I would like to make updates on the world economic situation for all my readers.
I haven’t written for some time because my work takes so much energy away from me and when I’m in front of a computer to write on this blog I would like to be as lucid as possible.
The world economic situation as I had already predicted 2 years ago in unsuspected times (to clarify without coronavirus and Russia/Ukraine war) would worsen.
Central banks are raising interest rates to “try” to control inflation that seems out of control, but are we sure that it is the solution?
I claim that I do not believe in Central Bank solution because it will lead to a strong stagflation (lack of growth in the market and simultaneously price increase), central bankers in 2021 have minimized the phenomenon of inflation thinking that it was only passing through while 12 months later (inflation) becomes public enemy number 1.
How did we get into this situation?
The most obvious answer may be war and the coronavirus, but is the situation really as they make us believe?
Almost all economists would say without a second thought that the problems are those two mentioned above but I do not think that in 1 year and a half the economy is turned upside down in this way.
Those who have been reading me for some time will know that I like to analyze situations from different angles, I do not stop at what the newspapers or TV say also because very often there is another truth that is hidden because “someone” has economic interests.
Who could have economic and political interests in this whole situation from Covid and the Russia/Ukraine conflict?
Where did the virus start? From China.
Who is the assailant country of Ukraine? La Russia.
China and Russia are coincidentally allies and who knows why they are the number one enemies of that country?
If I’m not so stupid I would say Usa.
This question goes beyond everything, will they all be random?
This combination of economic and political events is favoring the United States, however, it is true that these things are not said, but the numbers say that job market in United States is growing as well as the wages of workers.
US in recent years has remained in second place behind China and these two events such as virus and war have favored dialogues and alliances like many countries in Asia against China.
I have heard about globalization at an economic level, until a while ago the world governments with their corporations were in favor of the exploitation of cheap labor, but now to make up for the “supply chain” they want to bring industrial production back to Europe and the USA?
Where has the “word coherence” gone? First governments enlarge the big companies that to increase their profits relocate production to Asia while now that a country like China is a threat you want to create damage to production to return to producing the “Made in”?
If there is a return of production in Europe and United States, surely our economies will have benefits, but how much will the costs impact on the final price to consumers?
Will wages be able to rise to allow citizens to live in dignity or will it be a market for the “few”?
Financial markets have been correcting for many sessions, cryptocurrencies from miraculous assets sinking, do you think there is a correlation?
Didn’t many economics professors say that cryptocurrencies like Bitcoin were parachutes in case of financial storms?
Now we find out that it is all speculation as I said 2 years ago?
They make me angry when the media inflates asset classes knowing it’s all rubbish, people instead of using their brains think they have easy earnings from these free platforms while those like me spend a lot of money on a Bloomberg terminal.
Will there be a difference or not? Do you want to understand that in the world those who dictate the rules are those who move billions or not?
Have you understood that central bankers are puppets in the hands of others?
Since a person is aware of this total social, economic and political manipulation perhaps you will have another approach in your life and on financial markets.