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: USA
US: Strategic advantage in negotiations is shrinking
US President Donald Trump’s “reciprocal” tariffs amount to a unilateral, self-defeating, and completely unjustified challenge to the international order—a challenge without any economic justification. As Willem H. Buiter demonstrated in 1981, the kinds of trade imbalances that Trump blindly condemns are a useful mechanism that allows economies with different time preferences to benefit from trade …
Why are US stocks living in an alternate reality?
Stocks seem to be moving in an alternate reality: while indices are hitting historic highs and the market is in a bullish recovery, the underlying economic fundamentals and the real economy don’t seem to fully support this. So what are the forces and factors that explain this “unexplained” rise? From monetary policy easing to investor …
The mother of crises comes… from the USA – The graph of terror
The global economy is one step away from a serious crisis, which will start again in the United States but this time will concern the country’s excessive public debt, warns Trust Economics in a report. The American economy is facing a significant turning point, which does not just concern interest rates or debt, but the …
Stephen Miran: Trump’s man who will rewrite the rules and end the FED’s independence
Generally speaking, the Fed’s independence is widely understood and supported in principle in Washington, in Congress, where it really matters. The point is that decisions should be made based on the best analysis of the data, on how to achieve its dual goal of price stability and employment, as best it can, for the benefit …
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 …
Mammoth Debt $36.2 Trillion – Unbridled Deficits and the Triffin Dilemma
The US public debt has exceeded $36.2 trillion or 35% of global GDP, which is estimated at just over $100 trillion – while the budget deficit that will be added to the debt is predicted by the CRFB to be $22.7 trillion by 2035. The number one problem of the US, however, is its current …
The dollar as a reserve currency is killing the US economy
The advantage of the US having the dollar as the world’s reserve currency is that it creates demand for dollars. Countries accumulate dollars and tend to invest them in US bonds, keeping US borrowing costs low. The curse, especially since Nixon ended the convertibility of the dollar into gold (1971), is that there is no …
The Shanghai Composite Index (SCI) closed at 3,728 points – a global signal that the rules of global trade are being rewritten
President Donald Trump’s trade war with retaliatory tariffs is accelerating Beijing’s trade and investment push toward developing countries, known as the Global South, according to Trust Economics, potentially creating a new trade order dominated by Chinese companies. China’s exports of goods have doubled over the past decade to countries mainly in Southeast Asia, Latin America …
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). …