It is difficult to see the Chinese caving to the demands of the Trump government, which seem to involve a wholesale change of China’s economic model. Either some middle ground is found or we risk a serious escalation with multiple risks to the state of the world economy, with many known and unknown facilities. The […]
May 19th, 2019 · Comments Off on The Real Risk Of The Trade War
February 6th, 2018 · Comments Off on Just What The Doctor Ordered
Two years ago, the world economy looked downright scary, with secular stagnation ravaging much of the developed world, stagnant wages, low productivity growth and various serious crisis spots. But growth returned and it took the immediate sting out of these dangerous situations, like a eurozone break-up, Chinese capital flight and emerging market dollar debt. While […]
July 10th, 2017 · Comments Off on A Synchronized Upturn In The World Economy
While there is a sort of synchronized upturn in the world economy, this is likely to be as good as it gets. The longer-term outlook is one of diminished expectations, the result of adverse demographics and declining productivity growth. Only a sustained increase in investment can alter this picture. Source: A Synchronized Upturn In The […]
Tags: World Economy
July 1st, 2017 · Comments Off on How Dangerous Is The World’s Debt Problem?
High debt can lead to financial crisis. Since debt levels have risen in many countries, there is considerable reason for concern. However, big financial crises, while economically enormously harmful, are rare events needing outsized asset bubbles financed by debt, we don’t see that in the developed world yet. We have to distinguish between public and […]
January 12th, 2016 · Comments Off on China To Save The World Economy? | Seeking Alpha
The old China growth model based on capital formation and exports is running on empty. So China is transitioning to a model that is more based on consumer demand. While the transition is difficult and fraught with obstacles, the end result could benefit the world economy as a whole, although not everybody. Source: China To […]
Tags: World Economy
August 26th, 2009 · Comments Off on World Economy on the mend?
Good news from US housing, but less good news out of China..
June 8th, 2009 · 2 Comments
Some things you should know before investing. There are a number of real dangers lurking out there, most especially that the traditional levers of policy, monetary and fiscal policy, are close to hitting their natural limits. Here are eleven dangers for the world economy…