Last month, Jamison Greer, a top U.S. trade official, complained that Pix, Brazil’s instant payments system, was putting American companies like Visa and Mastercard at a disadvantage. The United States has proposed a 25 percent tariff on Brazil in response. But Brazilians appear unfazed. “Pix is a Brazilian achievement and we are not going to …
Tag: europe
China’s $1.2 trillion trade surplus & EU’s industrial decline are pushing the euro aside and the yuan is taking its place
Despite the undisputed dominance of the US dollar in the international financial system, developments in recent years have intensified discussions about the de-dollarization of the global economy. And while the dollar still holds the top spot by a wide margin, a new question is gaining increasing importance: can the Chinese yuan overtake the euro and …
If banks have difficulty replacing expiring SRTs, then this systemic bomb will blow markets into the air
SRTs (Significant Risk Transfer), the new, rapidly growing “fashion” of European banking giants, are coming under the microscope of international regulators and central banks. This is an extremely complex financial tool through which credit institutions transfer the default risk of their loan portfolios to hedge funds and private equity funds. While the strategy is a …
Issuance of Eurobonds worth 4,5 trillion euros is required for Europe’s strategic autonomy
The only obstacle and most important to the issuance of Eurobonds that will finance the EU’s strategic autonomy is Germany. The only major country in the Eurozone with an “excellent” credit rating (AAA) refuses to accept joint borrowing and the issuance of the Eurobond. To achieve the strategic autonomy of the Old Continent requires three …
The EU in Russia’s embrace for energy – Eurasia will unite
As Europe’s economies cannot withstand a wave of subsidies and aid, such as that during the Covid 19 pandemic, which amounted to approximately 1.2 trillion euros, due to the deterioration of the fiscal position of states threatened by over-indebtedness, the priority now is – as one will see below the lines of the International Monetary …
Energy crisis with Iran is driving up inflation and killing industry in the EU
The European Union had years to prepare for an energy crisis after the 2022 shock. Thanks to a mild winter and ample supply from the United States, the European gas crisis was far less severe than many feared. However, the continent avoided blackouts and economic collapse largely thanks to a combination of good luck in …
Energy havoc on the foundations of Europe’s industry
The entire European Union is experiencing a growing economic decline – factories are closing or quietly reducing their production. Chemical industries, steel mills, fertilizer producers – the most energy-intensive sectors of the economy – are either migrating out of Europe or shutting down altogether. This is not a cyclical downturn. It is structural decline. Europe …
EU Dilemma: Use the Anti-Coercion Instrument (ACI) or Liquidate $8 Trillion in US Bonds and Stocks
The impact on the euro from US President Donald Trump’s new trade threats to European governments over Greenland may be limited, as the United States is heavily dependent on Europe for its financing, according to Trust Economics, a consulting and economic research firm. According to Trust Economics, Europe is the largest creditor of the US …
The US economic collapse due to debt will also drag Europe down
The messages about the dire economic situation of the United States are constantly increasing, and they warn that the country is rapidly entering a deep fiscal and debt crisis cycle. The collapse of the American economic model is coming “much earlier than previously estimated” and risks dragging Europe along with it. It seems that we …
Three Decisive “blows” that will either subjugate the EU or lead it on a new Independent Path
Thanos Chonthrogiannis, Chief Economist at Trust Economics, lists the three major shocks that have disrupted the economy, technology and geopolitics of the EU. The defeat in strategic areas, the submission to US pressure and the return of savage austerity will seal the path of Europe as we knew it, either leading it to a harsh …