The advantage of the US having the dollar as the world’s reserve currency is that it creates demand for dollars. Countries accumulate dollars and tend to invest them in US bonds, keeping US borrowing costs low. The curse, especially since Nixon ended the convertibility of the dollar into gold (1971), is that there is no …
Tag: economy
Gold is one of the best investments ever
It’s time to talk about gold as an investment. The precious metal has been in the headlines recently as its price has skyrocketed from $2,300 per ounce to around $3,500 per ounce. The chart is quite impressive, as the price of gold has been rising almost every month for over a year. “So what?” …
Wind turbine giant Siemens-Gamesa is in financial trouble
The dream of green energy from the air, with the installation of offshore wind farms, is proving to be a dream-nightmare at an increasing rate, both for the states that see themselves confronted with new problems from their installation, but also for the companies themselves that from promising start-ups are transformed into seriously ailing businesses …
GDP growth is an illusion, governments are spending irresponsibly
The numbers may look positive, but behind the statistics, Western economies are already in recession, warns Trust Economics in its analysis, emphasizing that “growth” is nothing more than a fiscal illusion, based on a surge in government deficits and not on a real increase in economic activity in the private sector. Subtract government deficits from …
The abandonment of the gold standard and inflationary money destroyed prosperity in the West
The monetary history of the twentieth and twenty-first centuries shows us how the US government, step by step, removed the gold standard and introduced fiat currency (paper dollars without any counterpart), to finance its growing political power and the strangulation of civil society through economic management. All advanced economies followed suit. The cost that American …
Why has gold already surpassed the dollar in importance as a reserve currency for central banks?
The increasing frenzy in gold purchases by central banks suggests that the effects of Donald Trump’s fiscal policy are only just beginning to be felt. As the world’s leading monetary authorities accumulate gold at historically high prices, the real goal of the above move is to reduce exposure to the dollar. This dynamic belies US …
Blue economy: What is it and how is it connected to Public Health?
The Blue Economy, i.e. all economic activities related to the sea and water resources, is a key pillar of sustainable development, with significant impacts on both the environment and society. At the same time, public health is directly and indirectly affected by the state of marine ecosystems, the activities that take place in them and …
A possible wave of hyperinflation could drown Western economies if the Strait of Hormuz is closed
A major disruption to global energy supplies as a result of the closure of the Strait of Hormuz could cause a sharp and sustained rise in oil prices, further fueling inflationary pressures already weighing on consumers and businesses. In more detail: Israel’s attack on Iran on Friday, June 12, 2025, has catapulted their long-running conflict …
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 …
A $35 billion bomb of loans from poor countries will explode in China’s hands in 2025
For the first time this century, China’s role has shifted from a major provider of capital, primarily to developing economies, to a lender that claims to service debt. This shift will have far-reaching implications for global credit conditions. It could fuel instability in many parts of the world and lead countries into strategic geopolitical realignments. …