The outstanding financial obligations of the US federal government exceeded 34 trillion dollars, about 123% of the country’s gross domestic product (GDP), which is a historical record. So, investors around the world are rightly wondering if the scenario is gathering chances for a new financial crisis to break out. In more detail, the federal government’s …
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FED reopens liquidity floodgates with new QE in April 2024 – creates problem for dollar
On December 13, the financial world was stunned when, just two weeks after Jerome Powell said it was “premature” to make assumptions about interest rate cuts, the Federal Reserve made a shocking U-turn, heralding the end of monetary tightening – even though inflation is at levels twice the 2% target. The Federal Reserve’s 180-degree U-turn …
The Co-integration of Foreign Policy and Public Debt is leading the USA to “Bankruptcy”
On the last business day of 2023, the US Treasury Department announced the new level of public debt, which exceeded the $34 trillion mark for the first time in history. As of the previous day (December 28), the debt level had increased by $90 billion. Washington’s public debt now stands at about $102,000 for every …
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 …
Strategic move on the chessboard of Geopolitical competition, the purchases of gold by the Central Banks
Central banks around the world are hoarding gold at a record pace, signaling a transformation of historic proportions in the global financial system. This “gold rush” is not just about a defensive strategy to preserve the value of assets from the “storms” of the global economy – it is a strategic move on the grand …
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, …
The number of countries replacing the dollar in their international transactions is increasing rapidly
De-dollarization is a historical process that seeks to end US hegemony in global trade and financial transactions by shifting to alternative methods of transactions, such as national currencies and regional payment systems. 1/3 of UN member states have already opted for de-dollarization and decided to rely on national currencies to make payments. Representatives of at …
Why will Money remain Expensive for Decades?
What is the most important price in the world economy? That of an oil barrel? A microchip? Or maybe a Big Mac? More important than any other is the price of money. For more than three decades, it was falling. Now it’s going up. Forces that were driving the price of money lower have reversed …