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Tony Blair: UK Faces “Very Uncertain Period” | GZERO World

Tony Blair on Liz Truss & a post-Brexit UK on the brink

Despite sky-high inflation and a plummeting pound, the UK’s newly installed PM Liz Truss has introduced tax cuts — requiring a lot more government borrowing — that she says will boost the UK’s sluggish growth rate.

This approach, which could result in the Bank of England increasing interest rates even more to tackle inflation, is ruffling feathers in Westminster and negatively impacting markets around the globe. On the sidelines of the UN general Assembly, Ian Bremmer sat down with former UK Prime Minister Tony Blair on GZERO World to discuss Britain’s economic woes and recent change in leadership.

“I think it's going to be a very uncertain period over the next year or so,” Blair said. “And I talk to a range of different people about this, which is always a problem when you're trying to make economic policy in government, and no one agrees with each other.”

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Ari Winkleman

Hard Numbers: US interest rate hike, jail for likes in Myanmar, Ecuador-China debt deal, Ramaphosa no-show, COVID fraud

75 or 100: Apart from UNGA, the other big meeting this week is at the US Federal Reserve, which will again raise interest rates to tame soaring prices. The question is: by how much? Although a third consecutive 75 basis points hike is more likely, the Fed might also go bigger with a 100 basis points increase after last week's worse-than-expected inflation report.

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Ask An Economist: How to Lower Inflation | GZERO World

Ask An Economist: How to lower inflation

US inflation is now at a 40-year high. So, what are we going to do about it?

That depends on where you think the problem is coming from, American economist and University of Chicago professor Austan Goolsbee says on GZERO World with Ian Bremmer.

If inflation is being driven by too much stimulus, like some economists such as Larry Summers believe, Goolsbee believes the Federal Reserve is doing the right thing by raising interest rates to cool demand. But if inflation is mostly due to the war in Ukraine or supply chain disruptions, rate hikes might result in stagflation.

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Explaining Inflation & What's Next For the US Economy | GZERO World with Ian Bremmer

Explaining inflation & what's next for the US economy

US inflation is now at a 40-year high. So, what can we do about it?

The Federal Reserve is trying to cool down the overheated economy by raising interest rates. But if the Fed goes too far, the rate hikes could trigger a recession that'll hit low-income Americans hardest.

On GZERO World, Ian Bremmer speaks to economist and University of Chicago professor Austan Goolsbee, who says the recipe to fixing inflation depends on whether you see it as a demand or supply problem.

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Ian Explains: How Bad Is Inflation in the US and Around the World? | GZERO World

How bad is inflation in the US and around the world?

Jimmy McMillan is right: the rent is too damn high. Especially in 2022 in Manhattan.

And it's not just New York; national rents going up too. US inflation is now at 9.1%, a 40-year high. The Federal Reserve is scrambling to cool rising prices without triggering a recession by raising interest rates, Ian Bremmer explains on GZERO World.

But we've already had four rate hikes, while inflation is still going strong. And hitting unemployment will only cause more pain and suffering to those who can least afford it.

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Paige Fusco

The Graphic Truth: EU (finally) tackles inflation

In its Thursday meeting, the European Central Bank is expected to raise interest rates by up to 50 basis points — its first hike in more than 11 years — in a bid to tame rising inflation. For months, the ECB has stubbornly resisted calls to boost rates as inflation soared to a record 8.6% in June amid fears of a looming EU-wide recession. The hike will end the ECB's eight-year experiment with negative interest rates, which make it less attractive to save money but help spur demand (and, in turn, inflation). We take a look at Eurozone interest rates compared to inflation over the past 20 years.

This article comes to you from the Signal newsletter team of GZERO Media, a subsidiary of Eurasia Group that offers balanced, nonpartisan reporting, and analysis of foreign affairs. Subscribe to Signal today.

Global Inflation Shock | Quick Take | GZERO Media

Global inflation shock

Ian Bremmer's Quick Take: Going to talk about inflation. Why inflation? Well, because I posted something on Twitter that sort of exploded over the course of the last couple of days, which means people are clearly interested. And I'll tell you what the tweet was, I'll show you a little post here. It said, "US: left government, high inflation. UK: right government, high inflation. Germany: centrist government, high inflation. Italy: everyone in government, high inflation. Wild guess, it's not the government." Now of course, it is government in part, but it's not the government, which is the point. In other words, no matter who you decide to elect, if it was Trump, or Biden, or Merkel, or Scholz, or Johnson, or Starmer, or Bolsonaro, or Lula, you are getting high inflation, you're getting high inflation globally. I'll talk about why that is.

Now, a lot of people went nuts and said, "How can you call the US government left?" And certainly, from a global perspective, the entire US political spectrum is kind of on the right. And from the European perspective, you wouldn't call Biden a leftist, you'd call him a centrist. You might even call him center-right? Of course, Fox News on Primetime calls Biden and the Democrats a bunch of socialists. And if I said that the US was a left government, I mean a right government, then everybody in the US explodes, so it just shows how divided and screwed up everybody generally is anyway. But leaving that all aside, the point is the point. And it's an important point, which is that we are so divided in the United States and globally that when something that really upsets us happens that we haven't seen in over a generation, which is persistent levels of very high inflation, we get really angry, and we want to blame the government and blame the government hard.

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