Fortunately for America and contrary to Washington conventional wisdom, the mighty-looking Chinese state is, in reality, particularly vulnerable at this moment. For one thing, its slowing economy is on the verge of a debt crisis. At the same time, Beijing, largely because of the expansive vision of its ruler, Xi Jinping, is overstretched. Read Here […]
A growing number of economists are joining the chorus forecasting the arrival of a stronger Chinese economy under President Xi Jinping – a stark contrast from a year ago, when China was seen as a source of instability for the world. Although Beijing has delivered scant evidence that it is taming its debt mountain, the optimists […]
As Donald Trump angles to make America’s debt burden great again, he has some finessing to do with his bankers. No, not Russia in this case, but China and Japan, both by far the biggest holders of U.S. Treasuries with a combined $2.3 trillion. South Korea’s $95 billion stockpile also has folks in Seoul curious about […]
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
The case for government spending during economic slowdowns has been hotly debated for decades. John Maynard Keynes went as far as to suggest that during a recession governments should pay people to do meaningless tasks — such as digging holes in the ground and then filling them up. Read Here – BloombergView
The stakes are high for the U.S. as tensions in Asia ramp up. The country has $1.3 trillion of two-way trade with the region, based on annualised data in the first six months of this year. That’s 52.5 percent of America’s total foreign trade. But that is only part of U.S. linkage with Asian economies. […]
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
Pakistani and Chinese officials boast that CPEC will help address Pakistan’s electricity generation problem, bolster its road and rail networks, and shore up the economy through the construction of special economic zones. But these benefits are highly unlikely to materialise. The project is more inclined to leave Pakistan burdened with unserviceable debt while further exposing […]
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 […]
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. […]
looking beyond borders 