With Donald Trump insisting that tariffs are the royal road to regaining the American economy’s dynamism, the debate is returning about whether a version of protectionism can be the way to address the existing problems of economic stagnation in several developed economies. The argument is familiar: an economy like the American one has a consumer …
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Trump sets limits on Powell and the crucial battle with inflation
“Relief in Prices for American Families and Combating the Cost of Living Crisis” is the title of one of several executive orders issued by President Donald Trump in his first week back in the Oval Office. This executive order directs federal agencies to “provide extraordinary price relief” to the American people by reducing federal regulations …
Trump’s plan for the BRICS monetary revolution
The 47th President of the United States has long been making bold statements about the policy he wants to pursue – a typical example of such a repeated statement is his pledge to impose 100% import tariffs on BRICS countries if they attempt to undermine the dollar and move away from it. Trump told Truth …
US: Middle Income class anger boils over poverty, 2025 to be a year of upheaval
Trust Economics estimates that 2025 will be a year of upheaval and multiple crises, adding that anger is overflowing in the nations of the world… As it notes, when the euphoria surrounding the elections and executive orders subsides, the new US administration will have to deal with the annoying little problem of the US debt …
The $16 trillion AI “bubble”!!!!!
Investors have been betting heavily on an artificial intelligence (AI)-driven future over the past two years, as technology stocks have led the S&P 500 index up 60%. As of January 24, 2025, the cumulative market capitalization of Nvidia (NVDA) and other major AI infrastructure companies was nearly $16 trillion. But there has also been a …
Can Bitcoin foreign exchange reserves prevent a US bankruptcy?
President Donald Trump has taken bold steps to position the United States as the global leader in the cryptocurrency industry. One of his first acts was to sign a bill titled “Strengthening American Leadership in Digital Financial Technology,” which aims to promote monetary innovation while ensuring regulatory clarity in the crypto space. The bill outlines …
The Japanese sold off 41 billion of Eurozone debt in 6 months, leading to a generalized sell-off in bonds
Japanese investors have sold off eurozone government debt at the fastest pace in a decade, suggesting that the move by one of the major holders of European debt could lead to a sharp sell-off in the market. Gross online sales by Japanese buyers rose to 41 billion euros in the six months to November, the …
Europe’s Welfare State: expensive and ineffective
European states have the largest welfare systems among OECD members and among the most expensive in the world, symbolizing the post-war social democratic social contract. But all of this has begun to be overturned with the pandemic and later the Ukrainian crisis as a starting point. At the same time, Europe’s economic dynamism has faded …
Trump will crush the dollar to revive the US economy
The new US administration will sail into uncharted waters to address the ongoing economic decline, as President-elect Donald Trump has repeatedly pointed out – the transformation of monetary policy that followed the end of the gold standard is the core of his announced Make America Great Again strategy. The US’s “excessive monetary privilege” has enabled …
European Productivity: Slowdown with wage freezes and layoffs
Productivity in Europe is slowing, putting a damper on real wage increases, the International Labour Organization (ILO) has found. In its “World Employment and Social Outlook Trends 2025” chapter, the ILO highlights that labour productivity has declined since the COVID-19 pandemic. Real labour productivity per hour worked in the EU-27 economies fell by 0.1% per …