The inflation phenomenon continues to weaken recently (at 2.5% in June in the Eurozone) although as has been emphasized several times this does not mean that prices are falling. Accuracy remains a “noose” for incomes, a condition that can lead to a parallel weakening of economic activity and investment and ultimately to recession. The odds …
Category: Developed Economies
analysis for Developed economies
Target 2 is a nightmare for France and other EU member countries
In France, President Emmanuel Macron accuses Lepen and the right or other far-right that if he comes to power – which is a given, based on the opinion polls so far it reaches 35% – that chaos will be caused in the French debt. They said the same about Italy but they say nothing about …
The FED is sacrificing inflation to keep the bond market from collapsing
The US Federal Reserve is in a race to prevent an imminent collapse in the US government bond market. High US debt yields are artificially kept at these levels as the Fed maintains demand by increasing the money supply in the economy – that is, by printing dollars and trying to control the bond yield …
The European economy will die a slow death day by day – Unless something changes immediately
Europe’s economic underperformance has long worried politicians. But the problem has climbed to the top of the debate agenda now that the development gap with the US has widened, following the twin shocks of the coronavirus pandemic and Russia’s war in Ukraine. Last month, French President Emmanuel Macron warned that Europe faces a “mortal” threat …
How do Governments cause Inflation and pretend they are fighting the high Cost of living?
In the present analysis, we will show the way in which governments cause inflation and pretend to fight for accuracy. The new announcement of a 2.8% increase in the core personal spending index in the US, the Fed’s preferred measure, gives us the trigger to proceed with the downward analysis. This is the key indicator …
Excessive Public Debt is killing the Middle Income class – the “lifeblood” of Consumption
Every promise by politicians to increase public spending – and especially those concerning social transfers – resonates positively with voters. These promises may win elections, but what voters themselves should be asking is: Who pays the bill? The common narrative in the US that the debt is unsustainable which has a life of 40 years …
Weak development and the Global financial system with multiple problems
After the great financial crisis of 2007 – 2008, regulatory authorities, worldwide, are engaged in continuous efforts to remove, in every way, financial risks. However, mistakes on their part are not lacking. A typical example is the crisis of regional banks in the USA, which was triggered by Silicon Valley Bank, which until that time …
The mistakes of the US Federal Reserve may trigger a new wave of inflation
The mistakes of the US Federal Reserve (Fed), which seems to be acting as an “extension” of the fiscal policy of the Democrats and the Joe Biden administration, will lead to an even greater erosion of the purchasing power of citizens through a spike in inflation. 1. The Bernanke-led Fed began quantitative easing just three …
A new moment is brewing for the US economy and the world
After nearly 15 years of cheap money fed by the Federal Reserve at zero interest rates, resulting in speculative bubbles of colossal proportions, it seems the lights have come on. A crisis in financial markets (especially credit markets) can be caused by a sudden and systemic collapse in asset prices – usually after a prolonged …
Taxpayers should not have to pay for the collapse of systemic banks
The lessons learned from the global financial crisis of 2008/2009 seem not to have become commonplace for the operation of the financial system. The turmoil of the past year has shown that further progress is needed in a number of areas to ensure that banks are never too big to fail. It is noted that …