In The News

Interest Rate Rise: Turning Point Looms for US Debt Binge

Eric Platt September 9, 2015
The world has become accustomed to low-cost loans since late 2007 and many dread a hike in interest rates by the US Federal Reserve. Low interest rates encouraged corporate borrowing and speculation, weakening some firms. “Companies have had easy access to cash to write cheques for multibillion-dollar takeovers, to fund buybacks and dividend strategies – all welcomed by investors as share prices...

Globalization at Warp Speed

Robert J. Samuelson September 7, 2015
Globalization thrives in financial markets and may even control them. Much focus is on the world’s fastest-growing economies. For example, China’s consumes near half of the world’s aluminum, copper, lead, nickel and zinc, up from 13 percent in 2000, writes economist Robert J. Samuelson for the Washington Post. Reduced demand for oil due to slowed growth in China and an increased US supply has...

Central Bank Interventions: Drunks Searching by the Light

Chan Akya August 28, 2015
Central banks may have gone too far in defying market forces with quantitative easing, stimulus spending and increased liquidity, argues Chan Akya for Asia Times. Loose monetary policy kept many in high-risk assets too long. Some investments are in bubble territory: “With the primary purpose of quantitative easing namely to kick start the economy absolutely failing to deliver its intended results...

China’s Latest Currency Actions Are Market Driven

Nicholas R. Lardy August 13, 2015
China’s move to devalue its currency is “a potentially major step toward a more market-determined exchange rate,” argues Nicholas Lardy for China Economic Watch. The move unleashed a sell-off of global stocks, but is more likely tied to China’s efforts to promote the renminbi as a world reserve currency to the International Monetary Fund and less motivated by currency manipulation intended to...

Devalued Yuan Seeks Reserve Currency Status

Will Hickey August 13, 2015
China is pushing for the renminbi to join the ranks of reserve currencies as designated by the International Monetary Fund. The IMF may delay such designation and gave a nod to China’s abrupt devaluation of the yuan, letting the unit respond to market forces. Reserve status for the yuan would be symbolic, a gesture acknowledging China’s weight in the global economy, argues Will Hickey. The United...

China’s Soft-Power Push

David Shambaugh August 13, 2015
Investing billions in a range of soft-power endeavors, China leads on Asian trade and infrastructure initiatives and is active in a variety of global forums. “While China’s economic prowess impresses much of the world, its repressive political system and mercantilist business practices tarnish its reputation,” writes David Shambaugh, author and professor. He refers to Joseph Nye, the Harvard...

Capitalists, Arise: We Need to Deal With Income Inequality

Peter Georgescu August 10, 2015
Billionaires are nervous about growing inequality. The United States is wealthy, yet 40 percent are in debt, living from pay check to pay check. Businesses that rely on ordinary consumers purchasing clothes, home products and more will see stagnation. “If inequality is not addressed, the income gap will most likely be resolved in one of two ways: by major social unrest or through oppressive taxes...