In The News

Consumers Unlikely to Rescue China's Sputtering Economy

Huang Zhilong August 2, 2016
Economists, inside China and outside, point to consumer spending on an expanding services for economic growth. But that requires borrowing and Chinese consumers may balk at taking on more debt, explains economist Huang Zhilong for Caixin. Huang points out that Chinese household debt is already at historic highs and consumers lacking official urban residence permits loan may struggle with loan...

The Presidential Candidates Get Globalization All Wrong

Robert J. Samuelson July 18, 2016
Globalization has become the scapegoat for inequality, poor jobs, reduced wages and other economic problems – real and perceived – during the US presidential election. “What’s lost in the obsession with globalization is the fact that the American economy is driven mainly by domestic factors,” writes Robert Samuelson in a column for the Washington Post, adding that about 75 percent of the US...

Youth to Foot Bill for Baby Boomer Budget Incompetency

Jessica Irvine July 1, 2016
Young adults must become engaged in politics or risk living in poverty. “Borrowing rates are historically low,” explains Jessica Irvine for the Sydney Morning Herald. “But eventually the books should balance, and when they do, they will do so on the shoulders of future generations who will pay higher taxes than otherwise.” Her objections to rising debt and increased costs for education, housing...

Australia Foreign Debt Reaches Crisis Proportions

Philip Bowring June 29, 2016
Australia confronts declining prices in commodities, a shrinking currency and net foreign debt that exceeds A$1 trillion. “Servicing the long-term debt problem is an increasing concern, particularly if US interest rates begin to rise while commodity prices do no more than stabilise around current levels,” writes Philip Bowring for the Asia Sentinel. “Direct foreign investment is weakening because...

American Capitalism’s Great Crisis

Rana Foroohar June 8, 2016
Young Americans no longer perceive benefits from capitalism, and such sentiments will influence the outcome of the US presidential election. The system of US market capitalism is broken, explains Rana Foroohar, author and Time magazine’s assistant managing editor for economics and business. Only about 15 percent of wealth from individual and corporate savings is invested in businesses for adding...

6 X-Factor Risks Keeping Fund Managers, Investors Up at Night

Marcus Padley May 27, 2016
Global fund managers responding to a monthly Bank of America Merrill Lynch survey identify and rank risks that could cause an abrupt and abnormal drop in global markets. Britain’s possible exit from the European Union tops the list for May. Second, an ongoing concern is the risk of devaluation and defaults in China. Another ongoing concern is quantitative failure, “that trillions of dollars...

Managing Debt in an Overleveraged World

Michael Spence April 29, 2016
Debt still threatens the global economy. Debt as an investment in the future, delivering high yields or serving a long-term purpose is not necessarily a problem, notes economist Michael Spence for Project Syndicate. He reviews the risks: high levels of household and individual debt are more problematic than corporate or government debt; slowing growth without inflation could increase defaults;...