The “black hole” in the American defense economy risks swallowing the economy of the superpower, and the role of the “global policeman” is called into question… So far, the White House has justified its unwavering support for Ukraine by citing principles such as defending democracy and freedom — both in Ukraine and in the West. …
Tag: public debt
What does the dollarization of Argentina’s economy mean?
Argentina’s economic quagmire was the focus of the country’s November 19 presidential election. And the citizens have decided that they want… radical solutions. That’s why they nominated Javier Millay as the new president, who appeared several times with a… chainsaw. He promised to put a… “chainsaw” on public spending, in Latin America’s 3rd largest economy, …
The way of estimating the Nominal value of Public Sector Expenditures
A few days ago, the IMF published a study on the impact of inflation on public finances (“The Effects of Inflation on Public Finances“, May 5, 2023). The Study is based on the data of the member countries of the Fund from 1962 to the present day and comes to two interesting findings: 1. Regarding …
Greece Returns Rapidly to the Era of Financial Support Packages
Greece, a member-country of the Eurozone/EU with 388 billion euros in public debt and a deindustrialized economy, is in danger of paying dearly for the EU sanctions imposed on Russia. The debt of the General Government of Greece, despite being sustainable in the medium term, despite being supported by the ECB and despite the fact …
The South Eurozone on the red line due to the Explosion of Borrowing Costs
Due to rising global and mainly European inflation, interest rates are generally rising as central banks fight inflation and this is certainly not a time when investors want to increase their exposure to government bonds. Trust Economics points out that Greece’s public debt (Eurozone / EU country) remains viable despite rising borrowing costs and estimates …
Inflation Losses
Citizens of both the US and the EU have learned to live, in recent months, with the resurgence of the phenomenon of inflation that has re-emerged sharply since it was last recorded in early 2011. Adapting to the new reality should be done immediately, as the impact on disposable income is already here as well …
When Real Interest Rates Are Lower Than Growth Rates Help Reduce Public Debt
After the end of World War II, short-term interest rates in the US were less than 1%, while T-Bond bonds with 10-year maturity yielded about 2% (https://www.govinfo.gov/content/pkg/ERP-2012/pdf/ERP-2012-table73.pdf) with the US Federal Reserve, the Fed directly purchases Federal Government bonds from the US Treasury Department. At that time (1946) the US national debt reached 119% of …
The Eurozone/EU Economy for the forthcoming Decade (2021-2030)
The Eurozone & EU economy equally is expected to start recovering by the end of Q3 2021. But until then the economies of the euro area member countries will be characterized by high budget deficits in their annual government budgets, by high public debts (in some euro area member countries general government debt will exceed …
The Eurozone/EU Economy for the Next Decade (2021-2030)
The Eurozone & EU economy equally is expected to start recovering by the end of Q3 2021. But until then the economies of the euro area member countries will be characterized by high budget deficits in their annual government budgets, by high public debts (in some euro area member countries general government debt will exceed …
The Causes of Stock Market Collapse and Safe Future Investment Refuges
Earlier this week the revelations of the International Consortium of Investigative Journalists and in collaboration with Buzzfeed on the content of Fin Cen files and always on the laundering of astronomical amounts for more than twenty years by the largest banks in the world gave the “charismatic shot” to stock market indices that over the …