China Destabilizes Global Economy by Exporting Deflation Through Currency Devaluation
China is behaving badly by trying to maintain growth at the cost of worsening deflation in the rest of the world.
Read more...Category Archives: China
Rebalancing, Wealth Transfers, and the Growth of Chinese Debt
By Michael Pettis, a Senior Associate at the Carnegie Endowment for International Peace and a finance professor at Peking University’s Guanghua School of Management. Cross posted from China Financial Markets. For the past ten years much of what I have written about debt in China was aimed mainly at trying to convince analysts and policymakers […]
Read more...Chaos Theory, Shocks, and Fragility, Australia and Elsewhere
Australia and other countries had the opportunity to reduce financial fragility. They may soon discover the cost of doing too little.
Read more...Need a Loan in China? Hand Over a Nude Photo
Lender demands in China as a sign of credit stress.
Read more...And Now, Price Deflation in India and China?
Price deflation, and classic debt deflation dynamics, are staring to appear in India and China.
Read more...Vancouver Mayor Mulls Empty Homes Tax
Vancouver ponders a long-overdue measure to target residential real estate warehousing.
Read more...Tom Engelhardt: How Donald Trump Reveals the March of American Authoritarianism
Trump as a symbol of an America morphing into a visibly less democratic fading empire.
Read more...Steve Keen: Zombie-to-Be Economies and the Walking Dead of Debt Include China, South Korea, Canada, Finland
Steve Keen’s macroeconomic model allows him to identify zombies-in-the-making. It’s not pretty.
Read more...Michael Pettis: China – How Much Investment is Optimal?
If China’s very low level of social capital has long ago made its investment strategy obsolete, that suggests that China has overinvested beyond its capacity to utilize these investments economically. Thus there are hidden losses on bank balance sheets created by the failure to write down physical capital to its true value. In this case Chinese growth cannot help but drop significantly as these losses are finally recognized and as investment levels are sharply curtailed.
Read more...Free Trade in Rhetoric, Not in Practice
The gap between the posturing and practice of free trade.
Read more...Welcome to the Great Australian Scab Grab
Australia is in the grip of the greatest economic scab grab of my lifetime
Read more...Hard Landing Coming Soon? Chinese Officials Set Off Red Alert on Debt, Urge Serious Measure to Contain It
Chinese officials sent a serious warning about ending debt growth. If they are serious, the shock waves will engulf not just China but also the global economy.
Read more...Noam Chomsky: American Power Under Pressure
Seeing states as the vehicle for projecting power is dated, particularly as far as understanding America’s position is concerned.
Read more...Soros Warns of 2008-Like Debt Growth in China. How Risky are Its Banks?
Is China as at much risk as Soros suggests it is?
Read more...How Much Has Global Economic Power Really Shifted?
Why the shift in economic power from advanced to developing economies has not gone as far as most accounts would have you believe.
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