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looking beyond borders

foreign policy and global economy

Archive for the tag “debt”

Has Asia Learned From The 1997 Crisis?

Reform is always easier when a crisis leaves policy makers no other options. But without further change, Asia will continue to rely too much on debt instead of productivity gains for growth. In poorer nations, improvements in household welfare will lag. As in the years before 1997, economic irregularities could build up to the point where the region faces another crisis. Will the next Kim Dae-jungs be there when you need them?

Read Here – Bloomberg View

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America Owes China $1 trillion. That’s A Problem For Beijing, And Trump Knows It

Indeed, the US-China relationship is a classic example of the old saw: if you owe the bank a thousand dollars, you have a problem; if you owe the bank a trillion dollars, the bank has a problem. Trump holds the important cards and it is simply a case of whether he wants to play them.

Read Here – The Guardian

Cambodia, Sri Lanka And The China Debt Trap

The influx of Chinese economic assistance into Sri Lanka and Cambodia has raised questions regarding the intentions behind these massive loans. While China may still be considered a developing economy, its current strategy of providing soft power loans and aid to its regional neighbours is reminiscent of the tributary system that the country employed back in its empire days.

Read Here – East Asia Forum

Markets Are Going To Roil Next Year

The sheer range of known unknowns for 2017 — the outlook for China’s economy, the effect of populism on European politics, the scattergun policy-making of president-elect Donald Trump — makes a low level of uncertainty unlikely to persist.

Read Here – BloombergView

China’s Debt Bomb

It’s a bomb! A mountain! A horror movie and a treadmill to hell! To doomsayers, China’s $25 trillion pile of public and private debt is a threat to the global economy. Or maybe it’s just a manageable byproduct of the boom that created the world’s second-biggest economy.

Read Here – Bloomberg

Riding The Tiger Of Debt And Bubbles

China is a good example of how an activist monetary policy can ferment bubbles, ruin the health of a financial system, economic reforms and, eventually, economic growth. Since 2004, China has run a gigantic monetary bubble that has corrupted virtually every corner of the economy.

Read Here – South China Morning Post

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

China Stock Plunge Hits World Stocks, Dollar; U.S. Stabilizes

World stock markets plunged on Monday, after a near 9 percent dive in China shares and a sharp drop in the dollar and major commodities sent investors rushing for the exits. After dropping more than 1,000 points, or almost 7 percent, at Wall Street’s open, the Dow Jones industrial average eased losses but was still off more than 1 percent at midday. The Standard & Poor’s 500 index was down by a similar margin after the U.S. benchmark earlier dropped nearly 10 percent below its record.

Read Here – Reuters

What Europe Should Learn From Asia’s Crisis

Asian leaders could be excused a degree of exasperation over the ongoing Greek mess. China’s slowdown and stock-market chaos are worry enough; the last thing the export-dependent region needs is a Europe in chaos. Worse, European leaders seem intent on misreading or ignoring lessons from Asia’s own brush with collapse.

Read Here – Bloomberg

Greece’s Agreed-Upon Plan Looks A Whole Lot Like the One It Just Rejected

In the wee hours of Monday morning, after a marathon 17-hour session, Greece finally agreed to a deal with the euro zone that would give it enough cash to start reopening its shuttered banks, pull it out of arrears, and stave off its exit from the euro. In some ways this deal (or any deal) might be seen as a victory, pulling Greece back from the brink of the possibly disastrous expulsion from the euro—but the accepted proposal also marks some pretty significant defeats at the end of a months-long struggle, with Greece conceding to many of the conditions it fought so hard against.

Read Here – The Atlantic

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