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Archive for the tag “financial markets”

The Biggest Threats To China’s Economy In 2018

China’s economy begins 2018 facing what its own leaders call three years of “critical battles.” Those fights to tackle domestic debt, poverty and pollution pose a hat-trick of risks to the world’s No. 2 economy even before higher interest rates and trade war threats from the U.S. are taken into account. While the nation is starting from a position of strength, with full-year growth in 2017 poised for its first acceleration since 2010, the expansion is seen slowing in 2018.

Read Here – Bloomberg


From Bitcoin to Belize, Here Are Best And Worst Assets Of 2017

It was a great year for copper, Ukrainian stocks, palladium. Uzbekistan’s currency, Venezuelan bonds and sugar not so much. It was a great year to hold bitcoin, but a bad time to have been invested in the Uzbek soum.

Can Xi Jinping Head Off The Grey Rhinos In China’s Economy?

Common sense goes that the first step in solving any problem is recognising there is one. But if one ignores the problem and allows it to balloon to the edge of a crisis before recognising the severity of the issue, that means common sense has long gone out the window and all one is left with is a mess or even worse. That is what has happened with China’s massive and fraud-ridden financial system in which a herd of “grey rhinos” brazenly grew, charged around, and punched big holes, threatening to sink the system with a full-blown systemic crisis.

Read Here – South China Morning Post

Extraordinary Measures For Ordinary Times

The legacy of 2007 is still with us. Its most devastating and destructive effect was to put a premium on unconventional monetary measures. Unfortunately, when policymakers scrambled in search of “big bazookas” ten years ago, they set the stage for the return of an old character: a strongman willing to pull the trigger.

Read Here – Project-Syndicate

Once A Model City, Hong Kong Is In Trouble

When Hong Kong returned to Chinese rule two decades ago, the city was seen as a model of what China might one day become: prosperous, modern, international, with the broad protections of the rule of law…Yet as the 20th anniversary of the handover approaches on Saturday, that perception of Hong Kong as something special — a vibrant crossroads of East and West that China might want to emulate — is fading fast.

Read Here – The New York Times

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

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 Risks To America’s Booming Economy

The US has experienced a decade of excessively low interest rates, which have caused investors and lenders to seek higher yields by bidding up the prices of all types of assets and making risky loans. The danger is that overpriced assets and high-risk loans could lose value and cause an economic downturn.

Read Here -Project Syndicate

China Names New Top Economic Officials

Changes to the top positions at China’s three main economic departments before the 19th National Congress of the Communist Party of China (CPC) will build a new core team to deal with tougher challenges to economic reforms in the future.

Read Here –

The Promise Of Middle East Sovereign Wealth Funds

In the aftermath of the 2008 global financial crisis, investment capital became far scarcer and efforts to ensure SWF transparency and accountability gave way to competition for their capital. Far from a source of apprehension, SWFs have become beneficiaries of fiscal incentives designed to encourage investment in Europe.

Read Here – Project Syndicate

Abu Dhabi’s New $125 Billion Sovereign Fund Is Taking Shape

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