The Reasons That Lead the Global Economy to “Difficult Paths”

The world economy is likely to be headed for a new recession and overall a time of difficulties. Things are not so good. This has to do with the combination of a number of structural trends currently permeating the global economy. 1. Inflation is here to stay There is a more structural dimension to inflation, …

The ECB’s aggressive interest rate hike is causing problems for the EU

The ECB’s aggressive interest rate hike is causing problems for everyone in Europe. To citizens who are asked to pay a higher installment on their mortgage or consumer loan, to businesses that are raising the cost of servicing their loans, to states that see their existing bonds collapse, and even to public debt that, instead …

The EU puts an end to Virtual Companies

It is well known the practice of many taxpayers, natural and legal persons, to establish virtual companies (i.e. companies without physical presence and real economic activity) in countries with preferential tax status such as Cyprus, Bulgaria, Ireland, etc., in order to avoid the paying taxes in the country where the income actually arises. The European …

How the ECB Will Force Banks to Raise Deposit Rates

The monetary policy of the EU it seems at the moment to be on the one hand ineffective, on the other hand leading to a dead end causing negative effects on the economy, with no benefits for anyone except the banks who will see their profits increase from the increase in loan rates while they …

A Global Liquidity Crisis is beginning to appear on the Horizon

The dynamics of the global market vis-à-vis all those markets where a global liquidity that in 2019 reached 130 trillion dollars, well above the global GDP of 80 trillion dollars, is looking for a way out, tends to be the most decisive for the developments in the global economy. There are estimates that today this …

The Sustainability of European Industry in the Energy Crisis

Eurometaux is the European agency representing producers, processors and recyclers of non-ferrous metals. Its ranks include some of the largest European industries and the most iconic ones belonging to the respective sectors in Europe, which have a turnover of 120 billion euros and directly employ 500 thousand workers. The text of the positions which he …

Why the EU’s Proposal to Impose a Cap Only on Russian Natural Gas is Wrong?

In the past two weeks the structural pathologies responsible for the EU’s energy gridlock have combined with a series of extreme weather events – such as unprecedented drought – to record unimaginable energy prices. The day-ahead electricity prices in France, the EU’s traditional electricity exporting power, reached on September 2 even above 1,000€/MWh, while natural …

The New Successful Business Model

What do tech giants like Apple and Microsoft, global online retailers like Amazon and Ebay, leading payment and financial services companies like Visa and Mastercard, popular online game developers like Riot Games have in common, but also social media companies such as Meta (Facebook) and TikTok? While at first glance it may not be obvious …

The Limits of “Economic Orthodoxy”

Every year the executives of the US Federal Reserve System gather in Jackson Hole, Wyoming for an annual financial symposium. At this year’s meeting, everyone was expecting the position of Fed chief Jerome Powell. And the message from the American central banker was clear: at the moment the priority is to reduce inflation. The direction …

The US “Productivity Paradox” appears again

The recent release of data on non-farm labor productivity in the US economy confirmed concern about a continued downward trend in this critical indicator. Labor productivity fell in the second quarter of 2022 by 4.6% as output fell by 2.1% and total hours worked increased by 2.6%. Compared to a year ago productivity fell by …

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