The outstanding financial obligations of the US federal government exceeded 34 trillion dollars, about 123% of the country’s gross domestic product (GDP), which is a historical record. So, investors around the world are rightly wondering if the scenario is gathering chances for a new financial crisis to break out. In more detail, the federal government’s …
Tag: USA
FED reopens liquidity floodgates with new QE in April 2024 – creates problem for dollar
On December 13, the financial world was stunned when, just two weeks after Jerome Powell said it was “premature” to make assumptions about interest rate cuts, the Federal Reserve made a shocking U-turn, heralding the end of monetary tightening – even though inflation is at levels twice the 2% target. The Federal Reserve’s 180-degree U-turn …
The chances of the Global Financial System collapsing
“There is no way to avoid the collapse of a system that has expanded more than it was allowed to because of manorial credit expansion” Ludwig von Mises. History shows us that we have reached our limits. History never lies, but politicians do. In a system that has expanded more than it was allowed to …
The battle with inflation and recession is becoming increasingly difficult
The entire financial press’ narrative of a “soft landing” of the economy – US and global – and avoidance of recession is fostered through the “uses” of the FED and ECB, with the former fueling investor expectations for aggressive rate cuts in time that has simply put a “brake” on their rise. What they cannot …
How did the FED destabilize the world economy, enrich the elites, crush the middle class?
The abundant but declining currency printed by Central Banks around the world, starting with the 2020 pandemic crisis, has fed the monster of inflation, which threatens to choke economies and the world. The tightening of credit conditions in an environment of geopolitical tensions has not yet led the economies to recession but has changed the …
The number of countries replacing the dollar in their international transactions is increasing rapidly
De-dollarization is a historical process that seeks to end US hegemony in global trade and financial transactions by shifting to alternative methods of transactions, such as national currencies and regional payment systems. 1/3 of UN member states have already opted for de-dollarization and decided to rely on national currencies to make payments. Representatives of at …
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 …
The Challenges that the US Economy will face in 2024
US economic data show fiscal derailment as debt servicing costs rise, which will cast doubt on US geopolitical commitments to Ukraine and Israel, but also set the stage for tax hikes and deflation pressure on stock prices. This highlights that in 2024 the focus will not be on the question of rising interest rates – …
How healthy is the Global Banking “system”?
Markets are still digesting the fallout from the failure of Silicon Valley Bank, the second largest bank failure in US history and the biggest collapse since the 2008 financial crisis, which was quickly followed by the collapse of New York’s Signature Bank, when suddenly what seemed to be just a problem of mid-sized American banks …
FED: Vicious economic cycle with interest rate hikes leads to a crisis-crash like 1930s
The Fed’s “medicine” of lowering interest rates appears to be killing the sick American economy. The credit crunch due to unprecedented tight monetary policy has led to a surge in bankruptcy filings, portending a vicious recession and soaring unemployment. The flow of money supply (the dollars the Fed prints) fell again in October, remaining deep …