3.5% Unemployment, matching January 2020 figures, and 528K instead of 250K US July Payrolls increase. Great news!
Marty Walsh, US Secretary of Labor celebrates today the results of investments in manufacturing, environmental investment against climate change, and other investments that will move the US economy.
The USD-CLP grows over 910 in Chile, even when Copper also increases because of strong demand from US manufacturing reaching near and over 350 at this time.
The White House celebrates now, while a few blocks away from there, in the FED, the good news for the economy shows their lack of capability for projection, once again. As Forbes Advisor has put it: "Mark Twain wrote that history doesn’t repeat itself, but it often rhymes. This could also be said of Federal Reserve interest rate policy, although it’s a lot less entertaining than a Mark Twain story. For anyone who follows financial markets, a good grasp on the course of Fed monetary policy decisions and the reasoning behind them is essential. Understanding why the Federal Open Market Committee (FOMC) raised the fed funds target rate in 1994 can actually provide insight into why it’s doing something similar today."
FORBES
The USA is not going into a recession. Its economy is going up, investments are growing, and unemployment is going down. Stagflation woes are away.
Dr. Mohamed El-Erian, successor to Lord John Eatwell as President of Queens' College got interviewed today by Bloomberg. El-Erian read Economics at Queens' as an undergraduate scholar, and listening to him was like sitting with him in a classroom today, but having him lecturing instead.
He mentioned how the strength of USD is bad news for developing countries, as it implies imported inflation.
In Chile, one cannot avoid thinking about how the nowadays Minister of Economics can have said that the Devaluation of the Chilean Peso does not harm the economy, and further, how he could have said that inflation helps Small and Medium Enterprises.
Minister Grau in Chile should be watching more Bloomberg and listening to entrepreneurs a lot more in the streets, for working hard on the solutions for the effects that this news implies for Chile: more Chileans investing in the USA instead of following his advice, even under the Tale of Two Cities with the mistakes of the FED (also).
The ABC here is:
A) President Boric should change his Minister if unemployment in Chile starts to grow after the lack of Economic Policy the economy could suffer (in absence of action).
B) President Boric in Chile could cover the place of Minister Grau, as needed: the delegation does not imply he is not responsible for Economic Policy.
C) President Boric should, himself work more in real economics than abandoning himself to a campaign for a constitutional (legal) instrument that is suffering not only because of its ill manufacture and its weak manufacturers, but that is receiving the contagion of the economic failure of his government.
In terms of economic policy, it is time to hear the markets.
Last but not least: the World is investing in the USA, not in China, neither in Russia nor in Europe. It is time for a stronger America, as a continent. Are we all, especially Latin Americans, in the same page?
At least in Chile, reality shows 10 point advantage of the rejection over the other option for the new Constitution. Markets are claiming that Chile should focus less on its constitution and more on the reality of the world. Maybe today's data will work as good news not only for the USA but also for Chile, and the same, as good news for Latin America, if the policy makers focus on real activities of investment instead of focusing on monetary policies, or legal policies that are just veils and regulations, and not real production for creating what is actually needed: employment.
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