In The News

Clive Crook June 15, 2010
Oil continues to gush unchecked into the Gulf of Mexico, after an April 20 explosion of a rig leased to BP. Neither the British multinational nor the US government have come up with a way to stop the oil, and growing numbers of Americans demand action – a quick fix, cleanup, more government regulation and environmental protections, punishment for BP, criminal charges and more. The damages include...
Gal Luft June 10, 2010
The Brazilian government is developing closer ties to Iran, even as Iran faces stringent economic sanctions for its nuclear program. By exporting ethanol, President Lula da Silva’s government seeks to help Iran, a major oil exporter that lacks refinery capacity, lessen its dependence on foreign gasoline. Assisting Iran complicates Brazil's relationship with the United States, one of the...
Dilip Hiro June 10, 2010
Democracy in rising powers like Turkey – along with economic and military distractions for the West, Israel’s obstinacy in resolving conflict with the Palestinians and convoluted US policies that urge free elections but punish results – prompts governments to strengthen ties with regional neighbors. As a result, countries like Turkey, a longtime member of NATO, no longer follow the West in...
Ylan Q. Mui June 10, 2010
Wal-Mart, the world’s largest retailer, pursues ambitious foreign expansion to make up for lagging sales in the United States. While no single country could replace the US in terms of consumer power, developing nations are poised for economic growth. Wal-Mart caters to newly-empowered consumers in emerging economies, a business model much like the firm’s “early strategy of building stores in a...
Irwin Stelzer June 8, 2010
Huge trade imbalances, particularly between China and the US, Germany and the rest of Europe, ensure low interest rates and ongoing bubbles, contends Irwin Stelzer of the Hudson Institute. Ongoing lending at low rates to nations already steeped in debt dulls incentives to increase competitiveness and reduce trade deficits as well. “‘Imbalance’ is the word, and it creates multiple threats to the...
June 4, 2010
Nations bordering North Korea would prefer less isolation, belligerence and unpredictability. But abrupt collapse of the current regime could be equally dangerous. Any loss of control in a nation with such pronounced poverty, as detailed in this article from the Economist, could destabilize South Korea and China, analysts suggest, with refugees pouring over borders, nuclear weapons unsecured, as...
Pierre Paulden June 3, 2010
Trust breaks down in banking when investors question whether deposits are safe and when banks worry about loan repayment. Banks only keep a percentage of cash on hand, and a lack of trust can disrupt efficient lending and borrowing with that limited cash. Global banks could have a capital deficit of $1.5 trillion, by some reports, and troubled banks could request additional government assistance...