In The News

Oil, Gas Sector in Terminal Decline? OilPrice.com

Robert Rapier June 19, 2020
The rise of renewable energies and reduced energy consumption due to the Covid-19 pandemic may push fossil fuels into terminal decline, reports Robert Rapier. Global consumption of coal, while still growing, peaked in the developed world after being replaced by natural gas. Price pressure has accompanied intense production for oil and natural gas in recent years while consumers increasingly...

Capitalism as Victim of Covid-19? Salon

Matthew Rozsa June 18, 2020
The pandemic and climate change demonstrate that survival depends on the ability to learn while relying on best evidence. Political leaders who downplay or deny the consequences of Covid-19 and climate change – trying to protect economies for the short term, rejecting early warnings and refusing to adapt – actually risk more economic damage. Such disasters also show that the free-market...

Europe Pursues Digital Tax After US Pulls Plug: FT

Sam Fleming, Jim Brunsden, Chris Giles and Victor Mallet June 18, 2020
The United States walked away from global negotiations led by the OECD on a digital tax for multinationals, claiming an “impasse,” and threatened tariffs against nations that impose such taxes. “The move heightens transatlantic tensions, with the threat of more trade disputes as individual countries pursue their own taxation plans,” reports a team for Financial Times. “Robert Lighthizer, US trade...

Flashpoint in New Financial War: New Statesman

George Magnus June 17, 2020
China and the US wage war on multiple fronts – trade, tech, social media and communications. China takes steps to impose a National Security law for Hong Kong and that could extend a new front into finance and weaponization of capital, argues George Magnus for New Statesman. The United States has “the biggest, deepest, most transparent and trusted capital markets subject to the rule of law, and...

Crash in US Dollar Coming: Bloomberg

Stephen Roach June 9, 2020
The Covid-19 pandemic may end the US dollar’s status as primary reserve currency, warns Yale economist Stephen Roach. The pandemic and high unemployment pressure US living standards and spending even as world leaders question US leadership and notions of exceptionalism. Current account deficits since 1982, a recent shortfall in domestic US savings and fast-expanding government budget deficits...

Anticipate Another Global Depression? FT

June 6, 2020
High employment rates accompany the Covid-19 pandemic and lockdowns. Global economists assessed the possibility of economic depression for the Financial Time. Full recovery depends on availability of treatments and vaccines and maintenance of trust. Robert Zoellick, former World Bank president, reminds that the 1930s Great Depression caused more than economic pain: “It metastasised to a loss of...

Argentina in Default: Buenos Aires Times

June 3, 2020
Two rating agencies, Fitch and S&P reduced Argentina’s bonds to default status after the nation missed a $US500-million payment. Negotiations for debt restructuring are underway, with the hopes of agreement and possible rise in the bond rating. A lower rating forces nations to pay higher interest rates. Argentina’s public debt is 90 percent of GDP at the end of 2019. The Covid-19 pandemic has...