Are 2012 Elections Endangering US-China Relations?

The leading candidates of the two parties in the U.S. 2012 elections have fairly similar agendas on China. Hoping for greater electoral support, both are sharpening stated policy positions. Since 2008, this has resulted in more aggressive foreign policy positions in general and more assertive policy toward China in particular. Unipolar policies in a multipolar […]

Growth in China, Bubbles in the West

In The Man Who Shot Liberty Valance (1962), the newspaperman, understanding the truth about the killing of Valance, burns his notes stating: “This is the West, sir. When the legend becomes fact, print the legend.” Well, China’s economy has suffered a similar fate in the West. For months, the chatter over the mainland’s presumed “hard […]

Why Chinese FDI Remains Marginal in the United States

China needs technology and know-how. America needs jobs and capital. Why don’t demand and supply meet? Before the visit of Chinese Vice President Li Jinping in mid-February, U.S. Council on Foreign Relations released an important memorandum on “Fostering Greater Chinese Investment in the United States.” Authored by David Marchick, managing director at the Carlyle Group, […]

The Party’s Over in the Eurozone

The party’s over It’s time to call it a day The postwar era of illusionary trade-offs – an expensive social model without the robust postwar growth – is now fading into history in the Eurozone. In May 2010, the Eurozone crisis began with turmoil in Greece. In the coming weeks, a new round of instability […]

How Could China and the BRICs Support the Eurozone?

The Eurozone is edging toward a financial abyss. China and the BRICs could contribute to a solution, but only through compromise. Recently, the President of the European Commission (EC) Jose Manuel Barroso warned of a crash that would instantly wipe out half of the value of Europe’s economy, plunging the continent into a depression as […]

Why the Euro Crisis Will Deteriorate Before It Will Get Better

As the eurozone could finally agree on the deal, markets took off. The rescue fund will be multiplied. The banks will be recapitalized. Prime Minister George Papandreou said that now the Greek debt is sustainable. The euro leaders thanked each other. In the United States stocks ended up 3% up on the EU hopes, while […]

Greek Crisis Will Require €500 Billion ($700) in 2010-2020 – And it Won’t Be Enough

Brussels has failed to contain the Greek debt crisis, which is deteriorating rapidly. The first two bailout rounds, which amount to EUR 220 billion ($305 billion), will not suffice. In the next decade, Greece will require more than EUR 250 billion ($350 billion). In the past two years, Greece has witnessed many demonstrations. But during […]