Category: Global EconomyThe analysis published under this category are as follows.
Friday, June 17, 2016
Former Central Banker Admits World Economy Remains in Recession and Depressed / Economics / Global Economy
hi Friday June 17 2016 here home of alternative economics and contrarian views today I'd like to talk
about the honest former central banker and that is
mervyn king who was the governor of the Bank of England which is the equivalent
of what Janet Yellen is chairman of the Federal Reserve he was governor from
2003 2 2013 for 10 years so II he was around during the great financial crisis
and after it and before he was chief economist of the Bank of England before
that and deputy governor so is a man with experience
I know a lot of my viewers and myself do not believe in the institution of
central banking because it's basically a monopoly that and also it's a
bureaucracy that controls you know the price of money which should really be
controlled by the market but I he has written a book and the book is called
the end of alchemy money banking and the future of the global economy so
Monday, June 06, 2016
A Crisis of Exporters Is Brewing—and That Has Massive Global Economic Implications / Economics / Global Economy
BY GEORGE FRIEDMAN
The global system has reached a breaking point. All the pressures that have built up over the months and years have finally begun to tear it apart. There is much to tell, but for today, I will mention only three countries: China, Saudi Arabia, and Germany.
From 1991 to 2008, the consensus was that more exports make an economy stronger. This was true until 2008. However, the exporter is only as strong as his customer’s appetite and ability to buy what he sells. When demand falls, what was once a strength becomes a weakness.Read full article... Read full article...
Friday, March 18, 2016
When we consider the effect of e-commerce on the global economy, it is said to be one that is both far-reaching and very influential. E-commerce is a type of trade that has a significant and profound effect for businesses located all over the world, and is more powerful than many different traditional resources which the majority of global businesses have adopted over time. E-commerce has been able to successfully remove the global barriers between businesses and customers from differing countries, helping customers to easily locate and contact vendors with minimum hassle.Read full article... Read full article...
Wednesday, March 09, 2016
Economists and professional investors follow the Baltic Dry Index because it is a leading indicator on the forecast for international trade. A week ago this gauge hit an all time low. Since then a small upturn has moved the index upward slightly. Hellenic Shipping News observes in Baltic Dry Index climbs to 349, up 7.
“Baltic Dry Index is compiled by the London-based Baltic Exchange and covers prices for transported cargo such as coal, grain and iron ore. The index is based on a daily survey of agents all over the world. Baltic Dry hit a temporary peak on May 20, 2008, when the index hit 11,793. The lowest level ever reached was on Wednesday the 10th of February 2016, when the index dropped to 290 points.”Read full article... Read full article...
Wednesday, March 09, 2016
Pitifully Late Recognition of the Obvious
It's been pretty clear that the global economy has been slowing for some time, but recognition of that fact has been pitifully slow.
In January, the Fed still believed it would get in four rate hikes this year. The IMF also held to its overoptimistic global growth estimates.
Amusingly, the Fed still believes recent weakness is "transitory", but the always late to the party IMF changed its tune today in the wake of miserable trade data from China.Read full article... Read full article...
Thursday, February 25, 2016
But don’t lose sight of the bigger picture. Not everyone is a winner, and typically someone ends up the big loser!
The same principle works when countries get together for free or open trade. Everyone talks about how great it will be, how much their economies will grow, about efficiencies and new opportunities. But they almost never talk about the people who will lose.
Read full article... Read full article...
Wednesday, February 24, 2016
U.S. Treasury Secretary Jack Lew sat down with Bloomberg's David Westin in Washington D.C. ahead of the G-20 meeting later this week in Shanghai, China.
When asked about a response from G-20 to global market turbulence, Lew said: "Don't expect a crisis response in a non-crisis environment. You know, it's not the job of finance ministers and central bank governors to accelerate a crisis. It's our job to try and avoid a crisis. If you're in a crisis, you do different things."
He added: "I don't think this is a moment in time when you're going to see individual countries make the kinds of specific commitments that have been made in some other contexts that have been marked by real crisis. This is not a moment of crisis. This is a moment where you've got real economies doing better than markets think, in some cases."Read full article... Read full article...
Friday, January 29, 2016
Economic Headwinds: Big Players, Regime Uncertainty and the Misery Index / Economics / Global Economy
Before we delve into the economic prospects for 2016, let’s take a look at the economies in the Americas, Asia, Europe and the Middle East/Africa to see how they fared in the 2014-15 period. A clear metric for doing this is the misery index. For any country, a misery index score is simply the sum of the unemployment, inflation, and bank lending rates, minus the percentage change in real GDP per capita. A higher misery index score reflects higher levels of “misery.”Read full article... Read full article...
Saturday, January 16, 2016
Themes, Dreams, and Schemes - Global Economy at Stall Speed, Monetary Velocity and Interest Rates / Economics / Global Economy
First I must offer an apology of sorts for being in absentia for an extended period of time. I would imagine that those of you who struggle to keep up with the demands of work, family, and everyday stresses understand this, but I apologize anyway. There are links on the blog to the Liberty Talk Radio appearances I’ve made over the past few months just to prove that I’m still vertical. Graham joins me once again and as always has some interesting takeaways.Read full article... Read full article...
Tuesday, January 12, 2016
Shipping Said to Have Ceased… Is the Worldwide Economy Grinding to a Halt? / Economics / Global Economy
Last week, I received news from a contact who is friends with one of the biggest billionaire shipping families in the world. He told me they had no ships at sea right now, because operating them meant running at a loss.
This weekend, reports are circulating saying much the same thing: The North Atlantic has little or no cargo ships traveling in its waters. Instead, they are anchored. Unmoving. Empty.Read full article... Read full article...
Monday, January 11, 2016
Regular contributor Michael Pollaro offers three more charts which tell a story that's both disturbing and apparently misunderstood by a lot of mainstream analysts.
The US trade deficit (exports minus imports) has been getting smaller. Since a trade deficit subtracts from GDP growth, a shrinking deficit will, other things being equal, produce a bigger, faster-growing economy (that's the mainstream take).Read full article... Read full article...
Tuesday, December 01, 2015
The global economic trade is down 8.4 percent so far this year. Among the many economic indicators that experts use to gauge the health of the world economy, the Baltic Dry Index (BDI) usually goes unnoticed. This Index offers an indication of the global demand and supply of major stock materials that are used by manufacturers at the beginning of production. And the shocking truth is that the index has been plummeting to reach a new low not seen before.Read full article... Read full article...
Sunday, November 22, 2015
Nicole Foss: After more than 30 years of exponential growth, gargantuan resource demand and increasingly frenetic consumption, we have now reached, or are reaching, an array of limits to growth. During our long, debt-fuelled boom, we reached out spatially through globalisation to monetise as much global production as possible, in order to facilitate the efficient transfer of wealth from the global periphery to its economic heartland.
We also, through the profligate use of credit and debt, reached forward in time to borrow from the future in order to stage an orgy of consumption in the present. This spectacularly successful modern form of economic imperialism delivered unprecedented wealth concentration, the like of which previous imperial structures could not have dreamed of attaining.Read full article... Read full article...
Friday, November 13, 2015
Brutal news is pouring in from pretty much everywhere.
US retail sales are flat and wholesale prices are falling. Big retail chains are missing on earnings and seeing their shares plunge.
Chinese nonperforming loans are soaring while imports, car sales and steel production are way down.Read full article... Read full article...
Thursday, August 20, 2015
The Federal Reserve Bank has printed trillions of dollars to monetize US government debt just to keep the government afloat. Any significant rise in interest rates will probably decimate US government finances, the fragile housing market and in the bond market it will cause a financial catastrophe through interest rate derivatives.
This is a solid reason why the Fed will not raise any rates in any foreseeable future.Read full article... Read full article...