Silvergate Bank, Silicon Valley Bank, Signature Bank and First Republic Bank collapsed like dominoes between March and April 2023. The United States Treasury Department, the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) proceeded with a previous intervention in order to stop the transmission of the crisis to the regional banks and to the …
Category: Economics
$45 trillion investment storm in the Global South from the BRICS
BRICS member states have reached a combined investment potential of $45 trillion – shifting the balance of power in the global economy by bringing the Global South to the fore. After the official enlargement of the bloc at the beginning of 2024, the alliance acquires the guarantees to become an economic superpower directly threatening the …
Debt repayment in 100 countries requires a reduction in spending on social infrastructure
The world is going to experience a debt crisis that will last for the next 10 years and it is not going to end well, as global debt has reached a record 307.4 trillion. dollars last September. Both high-income countries and emerging markets have seen a significant increase in their debt, which has increased by …
The cost of resurgent inflation is high
Societies around the world as well as the economic staffs of governments must be prepared for the possibility of revivals on the inflation front. Inflation, after reaching its highest level in decades in mid-2022, in the United States and the euro zone, fell sharply in the second half of last year. But in December, the …
The ECB’s high interest rates will “test” the Economies of the Southern Eurozone member countries
Although interest rate hikes appear to be peaking in the EU, the southern member states of the Eurozone should expect a lot of pain in the coming years. More specifically, last year’s ECB interest rate hikes are expected to have a greater impact on southern than northern eurozone countries in 2024. And given that asset …
A new Trump Presidency will herald the end of HyperGlobalization
The prospects of the most integrated economy in the world, namely the USA, should be examined from the side of the forces that affect it. The most fundamental of these forces have to do with changes brought about by economic opportunities, for example reductions in transport and communication costs, changes in comparative advantages, opportunities to …
The chances of the Global Financial System collapsing
“There is no way to avoid the collapse of a system that has expanded more than it was allowed to because of manorial credit expansion” Ludwig von Mises. History shows us that we have reached our limits. History never lies, but politicians do. In a system that has expanded more than it was allowed to …
The battle with inflation and recession is becoming increasingly difficult
The entire financial press’ narrative of a “soft landing” of the economy – US and global – and avoidance of recession is fostered through the “uses” of the FED and ECB, with the former fueling investor expectations for aggressive rate cuts in time that has simply put a “brake” on their rise. What they cannot …
How did the FED destabilize the world economy, enrich the elites, crush the middle class?
The abundant but declining currency printed by Central Banks around the world, starting with the 2020 pandemic crisis, has fed the monster of inflation, which threatens to choke economies and the world. The tightening of credit conditions in an environment of geopolitical tensions has not yet led the economies to recession but has changed the …
The IMF will demand a “blood and tears” plan from Argentina
A mini-Summit on January 5, 2023 was attended by the new president of Argentina, Javier Millay. The reason for the meeting he had with the technical staff of the International Monetary Fund (IMF), which took place on the very day that the price of gasoline rose by 27% and meat, a staple food in Argentina, …