Vegetables Prices Are Increasing

 

The price of vegetables has increased. Overall, food prices have risen for a several years. The increase of vegetable prices impacts public health. Studies have noted that higher prices can undermine healthy eating. Fast food becomes an alternative when fruits and vegetables are too expensive. Chronic illnesses such as heat disease and type II diabetes can be prevent through changes to diet. The United States imposing tariffs on a variety of goods resulted in a spike in prices. Consumers and grocers are adjusting to economic uncertainty. Farmers are being impacted negatively, which will harm agribusiness. The tariffs on Mexico and Canada are the cause of the price increase related to vegetables. US farms do not have the capacity to immediately replace imported vegetables. The consumer will be paying more for domestically produced vegetables. Food companies were already engaged in price gouging and the new tariffs are an extension of that model. If prices continue to rise, food security will be threatened. People who are on the poverty line could face starvation. Food banks might not be equipped to manage the growing number of food insecure citizens. Supermarkets are going to struggle with consumers looking for other means to obtain food. A goal of the current administration is to improve health of the public. Tariffs and high prices prevent access to healthy food. Making vegetable prices cheaper ensures protection of public health.    

The Hasbro Layoffs

 

Toy companies are a large part of business. Children and adults are consumers of various toys and games. Adults are getting collectors items and children wants toys for general play. Hasbro did layoffs in 2023 which was an estimated 20% of the workforce. A total of 1,100 workers were left unemployed. The reason for this was the decline in sales. A total of 800 jobs were cut in 2023. This was a significant spike. Sales were doing better during the pandemic. Children were not in school and spending more time at home. Parents purchased more toys to keep children occupied. When the lockdowns were over, the purchase of Hasbro products decreased. The layoffs are expected to continue into 2025. Decline in sales cannot solely be blamed for layoffs. The CEO and management never offer to take pay cuts to retain employees. The reduction in workforce means those remaining will have to be more productive. There is no promise of an increase in pay. Layoffs are not an indication of a strong economy. Despite what politicians state, the data shows possible economic downturn. Hasbro, like other companies is experiencing the challenge of inflation. The rise in cost related to materials is going to increase prices of toys. Waves of layoffs are going to continue. Hasbro might not survive under these conditions. Hasbro did not make significant financial gains from lending its intellectual property to film. The only solution is to create better products or explore possibilities of electronic entertainment. CEO Chris Cocks is going to have to make adjustments and find a way to retain employees. Otherwise Hasbro will have to be sold or cease operations. 

Zimbabwe's New Currency

 

Zimbabwe has introduced a new currency. The Zimbabwe Gold was introduced on April 5th. The motivation is to stop inflation and move away from the US dollar. This also is a way to circumvent sanctions imposed by the European Union and the United States of America. Zimbabwe's condition would improve if there were no attempts at economic warfare. The ZiG as it is known was not the first attempt at a new currency. Six attempts have been made since 2008. The gold currency might have a better chance of survival. Gold is still valuable and having a currency backed by it could  generate trust in the public. The majority of transactions continue to be done in US dollars. The difference now is that Zimbabwe according to its central bank has 2,1 tons of gold. Zimbabwe also contains diamonds. Natural resources are the key to economic stability and development. Getting membership to the New Development Bank could provide further solutions to economic challenges. Further changes have to be made if the multi-currency system is to be discarded. The 2019 ban on foreign currencies as legal tender was designed to challenge foreign influence in Zimbabwe's economic policy. Global market inflation forced Zimbabwe to reverse the policy in 2022. Zimbabwe has been under US sanctions since 2003. The European Council has renewed restrictive measures against Zimbabwe. the claim is that it is a mere arms embargo, but most EU countries do not want to do business with Zimbabwe. The direct development cooperation ceased and that directly effects the people of Zimbabwe. When a country is blacklisted by sanctions this makes other countries hesitant to invest. They fear retaliation from other powers. The world is gradually moving into an era of de-dollarization and Zimbabwe sees this as an opportunity. If the Zimbabwe Gold is successful other African nations might try to replicate a similar economy policy. 

The Somaliland Port Agreement Dispute

 

Ethiopia and Somalia are in a dispute over sea access. Somaliland is a self-governing break away region. Somalia sees the leasing of the sea port in Berbera as a means to balkanize the country. The agreement between Ethiopia and Somaliland is a lease for a naval base. The lease will last for 50 years with the purpose of commercial operations. Another part of the agreement is recognition of Somaliland as its own nation. This makes Somalia vexed and also concerned other nations will give Somaliland recognition. The Port of Berbera has been a significant investment for Ethiopia. This is not the first time Somaliland engaged in economic agreements without Mogadishu. The United Arab Emirates has also invested in the Berbera Port. Ethiopia will have access to Red Sea and the Suez Canal. The opportunity to expand trade with Europe could help Ethiopia. Somalia if it loses Somaliland will suffer economically. If Somalia was unified, it could benefit from its sea access. The concern is that Mogadishu could send troops to forcibly take Somaliland back. Ethiopia has fought the TPLF and has been involved in African Union missions in Somalia. Economics are going to be a source of tension between Ethiopia and Somalia. Ethiopia needs to approach the situation with caution. There is a fragile peace with Eritrea, internal tension with the Tigray, and disputes with Egypt over the Nile River. If there is going to be economic growth and development it needs to include the entire Horn of Africa. Ethiopia should not make agreements with de-facto states or disputed territories. Recognizing self-governing break away regions does undermine Somalia's national sovereignty. Doing this might get Ethiopia fast sea access, but creates an enemy. Djibouti must be a mediator in the dispute between Ethiopia, Somalia, and the status of Somaliland. 

Kenya Makes Changes To Visa Requirements

 

Kenya intends to end visa requirements for African countries. The policy is set to go into motion in 2024. Visa requirements and the cost of air travel make getting around the continent difficult. The motivation for the change in visa requirements are economic. Kenya wants to have a greater role in an African continental free trade area. Attracting workers and tourists could  stimulate East African economies. The African Union also has wanted to expand intercontinental African travel. The problem with the AU passport is that it applies mostly to diplomats and government officials. The AU passports are not in the ownership of  the average citizen. The benefit is that this could break barriers among peoples and nations. President William Ruto hopes that it helps retain Africans on the continent, rather than going to Europe. The youth are leaving, seeking opportunities abroad. If Africa is going to be competitive, it must have its youth invest in their countries. African nations are hesitant that reducing visa requirements could be a security risk. Certain nations would have to stabilize to reduce this concern. Countries such as the Democratic  Republic of the Congo, Sudan, Libya, Chad, and Somalia are facing armed conflict. Kenya's challenge is Somalia and another TPLF war in Ethiopia. Gambia, Benin, and Seychelles have unrestricted travel for Africans only. These countries have not had major security risks from that. As long a national sovereignty is respected, reduction of visa requirements should be promoted. The African demand for visa free travel  has increased. The opportunities for more trade and economic growth are possibilities with changes in visa policies. Commerce can benefit from the movement of goods and services. Kenya wants to be ahead in relation to economic development. The new visa free travel could be the first step in a new program. 

Chad Has Nationalized All Assets of Exxon Mobil

 

Chad has nationalized Exxon Mobil assets. The oil company divested in Chad around December of 2022. The current policy also applies to exploration and production authorizations. Hydrocarbon permits will are also subject to nationalization. The change in policy came from the reaction to the Savannah Energy deal. Chad felt Exxon Mobil was not upholding  previous obligations under their agreements. Courts may get involved to prevent Savannah Energy from making purchases of assets in Chad. This has also effected Cameroon, which has worked with Chad in the energy sector. A Chad-Cameroon pipeline has been planned for construction. The Doba oil project was designed to make Chad produce larger amounts of oil. It contains seven oil fields and produces 28,000 barrel per day. The government wants a better deal, which benefits the economy. Savannah Energy stated it will take the assets under the Exxon Agreement. Savannah Energy is a British company active in Niger and Nigeria. The fear from the company is that other African nations will nationalize assets. According to their statement it intends to use the ICC to pursue legal rights. If Chad can successfully fight the legal claims, it may get back control of its own economic policy. Oil can generate much wealth. If  the wealth is not applied to development or increasing the standard of living it means nothing. Exploitation by foreign corporations of Africa's natural resources remains common. Nationalization might be a method of preventing such an occurrence.  

Indicators of A Recession

 

There are indications that the economy could be heading for recession. High inflation and increasing interest rates are having an impact on economic growth. The stock market should not be an indicator of economic health. This represents a small portion of the population, not  the combined microeconomic and macroeconomic dynamics. Companies are cutting advertising,  cutting back on hiring, or eliminating jobs. This is not a sign of a functional economy. The economy is heading to recession, yet there is denial among economists and politicians. The definition of recession is the decline in economic activity and the reduction of growth. The result of this is unemployment, reduced profits from corporations,  and limited investment. Output comes to a halt due to these obstacles. The indicators have gradually been exposing themselves to the public. The COVID-19 pandemic, the supply chain disruption, and sanctions on Russia have contributed to this economic condition. Attempts to redefine the attributes of a recession are not going to change the economic forecast. This was not some random occurrence. The coming recession was a product of policy. Certain measures must be put in place to prevent another possible global economic meltdown.  

Jeff Bezos Resigns As Amazon CEO

 

Jeff Bezos has quit his role as CEO. This does not mean he is going into retirement or leaving the e-commerce giant. It has been implied he will focus more on Amazon's marketing. The circumstances for his resignation are not clear. However, there are major issues the company faces. Amazon has been engaging in wage theft from its workers. During the COVID-19 pandemic it did not provide the adequate  personal protective equipment for employees. Although the company and its founder is powerful it is only a matter of time before Amazon will face multiple lawsuits. The company has become resistance to workers organizing unions in warehouses. As working conditions get worse the more vexed employees become. Low wages are inexcusable considering Amazon's high stock value and enormous profits. All of these problems gradually emerged over the decades. Amazon was founded in 1994 and now has become one of the most recognizable e-commerce corporations. Bezos sudden exit demonstrates that there is a vast network of corruption and exploitation occurring at Amazon. Jeff Bezos' unethical practices are being exposed and it is unlikely that Amazon can avoid investigation.  

The Bundesbank Warns of Recession

Germany may be facing a possible recession according to warnings from the Bundesbank. The global market may still be vulnerable with the on going trade war between the United States and China. The gross domestic product contracted in Germany three months until June at 0.1 %. Recessions happen when decreases in economic growth happen over a number of  following quarters. Chancellor Angela Merkel had assured the public that no stimulus was required to help the economy, but there are indicators that a possible crisis is on the horizon. Germany is not the only country at risk for recession. Italy, the UK, Mexico,China, the US,  and Brazil  may see economic down turns. This only becomes more complicated with Britain's exit from the European Union. The world's major economies could be seeing another global financial meltdown similar to that of 2008. Many have not recovered from downturn with chances of  stable employment and secure retirement out of reach. Germany faces a dilemma with being an exporter of goods to China and still maintaining  business relations with Russia. The United States has gradually let relations with these countries decline causing a level of turbulence in global markets. The Trump administration had added more tariffs, but made an exception for certain goods for fear it would harm US consumers during the holiday season. German automakers have trepidation about Brexit and sales have dramatically declined. Industrial output fell to 5% compared to the previous year according to German government data. Germany may be facing the worst  economic situation since the early 1920s. While it would be an exaggeration to say there will be another Great Depression, the economy will deteriorate without immediate intervention.    

Facebook Will Launch a New Cryptocurrency

Facebook has become a social media phenomenon. It continues to define the standard of internet communication, with other imitators following. Now the company wants to get involved in cryptocurrency. From a point of business this makes logical sense. Getting involved in digital currency early may secure more profits and higher value for Facebook in the future. Facebook has given a name to its proposed cryptocurrency known as the libra. There are concerns about it development. Facebook has done a poor job at protecting user data. Privacy may not be guaranteed to users of the social media network. Facebook also found itself  answering questions about fake accounts connected to Russia attempting to influence elections in the United States. The spread of false information has also become a concern with a public that has limited media literacy. The fear about the use of the libra is that may enable massive financial fraud. When digital assets are traded it is done under a strong system of cryptography and firewall protection to ensure security. Facebook has difficulty or lacks the ability to protect user data, which makes the exchange of libra a risk. Other detractors have a concern that is not about Facebook in particular, rather they want to preserve private central banking. Beside the few nations that have national banks, cryptocurrency make to a serious threat. At the moment a large portion of the public is not doing financial exchanges in cryptocurrency. It may take some time before this type of money becomes available to most of the global population.