Energy - Supply and demand, it's as simple as that. Recall from high school econ that when demand outweighs supply, prices go up. And now, in the energy market, demand is beating supply almost as badly as the Cowboys beat the Giants this weekend. As a result, oil continues to push its price, breaking more and more records, as WTI crude pushing close to $81/barrel while Brent crude sits well above $83. Meanwhile, natural gas prices are mooning faster than AMC too. Plans to offset one with the other, where demand calls for it, appear to have been firmly placed on the backburner as analysts now expect both energy resources to have severe shortages. It seems like everyday we're seeing and reporting on new highs in energy prices, and it very well could continue for a long time, so I hope you're not bored of this story yet. We're just getting started. Oh yeah, and, PSA - your gas and electric bills are gonna be much higher.
China Bank Cash-down - A crackdown on banks (aka a cash-down) in China is coming as President Xi is getting more and more fed up with the capitalist swine responsible for basically all of the nation's economic growth. The goal is to scrutinize ties between state-owned banks and financial institutions and their relations with private sector firms. If you think the Evergrande crisis had something to do with this, trust your instincts, as the only thing Xi hates more than freedom is debt.
25 institutions will welcome officials from the Central Commission for Discipline Inspection over the coming months, but already, many banks have drastically slowed lending out of fear of not knowing what to fear. Without clear rules and regulations, the institutions powering China's financial system can't know when they have violated new restrictions. It goes without saying that this poses a threat not only to banks, but to the Chinese economy as a whole, as it is one that has grown somewhat dependent on established lending practices and leverage ratios.
Now that the tech tirade seems to be over, banks are Xi's newest target. The investigation lines up with the ideology behind China's recent crypto ban too, reminding the public that nothing happens in China without the CCP's thumbs up.