One of the Treasury Department’s big campaigns has been to put pressure on the Chinese to allow the yuan to float more freely (the Chinese now engage in a dirty float in place of their former hard peg). Most analyses of the value of the yuan show it to be undervalued, some by as much […]
Read more...An excellent story, “China’s iClone,” in Popular Science on the Chinese cloning industry, which uses the miniOne, an iPhone clone that runs on Linux and offers improvements such as the ability to run on any phone network and a replaceable battery, at about half the price of the iPhone, as a point of departure. What […]
Read more...Back at my desk after over two weeks of holiday and wanted to get at least one post out before responding to some comments that seemed to call for a reply and getting back in touch with news and commentary. The Asian Development Bank issued a report that found that income inequality is on the […]
Read more...My Japanese friends have often said that China has a 5,000 year history of not living up to its potential. When I’ve passed that view along to Westerners, they’ve scoffed, viewing the Chinese juggernaut to be unstoppable. The Japanese may yet be proven correct. This post at Gristmill points to an article by Christina Larson […]
Read more...Has the Murdoch era already begun? Two days in a row we have had page one stories in the Wall Street Journal that managed to skew the facts. Today’s piece, “Foreign Investors Face New Hurdles Across the Globe,” is misleading in a minor and a major way. The minor way is likely to be apparent […]
Read more...The Bear Stearns/CDO drama has taken attention away from other worrisome conditions in the economy, and the biggest one is “global imbalances,” which is shorthand for the US running continuing, large current account deficits that are financed for the most part by foreign central banks, particularly those of China, Japan, and Saudi Arabia. We’ve lived […]
Read more...The concept that cheap imports result in job losses should be a no-brainer, but it is still greeted with considerable resistance in some circles. Let’s be clear on a few points: while open trade in theory creates benefits to all parties, the system we have isn’t open trade, but managed trade. Most other countries negotiate […]
Read more...Felix Salmon commented on an intriguing and colorful post by Steve Waldman that argues that it’s in China’s best interest to buy a few CDOs and save the Street and the hedge fund industry from a meltdown and possible jail time. Here is the meat of Waldman’s argument: Here’s where the dragon comes in. Several […]
Read more...This is one of those days when there is quite a lot of good material, so forgive me for being brief. The Financial Times, on its editorial page, issued a warning to the US about getting chippy with the Chinese about the value of its currency. It did not stress some of the reasons argued […]
Read more...Below is an excellent post by Barry Eichengreen, Professor of Economics and Political Science at UC Berkeley, at the new blog VoxEU. The post posits that the biggest risk to Asia is an asset crash, and looks at America’s experience during its industrializing phase to see what lessons might be learned. He determines that whether […]
Read more...I figure readers would like to hear good news now and again. From PhysOrg: In this photo released by China’s Xinhua News Agency, three cubs are seen near their mother at the Siberian Tiger Park in Harbin, capital of northeast China’s Heilongjiang Province. (AP) — Eighty-four Siberian tigers, among the world’s rarest animals, have been […]
Read more...The US has spent considerable time and energy hectoring the Chinese about the artificially low value of its currency (although there is considerable disagreement among experts as to how undervalued it really is). The notion that the currency is the chief culprit has become so fixed in the public imagination that Congress is determined to […]
Read more...Larry Summers keeps getting better and better as an op-ed writer. His current article in the Financial Times lays out a series of practical recommendations on what to do about climate change. He focuses on the problem of the developing world, since they will account for 75% of the increase in greenhouse gases, and as […]
Read more...I’m a bit late to get to this item, a predictably good article by the Financial Times’ Martin Wolf on Nouriel Roubini’s observations about why Asian countries became so willing to finance our deficits (short answer: they decided to keep their currencies cheap after the 1997 emerging markets crisis) and whether this situation is sustainable […]
Read more...Nobel Prize winning economist Joseph Stiglitz can be blunt. In an interview with MarketWatch, he says that our dependence on Chinese capital puts us in a not-so-great bargaining position. He also pointed out in Congressional testimony that the Chinese have no reason to open their financial markets since they don’t need capital. And our focus […]
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