The IMF estimates for 2026 show no signs of recession. However, the global economy remains in a period of poor growth, high debt, persistent inflation and low productivity.

There may not be a recession, but citizens feel poorer as net real wages decline in most economies, remaining below pre-pandemic levels. Why? Because in most developed economies, GDP growth is bloated by government spending, which means high debt, followed by rising taxes that hurt investment and productivity.

The IMF has had to revise its United States estimates to more than double what they expected in early 2025, while Argentina clearly outperforms both the global and regional averages.

Global GDP growth is projected at 3.3% in 2026 and 3.2% in 2027, slightly above the October 2025 projections and broadly in line with 2025 levels.

The markets have been rocked by news of a possible intervention to control the Japanese yen slump, after it reached a forty-year low relative to the US dollar. Fixing the yen and any other fiat currency is simple: Implement an Austrian approach; eliminate constant deficit spending and monetization of government outlays; and implement clear, sound money policies that support the purchasing power of the currency. Letting rates float and having zero deficit would help. However, no government seems to want to control spending and eliminate constant artificial currency creation, even knowing that, by doing so, they would limit the risk of financial crises, excessive risk-taking, and erosion of citizens’ wage purchasing power.

The best a citizen can expect today is a mild form of Keynesianism that aims for lower taxes, relatively lower spending, and a constant expansion of money supply as the driver of economic growth. Even this “lesser evil” approach ends with malinvestment, financial crises, and more politicians demanding “public investment” as the solution.

Article published by Tomorrow’s Affairs.

The increase in the global geopolitical risk index has not affected global markets. The general tone remains bullish despite a surprising “neutral” view shown in CNN’s Fear and Greed Index.

The reality is completely different. Investors may say they are neutral given the elevated valuations and the global uncertainty, but most asset managers’ positioning is exceedingly bullish and concentrated on very cyclical sectors like banks and technology.

The main reason for this striking contrast between explicit concerns and positioning is a clear consensus of central bank easing as the norm. Global money supply is expected to grow much faster than nominal GDP in 2026, what I call the monetary tsunami.

Despite the consensus narrative, what we are currently experiencing globally is not “de‑dollarization,” but a broad loss of confidence in developed economies’ fiat currencies and sovereign debt as a reserve asset for central banks and institutions. This fundamental loss of confidence in the solvency of developed economies’ sovereign issuers is boosting demand for gold. However, the latest data shows no crossover or fiat alternative substitution. The US dollar’s central role in the fiat system remains intact.