2024 was the year in which the huge US budget deficit was supposed to have gradually leveled off after two years of crisis. The US was supposed to end the spending spree. All this, on a theoretical level. As of August, the US deficit has exceeded that of 2023. What does the evidence say?
Tag: USA
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 …
Kamala Harris’ $2.25 tril. “Money Tree”, and Economic Populism
The socialist recipe for economic failure: Price controls, higher taxes, government intervention and subsidies paid for by printing an ever-depreciating currency. These are the main pillars of “21st century socialism” and the radical leftist Peronism that destroyed Argentina. These are also the key elements of the economic plan presented by Kamala Harris and the Democratic …
China is already 33% larger than the US in terms of GDP (including shadow economy), while India is also threatening
China’s GDP is already significantly larger than the US economy, contrary to official figures given by governments or organizations such as the World Bank and the International Monetary Fund (IMF), which do not include important parameters such as the “black economy” or the measurement of GDP in purchasing power parity terms. Translating the following into …
China’s Central Bank (POBC) can cause Global hyperinflation
With all the economic news focus on the Federa Reserve and the Bank of Japan, it’s easy to miss where the most important monetary decisions will take place this year: It’s Beijing. Certainly, Fed Chairman Jerome Powell said on Wednesday July 31 that important decisions are coming. A rate cut in September is “on the …
US vs. China: Bitcoin will become the new global reserve currency
In an era characterized by global economic instability and high political uncertainty, the idea of a new world order in the financial sector is gaining more and more ground. Now, there are questions about how this new world order will take shape. The dollar has long held this position, but its reign is increasingly being …
A move away from the dollar could hurt the Εconomies of Russia, China and India
Despite the ongoing movement, the dominance of the dollar is unlikely to disappear easily and quickly, given how pervasive the dollar is in financial markets. De-dollarization cannot happen at a rapid pace because the infrastructure required to make it happen is extremely daunting because all governments and countries will have to change the way they …
Why does the imposition of tariffs create few jobs in the countries that impose them?
The US presidential contenders seem to agree on one thing: Both Donald Trump and Joe Biden have imposed high tariffs on imported goods made in China and other countries. These kinds of protectionist policies are a departure from the policies of the previous half century that favored “free trade” (less or minimal government intervention in …
The REPO Act poses a problem to US Geopolitical Hegemony
In the wake of Russia’s military operation in Ukraine in 2022, the US government launched its most aggressive sanctions campaign ever. The US government and its allies have frozen about $300 billion of the Russian central bank’s accumulated foreign reserves. It was a stunning display of the political risk associated with the dollar and US …
ECB: Inverted Bond yield curve warns of coming pain and 2008-style recession
The possibility of a major financial crisis, similar to the one that occurred when Lehman Brothers went bankrupt in 2008, is increasing day by day. An important indicator in this regard is the inverted yield curve of US bonds, which is historically associated with recessions. As an example, it is worth noting that from the …