The picture in Japan’s debt markets is beginning to resemble a slow but persistent phase shift into a system that for decades operated with artificial stability. From the savior of the monetary system, during the Nixon shock with the largest monetary deal in history, it is now expected to become the culprit of a leveraged …
Tag: USA
Trump tariffs cost US households and businesses $100 billion a year
The new tariffs imposed by the administration of US President Donald Trump are expected to cost American consumers and businesses more than $100 billion annually, according to new economic estimates, as Washington escalates its protectionist trade policy again. The new tariff policy is being implemented at a time when international markets are already being tested …
The Global financial system is fragmenting into regional and national systems, hitting Visa and MasterCard
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 …
How will the “weaponization” of oil used by Iran stop affecting the global economy?
The global economy is now walking a tightrope, poised to sink into a nightmarish stagflationary universe. The “weapon” of oil, which historically has brought down empires, is being put to use again after the outbreak of war in the Strait of Hormuz. There has been no substantive agreement to reopen the Strait of Hormuz, as …
China is gradually abandoning American debt, fearing a collapse of the US economy
For the first time since the end of World War II, the dollar is no longer seen as the sole and undisputed foundation of the international economy. It is not yet a collapse. But it is a gradual erosion of confidence that is spreading from the world’s largest economies to the central banks of emerging …
Inflationary pressures & Εconomic turmoil from the Persian Gulf are fueling a global power realignment towards China-Russia
Approximately, 20 million barrels of oil and condensate pass through the Strait of Hormuz every day, an amount that corresponds to almost 20% of global consumption. At the same time, approximately 25%-30% of the world’s liquefied natural gas (LNG) trade is transported through the same sea route, making the region the most important energy hub …
The world is moving from a regime of deflationary globalization to a regime of geopolitical inflation
Investors around the world continue to act as if the AI boom is more important than the bond market. And they are giving US President Donald Trump the opportunity to counter the high gas prices with record performance on Wall Street – where the richest 10% of households own 90% of the stock market. The …
Risk of hyperinflation in the US – The Persian Gulf Kingdoms will not buy surplus dollars, but yuan
Geopolitical developments affect the global economy in real time and the US no longer has the power to deal with the consequences of the crises it causes. We are already in a new era and the war with Iran is probably the last one that America makes as a superpower. Although the stock market has …
The oil shock brings Central Banks into conflict with Governments
Risks to global inflation remain strongly on the upside, as the oil price shock may have longer-lasting and more persistent knock-on effects than initially expected, according to new analysis by Trust Economics. The report’s key finding is that the deflation of inflation in the coming years may prove much slower, particularly in advanced economies and …
The FED’s $ liquidity swap line to the Gulf countries is to obey the $, so that they do not head towards the CN¥
-The White House narrative is simple: The war with Iran has shattered the Persian Gulf economy, and the US is offering its allies a lifeline. -The mainstream media narrative: -The real question: who gets access to the Fed’s balance sheet — and on what political terms. Mainstream media coverage points vaguely toward the instability of …