The market capitalisation of all cryptocurrencies in existence surpassed US $2 trillion on April 5, according to data from Goingecko, led by the impressive growth of Bitcoin, Ethereum, and other altcoins in 2021.

The cryptocurrency market as a whole has become approximately as valuable as Apple, the second-biggest company in the world after Saudi Arabia's oil giant, Aramco.

However, the investment risk is considered still considerably high due to the lack of capitalisation transparency and the price volatility.

IMF: New Principles For Postpandemic Economy

The value of the combined government interventions in economies worldwide during the pandemic rose to nearly one and one-third of a 2019 nominal United States' GDP and twenty times of 2019 Australia’s GDP.

Continuation

As it it has been expected oil prices are falling as investors fear the impact of rising Wuhan virus cases in Asia on demand, trading data showed.

Even an information about the increased military operations suggesting a possible conflict in the next 2-3 quarters did not affect the price.

As of 7.43 a.m. UTC on Thursday, the price of June futures for North Sea Brent crude oil mixture decreased by 0.4 per cent, to 62.91 dollars, and for May futures for WTI (West Texas Intermediate) - fell by 0.42 per cent, to 59.52 dollars per barrel.

We will explain the reason for that trend and provide some forecasts in the OwnLetter. You can receive it by subscribing to The Owner for AU $7 monthly (the US $ 5).

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Every person interested in the world economy’s situation must observe the development of this conflict.

If it turns out to be a war it will have tremendous consequences in Indo-Pacific region.

If you are interested to learn what type of consequences do not miss this week's podcast. You are most welcome to subscribe to our podcast for a monthly fee at this website.

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Taiwan Reveals Military Analysts Worried China's Invasion Imminent

Taiwan's Foreign Minister Joseph Wu said that Communist China's attempts at conciliation and military intimidation are sending "mixed signals" to people on the island China claims as its own territory to be won over peacefully or by force.

We are willing to defend ourselves without any questions and we will fight the war if we need to fight the war. And if we need to defend ourselves to the very last day we will defend ourselves to the very last day, Taiwan's FM Mr. Wu stated.

Continuation



PHOTO: Taiwanese Foreign Minister Joseph Wu speaks during a briefing Wednesday, April 7, 2021, in Taipei, Taiwan. (AFP)

Anyone who wants to understand what is real inflation needs to look at the asset prices.

What is being praised as “growth” are over-appreciated commodities and other types of assets.
It is where the central banks are channeling the fluidity. Even the money supply indicator may not give you the true picture.

Since at least 2007 the problem has not been insufficient liquidity but serious solvency issues.

+40 per cent of BTC capitalisation is Russian investment.

Should we ask more questions why it continues to go up?

Perhaps somebody should challenge transparency of this project instead of chasing $10 donations on Paypal or other micropayment systems.

Dear Friends, it is called legalised corruption.

Pandemics Ballooned Deficits and Debts

A temporary increase in personal income tax for the wealthy may not be the preferred instrument in times of fragile economies, stated International Monetary Fund economists.
The winners will be countries with a stable tax system.

Continuation


GRAPH:
Medium-term output losses.

Legend:
AE - Advanced Economies
EMDE - Emerging Markets/Developing Economies
EME - Emerging Markets
LIC - Low-Income Countries
(Source: IMF)

Global oil prices rose symbolically on Monday morning in the absence of factors that could seriously affect their dynamics, according to trading data.

However, the situation may change if the pandemic will worsen.

The price of June futures for the North Sea Brent oil mixture grew by 0.08 per cent, to $63, and for May futures on WTI - by 0.03 per cent, to $59.34 per barrel.

Oil prices are not decreasing now, since the investors support an idea of ​​victory over the Wuhan virus.

While the increase in the number of cases of the virus will have an impact over time, the vaccination campaign is progressing now, stated Mr. Howie Lee, economist at OCBC Bank.

Stability Will Result In Shortage of Everything

ANALYSIS

Global economy is entering the decade where the return on equity will be much lower due to the radical political decisions. The great phase of the transformation of the capital-based economy has begun.

Continuation

GRAPH: Inflation raises the cost of capital and introduces volatility. (Source: GG)

INTRO: A prelude to the prolonged period of inflation is usually an increase in commodities prices, particularly food.

We are seeing the first signs of that trend. However, the central banks have instruments to conceal the real inflation of the food prices as they did immediately after the worst wave of 2007-2010GFC.

FACT:
In the first quarter of 2021, tea exports from Vietnam amounted to 26,000 tons worth $ 41 million, which is a 3.1 per cent fall in volume, but a 6.8 per cent increase in value compared to the analogical period in 2020.

The consumer price index increased 0.6 per cent from the prior month after a 0.4 per cent gain in February, according to US Labor Department data.

The jump in the cost of gas accounted for almost half the overall March advance.

Excluding volatile food and energy components, the so-called core CPI increased 0.3 per cent from February, the most in seven months. Costs of both goods and services rose last month.

The annual inflation figure surged to 2.6 per cent, a figure that was distorted by a pandemic-related decline in prices in March 2020.

The core measure rose 1.6 per cent from 12 months ago. Prior to the pandemic, the annual core inflation metric was running north of 2 per cent.

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DAILY MARKETS

FACT: Japan’s Nikkei rose 0.2% while South Korea’s KOSPI index was up a tad. Australia’s benchmark index slipped 0.4%

BACKGROUND: MSCI’s broadest index of Asia-Pacific shares outside Japan paused after two straight days of gains.

COMMENTARY:
Australia’s slip was caused by the significantly weaker prices for iron ore and coal.

Global shares have surged in recent weeks. However, there were signs that the rally may fade. The reason for it is back up in Treasury yields that have begun to exert a valuation test on some parts of the global equity markets with value outperforming growth.

There are fewer stocks on the post-pandemic markets offering decent yields and higher capital gains.

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India Starts Switch To Hydrogen

Indian government focuses on hydrogen-powered industry as the main pillar of its economy strategy.

Continuation

After Biden's tax rate proposal announcement, Bitcoin dived to $52 000.

Biden proposed tax rates that are devastating for the US economy in the long-run

U.S. President Mr. Biden proposed nearly doubling the capital gains tax rate for wealthy individuals to 39.6 per cent which, coupled with an existing surtax on investment income, means that federal tax rates for investors could be as high as 43.4 per cent, a Bloomberg reported.

The Dow Jones Industrial Average fell 0.89 per cent, the S&P 500 lost 0.78 per cent and the Nasdaq Composite dropped 0.74 per cent.

The First Signs of A Global Recession

These graphs suggest that a global #recession may be on the way unless politicians would start to cut regulations, lower taxes, and unleash private business potential.

If nothing changes, a global recession can occur as early as in 4Q 2022 or 2Q 2023 the latest.

The graph indicates two western European economies on the front-line of war in #Ukraine - Italy (orange) and #Germany (blue) - have their manufacturing PMI (lhs) and the forward-looking orders minus inventories (rhs) fall sharply.

It may be a sign of recession in the next quarter or so in the Eurozone.

The #Federal Reserve is about to start shrinking its $8.9 trillion balance sheet, deploying a second tool along side higher interest rates to curb #inflation, though officials don’t know just how effective it will be.

After doubling in size through asset purchases in the first two years of the #pandemic, the balance sheet will be reduced at a pace that’s almost twice as fast as after the last financial crisis. While the process officially commences on Wednesday, the first US Treasury securities won’t run off until $15 billion mature on June 15.
#USA

#India’s central bank raised the key interest rate for a second straight month to rein in prices that have been running above its target band since the beginning of this year.

The Reserve #Bank of India’s rate setting panel voted unanimously to raise the repurchase rate by 50 basis points to 4.90 per cent.

Of the 41 #economists in a survey, 17 expected a 50 basis point hike, while the rest penciled in increases ranging from 25 basis points to 75 basis points.