When Real Interest Rates Are Lower Than Growth Rates Help Reduce Public Debt

After the end of World War II, short-term interest rates in the US were less than 1%, while T-Bond bonds with 10-year maturity yielded about 2% (https://www.govinfo.gov/content/pkg/ERP-2012/pdf/ERP-2012-table73.pdf) with the US Federal Reserve, the Fed directly purchases Federal Government bonds from the US Treasury Department. At that time (1946) the US national debt reached 119% of …

ECB – Inflation Brings Changes to Monetary Policy

The ten-year record for euro area inflation – 3% in August from 2.2% in July and structural inflation (excluding energy and food) rose 1.6%, the highest since 2012 – is now key area of ​​controversy and strong arguments for proponents of restrictive monetary policy. Their arguments are reinforced by the recently announced inflation in Germany …

The Ingredients for Economic Prosperity: Energy & Growth

One of the most important costs for the operation of a business and the entire market is the cost of energy, which together with other factors e.g., such as labor costs, etc., largely shape the final prices of the product and service produced respectively. The increased energy costs today, the global trend is to increase …

Why China Has a Difficulty Getting Rid of Coal

2020 was a milestone in increasing energy production in China. China has commissioned new lignite plants that produce a total of about 38.4GW of electricity. China is the country that builds factories to increase the use of lignite for electricity generation while at the same time as a country invests most of the capital in …

China’s Labour shortage continues to rise

In addition to the rapidly aging percentage of the Chinese population, China is facing a growing labor shortage even for unskilled jobs. This twin problems will slowly and steadily, if continued, create a deficit in China’s social security and pension fund revenues and as the need for pensions and old-age services increases exponentially. The period …

Upcoming US Inflation Rise Will Reduce Consumer Income

Economists know that after a sharp drop in demand levels that these large amounts of declining demand are only caused by wars or global epidemics, inflation is the indicator size that will rise after the end of the problem due to declining demand. drastically reducing any disposable income of consumers-citizens. This is due to four …

The Crypto Assets and their Regulatory Framework

Ludwig Von Mises in its book titled «The Theory of Money and Credit» mention that «the State has not the power of directly making anything into money, into a common medium of exchange. It is only the practice of the individuals who take part in business that can make a commodity into a medium of …

How an Economy Adapts to Economic Shutdowns

It is a fundamental fact that anything organic that takes a negative hit, its sensitivity in the first stage must immediately adjust its performance by reducing its activity accordingly. It is then gradually adjusted and when a second or third negative hit is achieved the organic element is fully adapted and works effectively at the …

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