Financial Analysis – Week 33-34, 2021

Aug 27, 2021

Market Overview

 

financial-analysis-week-33-34-2021

 

The World

The debt bubble inflated to bursting.

 

I estimate that today’s world debts have exceeded 700,000 billion dollars.

My estimate is that there is around $ 4 million billion worth of securities.

Budget deficits:

 

USA

Biden’s request for 4,700 billion dollars, for infrastructure 1,200 billion, and the implementation of major social reforms, 3,500 billion dollars.

American occupation of Afghanistan 2001-2021. took 2,862 lives of Americans and 2,000 billion dollars.

 

The decline in the world’s purchasing power:

 

FED

The New York Fed seized $ 1.3 billion in gold from the state of Afghanistan.

Money supply M3 growth in the period 1960 – 2020:

 

IMF

The IMF has provided $ 650 billion in special drawing rights to support countries in the fight against the pandemic.

Huge amounts of fresh money are being injected into the world financial system to prevent a collapse.

 

Russia

Putin has prepared 6.4 billion dollars to help retirees, pregnant women, and families with children.

Social picture of poverty in Russia:

  • 25% of the population receives 125 euros per month,
  • 33% of the population has an income of fewer than 250 euros,
  • 52% of the population has an income of fewer than 325 euros,
  • Population incomes from 2014 to 2021 fall by 15%,
  • The 1% richest have 57% wealth.

 

EU

The Brussels administration has prepared 1,000 billion euros to subsidize green energy.

The law on the manner of subsidizing is written by experts of the hedge fund Black Rock.

Why are they writing that EU law?!

I expect huge corruption in the allocation of funds.

 

China

The government plans to afforest 25,000 square kilometers.

President Si raised the issue of increasing social stratification, demanding that the rich take responsibility for the poor members of society.

Interest unchanged on one-year loans – 3.85%, on five-year loans – 4.65%.

Law on strict data control passed, foreign investors in China were dissatisfied.

 

Germany

In the first 7 months, GDP growth was +9.4% compared to 2020.

For the second month in a row, the business climate index is falling.

Merkel admitted that she misjudged the situation in Afghanistan.

The Ministry of Finance is considering the possibility of introducing a one-time levy on property.

 

Afghanistan

The Taliban have won, but now a harder job awaits them to rule the country.

Hyperinflation, unemployment, economic activity, and living standards are expected to decline.

 

Stock market

The value of the world stock markets is 118,000 billion dollars.

DOWJ – 35,333

DAX – 15,822

S&P – 4,485

 

Gold

After big falls, due to the speculation with $ 4 billion in gold papers, physical gold was not traded and remained at $ 1,795 / ounce.

Fifty years since the abolition of the gold standard – August 15, 1971.

Central banks buy gold. Did you think why?

 

Silver

The price of silver dropped to – $ 22.95 / ounce

 

Oil

Due to the stronger dollar, oil prices fell to $ 66, at the beginning of the week they started to rise to  $ 70.6 / barrel

 

USD

Stable for the whole week at 1.1740

Dollar movements 1787 – 2021:

 

Russian ruble

Slight growth for the euro – 86.7335

Slight growth for the dollar – 73.9015

 

Bitcoin

After rising over $ 50,000, it fell to – $ 47,593.

 

 

Branko Dragaš

Investment banker

Categories

Market Overview