The global economy is one step away from a serious crisis, which will start again in the United States but this time will concern the country’s excessive public debt, warns Trust Economics in a report. The American economy is facing a significant turning point, which does not just concern interest rates or debt, but the …
Tag: public debt
Bretton Woods III from Russia, China and India with a Chinese wall of gold, energy and commodities
Beyond the fading glory of the G7 and G20 — groups of states formed in the aftermath of World War II and now mired in stagnation and demographic decline — a new alliance has emerged on the geoeconomic map: the BRICS+ group. This coalition — Brazil, Russia, India, China and South Africa — represents a …
The dollar as a reserve currency is killing the US economy
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 …
Big Mistake! The borrowing cost of Greece and the South of the EU is close to that of Germany and France
How much do bond markets want to drive us crazy, while those who are not involved in the subject give investment advice? At a time when Hurricane Trump has caused international turmoil through retaliatory tariffs and an underground currency war regarding the dollar exchange rate, the once-maligned European South is on the first… shelf of …
Hybrid economic warfare: Scenarios for a massive sell-off in American assets and the “nuclear solution”
US bond yields are rising amid concerns about inflation and monetary policy, putting significant pressure on the US’s already tight fiscal position. If President Donald Trump fails to secure sufficient revenue from retaliatory tariffs and a surge in inflationary pressures is not averted, the world’s largest economy risks a sudden death. On Tuesday (22/7), US …
Markets demand fiscal discipline – US, France, Britain and Italy on the brink of the abyss
The fiscal position of many advanced economies has deteriorated dramatically, it is now a well-established picture. The nightmare of the debt crisis has shifted from peripheral economies like Greece to the major players. Recently, the spotlight has turned to the United States, where the “One, Big, Beautiful Act” has credited the White House with large …
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 …
Bond Markets: Reduce Debt and Deficits – deficits will not be financed by the markets
The Land of the Rising Sun is not generally of much interest to global investors — until something goes really wrong, when it does. Japan’s $7.8 trillion government bond market is suddenly causing major financial shocks around the world. A few days ago, Japanese government bonds (JGBs) were the usual haven of calm with ultra-low …
Nine indicators that indicate a high probability of an economic crisis in the United States
The financialization of the economy in the last quarter of the 20th century created a global “bubble” that is now bursting, starting with the United States. The 2008/2009 financial crisis in the United States and then the debt crisis in the Eurozone, with Greece as the main protagonist, were apparently only the first episodes of …
How will the “punishers” of the bond market be eliminated in 3 moves? The battle for the 10-year
Donald Trump’s retreat, as many mainstream media outlets have pointed out, was not so much driven by the bloodshed on Wall Street as by the reaction of the so-called “punishers” of the bond market (please read also the analysis titled “Tariffs and the $3 trillion held by Asian central banks that make them punishers in …