According to a fresh report from analysts at Renaissance Macro Research, the United States has serious problems with its economy. The guys from Business Insider looked into this and came to the conclusion that America is now on a swing: debts are growing, interest rates on loans are also growing, plus all sorts of customs wars do not add optimism.
First, let’s look at debt. The United States has already accumulated 33 trillion in debt—a figure that boggles the mind. It’s as if every American had a loan in his pocket for almost the country’s annual income. And if this continues, then in 30 years the country may owe twice as much as it can earn in a year.
Over the past year, interest on these debts alone cost 659 billion – 184 billion more than a year earlier. And every year this amount can grow, as in the popular American song about corn: “higher and higher, and to the skies!” Especially if the Federal Reserve System (Fed) continues to keep rates high to prevent inflation from running away like a scared bunny.
And now about trading. Remember the good old days when goods roamed the world quietly? It seems like this was only recently, but now America has taken the path of “its own gate to the village”: it supports its own people and puts up barriers for strangers. For example, it began to subsidize the production of semiconductors. This may be great for “made in America”, but when the government pays subsidies, there is less money for other things, and inflation is not saved from this.
And, on top of that, the stakes are high, and the market is like that teenager who came to the party: you don’t know what to expect from him, so excited and unpredictable. All this time, the Fed plays strict nanny and says that they will not escape their strict rules. In general, those who invest money are not bored now.