International investors so far have seemed to have taken the news in stride. Sometime during this year an event occurred that some Americans feared would eventually happen for the last decade or more. The Chinese economy became the largest in the world. For the first time since 1872, the United States no longer possesses the number one position in the global economy. It was in the 19th century that the United States passed the United Kingdom as the world’s largest economy. As […]
Global Investing Blog
What Comes Next With The Gold Market In 2015
Investors in gold saw prices plunge below the cost of production in November. For producers in the United States this averages $1200 USD (United States Dollar) per ounce from extraction, to the metal sold at the exchanges. Prices are now back above this benchmark. This was the result from a series of news events, as well as the market forces that will increasingly come into play beginning in 2015. The charade of paper gold is nearing the end of its viability. Consumers […]
Invest In The Future With Kazakhstan
Investors looking for a new frontier of opportunity might want to consider Kazakhstan. The country has the largest and most productive economy in Central Asia. Gaining independence in 1991, the nation of Kazakhstan is strategically located between Asian and European business centers. The Kazakhs have the additional advantage, of having a close geographic proximity to 3 out of 4 of the BRIC countries. Russia, India and China are all in the neighborhood, for purposes of trade and the marketing of goods. This […]
European Quantitative Easing To Begin In 2015
The investors and economies of the European Union are in the doldrums. Of the major economic powers, France teeters on the brink of recession and Italy already has entered one. Germany’s economy, the normal engine for growth in Europe has now stalled. Spain is sputtering and the United Kingdom although growing, is heading into headwinds that will make growth difficult in 2015. The ECB (European Central Bank) has taken interest rates to as low as they can go. At 0.05%, there is […]
China Joins The Club Of Ever Lower Interest Rates
Investors will now see the Chinese stock market recover some momentum, as the central government decided to reduce interest rates effective November 22nd. It is an attempt to encourage the domestic economy to pick up some strength, as world growth rates continue to decline elsewhere. This is the first time since 2012, that China has reduced borrowing rates. The hope is to prevent 2014, from being the slowest economy since the 2009 banking crisis. The benchmark one year rate will be reduced […]
A Nuclear Armed Iran Will Increase Economic Insecurity In The Middle East
Many international investors are well aware that the deadline for a nuclear agreement between Iran and the West is November 24th. It has become a contest of wills between the United States government and the Iranian mullahs. The fear in the United States is that the Obama Administration desperate for a deal, will give away too much. The Iranians want to keep the option of becoming a nuclear power as part of their strategic planning. The United States and the geographic neighbors […]
For Investors A Game Changer In Gold Has Arrived
Investors will see a new movement in international markets when it comes to gold. On November 30th, the citizens of Switzerland will decide the financial fate of their country when it comes to monetary stability and the value of their currency. A yes vote for the proposed Save Our Swiss Gold Initiative, would dramatically change the way the Central Bank of Switzerland conducts business. In short, it would require the Swiss to hold 20% of their $547 billion USD (United States Dollar) […]
Brazil Narrowly Votes For Continuing Stagnation
For investors in Brazil, the re-election of President Dilma Rousseff with 51.6% of the vote in a runoff, indicates that the nation is divided on what future political course their country should take. It will have serious economic consequences. Although Ms. Rousseff promised to reunite the nation after a acrimonious political battle with her rival Aecio Neves, she never mentions him by name. Brazil is facing some serious economic challenges that can totally derail growth. If this happens not only will it […]
The World Of Business And Investment After The 2014 United States Elections
Investors will now want to know what are the implications for business and investment, with the Republican sweep of both houses of Congress. This outcome was predicted the last time, by this writer on August 25th. In the House of Representatives, the Republicans now have the largest majority since the 1920’s, with the likelihood of 249 sets out of 435 total. In addition to recapturing control of the Senate, the Republicans now control 70% of the state legislatures and won 26 out […]
Saudi Arabia Continues To Use Oil As A Economic And Foreign Policy Weapon
Investors in oil and natural gas saw world prices for fossil fuels decline even further with the latest action by Saudi Arabia. Oil is now at a lower point in price than has been seen in more than four years. The Saudis unexpectedly announced that crude sold in the United States from them would experience another price cut. As the world’s largest exporter of oil this decision puts added pressure on American domestic energy producers. The question on investors mind is at […]