It recently became known that the American authorities are preparing a proposal that will push American banks to use the “loophole” of the Federal Reserve Bank of the USA (Federal Reserve, FED) in the event of a new crisis. For whom does the bell toll? It is clear that the FED wants to take its …
The price of diamonds is falling, while gold remains a classic value
Both gold and diamonds are characterized by their beauty but also by their expensive cost. But beyond these common elements, for some there is a third that connects them. The fact is that many investors are now turning to diamonds. While gold has emerged throughout human history as a precious metal and currency, the emergence …
Interest rate cuts will send Corporate debt into “junk” bonds
The announced interest rate cuts by the Federal Reserve will lead to lower yields on junk bonds. In other words, for a company with a very low credit rating, it will lead its debt to the category of “junk” bonds. The question is whether investors will be willing to take on the greater risk of …
The ECB’s high interest rates will “test” the Economies of the Southern Eurozone member countries
Although interest rate hikes appear to be peaking in the EU, the southern member states of the Eurozone should expect a lot of pain in the coming years. More specifically, last year’s ECB interest rate hikes are expected to have a greater impact on southern than northern eurozone countries in 2024. And given that asset …
How the growing budget deficit is destroying the US economy?
A cursory look at the US economic growth data shows that they continue to defy expectations of a slowdown and recession due to continued increases in deficit-increasing government spending. In fact, the U.S. Treasury recently announced the December budget deficit, which shows that the U.S. collected $429 billion through various taxes, while total federal budget …
The Digital nature of Cryptocurrencies, fundamentals and new money
Bitcoin’s true value is digital, it is a level of digital reality, and it is more valuable than what we might conventionally call its “current price.” Bitcoin is built like TCP/IP, the two protocols that underpin the operation of the internet. Without protocols, there would be no digital revolution and our entire lives would be …
Why will the amounts invested in infrastructure increase exponentially?
Over the past decade, assets under management in infrastructure funds have nearly quintupled to $1.3 trillion. Pension funds and sovereign wealth managers have been lured by the sector’s returns, which are handsome and relatively stable. Some of the biggest funds now invest directly in these boring assets. The infrastructure-investment sector The infrastructure-investment industry took shape …
A new Trump Presidency will herald the end of HyperGlobalization
The prospects of the most integrated economy in the world, namely the USA, should be examined from the side of the forces that affect it. The most fundamental of these forces have to do with changes brought about by economic opportunities, for example reductions in transport and communication costs, changes in comparative advantages, opportunities to …
The US Debt exceeded $34 trillion – The options to correct the situation
The outstanding financial obligations of the US federal government exceeded 34 trillion dollars, about 123% of the country’s gross domestic product (GDP), which is a historical record. So, investors around the world are rightly wondering if the scenario is gathering chances for a new financial crisis to break out. In more detail, the federal government’s …
FED reopens liquidity floodgates with new QE in April 2024 – creates problem for dollar
On December 13, the financial world was stunned when, just two weeks after Jerome Powell said it was “premature” to make assumptions about interest rate cuts, the Federal Reserve made a shocking U-turn, heralding the end of monetary tightening – even though inflation is at levels twice the 2% target. The Federal Reserve’s 180-degree U-turn …