In The News

US, The New Saver

Nayan Chanda October 14, 2009
The recent bleak unemployment report for the US suggests that the economic recovery is likely to be W-, rather than, V-shaped. But the 9.8 percent unemployment rate is only part of the picture: when including the “underemployed”, the rate is roughly double. What this means is that the US isn’t going to be consuming that much during what is normally the biggest spending period of the year –...

China Rising: Have Cash, Buy Oil

Dilip Hiro October 9, 2009
While the global financial crisis has left much of the Western world in disarray, China’s position remains strong with a stockpile of cash ready to acquire cheap assets. In many cases, these assets are natural resources, especially hydrocarbons. According to author Dilip Hiro, Beijing’s acquisition strategy seeks to insulate itself from the vagaries of raw material price fluctuation while...

The Demise of the Dollar

Robert Fisk October 6, 2009
Veteran Middle East correspondent Robert Fisk reports that “secret meetings” between Russia, China, Japan, Brazil and some Arab States have occurred to discuss the possibility of pricing a barrel of oil in a basket of currencies rather than US dollars. Some believe such a development, if true, might ignite a new economic war between the US and China, which consumes more oil than the US on the...

Free Trade Has Enriched the World with More than Diverse Goods

Daniel Griswold October 2, 2009
Amid the rise in unemployment across the globe, trade is the oft-cited cause for the current malaise. Hence, according to populists, restricting trade should be the cure. But, Director for Trade Policy Studies at the Cato Institute Daniel Griswold says the populists have it wrong. If one really wants to help the poor, fostering trade is the key since it delivers the lowest cost staple goods that...

Promises, Promises: Will the G-20 Haunt or Help Obama Later On?

Steven R. Weisman September 30, 2009
The results of the recent G-20 Summit in Pittsburgh could be a critical turning point in global integration given that the grouping has now replaced the G-8. It could also be a thorn in US President Obama’s side. According to Editorial Director of the Peterson Institute for International Economics Steven Weisman, the pledges made during the summit could place Obama at odds either with his allies...

Tyre-some Efforts

Nayan Chanda September 29, 2009
Amid worries of protectionism, Obama’s tariff on China’s tires is almost insignificant in terms of size. Moreover, it is supported by the WTO agreement that allows countries to seek relief, albeit temporary, from the damage Chinese imports can cause to local industries. What most critics seem to be missing about the tariff is that even if is small and will not improve unemployment, it did provide...

Challenges for China at Sixty – Part II

Frank Ching September 28, 2009
China, a significant beneficiary of globalization, is happy to go out into the world, but seems less willing to let the world come in, according to writer Frank Ching. In fact, China, which asserts that it does not interfere with the internal affairs of other countries, appears to do the exact opposite, especially with regard to issues surrounding alleged separatism in China. Notably vocal...