Why did the decoupling of production from consumption through the operation of financial markets and the leverage of values become the greatest historical economic experiment? The financial “bubble” that began in the late 1980s is expected to burst with a wave sweeping away the forms of economies we know. “Bad currency” had long driven out …
Category: PUBLICATIONS
Good Luck Argentina: A Promising Liberal Experiment Begins
Argentina is perhaps the only example of a country that, while it was among the 10 richest at the beginning of the 20th century, was driven into poverty by the populist state diet economic model of the Peronists. A country rich in natural resources followed a failed development model based on industrialization behind a wall …
The FED Won’t Help ‘Bidenomics’ – Interest Rates and the 2024 Elections
In recent years, Jerome Powell stood firm on the monetary principles he espoused: The Fed was prepared to do whatever it took until inflation returned to its 2% target. On Tuesday, December 12, 2023, Powell showed signs of a change in attitude. The reasons are obvious and it is certainly beyond any economic logic. At …
Russia has abandoned the dollar and is increasing its foreign exchange reserves in yuan
In a state of war economy, Russia has survived and is victorious in a currency war that was declared against it by the West. Urals oil exports in local currencies, mainly with China and India, as well as the failure of sanctions on Russian energy goods boosted the country’s foreign exchange reserves and prevented the …
USA: Black hole in the US economy – Impossible to finance Ukraine
The “black hole” in the American defense economy risks swallowing the economy of the superpower, and the role of the “global policeman” is called into question… So far, the White House has justified its unwavering support for Ukraine by citing principles such as defending democracy and freedom — both in Ukraine and in the West. …
When are Real values produced vs the “Bubbles” of Casino Capitalism
In a complex juncture where few wise people “read” the real facts of economies, it is time to face structural questions: Many people believe – and on the surface they are not wrong – that a general increase in stock prices is an important factor in the strength of an economy. However, this is an …
FED: Vicious economic cycle with interest rate hikes leads to a crisis-crash like 1930s
The Fed’s “medicine” of lowering interest rates appears to be killing the sick American economy. The credit crunch due to unprecedented tight monetary policy has led to a surge in bankruptcy filings, portending a vicious recession and soaring unemployment. The flow of money supply (the dollars the Fed prints) fell again in October, remaining deep …
Why does GDP growth equal population growth and productivity growth?
Even before the advent of the Covid-19 pandemic, the world had entered a strange phase, where the demographic pyramid after many generations was being reversed, as the world is getting older. The effects of this aging were first seen in Japan (the first post-development economy) and then in the E.U. and China which are the …
What does the dollarization of Argentina’s economy mean?
Argentina’s economic quagmire was the focus of the country’s November 19 presidential election. And the citizens have decided that they want… radical solutions. That’s why they nominated Javier Millay as the new president, who appeared several times with a… chainsaw. He promised to put a… “chainsaw” on public spending, in Latin America’s 3rd largest economy, …
The Defense Plans that companies will have to implement in the interest rate increases
With the… “cloud” of uncertainty over the future of interest rates looming thick, the business world is scrambling to build ramparts in order to cope with the pressure on financial costs and beyond. The messages sent by the central bankers in Europe, the UK, and the USA, with none of them categorically rejecting the possibility …