2011

Big governments, big people? - Ezra Klein - The Washington Post tags: debt ceiling wealth The Bigger The…

If you recall, it was George W. Bush’s father, GWH Bush, who, when campaigning against Reagan, called supply side economics’ claims that tax cuts pay for themselves Voodoo Economics. And Bush was proved right when deficits spiralled out of…

History has a message for us: No fiat currency has lasted forever. Eventually, they all fail. Morgan Stanley reported in 2009 that there’s “no historical precedent” for an economy that exceeds a 250% debt-to-GDP ratio without experiencing…

If the Chinese are serious about their anti-US rhetoric, they will have to do a lot more on the currency front. First and foremost, they need to move more aggressively to a basket peg that allows bilateral Yuan currency rates to move as the…

Separately, both Nouriel Roubini and Stephen Roach, two leading American economists with differing views on the Chinese domestic economy have pointed out the concern China has with the dysfunctional US political system. Increasingly, the…

CMA sources credit prices directly from the world’s largest and most active credit investors. Data from CMA show that the US leads the list amongst sovereign credit default swap wideners today.

Dollar pares back recent losses against majors but remains defensive; stocks and commodities down. Even if default is averted odds remain high that US credit is downgraded by at least 1 of 3 agencies. South Korea’s GDP decelerates in Q2…

Latest news from economics and finance for 27 Jul 2011

Coal is one of many natural resources which are in short supply. This article provides one example from India. Jeremy Grantham believes that peak resources is a phenomenon which will pose problems for the global economy in the future. He…

Treasuries are more expensive to use as collateral for the borrowing that banks do in the ordinary course of business.