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Archive for the tag “financial markets”

Coming Soon: The Demise Of The U.S. Dollar?

There are many reasons to worry about the U.S. dollar’s underlying economic fundamentals. However, before despairing that America is well on the way to a dollar crisis a person might want to ask two questions. First, does the dollar have any serious rival to displace it as the world’s international reserve currency? Second, would the dollar not fare well in the event that today’s global everything asset and credit market bubble were to burst? 

Read Here | The National Interest

What The Biden Presidency Means For US Economic Policy

Although Joe Biden has ambitious proposals to raise taxes and spend trillions of dollars over the next decade, he will be constrained if Republicans retain control of the Senate. He should welcome that outcome as an opportunity to govern in the mode of Bill Clinton, rather than as the ideologue others would like him to be.

Read Here | Project Syndicate

Global Markets Are Partying Like It Is 2008 (But A Crash Is Coming)

After the 2008 U.S. housing and credit market crisis, Chuck Prince, the former Citibank CEO, explained his bank’s speculative activity during the bubble by noting that when the music is playing you have to dance. Today, with the world’s major central banks continuing to supply the markets with ample liquidity, there can be little doubt that the music is blaring and the markets are dancing.

Read Here | The National Interest

The Many Trails Of Ant Group

When the last of the big four state-owned Chinese banks listed a decade ago, one could be forgiven for thinking that the age of mega Chinese financial listings was over. After all, with financial services being such a strategic sector for the Chinese Communist Party, who would have thought that the state’s stranglehold over banking and finance could ever be challenged The planned listing of Ant Group explodes that myth and reflects the massive changes which the financial landscape has seen over the past decade or so. 

Read Here | The Interpreter

Ant Group Shows Why China Is Beating America

Who needs Donald Trump’s America? You won’t find these words in Ant Group’s initial public offering prospectus, but they’re written between the lines in bold font as the fintech juggernaut Jack Ma built bypasses New York to list in Hong Kong and Shanghai.

Read Here – Asia Times

Why Are Stocks Soaring In The Middle Of A Pandemic?

The contrast seems grotesque. A deadly pandemic has shut down the global economy and left millions of workers furloughed, fired, or stranded without gigs. The future for most businesses looks uncertain to dismal. Yet U.S. stock indices are near all-time highs, at giddy valuations comparable to the 2000 dot-com bubble and 1929.

Read Here – Foreign Policy

The Future Of The Dollar

Photo by Pepi Stojanovski on Unsplash

The enduring dominance of the dollar is remarkable—especially given the rise of emerging markets and the relative decline of the U.S. economy, from nearly 40 percent of world GDP in 1960 to just 25 percent today. But the dollar’s status will be tested by Washington’s ability to weather the COVID-19 storm and emerge with economic policies that allow the country, over time, to manage its national debt and curb its structural fiscal deficit.

Read Here – Foreign Affairs

What The Stock Market Is Really Saying

Photo by Rick Tap on Unsplash

The seeming confidence expressed by global equity markets in the face of the COVID-19 pandemic has surprised many – including many market participants. But a closer look reveals an unambiguous message: The global economy is facing a long, deep malaise, followed by a “new normal” of reduced earnings and profitability for all but a chosen few.

Read Here – Project Syndicate

Containing The Dollar Credit Crunch

As the full implications of the COVID-19 pandemic have slowly become clear, private liquidity has begun to drain out of global markets. As a result, the record-high level of dollar-denominated debt held by non-banking entities outside of the United States has become a problem that central banks simply cannot ignore.

Read Here – Project Syndicate

Trump Reboots To Confront The Coronavirus

It was a somber Donald Trump who spoke at the White House today to declare a “national emergency” and that “we’re doing a great job.” Gone was his language about exaggerated fears and a “hoax” surrounding the coronavirus. His own daughter, Ivanka, stayed home rather than visit the White House because of her exposure to an Australian official who has the coronavirus.

Read Here – The National Interest

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