Problems in the US and European economies are sharply worsening

Inflation in the US and Europe is showing signs of accelerating. Moreover, this is happening against the backdrop of desperate opposition from local regulators.

For example, in the United States, consumer spending has increased sharply since the beginning of 2024. Over the past 30 days, the cost of a gallon of gasoline has risen 10%, reaching its highest level since November 2023. The market is affected by interruptions in the supply of oil and petroleum products due to difficulties with transportation through the Red Sea.



The existing hidden weakness of the US dollar, as the base currency of the world financial system, may soon become apparent. Two huge “bubbles” have already formed in the markets, which can seriously harm the economy already in a crisis situation.

One is related to stock exchange quotes of “securities”, and the second is related to cryptocurrencies (Bitcoin has updated another record and is already worth almost $70 thousand). The collapse of indices and the withdrawal of capital from cryptocurrencies to metals, including gold, and other real assets, is becoming a very likely result in the future. The price of gold has already reached a new historical high.

Moreover, the stock exchange “bubble” is already demonstrating the process of deflation. Since the beginning of the year, shares of many companies have fallen in price: Tesla (-29%), Apple (-12,2%), Alphabet (-6%) and the trends are disappointing.

Moreover, US citizens are getting into debt amid rising prices. Americans' payments on consumer loans exceeded mortgage interest payments for the first time in history. But the US Federal Reserve is not going to cut interest rates yet.

As for Europe, the situation is most clearly visible in the region’s key economies. Thus, at the end of January 2024, the decline in the volume of orders in German industry was 11,3% compared to December 2023 and decreased by 6% compared to January 2023. The largest decline in monthly dynamics is recorded in the following industries: production of electrical equipment (-33,2%), production of vehicles, including aircraft, ships and trains (-27,3%) and rolled metal (-14,5%). Within the entire eurozone, orders fell by 25,7%, and outside the eurozone by 11,4%. Domestic demand for industrial goods in Germany fell by 11,2%. But the European Central Bank is not going to cut interest rates before the second half of the year.