According to the IMF, global fiscal support in response to the crisis will be more than 9 trillion US dollars, approximately 12% of world GDP. This premature, clearly rushed, probably excessive, and often misguided chain of so-called stimulus plans will distort public finances in a way in which we have not seen since World War II. The enormous increase in public spending and the fall in output will lead to a global government debt figure close to 105% of GDP.
Continue reading The World Is Drowning In DebtCategory Archives: Sin categoría
Spain’s Economic Freedom Improves—But Post-COVID Risks Are Enormous (Heritage Foundation)
THIS REPORT WAS PUBLISHED BY THE HERITAGE FOUNDATION HERE.
The Spanish economy is under serious threat. The Sánchez Administration is using the excuse of a serious health crisis to enact policies that undermine investor and business security and restrict personal and economic freedom. Such interventionism will trap the economy by increasing fiscal imbalances—Spain’s historical mistake—and put the country on a destructive track that will erode freedom and result in excessive spending, more debt, and rigidity. The long-term social and economic consequences of these mistakes can be enormous. Instead, the government should implement serious measures to enhance economic freedom and allow a strong recovery soon.
Continue reading Spain’s Economic Freedom Improves—But Post-COVID Risks Are Enormous (Heritage Foundation)Debunking The Myth Of “Gold-Backed” Currencies
Many countries claim they have “gold-backed” currencies, in an effort to try to provide security and investor confidence. However, the reality is that none of the world’s fiat currencies is even remotely gold-backed and even less so the Chinese yuan.
Continue reading Debunking The Myth Of “Gold-Backed” CurrenciesA Bounce Is Not A Recovery
The recent improvement in global PMIs and especially in employment in the United States have created a strong optimism in markets about the recovery. However, it is important to be cautious about a V-shaped recovery when the leading indicators remain weak.
Continue reading A Bounce Is Not A Recovery