The UN is directly opposed to the FED. Is the US central bank blackmailing the rest of the world?
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UNCTAD says in its annual report that there is a risk that the Federal Reserve will send the global economy into recession if they continue to raise interest rates.
This year, the Fed has already raised its key rate by 0.25%, then 0.50% and again 0.75% three times.
The ECB and the Bank of England are also on board. In fact, all central banks are forced to join the dance. Unheard of since 1970 according to the World Bank.
Central banks that do not follow in the Fed’s footsteps would expose themselves to depreciation of their currencies. The reason is that international investors between two economies with a similar inflation rate prefer to go where the rates are more profitable.
At the moment, euros are sold against dollars to invest in the United States. Hence the decline in EUR/USD, among other reasons, is the fact that we shot ourselves in the foot by cutting off Russian energy.
However, the Fed’s outlook is starting to sour. The central bank of India announced last Friday that aggressive rate hikes by the central banks of rich countries are the third major shock after the pandemic and the Russian invasion of Ukraine.
“Are you trying to solve a supply problem by acting on demand? [hausse des taux qui ralentit la croissance] ? »asked Richard Wright, head of the team in charge of the report.
Here Richard Wright suggests that the Fed raises its rates for reasons other than fighting inflation. In fact, it is delusional to slow down growth in an effort to stop inflation when we know that the world’s largest exporter of gas uses energy as a weapon: Russia.
The Fed knows it. But then, why?
Would the FED be blackmailing?
The ultimate goal is probably to force the rest of the world to condemn Russia. The BRICS are clearly on Russia’s side. And apart from the EU, very few countries participate in the sanctions against Moscow.
However, the whole world will have to stand behind Washington and Brussels if the famous “price failure” of Russian oil were to see the light of day. Therefore, the eighth package of sanctions is still being developed.
However, we know that the EU puts pressure on oil transport companies (tankers) and their insurers. The goal is to convince them to stop transporting Russian oil unless it is sold at a discount.
Greece, Cyprus and Malta, which have some of the world’s largest tanker fleets, have expressed concern about restrictions on Russian oil transport.
EU countries failed to reach an agreement on Monday. The talks continue and we promise that the pressure exerted by the FED is very much on this globalized blackmail with hints of the Cold War.
We’ll see where it all takes us. Will Jérôme Powell and Christine Lagarde be able to create a recession without provoking public discontent? Couldn’t the whole world decide to get rid of the dollar?
Moreover, we have seen in England that there is a risk of raising the rates with huge debts. On the other hand, Russia’s debt is only 14% of GDP…
All this to say that the UN event suggests that central banks will start printing again much sooner than we think. Buy Bitcoin!
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Journalist reporting on the Bitcoin revolution. My papers deal with bitcoin through geopolitical, economic and libertarian prisms.