In The News

Banks Warn Britain and EU of Chaos: Express

Manon Dark July 6, 2020
The transition period for Britain’s relationship with the European Union and membership privileges end in December, and Brexit talks are at a stalemate. “Any future direct EU access after the transition period is over will be decided by whether Brussels feels the UK regulation is ‘equivalent’ to the standards set in the trade bloc,” reports Manon Dark for the Daily Express. The Association for...

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...

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...

Future of Global Power: Project Syndicate

Joschka Fischer May 26, 2020
The world wars of the 20th century weakened the British Empire and strengthened the United States; the Cold War weakened the Soviet Union while again strengthening the United States. Yet Covid-19 could upend US power as the world assesses pandemic responses. The Trump administration, managing the pandemic response ahead of the November election, blames China for Covid-19. US voters, polarized...

China Could Cut US Debt Holdings: SCMP

Karen Yeung May 7, 2020
As tensions between the United States and China rise, analysts point out that China could reduce its holdings of US treasury securities. The United States borrows heavily to pay for its Covid-19 response, and the administration blames China for the pandemic. News reports suggest that some US officials have questioned if the $1 trillion in debt owed to China could be cancelled. Such an extreme...

Inevitable “Greater Depression”? Project Syndicate

Nouriel Roubini April 29, 2020
Tackling problems swiftly, well in advance, tends to produce better results than waiting for crisis. After the 2007-08 crisis, governments failed to address imbalances and other structural problems. Nouriel Roubini, writing for Project Syndicate, anticipates a lingering depression throughout the decade due to economic risks long in play combined with an uneven pandemic response. He identifies 10...