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Archive for the tag “government debt”

How China Fell Off The Miracle Path

For years now, Donald J. Trump has been sounding the alarm on China, calling it an economic bully that has been “eating our lunch.” The crux of Mr. Trump’s attack is that Beijing manipulates its currency to keep it cheap and give Chinese exports an unfair advantage. But that narrative is so last decade. China is now a threat to the United States not because it is strong but because it is fragile.

Read Here – The New York Times

The Untold Story Behind Saudi Arabia’s 41-Year U.S. Debt Secret

The basic framework was strikingly simple. The U.S. would buy oil from Saudi Arabia and provide the kingdom military aid and equipment. In return, the Saudis would plow billions of their petrodollar revenue back into Treasuries and finance America’s spending.

Read Here – Bloomberg

Pakistan’s Debt Dynamic

An oft-overlooked aspect of Pakistan’s debt situation is the political economy. There is an inherent asymmetry between the ‘benefits’ derived from new debt undertaken, and the burden of its repayment. There are two facets worth considering. First, those segments who tend to ‘benefit’ from the debt contracted (the elite) are usually different from those who bear the incidence of the debt burden (the less affluent).

Read Here – Dawn

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

China’s ‘Win-Win’ Diplomacy In Sri Lanka Riles India

The Sri Lankan government has cleared one more Chinese project – the expressway linking the southern port city of Hambantota with Matara, which will be the second phase of the previous Chinese-funded project that connects Matara with Colombo. This was one of former President Mahinda Rajapaksa’s pet projects – connecting his hometown with the capital.

Read Here – Asia Times

The 100 Year-Old Debt

The scale of World War One was unprecedented in several ways, including the cost to finance it. In fact, several of the countries involved are still facing related debts.

Read Here – Quartz

The $100 Trillion Whammy

The amount of debt globally has soared more than 40 percent to $100 trillion since the first signs of the financial crisis as governments borrowed to pull their economies out of recession and companies took advantage of record low interest rates.

Read Here – Bloomberg

Sense Of Unease As Superpower Skids

An unmistakable sense of unease has been growing in capitals around the world as the U.S. government from afar looks increasingly befuddled — shirking from a military confrontation in Syria, stymied at home by a gridlocked Congress and in danger of defaulting on sovereign debt, which could plunge the world’s financial system into chaos.

Read Here – AP (Huffington Post)

The Big Fiscal Dilemma

The United States faces a dilemma. A persistently high level of government debt threatens future economic growth and constrains the ability of the government to act in pursuit of national interests, both international and domestic. Yet efforts to bring down the debt will further constrain government outlays and action — possibly for many years into the future.

Read Here – Rand

Advantage USA

Beyond the bright prospects for the return to rapid U.S. economic growth and the resulting decline in federal debt as a percentage of gross domestic product, the U.S. will enjoy six major long-term advantages over its competitors.

Read Here – Bloomberg

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