The “black hole” in the American defense economy risks swallowing the economy of the superpower, and the role of the “global policeman” is called into question… So far, the White House has justified its unwavering support for Ukraine by citing principles such as defending democracy and freedom — both in Ukraine and in the West. …
When are Real values produced vs the “Bubbles” of Casino Capitalism
In a complex juncture where few wise people “read” the real facts of economies, it is time to face structural questions: Many people believe – and on the surface they are not wrong – that a general increase in stock prices is an important factor in the strength of an economy. However, this is an …
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 …
Why does GDP growth equal population growth and productivity growth?
Even before the advent of the Covid-19 pandemic, the world had entered a strange phase, where the demographic pyramid after many generations was being reversed, as the world is getting older. The effects of this aging were first seen in Japan (the first post-development economy) and then in the E.U. and China which are the …
What does the dollarization of Argentina’s economy mean?
Argentina’s economic quagmire was the focus of the country’s November 19 presidential election. And the citizens have decided that they want… radical solutions. That’s why they nominated Javier Millay as the new president, who appeared several times with a… chainsaw. He promised to put a… “chainsaw” on public spending, in Latin America’s 3rd largest economy, …
The Defense Plans that companies will have to implement in the interest rate increases
With the… “cloud” of uncertainty over the future of interest rates looming thick, the business world is scrambling to build ramparts in order to cope with the pressure on financial costs and beyond. The messages sent by the central bankers in Europe, the UK, and the USA, with none of them categorically rejecting the possibility …
The Modern American Economic Supremacy
Cessation of interest rate increases by the central banks of America and Europe at different heights, 4% in the Eurozone and 5.25-5.50% in the US, but also, above all, in a different situation regarding the pace of economic activity. It is perhaps something that not many have commented on, although of course the conditions are …
US Treasuries are the new hot trend for the investments of the Hedge funds
For much of the past two decades, most of the U.S. government debt was stashed away in the vaults of the Federal Reserve, foreign central banks, and private banks that used it as a kind of cash reserve. At the height of the era of low cost money, the Fed was hoarding $100 billion a …
Why High Investment Grade Bonds remain the preferred choice?
Bonds and especially those characterized as high investment grade remain the preferred choice for Trust Economics. With yields trading at multi-year highs – a result of interest rate hikes by central banks – government bonds offer returns far better than any deposit account (even term deposits) while missing the risk of equity investments and commodities. …
Why is the only deposit banking product a deposit, while everything else is an investment?
Borrowing rates may be rising, but deposit rates remain at zero, frustrating depositors who see inflation erode the value of their money. The average interest rate on new loans in the Eurozone was 3.85%. In contrast, the average deposit rate was 1.15%. Any attempts by the Central Banks of the ECB in the member countries …