Geopolitical And Global Economy Summary Of 2013

| December 29, 2013 | 0 Comments

obama and putinAt the end of the year, we (Bitter Bananas) offer you a brief summary of the crucial events and tendencies that influence politics and economy. It is clear that world is on the verge of a sweeping change. There is much to be said about the US as long as their policies are the origin of most present problems.

USA – a declining empire

This year it turned out that the US are no more the leading country of the world. Although they still have the biggest military budget that ensures the dominance of their military-backed currency, they got humiliated by Russia during the Syrian crisis. Vladimir Putin’s actions almost made American authorities confess that USA cannot control the world any more. In the sphere of economy, USA got more hits – first, China and Russia abandoned the dollar in their bilateral trade and will use only their own currencies. Second, Standard Chartered Bank, one of the leaders of the financial world, obviously began getting rid of the US dollar and alleged that they will cooperate with the Agricultural Bank of China to provide yuan clearing services in the UK. In short – bad news for the US dollar bubble, which means bad news for the US.

Triumph and problems

Russia celebrates major tactical triumph along with China. Both countries prevented a new war in the middle east and showed to the whole world that decisiveness of USA to start bombing Syria is not about democracy – so now most people even in USA are sure it is all about gas pipelines. Russia was successful in spreading its influence in the former USSR-states and reinforcing the idea of the Eurasian Union. Russia and China are facing similar problems as long as they are all a part of world economy. Russia’s economic growth is connected to petrol prices on the world market. What is more, the critical disharmony between President, Government and Central Bank leads to more internal problems. China, as a factory of the planet, is suffering from the decreased market demand. The more problems the USA have, the more problems China has – because US markets are still a great part of world’s market demand.

EU – the unequal union

In 2013, the EU suffered from the same problems as in 2012. The fact that not EU-members are equal is clearly visible. The origins of the problem is easy to understand – the previous enlargement of the Union followed only the strategic interest of the well-of countries of Western Europe. As long as they are not rich in resources, the only logical alternative for any kind of union in Europe is a better orientation between Russia, China and USA.

Instead of a conclusion

Bearing in mind the political and economic instability in the whole world, you should be careful when you make decisions about you business and assets. Bitter Bananas will continue to inform you about discrepancies between popular conceptions and reality.

We wish you a happy new year!

Related Post

Tags: , , , , , ,

Category: ANALYSES

Share Your 2 Cents: