The impasse in the world’s largest economy is obvious and worsening, especially with public debt reaching the $28 trillion zone. The only solution on the horizon to maintain creditworthiness is monetary expansion (in technical terms: debt monetization). In order to understand these unusual developments, we need to see what the Federal Reserve’s scope for action …
Tag: Donald Trump
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% …
US: Strategic advantage in negotiations is shrinking
US President Donald Trump’s “reciprocal” tariffs amount to a unilateral, self-defeating, and completely unjustified challenge to the international order—a challenge without any economic justification. As Willem H. Buiter demonstrated in 1981, the kinds of trade imbalances that Trump blindly condemns are a useful mechanism that allows economies with different time preferences to benefit from trade …
Stephen Miran: Trump’s man who will rewrite the rules and end the FED’s independence
Generally speaking, the Fed’s independence is widely understood and supported in principle in Washington, in Congress, where it really matters. The point is that decisions should be made based on the best analysis of the data, on how to achieve its dual goal of price stability and employment, as best it can, for the benefit …
Europe survived the public debt crisis but the hard euro will kill it – Export collapse
The European financial landscape is currently facing a powerful combination of factors that are causing concern in its banking sector and beyond – it has sounded the alarm even though this has not been seen in what the established financial media is reporting. Despite statements by Brussels officials about an “opportunity for the euro” to …
The US-China currency war is putting the final nail in the coffin of the global economy
The U.S. economy has not faced such a tariff regime in nearly 80 years. It is in a situation without historical precedent and therefore without the possibility of “ready-made recipes.” Given the absence of recent historical precedent, the Federal Reserve is waiting for more evidence that consumer prices are not rising sharply due to tariffs …
The Five reasons for gold’s sudden jump and the slow death of the dollar
Gold is not just a hedge against risk in the midst of an economic crisis – it is becoming a core asset class in the modern investment playbook – The Triffin Dilemma and the Weakening Dollar. In more detail: The past six months have been marked by unprecedented turmoil for the global economy and financial …
Trump releases $140 trillion from the subsoil of the Northern Territory of Alaska over a 4-year horizon
US President Trump is expected to push through sweeping institutional reforms to unlock $150 trillion in resources over four years. The Alaska Oil Reserve is a 23-million-acre region rich in oil and precious mineral resources. In 2024, Joe Biden tried to ban drilling and mining there. As its name suggests, the Oil Reserve was created …
Why do Investment Banks hate monetary gold?
Musk claimed that his DOGE team was ready to “check” the gold bars to make sure none were missing. For the record, the U.S. Treasury holds 8,133.5 metric tons of gold in the U.S. reserve. A little less than half of that gold is stored at Fort Knox. The rest is mostly stored in a …
Trump imposes capital controls on foreign investors
Donald Trump is making a dramatic move that could change the face of global capital flows – access to the world’s largest market will not be free. To participate in the US financial system, which is the deepest and most liquid in the world, comes at a significant cost. Following the swift passage of the …