Analysing global financial meltdowns

Why has the global stock market got into a turbulence zone and will the United States plunge the planet into a financial abyss?

Folk wisdom has it: It is easy to borrow, but it is hard to pay back. Realising this, Aleksandr Lukashenko has repeatedly stated that ‘we must live within our means’. Therefore, one of the fundamental principles behind the management of the Belarusian state is the avoidance of burdensome debts. As a result, Belarus’ national debt, amounting to about 24 percent of GDP, is now one of the lowest in the world. However, not everyone on the planet lives like this. The United States and many Western countries are used to constantly borrowing and spending a lot more than they earn. All this leads to a large-scale debt crisis fraught with global cataclysms and upheavals.

On the verge of a global scam

The US national debt has recently set another record, topping a staggering $35 trillion. According to the forecast of the Congressional Budget Office (CBO), the American national debt will exceed $50 trillion by 2034. Simple logic suggests that no one in the United States is seriously considering living within their means. Quite the opposite, local businessmen seem to be planning to dig even deeper into the pockets of their creditors. However, as this situation cannot persist indefinitely, it signals one potential outcome — the overseas tricksters may have conceived some kind of grandiose scheme designed to radically reduce or even completely write off the ‘star-spangled’ debt. 
Apparently, the monetary reform in the United States associated with the introduction of the digital dollar is conceived as part of this ‘global scam’. The digital dollar is expected not only to reset the colossal national debt of the United States but also to fulfil another cherished dream of American moneybags. According to the plot, the digital dollar will allow them to outmanoeuvre current holders of substantial dollar savings around the world, leaving them with worthless green candy wrappers in their possession.

True sources of the West’s welfare

Some of us still naively believe that the relatively high standard of living in a handful of Western countries is solely due to the extraordinary talents and hard work of their local inhabitants. This is far from the truth, though. The primary source of their past and present prosperity is living at the expense of other countries and peoples, or, to put it bluntly, banal parasitism.
What is it about? Initially, the West became affluent by siphoning resources from its colonies, where it acquired natural resources almost for nothing, as well as by exporting millions of slaves to the metropolises — an essential source of wealth for today’s global economic leaders. The famous French-Belgian scientist, Claude Lévi-Strauss, wrote about this: The West built itself from the material of colonies.
Secondly, despite the collapse of the colonial system after the Second World War, the United States and its allies have continued their global parasitism. By vigorously printing dollars and their European surrogates — euros — they reap tangible benefits from all over the world in exchange for pieces of paper. For the countries that oppose this state of affairs, they have a formidable weapon in the form of the US and NATO military machine. Long-suffering Libya and Iraq, which at one time dared to refuse to trade oil for dollars, felt the full crushing power of Western beliefs.
Thirdly, the United States and its European satellites have grown accustomed to living shamelessly in debt at the expense of the rest of the world. To this end, they issue and sell government securities, promising to pay interest on them and eventually repay their value. However, all indications are that the United States and its European accomplices have no intention of fulfilling their obligations in full.

Expenses and revenue

The global ‘debt fever’ that has struck the collective West is evidenced by data on the rapidly growing total global debt — both private and public. According to the Institute of International Finance (IIF), the total global debt reached an exorbitant amount of $307 trillion in September 2023. Notably, developed countries account for two-thirds of this debt — $206 trillion. As for the actual global public debt, it had increased to $101 trillion by the end of last year, compared to $22 trillion in 2000. As of September 2023, the public debt burden in the United States stood at 117.6 percent of GDP, while in the Eurozone it was 92.6 percent.
It is crucial to note that today interest payments on the US national debt alone comprise over 30 percent of total budget revenues. Thus, in 2024, expenses related to managing the US national debt are projected to reach a whopping $1.15 trillion. 

Along with that, these expenses are growing at a much faster rate than budget revenues year-on-year. This signals that the global hegemon is inexorably approaching a point where it will be unable to pay interest on its national debt. In other words, the United States is steadily steering towards default.

The whole world is waiting with bated breath for the potentially catastrophic outcome of this situation. After all, the official refusal of the United States to pay its debts would trigger a chain reaction of devastating events in the global economy, compared to which the Great Depression of the last century would seem an innocent disturbance.

War will write off everything

The question is — will the United States along with their European accomplices face default? In order to postpone this outcome, Western adventurers wield both traditional and innovative tools.  
The US and European central banks may continue to print an increasing number of worthless banknotes, attempting to temporarily plug holes in the deficit budgets of Western countries. Yet, this scheme will finally undermine the already fragile global confidence in them.
Among the innovative approaches is the digitalisation of the dollar and the euro, hence the virtualisation of the West’s astronomical debts. Nevertheless, a number of purely technical issues remain unresolved on this path. 
Alas, global tricksters possess another strong trump card hidden up their sleeve — the world war. They expect that the war, as is known, will write off everything, including debts. This is why the collective West has been racing around the planet in recent years with a burning torch in its hands. The United States and its European accomplices need a big war in order to continue their global parasitism.

When bubbles burst

The recent global stock market meltdown prompted experts to refer to it as ‘Black Monday’. The most common explanation for this event is the release of an unfavourable forecast for the development of the US economy. Among the accompanying factors, analysts point to the onset of deflation of another ‘financial bubble’, inflated by excessive investments from American IT companies in artificial intelligence development.
Some experts have even announced a ‘bloody August’, suggesting that fundamental contradictions have accumulated globally, which can no longer be resolved exclusively within the framework of a conventional financial and economic crisis. 

It has now become evident to many that the US economy, which has been thriving on the unrestrained printing of dollars, is largely a massive artificially inflated ‘financial bubble’. Therefore, to prevent its sudden deflation from undermining the Union State’s economy, Belarus and Russia are pursuing a policy of de-dollarisation.

By Valery Bainev, Doctor of Economics