Caesar
de carlo
Cristiano Ronaldo for the economy is called Mario Draghi, and if, for footballers, there is a market for politicians, then his next move will be to Washington. Not to return to the World Bank, but to address the catastrophes of the man who “has spoiled an economic situation in just 18 months” (so Arrigo Sadon, a well-known economist). In fact, while Italy’s Draghi reports 3.4% year-over-year GDP growth, the highest in Europe, Biden’s America is entering a recession. Fabulous. Eighteen months ago, the Democratic president inherited from the Republican Trump a GDP plus 5% and inflation of 2. What happened? Two things, actually three. The first: Biden put $4 trillion into circulation. In addition to the five from the Fed’s previous quantitative easing, they inflated liquidity. The ignition of inflation is immediate. Summer, the Obama economist, had predicted that. inaudible. The situation that was about to emerge from the epidemic did not need additional catalysts. Second, therefore: Fed pressure, scarce and expensive credit, low investment, and 10% inflation on the way up. Biden blames Putin for that. But Ukraine in February and the United States is self-sufficient in terms of energy. Biden insists: The US will not be in a recession because the unemployment rate is low and the dollar is high. But any economist knows the Phillips curve: historically low unemployment corresponds to high inflation. When the world explodes, the dollar becomes a safe haven currency. The only advantage: it reduces inflationary tensions. The third factor, the most important: trust, the oxygen of the market. Forage growth if there is. It annoys her if she’s not there. In Italy Draghi was there. In America Biden, no. This is the lesson we learned from Cristiano Ronaldo. [email protected]
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