The fiscal position of many advanced economies has deteriorated dramatically, it is now a well-established picture. The nightmare of the debt crisis has shifted from peripheral economies like Greece to the major players. Recently, the spotlight has turned to the United States, where the “One, Big, Beautiful Act” has credited the White House with large …
Category: US
proposed fiscal policies for US economies
Trump imposes capital controls on foreign investors
Donald Trump is making a dramatic move that could change the face of global capital flows – access to the world’s largest market will not be free. To participate in the US financial system, which is the deepest and most liquid in the world, comes at a significant cost. Following the swift passage of the …
Trump “privatizes” the dollar (Genius Act) and hands it over to Big Tech – The end of the Fed with stable coins
Donald Trump’s attempt to expand the dollar system through stablecoins. Trump wants to limit the supply of the dollar and its parity in order to reduce trade deficits while at the same time not wanting the US currency to lose its privileged status as the world’s reserve currency. This can be successfully done by integrating …
US Federal Government Debt: Bond Purchase by Stablecoin Issuers – End of Extortion
The difficult equation of how to keep the dollar as the global reserve currency and at the same time depreciate its value so that the US economy can regain competitiveness and reduce its trade deficits with the rest of the world is up to the Donald Trump administration – and all this against the backdrop …
Gold is a formidable monetary weapon – the mysteries of Fort Knox and China
One of the most significant long-term effects of this War in Ukraine, regardless of when a peaceful settlement is reached, will be on gold and the dollar. That is, in the realm of an ongoing currency war. When Russia launched its military operation in Ukraine, it overlooked the fact that its central bank had about …
US debt is unsustainable – at 200% if tax cuts become permanent
The US debt is the enduring nightmare of Donald Trump’s economic policy… His presidency, after all, will be judged by whether he deals with it in a credible way. The independent Congressional Budget Office (CBO) has estimated the impact of making the tax cuts permanent. It found that US government-issued debt could soar above 200% …
Why will the recession bomb explode in Trump’s hands?
The U.S. stock market’s downward trend appears to be continuing, with the Dow Jones Industrial Average and the S&P 500 down 4% and 6% respectively since the beginning of the year. And that’s just one of many signs that should prompt any sensible business leader, investor or policymaker to start preparing for an economic slowdown …
The US is “controlling” debt with inflation
There is an old joke among investors that, in our time, is tragically accurate. Countries start by borrowing from each other. When that trust is gone, they borrow from the banks. And when that source is exhausted, they end up stealing from the people. This theft can appear in various forms: from taxes and special …
Return to the gold standard when Western central bankers dislike gold?
Donald Trump and Elon Musk have been particularly vocal about what’s been going on at Fort Knox lately, the location where America keeps its official gold reserves. Both have said they will visit the place soon to check it out and make sure the gold is there. According to Trump and Musk, they want to …
Trump administration cuts borrowing costs in two ways: Musk’s DOGE in spending and cheaper energy
By sidelining the Federal Reserve in order to lower borrowing costs for Americans, the Donald Trump administration says it will reduce government spending and increase energy supplies. The payoff will be twofold: it will ease inflationary pressures and strengthen the economy’s fiscal position. While President Trump continues to urge the Fed to lower short-term interest …