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 …
Category: Proposed Fiscal Policies
fiscal analysis
$45 trillion investment storm in the Global South from the BRICS
BRICS member states have reached a combined investment potential of $45 trillion – shifting the balance of power in the global economy by bringing the Global South to the fore. After the official enlargement of the bloc at the beginning of 2024, the alliance acquires the guarantees to become an economic superpower directly threatening the …
Russia’s economy suffered $211 billion in war with Ukraine, but hold on
Russia in the context of the military operation in Ukraine seems to be winning a no less relentless economic war. The unprecedented waves of sanctions were aimed at crippling Russia’s economy and eroding its military capability by shutting it out of the international banking and banking system (SWIFT). Russia, for its part, used this attack …
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 …
How the growing budget deficit is destroying the US economy?
A cursory look at the US economic growth data shows that they continue to defy expectations of a slowdown and recession due to continued increases in deficit-increasing government spending. In fact, the U.S. Treasury recently announced the December budget deficit, which shows that the U.S. collected $429 billion through various taxes, while total federal budget …
A new Trump Presidency will herald the end of HyperGlobalization
The prospects of the most integrated economy in the world, namely the USA, should be examined from the side of the forces that affect it. The most fundamental of these forces have to do with changes brought about by economic opportunities, for example reductions in transport and communication costs, changes in comparative advantages, opportunities to …
The US Debt exceeded $34 trillion – The options to correct the situation
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 …
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 …