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 …
Tag: USA
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). …
Gold is one of the best investments ever
It’s time to talk about gold as an investment. The precious metal has been in the headlines recently as its price has skyrocketed from $2,300 per ounce to around $3,500 per ounce. The chart is quite impressive, as the price of gold has been rising almost every month for over a year. “So what?” …
Wind turbine giant Siemens-Gamesa is in financial trouble
The dream of green energy from the air, with the installation of offshore wind farms, is proving to be a dream-nightmare at an increasing rate, both for the states that see themselves confronted with new problems from their installation, but also for the companies themselves that from promising start-ups are transformed into seriously ailing businesses …
Real estate crisis in the US and China creates panic in the global economy
The countdown to the global economy has begun, with the two largest real estate markets on the planet, China and the United States, cracking at the seams and bringing about a new 2008-style financial crisis. We are no longer talking about just a “bubble” that is ready to burst, but about a systemic disintegration. In …