China is facing the most serious economic challenge in its modern history, as the ongoing collapse of the real estate market has triggered an unprecedented debt crisis, exposing the fragile foundations on which the “Chinese miracle” was built. Today, the debts of local governments and their financing vehicles (LGFVs) have soared to 134 trillion yuan, …
Category: Proposed Fiscal Policies
fiscal analysis
China is the leading shadow lender to the Developed Economies
A report released Tuesday, November 18, 2025, by the AidData research arm of the University of William & Mary in Williamsburg, Virginia, comes to the startling conclusion that the United States is the largest recipient of loans from China. The report, titled “Chasing China: Learning to Play by Beijing’s Global Lending Rules“, found that 1,193 …
Will Japan become the next center of a global debt crisis?
The sell-off in Japanese bonds is a warning to global economies. As yields – particularly at longer maturities – soar and demand collapses, Japan is becoming a case study in what happens when investors lose patience with huge deficits and debt. Japan’s government bond market is currently facing an existential crisis, marked by a sharp …
China’s secret Gold purchases are driving up the price of Gold
Trust Economics, based on trade data, estimates that China could buy up to 250 tons of gold in 2025, an amount equivalent to more than a third of global central bank demand. China’s gold rush is fueling a record price rally as a growing number of shadow transactions create a murky picture for gold traders. …
For the Russian economy, the cost of war is becoming increasingly unbearable
The new advance of Russian forces towards the strategically important Pokrovsk, in eastern Ukraine, continues and its possible capture would mark the first major victory for the Russian side since the fall of Bakhmut in 2023. It will not only provide Moscow with a strategic advantage in its goal of fully capturing the energy-rich Donbas. …
IMF to EU: Reduce spending on health, education and abolish benefits, otherwise bankruptcy
Europe’s soaring public debt levels should prompt governments to rethink their role in delivering essential services to EU citizens, according to the International Monetary Fund (IMF), which sees an urgent need to impose shock measures on economies that would overturn the famous European model. In a study published on Tuesday, November 4 (“Regional Economic Outlook …
US and China lead markets to hell in 2026
China’s economic slowdown is drawing a lot of attention in Manhattan boardrooms. While Asia’s largest economy is not faltering, its 4.8% growth rate in the third quarter—the slowest this year—is sending up warning signs everywhere. Even the positives come with (serious) asterisks. For now, external demand is keeping China on track for this year’s 5% …
The Russian Monetary Miracle with the Ruble – the 40% Strengthening with the Weak Dollar
Kirill Dmitriev, head of the Russian Direct Investment Fund (RDIF) and special envoy of Russian President Vladimir Putin, called the ruble the most successful currency of 2025. The announcement was made via a video message on Telegram. He explained that during the year the ruble strengthened against the dollar by 40%. Earlier, the head of …
The strategy of de-dependence of Europe on oil and natural gas, respectively, from Russia
European Union energy ministers have backed the bloc’s proposals to phase out imports by January 2028. The EU wants to gradually phase out Russian oil and gas imports in an effort to “deprive the Kremlin of the revenue it uses to finance the war” in Ukraine. The punitive measures are considered temporary and could be …
Mammoth debt,War, the AI bubble bursts
Artificial intelligence, which was presented as the “revolution that will save the world economy,” is now turning into a nightmare for investors and businesses. At the same time, geopolitical tensions are escalating… A view from the future In this context, Vladimir Putin has achieved significant successes in the war against Ukraine and has begun to …