraling out of control. As its chaotic civil war rages on, over a million people have fled the country, and those who remain are facing diseases, looting, and hunger.šøšŖ Sweden:
Sweden goes all-in on Ukraine. It has already sent tanks, artillery, and anti-aircraft missiles to Ukraine, and now itās adding more ammo and spare parts to keep them runningā$313 million worth to be exact.