Reviewing the borrowing costs of European nations, a visiting intelligent alien may conclude that the European economic crisis is over and rehabilitation complete. 10-year government bond rates for Spain, Portugal, Ireland and Greece are 2.20%, 3.12%, 1.67% and 6.15% respectively. Equivalent rates for Germany, France and Italy are 0.97%, 1.31% and 2.39%. Comparable rates for [...]
Washington has launched still another “war against terror” in the Middle East and beyond. It is the kind of escalation that the Islamic State has hoped. In contrast, Beijing is likely to stick to cautious engagement. Half a month after offering the American people his rationale for taking the United States into a new Middle [...]
Several years into the most serious structural crisis of modern history, it is apparent that there are still a number of flaws, in both the current national and global economic system, that need to be addressed if the West is to resume stable and meaningful economic growth. We have already stressed and analysed various aspects [...]
U.S. Economy: Recovery or Bust!
Rising momentum, lingering risks.
I have always thought that the soft landing/hard landing debate wholly misses the point when it comes to China’s economic prospects. It confuses the kinds of market-based adjustments we are likely to see in the US or Europe with the much more controlled process we see in China. Instead of a hard landing or a [...]
Data from the macro and financial realms imply that the bullish aura for the US economy and financial markets has a strong foundation at the moment. Indeed, encouraging macro data is the fuel that’s driving stocks higher. But this happy state of affairs doesn’t mean there’s no risk in the financial markets.