2025 is shaping up to be one of the most tense years in the history of global trade. Almost immediately after taking office, Donald Trump reimposed tariffs on China for a second time, and in early April he imposed sanctions on a large number of countries and territories around the world. Since then, the international …
Category: Economics
Inflationary money from central banks will cause global shock and poverty
The Federal Reserve – and all central banks – is blamed as the main cause of inflation through its policy of “currency devaluation,” which systematically destroys the value of Americans’ savings, assets, and wages. A “political-inflationary vicious cycle” is documented, where the government prints money to finance spending, causing prices to rise, which then leads …
New Currency War: Japan Challenges China and the Yuan with Yen Devaluation
On Tuesday, November 11, 2025, the yen fell to 155 against the dollar, prompting intervention in the foreign exchange market. Forex traders are now familiar with the routine that accompanies yen weakness. Just as on Wednesday (November 12), Finance Minister Satsuki Katayama warned dealers not to test her resolve as the yen hit a nine-month …
FED: new round of monetary expansion – The nightmare of hyperinflation and debt
The impasse in the world’s largest economy is obvious and worsening, especially with public debt reaching the $28 trillion zone. The only solution on the horizon to maintain creditworthiness is monetary expansion (in technical terms: debt monetization). In order to understand these unusual developments, we need to see what the Federal Reserve’s scope for action …
FED: New interest rate cut to 3.75% to 4% range, end to quantitative tightening
The US central bank, with its recent decision, is attempting to avoid a liquidity shortage that could be caused by excessive withdrawal of reserves from the banking system. The Federal Reserve (Fed) cut interest rates by 25 basis points for the second consecutive meeting, bringing policy rates to their lowest range since 2022, between 3.75% …
Inflation is slowly and painfully killing the middle-income class
In a speech in July, Harvard University professor Gregory Mankiw laid out with brutal honesty what needs to happen to end the unsustainable accumulation of debt in the United States. The options are five: Logic dictates that some combination of these will be inevitable. These potential solutions are common throughout the developed world. Through a …
The subprime monster returns: The American economy is cracking, a new bomb explodes
In a stark warning to markets, Trust Economics warns that a subprime crisis — especially among the lower-income classes in the US — is brewing beneath the surface of a seemingly stable economy and market euphoria. Trust Economics Chief Economist Thanos Chonthrogiannis points out that these cracks in the credit system are significant, but not …
Historical record in stock investments – Half of Americans’ savings, at $30 trillion, in the “bubble”
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 …
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, …