Tag: ECONOMY
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Federal Reserve vs. White House: The Battle Over Interest Rates
The tug-of-war between political ambition and monetary prudence is playing out in full view as President Trump and Federal Reserve Chair Jerome Powell engage in a silent standoff. At the center of this delicate balance lies the Fed’s recent decision to keep interest rates unchanged, a move that reignited tensions between the White House and…
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Powell’s Inflation Gamble: Lessons from the Transitory Narrative
The tale of the transitory inflation narrative, a modern-day economic saga that has left us all scratching our heads in bewilderment. The Fed, akin to a seasoned sailor navigating the choppy waters of the economy, suddenly found itself in the eye of a fiscal hurricane named “COVID-19 Stimulus.” Little did it know that its trusty…
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The Allure of Gold-Backed Trade Diplomacy in U.S. Economic Strategy
Picture the U.S. Treasury as a savvy Wall Street trader, playing the global market with bars of gold as its currency of choice. It’s like watching the world’s financial stage transform into a grand chessboard, with each piece made of the most precious of metals. In this thrilling narrative, the U.S. would essentially be pawning…
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Treasury Lowers Q2 2025 Borrowing But Auction Risks Linger
The U.S. Treasury has trimmed its April-to-June 2025 borrowing plan to $514 billion, about $53 billion less than projected in February. The cut is not a sign of newfound fiscal discipline but simply the result of a smaller-than-expected cash balance at the end of March—$406 billion instead of the $850 billion officials had assumed. Even…
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Revealing the Hidden: How the US is Restructuring the Global Trading System
Global trade is imbalanced: The U.S. carries an outsized burden by supporting the world economy through its reserve currency and open markets. Overvalued U.S. dollar: High global demand for dollar reserves makes U.S. exports expensive and weakens domestic manufacturing. Manufacturing decline: The current system contributed to offshoring jobs and hollowing out U.S. industrial capacity. Geopolitical…
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China Hikes Tariffs on US Goods to 125%, Hints Trade War May Be Nearing a Resolution
China announced it will raise tariffs on all US goods to 125% starting April 12, escalating its response to Washington’s earlier decision to lift tariffs on Chinese imports to 145%. The move, confirmed by the Ministry of Finance on Friday, marks a significant intensification of the trade dispute but also hints that tensions may have…
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Can China Lower Labor Costs to Offset U.S. Tariffs?
China’s manufacturing strength has long been anchored in its vast labor force, once able to provide low-cost production at massive scale. With rising U.S. tariffs raising the price of Chinese goods abroad, especially in America, it’s natural to ask: could China simply lower labor costs again to remain competitive? On the surface, the idea appears…
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France’s Growing Double Deficit in 2025: Economic Risks and Outlook
France is currently grappling with a deepening economic imbalance marked by what analysts call a “double deficit” — a simultaneous widening of the trade deficit and a persistent public spending shortfall. In February 2025, the trade deficit surged to EUR 7.9 billion, the highest since September of the previous year. This marked a sharp increase…
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U.S. Reciprocal Tariffs Are Strategic, Not Chaotic: A Bullish Opportunity
The recent U.S. announcement of reciprocal tariffs has stirred global headlines, prompting concerns of a trade war revival. But look closer, and it’s evident this isn’t about chaos—it’s calculated. The markets, bond yields, and macro data all point in one direction: this is a tactical move designed to pressure the Federal Reserve to cut rates,…
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Danantara: Indonesia’s Bold Bet on Economic Transformation
Indonesia has taken a bold step toward economic transformation with the launch of Danantara, its newly established sovereign wealth fund. Spearheaded by President Prabowo Subianto, Danantara seeks to catapult the nation toward an ambitious 8% annual economic growth target by 2029. At the core of its strategy is the consolidation of all state-owned enterprise (SOE)…