The national elections in Taiwan also known as the Republic of China in the middle of January, are now going to move this island nation in a new direction. The complete victory of the Democratic Progressive Party (DPP) founded in 1986, will ensure that. The vision is to restore the former economic Asian tiger to its former identity. The DPP did control the presidency from 2000 to 2008, but never had a majority in the legislature. The recent electoral results will provide the incoming […]
The Collapse In Oil Prices Is Destabilizing World Markets
International oil prices have been dropping precipitously in recent weeks. It is causing havoc among the energy industry and especially those nations that have become overly reliant on income derived from the sale of crude. During the last 18 months, a barrel of oil has dipped in price by more than 70%. Valuation has dropped by 20% in 2016 alone. It is becoming one of the worst crashes in the post World War II era. The cost has now dropped to a […]
The Economic Third Way In Bolivia Is Under Pressure
Bolivian President Evo Morales is observing with increasing alarm, as one socialist government after another falls to the forces of democracy in Latin America. Brought low by collapsing commodity prices and ill advised economic policies, the leftist regimes around South America are coming under increasing pressure to make reforms. Slowing global growth offers little hope, that these nations will be able to engineer a turn around, without abandoning some long held principles. The business sector remains weak in Bolivia, conveyed by years […]
Chinese Economic Growth Separating Fact From Fiction
China has most certainly become the second largest economy in the world. The Chinese economy after experiencing spectacular growth over the last few decades, is now moving into a new phase of more intermediate development. Although the government officials will continue to insist that the domestic economy is still growing at a rate close to 7%, an increasing number of investors are beginning to have their doubts. The legitimacy of the modern Chinese government, is now tied to providing the people and […]
Rising Tensions Between Iran And Saudi Arabia Will Have Economic Consequences
The year began with an escalation in tensions between Iran and the kingdom of Saudi Arabia. They are the two most powerful countries in the Middle East and form the foundation of the Sunni-Shia conflict in its present form. This schism has plagued the region since the 600s. The existing rift will not only prevent a wider peace in the area, it could easily expand into a struggle that will plunge the entire vicinity into an internecine war, that will devastate most […]
Is Ecuador The Next Domino To Fall In Latin America?
The end of the boom in commodities brought to the forefront, an important aspect of the leftist movement in Latin America. Mainly that it is economically unsustainable in the present global environment. The pattern is repeating itself as one nation after another, runs out of the money to sustain governments that came to power by promising a redistribution of wealth to the populace at large. The electoral system that brought them to power, is the very process that will now lead to […]
The Expanding Global Reach Of Chinese Foreign Investment
In the first part of the 21st century, a changing world phenomena has been the amount of foreign investment originating from China. In many cases, the total amount far exceeds new asset allocation being made by individuals and companies coming from Europe and the United States. Chinese overseas investments have increased ten fold from 2005 to 2014. It is helping to alter the international balance of power, by securing for China new allies and greater access to needed natural resources. The government […]
A Pivotal Election For The Economy Of Spain
In the run-up to the parliamentary election in Spain, it was clear that it would be the role of the new parties which would determine the direction of the country. Since a coalition government was inevitably going to be the result, it will now either move Spain to a broader consensus or if legislative majority is too narrow, even greater instability. The voters gave the Conservatives a victory, but without a mandate. The restlessness of the electorate in the pace of reforms […]
European Commission Vs. United States Multinational Corporations
When multinationals from the United States were looking for places to base their corporate headquarters in Europe, they were looking for the most business advantageous countries. For years the countries of Belgium, Ireland, Luxembourg and the Netherlands in particular, offered special consideration for foreign companies known as tax rulings. These financial privileges provided legal ways to reduce and in some cases eliminate, all tax liability in the host country. This whole regime is now under attack, by central authorities and is being […]
Russia: Superpower Ambitions With An Economy In Full Decline
It is not the first time that a nation has imperial ambitions that reaches far beyond its economic capability. Britain in the 1950’s discovered that the financial cost of maintaining the Empire, far exceeded what was politically possible in a functioning democracy. It would eventually of been cost prohibitive regardless, in relation to the size of the domestic economy. This is the situation that Russia now faces. The cost of military expenditures are rising rapidly in the midst of a declining economy. Foreign […]