The story of American capitalism may have begun with the Founding Fathers, but much of the plot was written in the years that followed. Countless people have played a role in transforming the U.S. economic system, capitalism, into what it is today. The Trust Economics has highlighted some of these influential figures. Robert Morris (financier) …
Tag: trade
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 …
Currency War III – After tariffs, the FED is occupied with… General Miran to save the dollar
The trade war is just one phase of a broader currency war that has been going on for less than 20 years. Last week, President Donald Trump made a significant move. He appointed Stephen Miran, head of the White House Council of Economic Advisers, to a position on the Board of the Federal Reserve (Fed). …
China: Asks the US for a “soft” dollar exchange rate in return
The real cause of the US-China trade war is the dollar. Namely, the dollar/renminbi exchange rate. This may seem paradoxical as tariffs have skyrocketed to levels unthinkable in the recent past and the free trade agreement on both sides of the US-China trade war. What needs to be considered is a high-stakes macroeconomic agreement between …
How is one global reserve currency replaced by another?
Over the past century, monetary systems have changed about every 30-40 years on average, according to the evidence of monetary history. Today, the existing monetary system is over 50 years old, so its transformation is long overdue. There are persistent attempts by different states to dethrone the US dollar as the world’s leading reserve currency …
Currency War Intensifies – The Cheap Yuan and Why Secondary Sanctions Scared China
The battle that will not decide the outcome of the currency war – Why did China’s banks comply with the sanctions? With the threat of secondary sanctions keenly felt by Chinese banks, Washington appears to be temporarily winning a battle – but in an economic war it is decisively losing. The resilience of the Russian …
China: The Strategic Moves, Trade and Sanctions It Prepares for Currency War Against the Dollar
Financial security has become an integral part of China’s national security strategy since the Asian financial crisis of 1997 – when the so-called Asian Tigers collapsed. Rising geopolitical tensions with the US and the West in general since 2018 and Western economic sanctions against Russia have further prompted Chinese policymakers to strengthen the economy’s financial …
China cancels US tariffs by devaluing the yuan
China is actively promoting its plan for de-dollarization, promoting the yuan as the dominant currency in world trade, effectively challenging the long-standing dominance of the US dollar. China is trying to promote the yuan as a medium of international trade, implementing the basic principle of de-dollarization – reducing dependence on the dollar. China once relied …
How is China taught to discard Western sanctions?
Russia’s success in dealing with Western sanctions through de-dollarization and supporting trading partners in Asia may be a valuable lesson for China as pressure to “de-risk” (the policy of the West to diversify supply chains so that it is not dependent on Chinese exports that shaped the so-called trend of de-globalization). Russia has provided many …