Greenback Flexes Muscles

The prospect of the Fed rate hike next month while many other countries consider providing more stimulus continues to underpin the dollar. Corrective downticks remain shallow and brief. The euro slumps to near seven month lows just below $1.0645. The greenback posted a big outside up day against the yen yesterday, and follow through buying […]

Premature Fed Hikes Could Cause Global Collateral Damage

Premature Fed Hikes Could Cause Global Collateral Damage

photo: flickr US October jobs report was stronger than expected. It may trigger a premature rate hike. AFTER 271,000 were jobs added in October, US unemployment rate fell to 5.0 percent. Meanwhile, average annual hourly earnings climbed by the most since 2009. As a result, the dollar strengthened and treasuries plunged. The report was seen […]

Syria’s Nightmare: Diverging US and Chinese Policies

Syria’s Nightmare: Diverging US and Chinese Policies

photo: flickr Syria’s nightmare is a regional conflict with global stakes. It exemplifies the eclipse of US efforts at regime changes, whereas Chinese policy holds the promise of economic development. But time is running out. As the pulsating beat overwhelmed the terrace of Cocos Prive, an exclusive nightclub and sushi bar in Chisinau, the capital […]

Janet Yellen’s Quiet Revolution

Janet Yellen’s Quiet Revolution

Donald Trump turned his rhetorical bazooka on Janet Yellen this week, accusing the Fed chair of being “highly political” and merely doing President Barack Obama’s bidding by declining to raise interest rates. In this as in so many things he says, Trump was issuing wisdom from his rear end, but the GOP candidate from clowntown […]

The Workweek of Part-Time Workers

The Workweek of Part-Time Workers

photo: Jeffrey Smith ABSTRACT. Data on weekly work schedules indicate the coexistence of two groups of part-time workers. The first group represents about 40 percent of part- time employment and comprises those who work a few hours every day of the workweek, mostly during standard business hours. The other group contains workers with either variable weekly […]

Krugman, Summers and Secular Stagnation

Krugman, Summers and Secular Stagnation

photo: Chris Potter Secular stagnation and escape routes Paul Krugman and Larry Summers are having an interesting conversation on secular stagnation and the continuing decline in global real interest rates.[1] The ‘new secular stagnation hypothesis’ was first evoked by Larry Summers in his now famous speech at the IMF in 2013, and subsequent elaborations, to explain […]

The Rigging of the American Market

Much of the national debate about widening inequality focuses on whether and how much to tax the rich and redistribute their income downward. But this debate ignores the upward redistributions going on every day, from the rest of us to the rich. These redistributions are hidden inside the market. The only way to stop them […]

Toward Asia-Pacific Free Trade

While the U.S.-led Trans-Pacific Partnership has potential to split Asia Pacific, it could be used as a foundation for truly free trade, along with other free trade plans in the region. Recently, the U.S.-led Trans-Pacific Partnership (TPP) agreement has been greeted with great fanfare by the U.S. foreign policy elite and mainstream media. In typical […]

Will the Renminbi Take Over the US Dollar?

photo: 401(K) 2012 Every year I choose a book that deals with an important aspect of globalization, and award it the Globalization Book of the Year, also known as the “Globie.” Unfortunately, there is no cash prize to go along with it, so recognition is the sole award. Previous winners can be found here and here. The winner […]

Strange Bedfellows: Europe’s Innovations, China’s Capital

Strange Bedfellows: Europe’s Innovations, China’s Capital

photo by AK Rockefeller In March 2015, the China-led International University Innovation Alliance Start-up Competition UK held its inaugural session in London, with UK startups pitching innovations specifically to Chinese investors.[1] Sun Wansong, Deputy Director of China’s Investment Promotion Agency of Ministry of Commerce, explained in his opening speech that China is proactively turning itself from […]