In a speech in July, Harvard University professor Gregory Mankiw laid out with brutal honesty what needs to happen to end the unsustainable accumulation of debt in the United States. The options are five: Logic dictates that some combination of these will be inevitable. These potential solutions are common throughout the developed world. Through a …
Tag: USA
The subprime monster returns: The American economy is cracking, a new bomb explodes
In a stark warning to markets, Trust Economics warns that a subprime crisis — especially among the lower-income classes in the US — is brewing beneath the surface of a seemingly stable economy and market euphoria. Trust Economics Chief Economist Thanos Chonthrogiannis points out that these cracks in the credit system are significant, but not …
US: Middle class will disappear – Warning of Subprime 2.0 crash
The U.S. economy appears to be sailing on calm waters, with low unemployment and stable markets, but the apparent stability hides a dangerous truth. Beneath the surface, the middle class is facing intense pressure, savings are shrinking, and households are increasingly dependent on payday loans and other forms of high-cost financing. The signs are worrying: …
Massive collapse due to public debt crisis: G5 of G7 could collapse
Some of the world’s largest economies are at the center of a bond market storm, as investor concerns grow that governments are making the necessary reforms to reduce uncomfortably high levels of debt. And how could they, after all, as growing social inequalities and the emergence of other major problems such as immigration lead electorates …
The Americans who changed the course of US Capitalism (extremely aggressive)
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) …
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 …