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 …
$45 trillion investment storm in the Global South from the BRICS
BRICS member states have reached a combined investment potential of $45 trillion – shifting the balance of power in the global economy by bringing the Global South to the fore. After the official enlargement of the bloc at the beginning of 2024, the alliance acquires the guarantees to become an economic superpower directly threatening the …
Russia’s economy suffered $211 billion in war with Ukraine, but hold on
Russia in the context of the military operation in Ukraine seems to be winning a no less relentless economic war. The unprecedented waves of sanctions were aimed at crippling Russia’s economy and eroding its military capability by shutting it out of the international banking and banking system (SWIFT). Russia, for its part, used this attack …
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 …
Risk for Lehman Brothers No. 2 and Recession like 2008
Opinions are being strengthened that maintained that the banking crisis in the US may not be over and that there is a risk of a new Lehman Brothers-style shock due to the purchase of commercial real estate. In this context, the share of the American bank New York Community Bancorp (NYCB), which is at its …
FED: Prepares permanent mechanism for bailing out troubled banks
The US banking system is at risk of collapse, according to the indications we have based on the movements of the federal authority, the Federal Reserve, in order to force US banks to use the so-called discount window on their funds in order to prepare for future banking crises – which are certain to occur. …
Debt repayment in 100 countries requires a reduction in spending on social infrastructure
The world is going to experience a debt crisis that will last for the next 10 years and it is not going to end well, as global debt has reached a record 307.4 trillion. dollars last September. Both high-income countries and emerging markets have seen a significant increase in their debt, which has increased by …
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 …
The cost of resurgent inflation is high
Societies around the world as well as the economic staffs of governments must be prepared for the possibility of revivals on the inflation front. Inflation, after reaching its highest level in decades in mid-2022, in the United States and the euro zone, fell sharply in the second half of last year. But in December, the …