A huge disaster looms ahead as the Wall Street bubble is poised to burst: Americans now have more money invested in stocks than ever before, according to Federal Reserve data. At the same time, the consumption that drives the economy’s growth is being driven by the top 10% of households, who account for just under …
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The “drama” of the Greek Economy
The economic policy of the Mitsotakis government is limited to ensuring fiscal surpluses and there is no concern for the development of the private sector of the economy. The combination of a policy of containing fiscal spending and increasing tax revenues with a non-existent private sector undermines the growth rate, deprives incomes and jobs, causes …
US: Middle class will disappear – Warning of Subprime 2.0 crash
The U.S. economy appears to be sailing on calm waters, with low unemployment and stable markets, but the apparent stability hides a dangerous truth. Beneath the surface, the middle class is facing intense pressure, savings are shrinking, and households are increasingly dependent on payday loans and other forms of high-cost financing. The signs are worrying: …
Gold buying frenzy is reshaping global foreign exchange reserves
A historic gold buying spree by central banks is reshaping global foreign exchange reserves, signaling a broader shift away from the dollar amid growing geopolitical and economic uncertainty. Silent inventory reallocation Central banks buy more than 1,000 metric tons of gold annually, with much of that buying unreported. Heightened fears of the dollar being weaponized, …
FED: Only 1.5% of $1.5 trillion in deposits can be returned to depositors in case of bank crisis
In a recent study, the US Federal Reserve came to a shocking conclusion that did not dominate the headlines of the financial press: the regulatory reforms that targeted large banks after the financial crisis and aimed to assess their risk more strictly did not reduce the risk to the solvency of the banking system. In …
How did hedged portfolios outperform traditional index funds?
For decades, index investing was considered the “holy grail” of the financial community: safe, efficient, and low-cost. But the reality of recent years has shown that traditional index funds are no longer the only or best option. “Hedged portfolios” have proven to be more flexible, more resilient, and, in many cases, much more efficient than …
The Gold frenzy heralds the Great collapse
Since ancient times, philosophers have used the image of the circle to illustrate the great question of life: only by seeing the circle fully can you understand its arcs — and vice versa. The same is true for the global economy, which now appears to be collapsing systemically, through specific phases and crisis points called …
Massive collapse due to public debt crisis: G5 of G7 could collapse
Some of the world’s largest economies are at the center of a bond market storm, as investor concerns grow that governments are making the necessary reforms to reduce uncomfortably high levels of debt. And how could they, after all, as growing social inequalities and the emergence of other major problems such as immigration lead electorates …
The Americans who changed the course of US Capitalism (extremely aggressive)
The story of American capitalism may have begun with the Founding Fathers, but much of the plot was written in the years that followed. Countless people have played a role in transforming the U.S. economic system, capitalism, into what it is today. The Trust Economics has highlighted some of these influential figures. Robert Morris (financier) …
US: Strategic advantage in negotiations is shrinking
US President Donald Trump’s “reciprocal” tariffs amount to a unilateral, self-defeating, and completely unjustified challenge to the international order—a challenge without any economic justification. As Willem H. Buiter demonstrated in 1981, the kinds of trade imbalances that Trump blindly condemns are a useful mechanism that allows economies with different time preferences to benefit from trade …