Part 1: Reforming China – Rebooting the Economic Engine
photo: tammy c. Over the last 35 years, China has emerged as a major global economy, with average annual growth rates of 9.7% which have been pivotal in helping raise between 400 and 600 million...
View ArticlePart 2: Financial Reform in China – Don’t Bank It!
photo: David Dennis The Chinese brand of state corporatist model based on credit driven investment is designed to deliver growth. The strategy requires the government to exert significant power over...
View ArticlePart 3: Reforming China – Changing the Software
Beyond purely economic and financial objectives, the reform process in China must meet welfare, demographic, environmental and governance challenges. The People’s Welfare… Increasing consumption...
View ArticleCrash Course Part 1: The Problems of Overvalued Assets & High Debt
photo: pixabay In economics and finance, over-valued assets and excessive debt levels generally do not lead to happy endings Nutty Shares… Over the last 5 to 6 years, mispricing of assets has reached...
View ArticleCrash Course Part 2: Crisis Triggers
photo: Flood G. Triggers There are a number of potential triggers to a new crisis. The first potential trigger may be equity prices. The US stock market runs into trouble. A stronger dollar affects US...
View ArticleCrash Course Part 3: The Age of Stagnation?
photo: Ken Teegardin There are now three possible scenarios for the global economy and financial markets. The first is the Lazarus economy, where the strategies in place lead to a strong recovery. The...
View ArticleThe Coming Italian or French Phases of Europe’s Economic Crisis
Low interest rates, continuing injections of liquidity by the European Central Bank (“ECB”), fiscal stimulus to varying degrees assisted by low government borrowing costs, a fall in the Euro and...
View ArticleNegative Rates Part 1: Beyond the Zero Bound
Interest in negative rates, at least as can be judged from hyper activity from commentators, has diminished. But a number of European central banks still have negative official rates. The European...
View ArticleNegative Rates – Part 2: A Policy Too Far?
Negative Reality Debt can only be reduced by strong growth, inflation, currency devaluation (where the borrowing is from foreigners) or default. All the strategies other than growth involve some level...
View ArticleA New Banking Crisis?
Bad Numbers Today, there are over $3 trillion in stressed loan assets, compared to around $1 trillion of US sub-prime loans which was the catalyst for the 2008/2009 crisis. The World Bank estimates the...
View Article
