_{FINANCIAL NEWS}

The BRICS Are Planning a Devastating Strike Against the Dollar!

The BRICS are intensifying efforts to create a new global economic dynamic, threatening to disrupt the current balance of international trade.

Russian Foreign Minister Sergey Lavrov announced that the de-dollarization process within BRICS is unstoppable, with an alternative payment system in development for the bloc. This system is expected to be recommended during this year’s summit.

In July, Russia and India signed a $100 billion trade agreement to use local currencies, marking a major shift in the bloc's de-dollarization strategy. Similar initiatives, including an agreement with Iran, signal a growing commitment to reduce the dollar's dominance.

Lavrov also mentioned plans for alternative payment platforms, supported by Iran, aiming to connect all central banks within the bloc. This could have major repercussions on the global use of the dollar, significantly reducing US financial influence.

In summary, the BRICS are unwavering in their de-dollarization efforts, poised to transform global economic dynamics and potentially destabilize international financial markets. Read More.

_{ECONOMIC FOCUS}

America's Recession Indicators are Dangerously Broken

The economy's gentle slowdown could turn into a painful downturn, but recession indicators are more unreliable than ever. Many signals that typically predict recessions have been triggered, yet no significant downturn has occurred, likely due to the pandemic's disruptions. Temporary employment trends, once a reliable indicator, have shown a 16% drop since March 2022, yet overall payroll employment has risen. This disconnect suggests a fundamental change in the labor market's reliance on temp workers.

The inverted yield curve, another recession predictor, has been inverted for two years without a recession. Despite two consecutive quarters of contracting GDP in 2022, the broader economy remained stable. The Sahm Rule, indicating a recession with a 0.5 percentage point rise in the three-month average unemployment rate, is close to being triggered but may also be unreliable due to pandemic-related labor force changes. Claudia Sahm, who created the rule, notes that pandemic-induced business cycle disruptions have made traditional recession indicators ineffective. Read Now.