The global financial system is gradually preparing for an earthquake of historic proportions which this time will not be caused by an internal crisis – like in 2008/2009 – but its cause is related to the significant shifts in the geopolitical power balances with the end of globalization under American hegemony. This is not something …
Tag: USA
The “bubble” of the Global Public Debt of 313 trillion dollar will cause an Economic shock
The skyrocketing global debt has become the main problem for the global economy – even if this is being hidden for obvious reasons by the global political elite and the systemic media. Public deficits for anyone with even the slightest understanding of the workings of the economy can neither act as reserves for the private …
The scenario that led to a bullish rally in Gold and Bitcoin
Investors, watching dark clouds loom over the global economy due to ongoing geopolitical upheavals, are hedging: Gold continued to break record prices on Friday, March 8, trading at $2,183 an ounce, and this was accompanied by from a more dramatic Bitcoin rally. Gold outperformed Bitcoin in 2020 and 2021, during the Covid crisis. This time …
FED – ECB: Inflationary landmine with interest rate cuts – Trump victory in the US is the key scenario
The Bureau of Labor Statistics (BLS) argued that a pick-up in rent inflation—the index rose unexpectedly sharply in January’s CPI—was due to a shift in the data series that could either mean that the change was a structural shift in values or indeed an error which could be fixed at a later stage. Conclusion; No …
The state of the American economy creates problems for the dollar
The dollar’s dominance as a reserve currency is not immediately in question – while the most formidable threat to its status as the world’s leading reserve currency is actually the US economy itself. The dollar is the most widely used currency in the world both in trade and in central bank reserves — and will …
Currency and Debt markets indicate US will increase number of Wars and Dollar Depreciation
The US national debt, which is over 120% of GDP, is a mathematical deterrent to real, not debt-based, growth. Debt-based “growth” is not real growth, but more debt. The war on inflation, which FED Chairman Powell famously described as temporary, is not only far from over, but the worst wounds (ie the pains of inflation) …
New York Community Bank sparks another round of bank failures
The US banking system is reeling as the commercial real estate market may turn out to be as toxic as the subprime mortgages that led to the 2008/2009 crisis. At the same time, approximately 1 trillion dollars are the loans that the official banking sector has granted to the shadow financial system – how much …
Towards a new permanent banking crisis, the “bubble” in commercial real estate is bursting
What the chairman of the Federal Reserve, Jerome Powell, said on Wednesday, January 31, 2024, after the two-day meeting of American policy makers, contained nothing comforting. Notably, he did not cut interest rates, or announce cuts and monetary easing next March – as the market predicted. As a result, markets skidded, the dollar rallied and …
How the growing budget deficit is destroying the US economy?
A cursory look at the US economic growth data shows that they continue to defy expectations of a slowdown and recession due to continued increases in deficit-increasing government spending. In fact, the U.S. Treasury recently announced the December budget deficit, which shows that the U.S. collected $429 billion through various taxes, while total federal budget …
A new Trump Presidency will herald the end of HyperGlobalization
The prospects of the most integrated economy in the world, namely the USA, should be examined from the side of the forces that affect it. The most fundamental of these forces have to do with changes brought about by economic opportunities, for example reductions in transport and communication costs, changes in comparative advantages, opportunities to …