Should the BRICs ‘Save’ the Eurozone?

The BRICs cannot bailout the risky Eurozone economies. They can offer capital and jobs, but in return of hard assets and advanced technology. It is time for old barriers to crumble in Europe. Not so long ago, Italy’s finance minister Giulio Tremonti used to write profusely about the threat of China’s “reverse colonization” of Europe. […]

Postcard From Europe: Overwhelming Challenges in the Euro Zone

Last summer, Washington’s indecision pushed America close to an edge. In the past few weeks, indecision in Brussels, ECB and major European capitals has pushed the euro zone closer to ‘catastrophic risk.’ Policy reversals are needed urgently. The world economy is facing bleak prospects in the medium-term. Conceivably, the drift toward a new global recession […]

Europe Must Stand on its Own – Or it Will Fall

In May 2010, Brussels could not resolve the euro zone crisis; so it bought time. Now the period of Band-Aids is over and the time has run out. Since spring 2010, I have argued that orderly and controlled restructuring of the Greek public debt is preferable relative to other options, which will only deepen the […]

The Flight to Gold

In early August, the market sell-off was worse than at any time since fall 2008. As the triple-A pressures are escalating from the United States to the Eurozone, the gold price is climbing in bursts. Despite records, growth fears will continue to drive gold higher. It is still far from the real record high. When […]

After $9 Trillion Loss, Markets Heading Toward Global Stagnation

In the past three months, stock markets worldwide have lost almost $9 trillion. In the absence of decisive, credible and internationally coordinated actions, the prospects of the world economy will be increasingly overshadowed by global stagnation, except for emerging Asia. The world economy is deteriorating faster than anticipated. In April, stock markets worldwide soared to […]

The Anatomy of the U.S. Deficit Deal

The Last-minute $3 trillion deal is paving way for deeper political and economic polarization in America. Since mid-May, when the U.S. debt hit $14.3 trillion debt ceiling, the nation has lived on borrowed time. During the past three months, tension and friction has escalated dramatically as Washington has debated an array of deficit-plans before the […]

Greek Tragedy: A Prelude to a New Euro Zone

As EU leaders seek new ways to take more debt to resolve the Eurozone’s debt burden, the fragile political consensus in Greece is unraveling. In May 2010, Brussels bought time. After a year of economic failures, it is time to resolve the crisis – and that cannot be done without debt restructurings.   “I am […]

The Time Bomb at the European Central Bank

On Monday, Standard & Poor’s downgraded Greece’s credit rating to CCC. After a year of failures, the Eurozone crisis has not been contained. Ironically, a central role in this debacle belongs to the European Central Bank (ECB). The three-notch downgrade makes Greece’s debt the lowest-rated in the world by Standard & Poor’s. As a result, […]