With monetary and economic policy deadlocked, the White House is now officially throwing in the towel and admitting that the fight against inflation has been lost – almost ruling out monetary easing as evidenced by the fact that the Federal Reserve Reserve despite strong political pressures due to the election cycle kept interest rates unchanged. …
Category: Developed Economies
analysis for Developed economies
The next financial crisis in Europe will start from France and Italy
In recent years, a new type of crisis has been dynamically emerging in Europe: a crisis of the European social and political model with profound consequences for fiscal and financial stability. France’s problem The big problem starts with exceeding the budget deficits in France and Italy, over 7% and over 5% for 2024 respectively. These …
Hard austerity is coming with over-indebtedness and high inflation
The era of low interest rates and “easy money” is over, despite the dominant narrative in the international financial press of a new round of monetary policy easing that will return economies to pre-pandemic health crisis status and the prophecies of monetary policy makers policy that set the benchmark for monetary policy easing next June …
The “bubble” of the Global Public Debt of 313 trillion dollar will cause an Economic shock
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 …
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 …
The state of the American economy creates problems for the dollar
The dollar’s dominance as a reserve currency is not immediately in question – while the most formidable threat to its status as the world’s leading reserve currency is actually the US economy itself. The dollar is the most widely used currency in the world both in trade and in central bank reserves — and will …
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 …