Tag: ECONOMY
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US Energy: Direct Financial Commitment to Rare Earths Intensifies
The United States is going all in on rare earths. After years of dependence on Chinese supplies, Washington is now pouring billions into domestic mines and refineries, transforming policy into practice. What began as a strategic goal is quickly becoming industrial reality in the Nevada desert, where new extraction sites mark the dawn of America’s…
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The Nikkei’s Powerful Surge Under Sanae Takaichi: Japan’s Market Awakens
The Nikkei’s latest surge feels almost human—a release, a sigh of relief after years of restraint. As Sanae Takaichi takes the political stage, the “Iron Lady” of Japan sends ripples through Tokyo’s markets. Her presence alone signals a return to decisive leadership and a revival of Japan’s economic confidence. Traders react instantly, screens glow green,…
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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…