What is the invisible foundation of the narrative about the depreciation of the US dollar? Let us recall that it is a key goal of the Trump 2.0 administration to address the fiscal derailment and the persistent trade deficits. The Winners and the Losers This leads to the following reasoning: if those who hold the …
Category: Developed Economies
analysis for Developed economies
The Miracle of the Polish Economy without the Euro
Poland’s economy surpassed $1 trillion last year, capping decades of dynamic growth that contrasts sharply with the fragile economies of its much larger European neighbors, such as Germany or France. The milestone, confirmed by data released by the country’s statistics office on Friday (January 30), likely put Poland among the world’s top 20 economies by …
The U.S. is not “investable” – The withdrawal of funds from Scandinavia, and the Debt avalanche
At the World Economic Forum in Davos, President Donald Trump said out loud what normally goes unsaid, and in doing so, revealed a deep and dangerous vulnerability that the entire system has been trying to hide. Specifically, in an interview with Fox Business’s Maria Bartiromo, when asked about the possibility that European countries might respond …
The Dangers of the Huge Stimulus Packages Coming to the US and Eurozone
Both the US and European economies are preparing to receive strong fiscal and monetary stimulus packages, without even being in recession, as is traditionally the case when such stimulus packages are implemented in the economy. Trust Economics specifically refers to the following stimulus packages: Markets are already reacting… In the past two weeks, markets have …
China’s Real Estate – A $18.9 Trillion Debt Bomb at the Foundation of the Global Economy
China is facing the most serious economic challenge in its modern history, as the ongoing collapse of the real estate market has triggered an unprecedented debt crisis, exposing the fragile foundations on which the “Chinese miracle” was built. Today, the debts of local governments and their financing vehicles (LGFVs) have soared to 134 trillion yuan, …
China is the leading shadow lender to the Developed Economies
A report released Tuesday, November 18, 2025, by the AidData research arm of the University of William & Mary in Williamsburg, Virginia, comes to the startling conclusion that the United States is the largest recipient of loans from China. The report, titled “Chasing China: Learning to Play by Beijing’s Global Lending Rules“, found that 1,193 …
Will Japan become the next center of a global debt crisis?
The sell-off in Japanese bonds is a warning to global economies. As yields – particularly at longer maturities – soar and demand collapses, Japan is becoming a case study in what happens when investors lose patience with huge deficits and debt. Japan’s government bond market is currently facing an existential crisis, marked by a sharp …
IMF to EU: Reduce spending on health, education and abolish benefits, otherwise bankruptcy
Europe’s soaring public debt levels should prompt governments to rethink their role in delivering essential services to EU citizens, according to the International Monetary Fund (IMF), which sees an urgent need to impose shock measures on economies that would overturn the famous European model. In a study published on Tuesday, November 4 (“Regional Economic Outlook …
US and China lead markets to hell in 2026
China’s economic slowdown is drawing a lot of attention in Manhattan boardrooms. While Asia’s largest economy is not faltering, its 4.8% growth rate in the third quarter—the slowest this year—is sending up warning signs everywhere. Even the positives come with (serious) asterisks. For now, external demand is keeping China on track for this year’s 5% …
The strategy of de-dependence of Europe on oil and natural gas, respectively, from Russia
European Union energy ministers have backed the bloc’s proposals to phase out imports by January 2028. The EU wants to gradually phase out Russian oil and gas imports in an effort to “deprive the Kremlin of the revenue it uses to finance the war” in Ukraine. The punitive measures are considered temporary and could be …