In an era characterized by global economic instability and high political uncertainty, the idea of a new world order in the financial sector is gaining more and more ground. Now, there are questions about how this new world order will take shape. The dollar has long held this position, but its reign is increasingly being …
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BRICS: The new global financial order will be achieved by removing sanctions, using cryptos, gold and de-dollarization
Russia will soon turn to cryptocurrencies as the most convenient method to circumvent the heavy international sanctions that have affected the economy amid its ongoing war efforts in Ukraine. “We are taking a historic decision in the financial sector,” said Anatoly Aksakov, head of the lower house, according to Reuters. The State Duma approved the …
Global markets: After the plunge – The role of the carry trade, shorts and the hit to hedge funds
The numbers flashing on the stock screens on Monday were shocking. Whether Monday’s wild swings mark the final blowout of a global sell-off that began to develop last week or mark the beginning of a protracted downturn is impossible to know. Trust Economics is predicting a major crash next fall. The Nikkei on Monday posted …
A move away from the dollar could hurt the Εconomies of Russia, China and India
Despite the ongoing movement, the dominance of the dollar is unlikely to disappear easily and quickly, given how pervasive the dollar is in financial markets. De-dollarization cannot happen at a rapid pace because the infrastructure required to make it happen is extremely daunting because all governments and countries will have to change the way they …
Canada’s standard of living is collapsing and resembling Europe
Canadians didn’t think the EU-US-NATO rot would touch them. However, they were wrong. They themselves put a huge amount of blame on the neoliberalism of Prime Minister Justin Trudeau, who started as a “fresh young man” and ended up being the citizens’ nightmare. In particular, having learned well in an impeccable state that operates on …
Why does the imposition of tariffs create few jobs in the countries that impose them?
The US presidential contenders seem to agree on one thing: Both Donald Trump and Joe Biden have imposed high tariffs on imported goods made in China and other countries. These kinds of protectionist policies are a departure from the policies of the previous half century that favored “free trade” (less or minimal government intervention in …
The REPO Act poses a problem to US Geopolitical Hegemony
In the wake of Russia’s military operation in Ukraine in 2022, the US government launched its most aggressive sanctions campaign ever. The US government and its allies have frozen about $300 billion of the Russian central bank’s accumulated foreign reserves. It was a stunning display of the political risk associated with the dollar and US …
ECB: Inverted Bond yield curve warns of coming pain and 2008-style recession
The possibility of a major financial crisis, similar to the one that occurred when Lehman Brothers went bankrupt in 2008, is increasing day by day. An important indicator in this regard is the inverted yield curve of US bonds, which is historically associated with recessions. As an example, it is worth noting that from the …
Trump Presidency 2.0: The Dollar will be sacrificed to deal with the huge Public Debt
The US must abandon its “mammoth deficits” if it is to keep US debt levels manageable for decades to come. The over-indebted US economy can no longer bear, in the context of geopolitical realignments, to support the “excessive monetary privilege” of the dollar, and in order for the new presidency of Donald Trump not to …
“Black Swans” warn us of a strong Crash in the Stock markets in mid-autumn 2024
The evidence may point to a significant degree of parallelism between today and the conditions that caused the catastrophic crash of the Great Depression in 1929, and while trying to predict the exact timing of a recession is a challenging but also a relatively fool’s errand, taking steps to protect it’s a wise move. Will …