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looking beyond borders

foreign policy and global economy

Archive for the tag “Bonds”

The U.S. Federal Reserve Has A Huge Problem

The Federal Reserve’s old moniker of “lender of last resort” is no longer relevant. Its policy of holding its federal funds rate above levels seen anywhere else in the developed world and borrowing near these rates has made it the “borrower of first resort.” This is problematic.

Read Here – The National Interest

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From Bitcoin to Belize, Here Are Best And Worst Assets Of 2017

It was a great year for copper, Ukrainian stocks, palladium. Uzbekistan’s currency, Venezuelan bonds and sugar not so much. It was a great year to hold bitcoin, but a bad time to have been invested in the Uzbek soum.

The Demise Of Dollar Diplomacy?

Pundits have been saying last rites for the dollar’s global dominance since the 1960s – that is, for more than half a century now. But the pundits may finally be right, because the greenback’s dominance has been sustained by geopolitical alliances that are now fraying badly.

Read Here – Project Syndicate

How One City’s Borrowing Practice Highlights China’s Daunting Financial Risks

China’s finance ministry was technically correct when it reacted to a sovereign debt rating downgrade in May by saying the debts of local government financing vehicles (LGFVs) and state-owned enterprises would not swell the government’s contingent liabilities.

Read Here – South China Morning Post

Welcome To The Brave New Multi-Polar World

It’s a story about the tail that wagged the dog that didn’t bark that isn’t in Kansas anymore. The dog that didn’t bark is commodity prices, and the tail that wagged is the Chinese yuan.

Read Here – Asia Times

Saudi Arabia’s $750 Billion Threat To Wreck The U.S. Economy

Dumping U.S. bonds is not really an option for any country holding major positions. To the extent that the number of bonds the United States sells is a problem—and it is a problem—it is not because it gives others leverage over America. It is because it is reflective of decades of out-of-control spending, which must be addressed for the sake of the country’s long-term economic health.

Read Here – The National Interest

Who Is The Bigger U.S. Creditor?

Differing views have been expressed in the debate on who is going to be the biggest US creditor. However, it is certain that China and Japan will remain as the top 2 creditors for the foreseeable future.

Read Here – Global Times

The 100 Year-Old Debt

The scale of World War One was unprecedented in several ways, including the cost to finance it. In fact, several of the countries involved are still facing related debts.

Read Here – Quartz

Big China Default Around The Corner?

Chinese company debt twice the size of Ireland’s economy will come due in 2014, spurring concern the nation is on the cusp of its first corporate bond default.

Read Here – Bloomberg

How Much Longer Before The Fed Cracks?

The U.S. unemployment rate fell to 7 percent in November, the lowest since November 2008, raising questions about how much longer the Fed will keep fueling the economy with monetary stimulus.

Read Here – Businessweek

Let It Ride – The Economist

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