The skyrocketing global debt has become the main problem for the global economy – even if this is being hidden for obvious reasons by the global political elite and the systemic media. Public deficits for anyone with even the slightest understanding of the workings of the economy can neither act as reserves for the private …
Category: EU
proposed fiscal policies about eu
FED – ECB: Inflationary landmine with interest rate cuts – Trump victory in the US is the key scenario
The Bureau of Labor Statistics (BLS) argued that a pick-up in rent inflation—the index rose unexpectedly sharply in January’s CPI—was due to a shift in the data series that could either mean that the change was a structural shift in values or indeed an error which could be fixed at a later stage. Conclusion; No …
How do central banks embellish the image of the economy for the benefit of politicians?
Reports on both sides of the Atlantic of ending the current cycle of monetary easing as a central policy option were probably a smoke screen to cover up the poor state of the financial system. The analyzes that are circulating refer to the prospect that the Fed and the ECB return from the spring of …
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 …
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 are Bubbles created in the Economy? – why were the Economies over-indebted? What is the correct solution?
How and why are bubbles created in the financial system? Is it a random error in the path or a structural element of the circumvention of the rules of the functioning of the market? The capitalist economic system has an inherent tendency to develop instability that results in a severe economic crisis. The main mechanism …
The ECB’s aggressive interest rate hike is causing problems for the EU
The ECB’s aggressive interest rate hike is causing problems for everyone in Europe. To citizens who are asked to pay a higher installment on their mortgage or consumer loan, to businesses that are raising the cost of servicing their loans, to states that see their existing bonds collapse, and even to public debt that, instead …
Why the EU’s Proposal to Impose a Cap Only on Russian Natural Gas is Wrong?
In the past two weeks the structural pathologies responsible for the EU’s energy gridlock have combined with a series of extreme weather events – such as unprecedented drought – to record unimaginable energy prices. The day-ahead electricity prices in France, the EU’s traditional electricity exporting power, reached on September 2 even above 1,000€/MWh, while natural …