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Wednesday, 19 December 21:24 (GMT -05:00)



Business And Politics News

The Era of Cheap Money from Central Banks is Over


According to two major investment banks – Citigroup and JPMorgan, the days of cheap money and low interest rates are nearly gone after almost 10 years since the last global crisis. They warn us that major central banks around the globe (including the ECB, for example) are going to start toughening their monetary policies in 2018 at the fastest pace in 12 years.
 
The thing is, the global economy has been growing faster than ever since 2011. This is expected to make the central banks raise the key interest rates by at least 1%, which is something we haven’t seen since 2006. That said, in 2018 we are going to see true monetary toughening, Citigroup experts are convinced.
 
Citigroup expects the Federal Reserve to raise the rates at least 3 times throughout 2018. All in all, they expect the Fed’s rates to be increased by at least 2 percent points, which is something we haven’t seen since 2008. At the same time, the central banks of Great Britain, Australia, New Zealand, Sweden , and Norway are expected to rise their rates by at least 1 percent point. All in all, the central banks from developed economics are expected to raise the rates by 0.4-1 percent point on average.

JPMorgan goes beyond those predictions. They expect the Fed's rates to be raised at least 4 times in 2018 – 1,2 percent points in total. The last time the rates grew that fast in 2006 before the global crisis.

At the same time, the name a few price bubbles that are going to hit the global financial market in 2018. One of them is Bitcoin, the world’s first and most expensive cryptocurrency that has already grown by 1800% this year.

Other experts say that it's the U.S. stock market that’s going to be the reason for the expected interest rate hikes in 2018. The thing is, the market cap has increased by 1600% over the last 9 years. Also, there is a group of experts who put the blame on the credit boom in China while the Chinese public debt is 3 times as high as the Chinese GDP.
 

 

Since the 2008-2009 financial crisis, all the central banks altogether have cut their interest rates more than 700 times and has pumped into the global economy over 16 trillion dollars.

 

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USA Strikes Iran Again

As you probably know, a couple of weeks ago, the United States imposed a new round of sanctions on Iran. International experts say that the package includes 700 new points, including an embargo on the import of crude oil from Iran. It's interesting to note that the sanctions will touch upon some other states as well. Some temporary exception are said to have been maid for 8 partners of the USA.
Publication date: 29 November 12:04 PM

Trump Offers Putin to Compete for Multi-Polar World, Eggert Says

According to Konstantin Eggert, a Russian journalist writing for Deutsche Welle, Donald Trump is offering his Vladimir Putin to compete for a multi-polar world, but on American terms. In particular, he highlights the fact that many international experts started panicking when finding out that the USA had withdrawn from the missile control treaty with Russia. They say that this is the end of the strategic partnership between the United States ans Russia and the disruption of the nuclear arms control system created decades ago.

Publication date: 29 November 11:07 AM

The world is on the verge of another global race

International experts are commenting on the events taking place over the last few years. In particular, President and CEO of Atlantic Council Frederik Kempe believes that we are nearing another race between the world's biggest superpowers.
Publication date: 07 November 09:02 AM

Trump Wants More Control Over the Fed Since It's Too Independent

Donald Trump seems to have confirmed his authoritarian style of governing the state. If he has his way, he would probably turn himself into a king instead of a president. What are the reasons to think this way about the American president?

Publication date: 31 October 11:46 AM

Google Introduces Home Hub for $149

Google Corporation has released a couple of new devices, including several smartphone and a display named Home Hub. For those of you who don't know, Home Hub was introduced a couple of days after Facebook launched its first gadget - a smart screen. This device is designed to consume audio and video content from certain resources. It support voice control and is adjusted to the user's location. So, what is so special about Google Home Hub?

Publication date: 31 October 10:16 AM

New Sanctions May Drop Russian GDP

International experts are convinced that the near-term prospects of the Russian economy depend heavily on whether the USA expand the anti-Russian sanctions. They say the worst-case scenario is a 2.5% GDP drop.
Publication date: 29 October 11:14 AM

Russian Stocks Go Down Along With American Indexes

 Not so long ago, Russian stocks started going down in value. International experts say that this downtrend was mostly caused by external reasons. In particular, Russia's bigest stock index showed the biggest bearish move since April 2018. Back then, the Russian stock market used to be rather volatile because of the anti-Russian sanctions imposed on Russia by the United States.


Publication date: 28 October 11:49 AM

Crude Oil Prices May Reach $100/b

Ever since the United States imposed new sanctions on Iran, other oil exporters have been trying to make up for the decline in the international oil supply. Some experts are now predicting a strong trend all the way up to $100 per barrel. 

Publication date: 25 September 11:51 AM

New Anti-Russian Sanctions Will Slow Russian Economy Down, Kudrin Says

The new package of anti-Russian sanctions is expected ot be imposed by the United States in November. Apparently, this is not expected to become a disaster ofr the Russian economy, but it still may slow down the economic growth in Russia as well as the the flow of foreign investments to the country. This is what ex-Finance Minister of Russia Alexey Kudrin thinks on the matter.

Publication date: 19 September 12:10 PM

Cryptomarket Quickly Recovered From the SEC's Decision

The global market of cryptocurrencies quickly recovered from the downtrend after the SEC decided to ban the creation of Bitcoin ETFs.

Publication date: 24 August 10:00 AM