The Federal Reserve’s recent decision to cut the federal funds rate by 50 basis points to a range of 4.75% to 5%, despite inflation still above its 2% target, apparently politically targeted, has disturbing similarities to the monetary policy mistakes of the late 1970s. Then, under pressure to stimulate economic activity, the Fed eased monetary …
Category: Proposed Fiscal Policies
fiscal analysis
Should Trump restore the Gold standard, and if so, how will he go about it?
During his presidential campaign, former President Donald Trump referred extensively to the issue of the inflationary vortex in which the US economy has been involved. In addition, he highlighted the importance of maintaining the dollar as the world’s main reserve currency by pointing to the possibility of the US imposing countermeasures on countries that abandon …
USA: At 1 trillion interest on debt for the first time in history, explosive budget deficit
2024 was the year in which the huge US budget deficit was supposed to have gradually leveled off after two years of crisis. The US was supposed to end the spending spree. All this, on a theoretical level. As of August, the US deficit has exceeded that of 2023. What does the evidence say?
The Major risks to the future of the Dollar as a Global Reserve Currency
On February 24, 2022, Russia’s invasion of Ukraine shocked the world, sparking one of the biggest conflicts in Europe since World War II. At the same time, not only a geopolitical realignment of power is taking place, but also a reversal of the post-war Western-imposed monetary peace with the dollar becoming a contested currency and …
Kamala Harris’ $2.25 tril. “Money Tree”, and Economic Populism
The socialist recipe for economic failure: Price controls, higher taxes, government intervention and subsidies paid for by printing an ever-depreciating currency. These are the main pillars of “21st century socialism” and the radical leftist Peronism that destroyed Argentina. These are also the key elements of the economic plan presented by Kamala Harris and the Democratic …
FED “Monetary Coup” by Manipulating Yield Curve To Elect Harris
Black Monday, August 5th was a powerful reminder to investors that the stock markets don’t just… go up, they sometimes go down. It wasn’t the end of the world. Wall Street’s 3.0% drop on a daily basis is a big deal, but it doesn’t compare to October 1929, when the stock market fell 21% in …
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 …