Today’s report from the Bureau of Economic Analysis shows the US economy to be much stronger than previously thought. The advance estimate for the second quarter of 2014 showed real GDP expanding at an annual rate of 4 percent. The new data revised the dip in GDP for Q1 from -2.9 percent to -2.1 percent, [...]
Winning To the unrestrained delight of investors and financial markets, Narendra Modi has prevailed in the audition for India’s newest Messiah. The incumbent has been received rapturously, with commentators running out of superlatives and comparisons – Thatcher, Reagan and several Indian gods. Indian stocks, up over one-third since September 2013, and the rupee, up about [...]
The World Cup was not the only event of global significance to take place in Brazil this summer. The leaders of Brazil, Russia, India, China and South Africa met in the city of Fortaleza and announced the formation of two new financial institutions. One is the New Development Bank (NDB), which will finance “sustainable development” projects, [...]
Iraq, Ukraine and other geostrategic hotspots.
Must ReadNouriel Roubini's Global EconoMonitor
In the immediate aftermath of the 2008 global financial crisis, policymakers’ success in preventing the Great Recession from turning into Great Depression II held in check demands for protectionist and inward-looking measures. But now the backlash against globalization – and the freer movement of goods, services, capital, labor, and technology that came with it – [...]
Because of rapidly approaching debt constraints, China cannot continue what I characterize as 'investment overshooting' economic polices for much longer (perhaps three or four years at most)...The longer this kind of growth continues, the greater the risk that China reaches debt capacity constraints, in which case the country faces a chaotic economic adjustment.