What the stock bubble shows is the unthinkable degree of difficulty in trying to actually manage letting air out of any bubble in an orderly fashion. It may already be too late, as growth declines still further month by month, but stock prices go even more insane, drawing in more and more “retail” accounts and regular Chinese. In other words, the reform idea may have been impossible from the start; that the PBOC went ahead anyway, and still continues despite all that has happened, more than suggests that they now recognize the most dangerous existence is asset bubbles, far and away more important than even “necessary” growth.
"Both the US and China have a vital interest in reaching an understanding because the alternative is so unpalatable," Soros wrote in an article for the New York Review of Books, with the danger imminent if Chinese economic reforms fail forcing President Xi Jinping to "foster some external conflicts to keep the country united and maintain himself in power." These "conflicts" would present themselves in the form of a Sino-Russo alliance which could draw the entire world into war.
When I look at the whole financial sector, I feel like on the Titanic. We’re fighting about deck chairs..
Approximately two years ago, a commentary was published entitled “The One Bank”. The empirical foundation for the article (and the paradigm) was an extensive computer model, produced by a trio of academics at a university in Switzerland, and originally reviewed in an article from Forbes.
What’s the connection between the G7 summit in Germany, President Putin’s visit to Italy, the Bilderberg club meeting in Austria, and the TTIP – the US-EU free trade deal – negotiations in Washington?
"Fiscal stimulus to households was successful during the financial crisis. Cash payments to households of around 1% of GDP (half of the size deployed during the GFC) could help lift economic growth close to trend, particularly if the accompanying political message was “confidence enhancing." - Citi
Are we QE'd out??? It was supposed to be about the quality of growth,not helping the oligarchy protect their collective arses
The financial pundits gushing over "The China Story" - that the Middle Kingdom's industrialization is a permanent boon to the global economy and China's poor - never calculate the human cost of that runaway industrialization and the vast inequalities it has unleashed. The human cost is staggering...
We should not even want to rebuild the world as it was in the decade of the 2000’s because it was so unbelievably unstable, a fact revealed persistently in the nearly eight years since that peak. Economists and central bankers treated the Panic of 2008 and the Great Recession as if it were a temporary interruption in an otherwise healthy system, a cyclical problem that over time heals on its own. Most of them still, to this day, hold the same view and the world’s economy and financial system is paying the costs of doing so. The eurodollar economy is falling apart and no amount of orthodoxy can reverse it because the eurodollar economy is orthodoxy.
The highly regarded former chairman of the Federal Reserve, Paul Volcker, has severely criticized the State Governments in the U.S. over “faulty practices” used to devise budgets which mask the true financial position of those states.
Hungary becomes the first European country to sign on for China's ambitious Silk Road initiative. Beijing hopes the program will serve to relieve the country's industrial overcapacity problem while facilitating a tough transition to a consumer-led economic model. Given the growing number of headwinds China faces, "One Belt, One Road" may represent the counrty's 'one chance' to rescue the flagging economy.
Deutsche Bank’s derivatives position is truly enormous. It was recently estimated to be around $54 trillion. Germany's GDP, the 4th largest in the world, was a mere $3.64 trillion in 2015. Were Deutsche Bank caught off-side in its derivatives positions there is not a government or institution on earth that could bail it out and it could lead to contagion in the German financial system and indeed in the global financial system.
Some events make us question in which of the two we might actually be living in: what if it was some version of Bizarro?
Perhaps the most disturbing, and factual (unlike the IMF's forecast of Greek 2022 debt/GDP), finding is that unemployment in the OECD region has fallen only 1 per cent since its 2010 peak. In other words, by 2016, the group warned, 40 million people will be out of work, 7.5 million more than immediately before the crisis. 40 million angry people, with little hope of professional realization and lots of free time. Is it surprising why in recent months not a day passes without some mass violence event breaking out somewhere in the world.
The fact that civil asset forfeiture continues to exist across the American landscape despite outrage and considerable media attention, is as good an example as any as to how far fallen and uncivilized our so-called “society” has become. It also proves the point demonstrated in a Princeton University study that the U.S. is not a democracy, and the desires of the people have no impact on how the country is governed.