The US is locked in the November presidential elections. Two issues are being discussed politically: Can the Democratic candidate, 81-year-old current President Joe Biden, lead the country for another term? Will the likely Republican candidate, former President Donald Trump, go to jail for the lawsuits against him? But there is also the economic side of the issue, which has warned the US that “the dollar will collapse”…
The third warning in 10 days came from Bank of America, following Hawaiian billionaire Robert Kiyosaki, who said, “The US dollar will end up like the Roman Empire,” and El Salvadoran President Nayib Bukele, who said, “The bubble will burst and the US dollar will collapse.”
In a note to clients, Michael Hartnett, the bank’s investment strategist, drew attention to US debt, the amount of money the federal government borrows to cover operating expenses. Noting that the country’s debt is about 34.4 trillion dollars, Hartnett underlined that “the US debt burden has been increasing faster in recent months, increasing by about 100 trillion every 100 days. Here is the data
1- According to official data from the US Treasury Department, the country’s debt permanently settled at $34 trillion on January 4. Last Wednesday, the figure was 34.4 trillion dollars.
2-Debt had risen to $33 trillion by September 15, 2023 and to $32 trillion by June 15, 2023.
3-In the last two jumps, there has been an increase of about 1 trillion dollars every 100 days. 4 In fact, it took eight months for the national debt to rise from $31 trillion to $32 trillion. According to Bank of America analyst Hartnett, the ‘$1 trillion increase every 100 days’ is not a coincidental event that has only happened twice… “The 100-day pattern can no longer be broken,” Hartnett said, adding that he is confident that the US national debt will increase by another $1 trillion in 100 days, reaching $35 trillion.
Here are Hartnett’s findings: “It’s hardly surprising that ‘debt debasement’ transactions are approaching all-time highs. So gold at $2,77 an ounce, Bitcoin at $67,734. In February, the cryptocurrency closed its best month since 2020 and briefly traded above $64,000 on Wednesday before pulling back. Crypto fund inflows are heading for a ‘boom year’ this year, with an annualized inflow of $44.7 billion so far this year.”
China reacts to US electric car probe
Beijing has reacted to the US launching an investigation into the possible risks to data security of Chinese-made electric cars. At a press conference held in the capital Beijing, Chinese Foreign Ministry Spokesperson Mao Ning argued that the US is acting with the motive of trade protectionism and wants to prevent Chinese-made cars from accessing the American market.
“The politicization of economic and trade issues by the United States will only harm the development of its own automotive industry,” Spokesperson Mao said, adding that China’s auto sector is open to all global companies, including US manufacturers: “We call on the US to respect the principles of market economy and fair competition, and to stop discriminatory pressure on Chinese companies by expanding the boundaries of national security.”
Nvidia overtakes Saudi Aramco by market capitalization
As the demand for artificial intelligence chips continues to increase, California-based chip maker Nvidia has surpassed Saudi Arabian oil company Saudi Aramco with a market capitalization of $ 2.056 trillion. Nvidia’s shares gained 4 percent to $ 822.79, while the increase in the company’s shares has exceeded 66 percent since the beginning of the year.
Nvidia, whose market capitalization reached 2.056 trillion dollars today, surpassed Saudi Aramco to become the third most valuable company in the world. Saudi Aramco’s market capitalization was calculated as 2.046 trillion dollars. Thus, Nvidia became the third most valuable company in the world, while Saudi Aramco dropped to fourth place.
Microsoft and Apple continued to hold the top two spots with a market capitalization of $3.087 trillion and $2.774 trillion, respectively. Last month, Nvidia surpassed Amazon and then Google’s parent company Alphabet with its market capitalization. The company’s market value, which reached $ 1 trillion in May last year with the effect of increasing demand for artificial intelligence chips, exceeded $ 2 trillion for the first time last week.
“US bonds will become less attractive,” experts warn
CNBC Television headlined Hartnett’s warning, while Business Insider commented: “Economists have warned in recent months that the pace of borrowing threatens to reduce the attractiveness of US government bonds as supply flows become harder to meet and higher interest rates make debt increasingly expensive to pay off. They warned that ‘devaluing’ US Treasuries, the world’s largest and most liquid market, could make it harder for the government to finance itself as buyers dwindle.”
