The national elections in the United Kingdom on May 07th is a crossroads for the future of the country. There are not only enormous economic implications, but political ones as well at stake. One is the future of the nation and its role within the European Economic Community (EEC). Will Mr. Cameron the incumbent Prime Minister, be able to renegotiate the role of of his country within the EEC or will he end up being the navigator of a long feared […]
Global Investing Blog
Japan: A Case Study In The Limits To Quantitative Easing
Economists and politicians that become addicted to quantitative easing, often fail to realize when it is no longer working. Touted as a panacea for economies caught in a malaise, it is supposed to deliver new economic growth and stave off the harmful effects of deflation. Based on a theory that if a dose of quantitative easing (QE) is good for a stagnating economy, more of the same should be even better. The best modern example of this in the 21st century, is […]
China’s Latest Efforts At Monetary Stimulus
In an effort to encourage investment within China, the government has further relaxed bank reserve requirements. It is another attempt to maintain the Chinese rate of economic growth to at least 7%. The latest industry wide cut, is the second one in less than 3 months. The last one was on February 04th, when a 50 basis points reduction was made. That was the first across the board decrease made since 2012. It highlights the determination of the Chinese leadership, to fight […]
The Reluctant Economic Recovery in Europe
The European economy was stagnating in 2014. A number of the major economies in the region were on the verge of recession and deflation was haunting the continent. Austerity was being pursued with a vengeance in a number of countries, in an attempt to pay down debt and bring national budgets back into balance. Unemployment stubbornly refused to move down with joblessness among European youth approaching 50%. Economic growth meager at best, was limited to just a number of countries that had […]
A Wider War In The Middle East Is Now More Likely Than Ever
The news that Russia was going to sell Iran advanced S-300 surface to air missiles at the beginning of the week, raised the stakes for the ongoing crisis in the Middle East. In essence, it ends the international arms embargo against Iran and underlines the failure of the United States in trying to manage the deteriorating situation in the region. The news also in reality sets a deadline for Israel, to launch a preemptive strike against the nuclear installations in Iran. It […]
Nigeria: Will The Changing Of The Guard Help Investment?
Nigeria for investors has always been a nation with great potential since independence from the United Kingdom in 1960. The Civil War from the years 1967 to 1970 dashed the earlier hopes for a stable and prosperous economy. This was the end result of corruption and a series of military coups that culminated into violence on a massive scale. The era of the military juntas from 1970 to 1999 would then follow. Only in the 21st century, did the country painfully make […]
China’s Next Move And Triumph: Reserve Status For The Yuan
China is gaining increasing prestige and influence in the world by carefully working within Western established institutions, when it is to their advantage and going around them when it does not support the Chinese drive towards great power status. China has been largely successful in garnering enough world wide support in the establishment of the Asian Infrastructure Investment Bank, over the objections of the Japan and the United States. Now the Chinese are working to make the yuan also known as the […]
The United States Economic Recovery Continues To Sputter
Despite the constant assurance by the United States government to investors, that all is well with the domestic economy there are a number of government reports and other statistics that say otherwise. The March jobs announcement is an example of this. Economists had expected non-farm payrolls to rise to 245,000. Instead the numbers came in, at a mere 126,000. It was the worst report since December of 2013. It is another clear indication that there are a number of underlining weaknesses that […]
The Dangerous Nuclear Charade With Iran Continues
The second diplomatic deadline has now passed and once again there is no agreement. The United States government continues to insist that a nuclear deal is possible and almost appears desperate to get one. The nations of France, China, Germany, Russia and the United Kingdom along with the United States are attempting to delay what many analysts predict is inevitable. That is that Iran will become the second nuclear power in the region, after Israel. The only way to prevent an Iranian […]
China’s Asian Infrastructure Investment Bank: The Passing Of The Torch
At first glimpse a new investment bank for infrastructure, would seem like a totally noncontroversial occurrence that will benefit Asian nations in desperate need of additional funding. In reality, is has become the latest challenge to American and Western hegemony over international finance and investment. The Asian bank is a massive new initiative by China to partially circumvent existing Western institutions like the World Bank, which is controlled by the United States and Europe. The Americans have been attempting to dissuade other […]