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looking beyond borders

foreign policy and global economy

Archive for the tag “currency”

Bitcoin Is A Delusion That Could Conquer The World

If every currency is a consensual delusion, then bitcoin, a digital cryptocurrency that changes hands over the internet, feels more like a consensual hallucination on psychedelic drugs.

Read Here – The Atlantic

Also Read: Why Bitcoin Fever Is A Bubble Waiting To Burst

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How the US stopped complaining about China’s exchange rate policy

The United States’ loud complaints about the Chinese currency’s exchange rate, a thorny issue in the two nations ties over the past decade, have quietly faded away since Donald Trump became US president.

Read Here – South China Morning Post

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 Black-Market Tobacco Funds The World’s Bad Actors

Where does North Korea, whose gross domestic product is less than that of some American cities, get the money to fund its nuclear efforts? Kim Jong-un and his regime obtain much of their money from a vast series of criminal enterprises that trade in everything from goods made by forced labor to counterfeit currency to narcotics.

Read Here – Defense One

The Secret History Of The Banking Crisis

The new central bank network created since 2008 is of a piece with the new networks for stress testing and regulating the world’s systemically important banks. The international economy they regulate is not one made up of a jigsaw puzzle of national economies, each with its gross national product and national trade flows. Instead they oversee, regulate and act on the interlocking, transnational matrix of bank balance sheets. This system was put in place without fanfare. It was essential to containing the crisis, and so far it has operated effectively. But to make this technical financial network into the foundation for a new global order is a gamble.

Read Here – Prospect

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

How India’s Cash Chaos Is Screwing Over Their Neighbours — Oops!

Nepalese citizens hold an estimated $500 million in the banned notes, most of them sent back as savings by the more than one million Nepalese nationals working in India, says Chiranjibi Nepal, governor of the country’s central bank, the Nepal Rashtra Bank. Yet seven months after the ban, India has yet to exchange those notes with valid ones. Talks are on with India’s central bank, he says. As for Bhutan, its nationals hold $16 million in defunct Indian notes, says Dasho Penjore, governor of the country’s central bank, the Royal Monetary Authority.

Read Here – Ozy

Will Trump Destroy The Dollar?

Under President Trump, it is possible, for the first time in a generation, to imagine a concerted attack on the central bank. Conceivably, the United States could repeat the story of the mid-1960s and ’70s, when a 15-year period of central-bank independence was brought to an end by presidential bullying. Back then, Lyndon B. Johnson summoned the Fed chairman, William McChesney Martin Jr., to his Texas ranch and shoved him around the living room while proclaiming that low interest rates were imperative in a time of war.

Read Here – The Atlantic

The Battle Of Three Centuries

Twenty years ago next month, the British government gave the Bank of England the freedom to set interest rates. That decision was part of a trend that made central bankers the most powerful financial actors on the planet, not only setting rates but also buying trillions of dollars’ worth of assets, targeting exchange rates and managing the economic cycle. Although central banks have great independence now, the tide could turn again.

Read Here – The Economist

Has Summer Brought A New Optimism About The Russian Economy?

Markets have soared: the ruble is the best-performing emerging market currency this year, up over 20 percent since late January against the dollar, and equities have posted double-digit gains. Russian markets have benefited from a range of macroeconomic and technical factors—a moderate pickup in oil prices, a search for yield by investors punished by low or negative interest rates in the industrial world, and a sense that the worst effects of the sanctions are in the past.

Read Here – cfr,org

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