The question is whether a central bank – systematically indulging in unprecedented purchases of gold – can have the same strategy in other precious metals. The Russian government is considering spending 51 billion rubles ($535.5 million) over the next three years to replenish its reserves of precious metals. The figures come from figures in the …
Category: Developing Economies
analysis for Developing economies
Russia’s unknown movements in metals
Last week an article by the Russian news agency Interfax reported that the State Fund of Russia plans to acquire gold, silver, platinum, palladium and precious stones. Russia’s decision to add silver to its reserves sets it apart from most other central banks, which have focused heavily on hoarding gold while neglecting silver. Along with …
Global economic turmoil and geopolitical crisis since the Chinese recession
China is teetering on the brink of recession — excluding the Covid era, for the first time since 2008 — as new data showed industrial production shrank for a fourth straight month while new orders data was particularly weak. The above data are indications that China’s economic model, which was based on Simply put, weak …
Rising MFO Lending Creates Bubble in Russian Economy
On the face of it, for Russia its “war economy” has ostentatiously turned its “back” on Western sanctions, while the war in Ukraine is in its third year, with no end in sight. Its GDP grew by 3.6% in 2023, having been consistently positive for the past five quarters. Thanks to Russia’s broken alliance with …
Barter Economy between Russia-China to Defeat Western Sanctions
The war in Ukraine after the Russian invasion has been going on for more than 900 days, and since then, China and Russia have strengthened their economic and defense ties. Under the radar of the West, however, economic relations could expand even further in the future – with the help of an old (as old …
China is already 33% larger than the US in terms of GDP (including shadow economy), while India is also threatening
China’s GDP is already significantly larger than the US economy, contrary to official figures given by governments or organizations such as the World Bank and the International Monetary Fund (IMF), which do not include important parameters such as the “black economy” or the measurement of GDP in purchasing power parity terms. Translating the following into …
China’s Central Bank (POBC) can cause Global hyperinflation
With all the economic news focus on the Federa Reserve and the Bank of Japan, it’s easy to miss where the most important monetary decisions will take place this year: It’s Beijing. Certainly, Fed Chairman Jerome Powell said on Wednesday July 31 that important decisions are coming. A rate cut in September is “on the …
BRICS: The new global financial order will be achieved by removing sanctions, using cryptos, gold and de-dollarization
Russia will soon turn to cryptocurrencies as the most convenient method to circumvent the heavy international sanctions that have affected the economy amid its ongoing war efforts in Ukraine. “We are taking a historic decision in the financial sector,” said Anatoly Aksakov, head of the lower house, according to Reuters. The State Duma approved the …
A move away from the dollar could hurt the Εconomies of Russia, China and India
Despite the ongoing movement, the dominance of the dollar is unlikely to disappear easily and quickly, given how pervasive the dollar is in financial markets. De-dollarization cannot happen at a rapid pace because the infrastructure required to make it happen is extremely daunting because all governments and countries will have to change the way they …
BRICS build wheat market and threaten the West
The global South’s drive to de-dollarize global trade doesn’t just involve the oil or energy goods sector – after Saudi Arabia’s commitment to trade energy goods in US currency (the well-known petrodollar) ends. As these states are world leaders in the commodity market, they are attempting to expand the economic fields in which transactions will …