The crisis in Greece will continue regardless of the outcome of the present negotiations between the government and the troika of creditors. Investors will find that Greece will be mired in debt for years to come, because the economy will be unable to grow sufficiently to meet present expenses and liabilities. The idea that enough income will be generated to repay the massive debt owed to the International Monetary Fund (IMF), the European Central Bank (ECB) and the German government through the […]
Global Investing Blog
Investors Should Consider Asia’s New Economic Tiger: The Philippines
Analysts have long touted China as the place for investment as the fastest growing economy in the world. Overlooked by many is a country in the same neighborhood that has been growing by leaps and bounds in recent years. It is the Philippines, an archipelago of more than 7,000 islands in Southeast Asia. From a year ago, this island economy has grown 5.2%. This is a decline from 6.6%, reported in the last business quarter of 2014. Although the country still has […]
The Slow Rising Economic Fortunes of Turkey
International investors over the last couple of years had increasingly decided that Turkey was no longer a country to consider when looking for new opportunities. There were concerns over a slowing economy, and increasing dangerous neighborhood as well as the movement towards a more authoritarian type of government. Much of these anxieties have been exaggerated and as it turns out ill founded. Although Turkey has gone through a somewhat difficult period in some respects, the transition has recently been moving in a […]
Ethiopia: A Rising Economic Power In Africa Under Constraint
In a continent where missed opportunities for growth are commonplace, Ethiopia has been somewhat of an exception. The economy of country expanded in excess of 10% from 2004 to 2009. It was the fastest growing nation in Africa during 2007 and 2008, that was not dependent on oil. By 2012 the growth rate had moderated to 7% and has remained there ever since, but it is still an impressive record. As Africa’s second most populous nation after Nigeria and the fastest growing […]
The Consequences Of The Coming Crash In The Chinese Stock Market
Investors often worry about the high valuations of the stock market in the United States. Share values are far higher in China, well beyond what can be accepted as normal growth. The excessive exuberance in the Chinese markets will have dire consequences in both the short and long term. Signs of overvaluation are everywhere, with stocks up nearly 50% in 2015. The market is being increasingly driven by speculators, rather than on economic data. The amount of additional money and new investors […]
A Global Addiction To Debt With The West Leading The Pack
Global debt is now at 286% of GDP (Gross Domestic Product). Although debt like investment serves a purpose in the development of an economy, beyond a certain level it brings diminishing returns. The Bank for International Settlements an organization that has within its membership the world’s central banks, has calculated the threshold where debt becomes destructive. It is 85% of GDP in household debt and 90% for non-financial corporate debt. Most wealthy nations have gone beyond these benchmarks. This portends a troubling […]
The Boom In Global Trade For Northeastern Asia Finally Ends
For decades analysts and investors gauged the health of the world economy based on the value and amount of exports that originated from Northeast Asia. The region has been one of the most dynamic in the arena of trade for almost 2 generations. China by far the most important economy in the region, has seen a diminution of 6.4% in exports over the last year. South Korea is reporting a 8.1% decline over last year and Taiwan is expecting exports to shrink […]
The Transatlantic Trade And Investment Partnership
The Transatlantic Trade and Investment Partnership is a proposed free trade agreement that is being negotiated between the European Union and the United States. This commercial pact has become quite controversial between those groups who fear the loss of more national sovereignty and other elements of society, who favor widening opportunities for trade and investment on both sides of the Atlantic. As the individual economies of Europe and the United States continue to struggle to return to more normal growth, the public […]
Saudi Arabia Finally Opens Up Stock Market To Foreign Investment
Investors will finally have the opportunity to enter the largest stock exchange in the Middle East. At $590 billion USD (United States Dollar), Saudi Arabia will partially open up the market on June 15th. The new regulations will come into force on June 1st in time before the inaugural change that takes place two weeks later. Investment will be limited to qualified foreigners that have at least $5 billion USD in assets under management. This will give a distinct advantage to banks, […]
The Ongoing Controversy Over The Trans-Pacific Partnership
The Trans Pacific Partnership known as TPP involves 12 nations and will constitute 35% of global trade, when and if it is fully implemented. The negotiations have been ongoing for almost 10 years, among the nations that straddle the Pacific Rim. If one were to add the GDP (Gross Domestic Product) of these nations, it would add up to $28 trillion USD (United States Dollar). Together this represents nearly 40% of global GDP. The new partnership will bring massive new opportunities for […]