Net Zero and Statism Deliver Stagnation: How Interventionism Undermined Growth in Canada and the UK

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Net Zero and Statism Deliver Stagnation: How Interventionism Undermined Growth in Canada and the UK

Governments are terrible at picking winners and even worse at choosing losers. Net zero and interventionist “Keynesian” policies in Canada and the UK have proven that government intervention has created a worse outcome than anyone would have expected. The result is higher costs, distorted incentives, and weakened productivity growth, with increased dependency on fossil fuels to attend to peak demand, exactly what Austrian economists predicted.

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How America Became the World’s Oil Superpower

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The war in Iran and the near-closure of the Strait of Hormuz have accelerated a change that had been slowly building for more than a decade.

The United States has become the world’s emergency oil supplier. Before the conflict, American production was already at record highs, but the shock to Middle Eastern exports has proved more relevant for markets and geopolitical strategists. The United States is no longer just the biggest producer. Now, it has become the preferred and most reliable supplier whenever a significant disruption removes millions of barrels from the market.

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Is Europe sliding towards stagflation?

Europe, Global Economy

Europe is not yet in recession, but the latest business and consumer surveys show that the risk is no longer remote.

Is Europe sliding towards stagflation?

The euro area’s flash composite PMI fell to 48.6 in April from 50.7 in March, moving below the 50 threshold that separates expansion from contraction and signalling a quarterly GDP decline of around 0.1 per cent after a 0.2 per cent gain in the first quarter, according to S&P Global Market Intelligence.

At the same time, the European Commission’s flash consumer-confidence indicator dropped to -20.6 in the euro area and -19.4 in the EU, both significantly below their long-term averages and the weakest readings since 2022, according to the European Commission.

The most worrying part of the PMI release is not just that output is contracting. It is that the contraction is arriving both in services and manufacturing and with renewed inflation pressure.

Input costs rose in April at the fastest pace since the end of 2022, while selling-price inflation reached a 37-month high, with S&P Global noting that its prices-charged index is consistent with consumer inflation running near 4 per cent.

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The myth of the commodity shock: global money supply is soaring again

Global Economy

Global money supply is soaring again, while money velocity remains depressed and uneven across regions.

The myth of the commodity shock: global money supply is soaring again

This highlights a key point: commodities transmit relative price signals, but persistent inflation is always a monetary phenomenon driven by runaway money creation.

The Bloomberg Global Money Supply proxy shows global money supply in USD terms rising back to record highs above 121 trillion since late 2025, with annualised growth in the low double digits over recent months.

This is consistent with estimates of broad money in the major currency blocs (US, euro area, China, and Japan), which now exceed 98–100 trillion dollars and have resumed an upward trend after the brief 2023–24 slowdown.

At a country level, forecasts for 2026 still show growth in M2 across almost all large economies, even after the inexistent “quantitative tightening” narrative.

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