The development that the United States will be forced to provide dollar liquidity to the United Arab Emirates and other Persian Gulf states affected by the closure of the Strait of Hormuz will be very bad news for the “petrodollar”. The Federal Reserve (Fed) has used swap lines with foreign central banks as a key …
Category: Economics
Turkey’s Economy is collapsing
The Turkish economy is facing an unprecedented crisis, as noted, inflation has skyrocketed to record levels, with a huge deviation from forecasts. This unfavorable situation has caused a wave of business closures and intense social and economic instability in the country, with Recep Tayyip Erdogan being called upon to take immediate measures. In particular, after …
The explosion of inflation will cause social explosions and the collapse of the political system
Consumers increasingly find themselves receiving inferior goods and services at higher prices. Living standards have declined significantly in recent years, and the trend is worsening, fueling simmering social anger. Yet for the elite that dominates opinion-forming, it is business as usual as consumption is accelerated by the 10% of those connected to Wall Street who …
Americans face explosive price increases, an energy shock, and continued pressure on incomes
The US-Israeli choice to strike Iran leaves Americans facing explosive price increases, an energy shock and persistent pressure on incomes, in a development that threatens to turn into a widespread economic crisis. The US economy is heading towards a full-scale financial turmoil, as the latest data shows that inflation not only persists, but is accelerating …
The Economic Inequality (poverty) gap is Greater in the US than in Europe
It takes the average worker in the United States almost twice as long to gain the same purchasing power as someone working in Germany, France or the United Kingdom, according to a new method of measuring poverty developed by Olivier Sterk, an associate professor of economics at the University of Oxford, which takes into account …
The War in Iran and How It Enters as Inflation in Countries’ Economies
The war in Iran with the launch of the military operation “Epic Fury” by the United States forces and the simultaneous attack “Roaring Lion” by Israel on February 28, 2026, marked the beginning of a period of turmoil on the global energy map. What began as a precision military operation aimed at neutralizing Tehran’s nuclear …
Iran will abolish the Petrodollar and replace it with the Petroyuan
The dollar’s hegemony, which for decades was protected by the dominance of the “petrodollar,” is now facing an existential threat that cannot be questioned. Indeed, the escalating conflict with Iran is not just a regional dispute, but the catalyst that triggers the dissolution of the historic 1974 agreement. With the cracks in the Middle Eastern …
The turmoil in private credit markets is reminiscent of the 2007-2008 subprime mortgage crisis
The cracks in this dark corner of the $1.8 trillion financial markets have clear similarities to the subprime crisis. Liquidity is scarce or even disappearing. The lack of transparency around how assets are valued seems to be fueling investor concerns and leading to funds failing to return capital to investors. This in turn has raised …
How can a country (i.e. USA) with huge debt be saved by restarting its Economy without causing Social chaos?
What is the invisible foundation of the narrative about the depreciation of the US dollar? Let us recall that it is a key goal of the Trump 2.0 administration to address the fiscal derailment and the persistent trade deficits. The Winners and the Losers This leads to the following reasoning: if those who hold the …
“Transient but systemic inflation” creates Hyperinflation and a Financial storm
A subterranean but structural shift is taking place in the world of finance, a redefinition of the very scourge that is eroding the foundations of the global economy. What governments and central bankers call “temporary inflation” is in fact a “systemic cancer,” the direct result of decades of monetary corruption of real economic values. This …