The new US administration will sail into uncharted waters to address the ongoing economic decline, as President-elect Donald Trump has repeatedly pointed out – the transformation of monetary policy that followed the end of the gold standard is the core of his announced Make America Great Again strategy. The US’s “excessive monetary privilege” has enabled …
Tag: economy
Banks’ exposure to government debt will bring economic collapse
Crises are never caused by excessive exposure of businesses and individuals to risky assets. Crises can only happen when investors, governments and households accumulate risk in assets where most people believe there is little to no risk – namely government bonds. The recent sell-off and the underlying trend What does the recent sell-off in US …
Inflationary money: foundation of uncontrolled state growth – destruction of economic & social freedoms
The rulers and the ruled in the Western world have long succumbed to a particularly demonic temptation: the replacement of commodity (or precious metal) money with unbacked, state-issued money, known as fiat money. In a sense, they have been seduced by the alluring prospect of securing the power to increase the quantity of money arbitrarily …
The huge Public debt and Budget deficit, the trade war and the… problem with the dollar
Investors around the world spent much of 2024 worrying about China’s problems with the housing market and deflation. In 2025, it’s the US’s turn to be the star of the negative scenarios. While Donald Trump’s trade war is making headlines, the rapid decoupling between US net foreign investment and the level of federal debt is …
Trump’s Tariffs – US Economic Suicide – and the Gold Standard
On November 30, 2024, US President-elect Donald Trump threatened the BRICS nations – Brazil, Russia, India, China, South Africa, Iran, Ethiopia, Egypt and the United Arab Emirates, as well as other states in the process of joining – with 100% tariffs on their exports to the US if they dare to attempt to replace the …
Russia: Oil – natural gas with Bitcoin and foreign exchange reserves in digital gold
Bitcoin and the BRICS group are seen as weapons to reduce Russia’s dependence on the dollar, according to President Vladimir Putin’s monetary strategy. Due to the inability to access the global financial system and international markets, Russia has to choose alternatives, such as trading in local currencies of allied states and even using its gold …
The Central Bank of Russia keeps the key interest rate unchanged for 2025!
At the last meeting of the Board of the Central Bank of the Russian Federation this year, it was decided to leave the key interest rate unchanged – at the level of 21%. This came as a surprise: most analysts were confident that the regulator would continue to tighten monetary policy and increase the index …
China is turning its economy into a war economy to achieve global domination
Drones have already become a primary weapon, capable of taking out soldiers and tanks, as well as helping to spot artillery fire and provide a standard method of battlefield reconnaissance. Electronic warfare — the use of EM signals to disrupt drones’ communication with their pilots and GPS satellites — provides some protection against drones for …
Anger over high cost of living has brought down 70% of governments in developed countries
Donald Trump’s victory over Kamala Harris and the Democrats in the November 5 elections represents part of a broader phenomenon: Most governments in developed economies have been swept away by public anger over rising prices. And this despite the mainstream media and political elites saying that inflation has been… defeated and everything is returning to …
What will investors punish after the failure of the FED?
A paradoxical phenomenon occurred in the course of US interest rate cuts: Instead of falling, they moved higher in the medium term. The Federal Reserve cut its key interest rate by half a percentage point in September, raising expectations that other interest rates will soon begin to cut as well. By contrast, two-year and 10-year …