In The News

Global Economy: Is Anybody in Control?

David Dapice August 9, 2011
Around the globe, national leaders show no clue, no confidence, about how to re-engineer job creation or global economic security, contends economist David Dapice. The US has many resources for resolving its large debt, but bickering and stubborn quests for power prevent speedy resolution. Europe’s resistance to enact long-term policies on unequal accrual of debt among its member states and...

Read China’s Lips

Stephen S. Roach July 28, 2011
China funded US government spending in recent decades with low-interest loans. But the threat of default may end that free ride. China is the largest foreign holder of US Treasuries and other agency notes, with about $2 trillion invested. US financial woes have prompted China to adjust its growth strategy, explains economist Stephen Roach in an essay for Project Syndicate. Beijing worries about...

China Urges US to Protect Creditors by Raising Debt

Bettina Wassener, Matthew Saltmarsh July 15, 2011
China, a major lender to the US, urges the president and US Congress to reach agreement on lifting the nation’s debt limit, so that bills can be paid. “China holds more than $1 trillion in United States Treasury securities, making it highly sensitive to any developments that could lower the value of those holdings,” reports the New York Times. Statutory limits have been in place since 1917, an...

The Next Domino? Italy Suffers from Euro-Zone Contagion Fears

Carsten Volkery July 13, 2011
After Greece and Portugal, the markets are sending signals of turning on Italy, and investor fears are raising rates on the nation’s government bonds. Analysts have issued warnings about the country’s aging population, weak economic growth, low productivity and rigid labor market, reports Carsten Volkery for Spiegel Online. Should Italy fall into the vicious circle of downgrades and rising bond...

Latin America Ponders Role of the Renminbi

Joe Leahy June 23, 2011
Latin America anticipates China’s rise as the world’s top economy, but is uncertain about the Chinese currency. During the last decade, trade between the two regions increased fivefold and Chinese direct investment into Latin America increased by twentyfold, reports Joe Leahy for the Financial Times. Many Latin American firms are unfamiliar with the renminbi, Leahy writes, adding “For Brazil’s...

How the Euro Became Europe's Greatest Threat

June 22, 2011
Ordinary Europeans are losing patience, wondering if more bailouts can possibly stem the crisis once and for all. A handful of finance ministers scramble to contain the damage, preventing the Greek crisis from spreading and forcing cuts in valued social programs in nations where citizens did not overspend. The euro’s founders did not envision such a crisis or the political fury over a huge...

The Eurozone Heads for Breakup

Nouriel Roubini June 16, 2011
Greece, a nation of 11.2 million, owes more than €300 billion. Restructuring the debt is inevitable, notes Nouriel Roubini in a blog posting for the Financial Times. The only unknowns are how and when. Europe united behind the euro as a single currency before enacting structural reforms and streamlining monetary, fiscal and exchange-rate policies, Roubini explains, adding that “early interest...