In The News

To Shut Down Washington, Republicans Must Ask China's Permission First

Eamonn Fingleton October 2, 2013
China could step in to influence the latest political squabble in the United States by slowing down its purchases of US Treasury debt. A small group of conservative Republicans in US Congress want to slash spending and forced a shutdown of many government operations, while demanding a delay in a health care law, even though that has already slowed rising US health costs. Overseas creditors don’t...

Beginning of the End for Washington

Ron Fournier October 1, 2013
Unable to agree on a spending bill, the US legislature has orchestrated a partial shutdown for US government operations. A minority group in the US House of Representatives is demanding a delay in implementing a health care law in exchange for its approval of the spending bill. The legislative impasse undermines US citizen confidence in government, and could be a defining moment for young voters...

Default or Not, Asia Hostage to US Debt

Choonsik Yoo, Kevin Yao September 30, 2013
Asia is shaking its collective head over dysfunctional US politics. A minority group of US legislators is toying with procedures, presenting the possibility of a government shutdown and a default on the country’s debt while expecting the majority of legislators to meet their demands to delay a healthcare law and cut spending. Creditors in China, Japan and elsewhere in Asia hold about $5 trillion...

Bo Xilai Conviction Will Do Little to Curb Corruption

Zhiwu Chen September 24, 2013
China’s officials discourage public debate about corruption, regarding it as criticism of Communist Party rule, yet some abuses of power can’t escape attention, notably those associated with Bo Xilai, the popular former party chief of Chongqing, who has received a life sentence for bribery. The trial avoided years of systematic abuses, and so far, President Xi Jinping is following old trends,...

Currency Conundrum

Nayan Chanda September 17, 2013
India’s dysfunctional political system has exacerbated the currency crisis, argues Nayan Chanda, YaleGlobal editor, in his column for Businessworld. Officials blame Indian investors’ keen interest in gold, over-exposure to global markets and over-reaction to reports of a strengthening US economy. Chanda suggests that Indian officials – whose country has benefited so much from globalization –...

Fed Casts Shadow Over India, Emerging Narkets

Mandakini Gahlot August 28, 2013
The US Federal Reserve has signaled intentions to reduce a huge bond-buying program that has pumped the US economy with stimulus funding. This in turn is prompting currency values to fall in emerging economies. Speculating that US interest rates may rise, investors are pulling money away from foreign investments in favor of US bonds. As a result, the rupee has fallen to a historic low in relation...

China’s American Bailout?

Alexander Friedman August 26, 2013
The US economy focuses on spending, and the Chinese economy largely focuses on saving and lending to the US – “a pattern that has suppressed global interest rates, helped to reflate the developed world’s leverage bubble, and, through its impact on the currency market, fueled China’s meteoric rise,” suggests investment banker Alexander Friedman writing for Project Syndicate. He points out the...