The Productive Issue of an Economy

In order to see if an economy has entered a long-term path of dynamic development that will inevitably result in its transformation within a few years into a structurally sound and modern economy, we should establish and investigate whether this corresponds to reality by examining its production model for to find out if there is …

What would a US bankruptcy cause?

The Biden administration has until June 1st, so that the US does not end up in default, which in turn will bring a series of “chain” reactions that will cause a global economic shock. And the reason is very simple: American banks are “loaded” with government bonds and may collapse if the debt ceiling is …

The Real-estate market in turmoil and how the EU & USA is hitting Growth

Investments in real estate are traditionally made with loans, the vast majority of which have a variable interest rate. Rising interest rates increase the cost of servicing loans and consequently reduce or eliminate the profit of the companies that own the properties. Already, internationally, the first effects are being observed, with many large companies that …

Shrinkflation: Less Product but the Same Price

From bread for toast to chocolate bars, companies are hiding rising costs due to inflationary pressures by downsizing many everyday products. For companies it is a way to maintain high operating profit margins, for consumers a constant cause for concern and for statistical agencies a real headache. The reason for the phenomenon of shrinkflation, i.e. …

FED: Raised interest rates to 15-year highs

In a new increase in interest rates, this time by 50 basis points, the US Federal Reserve proceeded in an attempt to contain inflation that “runs” at a multiple rate of the 2% target. The Fed’s key dollar lending rate is now in the range of 4.25% to 4.50%, the highest since 2007. Federal Reserve …

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 …

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