The messages about the dire economic situation of the United States are constantly increasing, and they warn that the country is rapidly entering a deep fiscal and debt crisis cycle. The collapse of the American economic model is coming “much earlier than previously estimated” and risks dragging Europe along with it. It seems that we …
Category: Economics
Three Decisive “blows” that will either subjugate the EU or lead it on a new Independent Path
Thanos Chonthrogiannis, Chief Economist at Trust Economics, lists the three major shocks that have disrupted the economy, technology and geopolitics of the EU. The defeat in strategic areas, the submission to US pressure and the return of savage austerity will seal the path of Europe as we knew it, either leading it to a harsh …
USA: American citizens’ debts at historic highs – Countdown to the domino of bankruptcies
Americans are entering the new year with their debt at record highs. It’s no coincidence that the Federal Reserve signaled tighter conditions for interest rate cuts in 2026 at its December meeting, potentially denying much-needed relief to millions of Americans who rely on loans. Household debt soared to a record $18.6 trillion in the third …
The Five Negative Trends Affecting the Global Economy
The global economy is at a critical crossroads, facing not only the familiar threats of trade wars and geopolitical turmoil, but also five profound, structural trends that threaten to radically reshape the planet. According to Trust Economics Chief Economist Thanos Chonthrogiannis, slower growth, escalating trade wars, tighter cross-border capital flows, and intensifying migration pressures are …
The Eternal confrontation between Protectionists and Free Trade advocates and their current representatives
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 …
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 …