The UN Represents The Governments Of The World. May A "Bell Of Atri" Represent The People Of The World? (Part 74)
"The backbone of America’s economy was just dealt a serious blow" - CNN (May 15, 2024)
To summarize: The average American consumer's expenditures dropped precipitously in all categories, except in categories such as food & beverages (+0.8%), restaurants & bars (+0.2%), clothing & accessories (+1.6%), & fuel (+3.1%). In addition, the average American isn't making the aforementioned purchases out-of-pocket, as evidenced by the fact that credit card balances in serious delinquencies (i.e. late since 90 days or longer) are at their highest level since 2012. The Federal Reserve viewed the aforementioned figures as cause for celebration, because they constitute evidence that the Fed interest rate policy is working...just not fast enough, implying that the Fed isn't likely to cut rates sooner than (perhaps, maybe, possibly) September 2024.
According to the aforementioned CNN analysis, the expenditure patterns of average Americans (i.e. who command an average annual income of US$ ~40,000) are becoming increasingly like Developing World patterns, where inelastic goods (in other words, essential goods) absorb the main part of their incomes. For instance, food, beverages, clothing, & accessories, are all essential items; in addition, all the listed items depended to a great extent on imports (primarily from Pakistan). When Pakistan couldn't reach its export targets (due to IMF policies, e.g. fuel taxes & shutdowns), said items became scarcer (& thus, costlier) in American consumer markets. The reduction in popularity of the available merchandise (consisting of either more expensive originals or cheap Chinese knock-offs), lead to a drop in tax revenues generated by said markets. The resultant budget deficit compelled Washington to raise taxes on fuel (which, contrary to the opinions of the "experts", comes mostly from domestic supplies & not from the Middle East), leading to expensive fuel.
However, when cross-referenced with the story of the late Mr. Leo Lukenas III, the CNN economic analysis presents a question: Mr. Lukenas (age 35) was a Green Beret in the US Army; when he retired, he joined Bank Of America as an intern in 2023; within a few months, he had risen to the post of investment banking associate in the M&A department, where he worked on projects such as the US$2 billion UMB acquisition of Heartland Financial; however, by March 2024, Mr. Lukenas complained of feeling overburdened with his 100-hours-per-week schedule & began preparing to resign from BoA; however, he never got the chance; he died of an acute coronary artery thrombus on May 7 (2024). If American credit card debt is at a 12-year high, implying a crash in demand for high-end banking services in the US, why may investment bankers be feeling overworked & dropping dead from blood clots (assuming that Mr. Lukenas' family's & friends' hints that he died from overwork are accurate)?
There is another explanation that would verify both the CNN analysis that proves declining American consumer confidence as well as the theorized cause of death of BoA investment banker L. Lukenas: About 15 years ago, Bank Of America created shockwaves with its announcement that Michael Jackson died without paying off his debt to BoA, that (according to BoA) was "in the neighborhood of around US$ 500 million"! While the global financial community never noticed at that time, because they were too busy wringing their hands over the Global Financial Crisis (triggered by the allegedly imbecilic policies of the war-obsessed administration of Bush Jr. & given a new lease on life by the reportedly megalomaniacal ambitions of new JPMorgan Chase CEO Jamie Dimon), the economic aftermath of the GFC (that is resounding across the US to this day) gradually drew their attention to a question that (had they asked, back in 2009) could have averted the economic crisis that is decimating the US today:- How did the international music industry's first multi-billionaire (despite his huge philanthropic projects) & bonafide businessman (who stands unmatched in his musical & financial talent to this day), Michael Jackson, fall so badly into debt? However, as our ancestors would say, better late than never. If the world business class has finally got around to asking the aforementioned question, could the relevant authorities have placed the responsibility to furnish an answer on BoA (thereby generating the heart-stopping workload that is supposedly killing its investment bankers)?
"IMF 'asks' Pakistan for privatisation of national entities" - ARY News (May 15, 2024)
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To summarize: Having already seemingly decided that Pakistan should be compelled to privatize all its State-Owned Enterprises (SOEs), the IMF advised Islamabad to rewrite its report on loss-making government entities (reportedly due to the fact that the current version of said report acknowledges the existence of SOEs that are currently profitable). Islamabad assured the IMF that the Central Monitoring Unit (in the Finance Ministry) will have a fresh report ready by Friday (May 17). Discussions on the financial reclassification of the SOEs was so absorbing a discussion that it left no time for any further progress on what the IMF is officially in Pakistan for:- the negotiation of an Extended Fund Facility (i.e. a long-term loan agreement) with Islamabad.
Historically speaking, the last Pakistani Head Of State who spoke well of the achievements of the People Of Pakistan, was reportedly the Quaid back in 1947! Everyone forever after, only saw fit to itemize any/all national shortcomings (in an increasingly abrasive manner). Prime Minister S. Sharif is very consistent in that regard; from brusquely informing the People he is actually here to serve that "We will have to ask the IMF for a new loan as soon as you folks finish the crushing task of repaying the previous loan" to fuming that "We are going to sell every official asset in Pakistan whether it is failing or doing well, because it is not our job to run businesses", Mr. Sharif is clearly at the top of his game. Therefore, it speaks volumes that, despite the PM's distaste for even merited appreciation for Pakistani efforts, the relevant national authorities were still obligated by the evidence to acknowledge that a number of SOEs are being managed splendidly by Pakistani government employees.
As unsurprising as PM Sharif's hostility towards Pakistani diligence & intelligence is the IMF's denial of the fact that Pakistanis can really run Pakistani businesses better than most foreign competitors, as evidenced by Washington's inability to replace the Pakistani imports that fuelled the entire American consumer economy. After all, Intergovernmental Organizations (IGOs) & their subsidiaries were created to strengthern the power bases of the Governments Of The World, not acknowledge the contributions of the People Of The World. However, all IGOs are obligated to fully implement International Law, which includes complete respect for the rules of economics, e.g. merit goods & natural monopolies. Keeping that in mind, how may the IMF seemingly hint at converting SOEs from national assets into collateral for the latest Extended Fund Facility (EFF)?
Merit Goods/Services: According to German-American economist Richard Abel Musgrave, a merit good/service is an item a certain quantity of which, an individual or society should have, due to the benefit it confers, rather than the recipient's ability &/or willingness to pay, e.g. nutrition, healthcare, education, etc., leading to long-term large-scale improvements that cannot be accurately quantified & efficiently monetized, & thus cannot be produced in sufficient quantities by the private sector alone.
Natural Monopolies/Duopolies/Oligopolies: The most efficient & thus long-lasting business model for an industry, in which high infrastructural costs &/or other barriers to entry, relative to market size, give the largest supplier (who is usually the first supplier) an overwhelming advantage over prospective competition.
Defense Industry: All industries that play a vital role in national security, from internal law enforcement to external border protection, e.g. military/maritime/aviation/space technologies, electronics/engineering research, etc. As a result, certain seemingly-civilian sectors are also rendered strategically significant to national security, e.g. energy (from fossil fuels to electricity), materials (from steel to stone), logistics (from roads to railways), etc.
"You can't get anything done in a world without rules." - Darren "Wall Street" Bettencourt (played by Matt Schulze in "The Transporter")