The outstanding financial obligations of the US federal government exceeded 34 trillion dollars, about 123% of the country’s gross domestic product (GDP), which is a historical record. So, investors around the world are rightly wondering if the scenario is gathering chances for a new financial crisis to break out. In more detail, the federal government’s …
Category: US
proposed fiscal policies for US economies
The Co-integration of Foreign Policy and Public Debt is leading the USA to “Bankruptcy”
On the last business day of 2023, the US Treasury Department announced the new level of public debt, which exceeded the $34 trillion mark for the first time in history. As of the previous day (December 28), the debt level had increased by $90 billion. Washington’s public debt now stands at about $102,000 for every …
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 did the FED destabilize the world economy, enrich the elites, crush the middle class?
The abundant but declining currency printed by Central Banks around the world, starting with the 2020 pandemic crisis, has fed the monster of inflation, which threatens to choke economies and the world. The tightening of credit conditions in an environment of geopolitical tensions has not yet led the economies to recession but has changed the …
The Governments Total War against Gold
Gold has been a reliable means of payment in cultural and religious communities for thousands of years. As early as 1200 BC, the Chinese were already using gold as a medium of exchange (Source: Anthony C. Sutton “The War on Gold”). In stark contrast to gold, Sutton illuminates the devastating effect on economies of unbacked …
The Challenges that the US Economy will face in 2024
US economic data show fiscal derailment as debt servicing costs rise, which will cast doubt on US geopolitical commitments to Ukraine and Israel, but also set the stage for tax hikes and deflation pressure on stock prices. This highlights that in 2024 the focus will not be on the question of rising interest rates – …
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 FED serves Wall Street (and capital gains taxes), not the Real Economy
Nobody likes tough macro events, especially during the holiday season, but some things need to be said, according to Trust Economics. As you know, US Federal Reserve Chairman Jerome Powell has promised that 2024 will be the year of interest rate cuts. In this regard, it should be pointed out that Powell is neither a …
The FED Won’t Help ‘Bidenomics’ – Interest Rates and the 2024 Elections
In recent years, Jerome Powell stood firm on the monetary principles he espoused: The Fed was prepared to do whatever it took until inflation returned to its 2% target. On Tuesday, December 12, 2023, Powell showed signs of a change in attitude. The reasons are obvious and it is certainly beyond any economic logic. At …
U.S. Infrastructure Program turns to Social Justice by Launching Public Debt
Expectations for the $2trillion Infrastructure Project announced by US President Joe Biden on Wednesday 31/03/2021 are high. With his announcements he decides to shift to social justice with a new form of income redistribution in US society while stopping the tendency to constantly reduce corporate taxation. Joe Biden is largely taking away the gifts of …