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looking beyond borders

foreign policy and global economy

Archive for the tag “economic crisis”

New Military Equipment or Saber-Rattling? Russia Must Choose

Russia’s economic crisis is forcing the government to trim its prized defense budget, and if the situation worsens, President Vladimir Putin may have to choose between his current saber-rattling and buying the new equipment his Soviet-style forces have been promised. Back in 2011, when relations with the West were relatively tranquil and Russia’s shows of force less frequent, Putin pledged to carry out a massive rearmament campaign with 20 trillion rubles ($370 billion) dedicated to buying new military hardware through 2020.

Read Here – Moscow Times

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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

Oh, That Horrible Feeling Again…

India’s prosperous future has hardly ever seemed farther away than it does today. The country’s ongoing economic crisis has darkened the atmosphere — and done so in a way tragically familiar to most Indians.

Read Here – Foreign Affairs

 

A Shadow Of Its Former Self

Greek society has been radically transformed by years of austerity and cutbacks. It is now decaying before our eyes – and it’s pulling the country’s democratic system along into the abyss.

Read Here – The European

Euro Zone Faces Deepest Downturn Since Early 2009

The euro zone economy is on course for its weakest quarter since the dark days of early 2009, according to business surveys that showed companies toiling against shrinking order books in November.

Service sector firms like banks and hotels that comprise the bulk of the economy fared particularly badly this month, and laid off staff at a faster pace. While the monthly rate of decline that manufacturers reported eased far more than economists anticipated, Markit’s latest Purchasing Managers’ Indexes (PMIs) pointed to little change overall for a recession-hit euro zone this month.

Read Here – Reuters

Shrugging Off a Debt Default, Gulf Islamic Financial Markets Show Maturity

Default became a dirty word in the United Arab Emirates after 2009, when Dubai World requested a six-month delay on payments on US$26 billion in debt. So much so that when UAE energy company Dana Gas this month missed repayment on a US$920 million Islamic bond, local press hesitated to label it as a default.

In the midst of the global economic and financial crisis, the country and Dubai in particular took a drubbing from credit rating agencies, investors and the international press, which harshly questioned its economic model. A multibillion-dollar bailout from oil-rich sibling Abu Dhabi averted the worst, but the experience left a sting.

Based in Dubai’s neighboring Emirate of Sharjah, privately owned Dana Gas became the first example of a UAE corporation to miss a debt repayment — others had sought and received restructuring before deadline. It also presented a test for the Islamic financial market, as no sukuk had been restructured or unpaid upon maturity. Yet the Middle East’s largest natural gas firm quickly announced a restructuring deal soon after its troubles became public.

Read Here – Arabic Knowledge@Wharton

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