In The News

“Hidden” Debt and Trouble for Global Economy: CNBC

Yen Nee Lee July 31, 2019
Investors are alert to any signs of a global recession and decline in economic growth. A research and analytics unit under S&P Global suggests that companies that have skipped the crediting rating process in taking on debt could be signaling signs of troubles. Credit ratings provide an independent assessment on the ability to repay debt, and low interest rates and attempts by central banks to...

World's Bond Markets: Bloomberg

John Ainger July 15, 2019
Bonds are generally considered safe investments, and demand pushes yields down. Confronting low wages and low inflation, central banks struggle to raise interest rates. The number of negative-yield bonds is growing: These are worth less than the principal invested when held to maturity. Governments may take on excessive debt as bond issuers essentially charge investors for holding their money....

Facebook’s Libra: Project Syndicate

Katharina Pistor June 24, 2019
Corporations are increasingly eager to resume control over traditional government responsibilities. The latest example: Facebook released a white paper on plans to develop a borderless cryptocurrency system with a group of central banks, regulators and 27 partner companies. Facebook along with Uber, Lyft, Visa, PayPal, Mastercard, eBay, and other firms – but not commercial banks – are...

US Dollar Could Lose Special Standing: CNBC

James McCormack June 18, 2019
The US dollar may eventually lose its standing as the world’s leading reserve currency due to protectionist policies, including sanctions and tariffs, as well as policy decisions abroad. “The primary reasons for the dollar’s continued dominance are inertia and the lack of viable alternatives, neither of which U.S. policymakers should find comforting for the longer term,” explains James McCormack...

Global Recession on Way: South China Morning Post

Anthony Rowley June 14, 2019
With trade tensions, increased protectionism and major economies in no mood to cooperate, global recession is inevitable and possibly even reach crisis levels. Monetary easing or fiscal stimulus may not be effective if countries are intent on isolation. Global trade growth is at its slowest and Anthony Rowley compares current economic troubles with previous recessions: “The renewed slowdown in...

US Trade Deal With Britain Not Easy: CNN

Julia Horowitz, June 5, 2019
As the United Kingdom struggles to exit the European Union, its leaders hope for new trade partners. Visiting Britain, US President Donald Trump expressed desire for a bilateral deal. The United States accounts for 14.7 percent of total UK trade in goods and services, while the European Union represents 49.4 percent. “Britain can't open negotiations with potential partners until after it...

Financial Tail Wags Economic Dog: Asia Sentinel

Jomo Kwame Sundaram, Michael Lim Mah Hui June 3, 2019
The ability to pay for goods and services now dominates economies and the processes of financing have become a larger goal than actual production. “Financialization involves the growth and transformation of finance such that with its hugely expanded size, scope and concentration, finance now overshadows, dominates and destabilizes the productive economy,” explain Jomo Kwame Sundaram, Michael Lim...