Lies about the global economy | If you ever wondered why the economic reports nowadays seem so wildly off mark compared to the day to day experience of normal people, consider the following: 1. There is no way to accurately estimate the entire economy of any country. The Western countries including the USA for example add to their measured trade a certain percentage, in the USA and most of Europe's case some 30% of assumed illegal economy profits. 2. One of the most hilarious side effects of the war in Ukraine is that the global economic monitoring tools no longer have access to more than half of the world's transactions, namely those of the BRICS countries. 3. There is no centralized global economic forum that receives complete economic data from all countries. Most of economic data and estimates including GDP are based on a variety of tools like the SWIFT reports, World bank data and International Money Fund data. Which, again, do not get most of the BRICS trade data. 4. Russia doesn't count illegal trade to calculate its GDP. 5. You cannot actually correctly track and estimate the amount of barter activities both al microeconomic level( between people in rural communities) and macroeconomic level( barter transactions between countries, which are not uncommon in BRICS nations but not only). 6. Most countries can and will artificially inflate their GDP. In the US it is estimated that at least 20% of GDP is inflated by the Fed using a tool called QE(Quantitative easing). GDP is self reported. 7. Based on the available data only 56% of the world trade is currently using USD and only some 50% of savings and deposits are made in USD. Now add to that the fact the available data doesn't include MOST of BRICS data. And the fact that since the BRICS countries are in majority dropping the US dollar as trade and savings denomination, they no longer have a reason to keep it as reserves. Which means that it's very likely USD is not just not the dominant global savings and trade currency anymore, it is probably not even 40% of it, and this is me being generous. |
If you enjoy our work, please share it on your medium of choice.
While we are a free site and make no money from traffic, more visitors mean a larger the number of people who get to see an alternative view.
Thank you
