The economies of major nations are, understandably, highly dependent on energy supply. The more accessible energy resources are, the more confident the industry of export-dependent states, and the economies of large countries are highly dependent on energy supplies. Germany paid for its policy by supporting the United States in the confrontation with Russia. Access to …
Tag: recession
Light Painkiller the interest rate cut, loop the over-indebtedness
While the Federal Reserve and European Central Bank’s message on rate cuts appears clear as they reiterate their commitment to reducing inflation, the market expects between five and six rate cuts, between 125 and 150 basis points , the next twelve months. This shows us the tendency of investors to overlook bubbles. We live in …
The Governments Total War against Gold
Gold has been a reliable means of payment in cultural and religious communities for thousands of years. As early as 1200 BC, the Chinese were already using gold as a medium of exchange (Source: Anthony C. Sutton “The War on Gold”). In stark contrast to gold, Sutton illuminates the devastating effect on economies of unbacked …
Recession will solve the problem because anti-inflationary policies have reached their limits
Central banks insist they are not done raising interest rates yet, with inflation still well below the 2% target. The result is that the EKT is currently at the highest interest rates in its history and the FED is at the highest interest rates in 22 years. At the same time, various side effects of …
The Big Dilemma: Interest Rates Increases or Price Controls
The main driving force of inflation in Europe is not excessive demand, but mainly energy market problems and secondarily shortages and consequent price increases in raw materials or intermediate and final goods, due to the war in Ukraine and the Covid pandemic in China. If nominal interest rates rise do you think the problems will …
7 of the Fed’s 8 Rising Rates Periods (1955-present) ended in Recession in the US
The US Federal Reserve has already raised its lending rate by 75 basis points over the past two months. Money markets anticipate further increases of at least 200 basis points by the end of 2022. The European Central Bank (ECB) has announced the end of its government bond-buying program in the third quarter of 2022 …
What Can trigger a Prolonged Global Recession?
With Russia’s war in Ukraine a month away, Trust Economics (https://trusteconomics.eu) has its estimates for the global economy outlook this year. Within this short period of time, forecasts shifted from a limited recovery after COVID to an increasing chance of a full-blown global recession. The chances of a recession are rising, given the volatile inflation …
The “Therapeutic” Policies for the Economies of the Planet affected by the Covid-19 Pandemic
The global economic crisis caused by the Covid-19 pandemic is not simple to deal with, nor is it easy, because for the first time in peacetime both demand and supply are being affected at the same time in the affected economies». All economists worldwide are revising their estimates of the magnitude of the economic downturn …
The Threat of SARS-ConV-2 and some immediate Economic Consequences from it
On the morning of Friday, February 28, 2020, there were 2848 deaths and 83386 cases of SARS-CoV-2 (coronavirus) in 44 countries around the globe (Source: WHO, www.who.int ) due to the disease it causes called COVID-19. These numbers are increasing at an impressive speed, while the vaccine that will protect the earth’s population from the …
By what Policies will Germany overcome the impending Recession
The recent announcement to shrink 0.1% of the German economy in the second quarter of the year (Source: Eurostat, https://appsso.eurostat.ec.europa.eu/nui/show.do?dataset=naidq_10_gdp&lang=en 28/08/2019) and for the second consecutive quarter has raised concerns with German economic policy planners about what is ahead as much in the immediate as in long-term future, in tackling the recession that strikes the …