China

Now that the Greek crisis has died down, we can return to surveying the global economy for clues as to whether global growth will continue unabated. My sense right now is that the major theme to watch remains policy divergence, with the US…

By Michael Pettis Last week Derek Scissors, a think tank analysts at the American Enterprise Institute, published an article in which he referred to an October, 2014, studyby Credit Suisse that attempts to measure total household wealth by…

By Michael Pettis When Isaac, an editor at Foreign Policy, sent me an email two weeks ago asking if I could write a piece on the new Asian Infrastructure Investment Bank (AIIB), I quickly wrote back promising 1,200 words within a few…

In what can only be seen an unexpected Chinese success, several US allies have agreed to participate in China and India's Asian Infrastructure Investment Bank. The frustration with the US on this issue is palpable. There is another issue…

In the last post at Credit Writedowns Pro on jobs, I promised to talk about currency issues but I didn't! here are two issues then: the increasing current account surplus in Germany and the strong dollar's effect on China. On Germany,…

Deflationary pressures in China indicates that we probably need monetary tightening, not loosening. I know this sounds extremely counterintuitive, and so violates what we have learned about the world by assuming that the world looks a lot…

By Marc Chandler As the year winds down, a Gordian knot tying Russia, oil prices and China together is receiving a great deal of attention.  Let's see if we can unravel some of the confusing twists and turns. We turn first to China's…

I am going to concentrate on the news flow today and what it tells us about where this financial crisis is headed. Given the last mini-crisis we had in emerging markets was overcome relatively quickly, the present crisis doesn’t have to…

By Michael Pettis The Financial Times ran a very interesting article last week called “China: Turning away from the dollar”. It got a lot of attention, at least among China analysts, and I was asked several times by friends and clients…

No one story sticks out for me today. So I thought I would make a few comments on the stories making the rounds today in the Internet. Let’s start in the U.S.