Economy

Greece’s “Bailout” Was a Disaster for Greece

Some bailout that turned out to be. The European Stability Mechanism disbursed its final tranche of loans to the Greek government on Aug. 6. On Aug. 20, the program officially ended, although the loans are not expected to be fully repaid for another half-century. Matthew C. Klein Barron’s If their purpose was to support the Greek economy, the emergency loans must be considered a failure. Since 2008, the economy has shrunk by a quarter, and more than 400,000 Greeks have ... Read More »

The Turkish Currency Crisis And What It Can Teach Us

Turkey’s currency turmoil follows a well-known scenario. It is one more case in the long series of financial crises that afflict the international monetary system. Antony Mueller Seeking Alpha Just over the past two-and-half-decades, international markets experienced the crisis of the British pound (1992), the Mexican and Argentinean currency crises (1994), the East Asia currency turmoil (1997), and the collapse of the… In 2007, the liquidity-driven housing boom in the United States began to falter and Lehman Brothers filed for ... Read More »

Germany Declares Independence From America

Also, Germany is once again the world-champion exporter. Richard Palmer theTrumpet German’s foreign minister declared independence from the United States this week. Europe, he said, should form a “counterweight” to the U.S., opposing America whenever it “crosses red lines.” Writing in Germany’s Handlesblatt newspaper, he warned that Germany couldn’t be this counterweight alone. “The main goal of our foreign policy is therefore to build a sovereign, strong Europe,” he wrote. He called for European independence in practical ways; he wants ... Read More »

Is China worsening the developing world’s environmental crisis?

The developing world is in the midst of an environmental crisis. Simply breathing the air is a leading cause of death. Jonas Gamso The Conversation One recent study found that pollution is to blame for a fifth of sub-Saharan Africa’s infant deaths. Another showed that exposure to toxins or other dangerous substances in the air killed over 9 million people in 2015 alone, with 92 percent of those deaths occurring in developing countries – this is more people than were ... Read More »

Timor-Leste praises Witness K’s actions in helping resolve maritime border

New foreign minister says the country has begun a new chapter in its relations with Australia Helen Davidson The Guardian The actions of Witness K and Bernard Collaery were a valued part of the “collective effort” that led to the historic maritime boundary treaty between Australia and Timor-Leste, the Timorese foreign minister has said. In an exclusive interview with Guardian Australia, the foreign minister of Timor-Leste, Dionísio Babo Soares, said the two nations were at a new stage of their ... Read More »

The stacks of cash needed to buy basic goods tell Venezuela’s insane inflation story

In a desperate bid to curb its runaway inflation rate, Venezuela has lopped five zeros from its currency. Edmund Heaphy Quartz The move yesterday, which came along with a 95% devaluation of the currency—known as the “strong bolívar”—was also accompanied by a hike in gas prices and a 3,000% increase in the minimum wage. New banknotes for the currency, now called the the “sovereign bolívar”, were introduced. The redenominated bolívar is now pegged to the petro, a state-run cryptocurrency that doesn’t ... Read More »

How new Silk Road will cement China as major trading partner for Africa

In 138 BC China took its first step towards global connectivity with the establishment of the historical Silk Road. Authors: The Conversation Zhang Qian was sent by Emperor Wudi to Central Asia to establish trade relationships. His historic missions enabled China to make contact with the outposts of Hellenic civilisation established by Alexander the Great. These efforts enabled Emperor’s Han dynasty to develop political and trade relationships with Central Asian countries. New ideas came to China, along with new plants ... Read More »

The Greek Financial Crisis May Be Over, but Greece, and the Eurozone, Will Never Be the Same

Like many English words, “crisis” has a Greek origin — the word “krisis,” which in its initial form meant “a decisive moment.” Stratfor It is an ironic twist of fate that during the past decade the word has become so intimately linked to the country where it first originated. In recent years, any discussion about Greece has demanded acknowledgement of the deep financial, economic, political and social crisis that has afflicted the country since the late 2000s. And that makes ... Read More »

Greece exits its third bailout – but eurozone still has much to learn from the crisis

After nine years of unprecedented peacetime economic hardship, Greece exits its IMF bailout programme on August 20. Dimitrios Syrrakos The Conversation So ends a series of three bailouts organised by the so-called troika of the IMF, European Central Bank and European Commission. A total of €336 billion was lent to Greece in the wake of the financial crisis, to stop it defaulting on its national debt, with approximately €300 billion used so far. What’s more, over 90% of the funds ... Read More »

Denmark as a Model for American Socialists?

Here are some facts to consider before American “democratic socialists” look to Denmark for guidance, as Senator Bernie Sanders did during the 2016 presidential campaign. Lars Hedegaard Gatestone Institute First of all, Danes actually pay for their brand of socialism through heavy taxation. In Denmark, everyone pays at least the 25% value-added tax (VAT) on all purchases. Income tax rates are high. If you receive public support and are of working age and healthy enough to work, the state will ... Read More »

SPD’s Andrea Nahles says Germany may give aid to Turkey

Ahead of Turkish President Erdogan’s trip to Germany in September, the SPD’s Andrea Nahles has said German aid is a possibility. It comes as tensions between the US and Turkey rise over the house arrest of a… DW The head of Germany’s Social Democratic Party (SPD) Andrea Nahles has said there could be circumstances in which Germany would provide financial assistance to Turkey during its economic… “A situation might arise where Germany needs to help Turkey, regardless of political tensions ... Read More »

Turkey’s currency collapse shows just how vulnerable its economy is to a crisis

If you happen to be a tourist in Turkey right now, consider yourself lucky. Otherwise, things look grim. Authors: The Conversation The Turkish lira has lost as much as a third of its value relative to the U.S. dollar in less than a month and recently hit a record low. As a result, all imported goods became more expensive practically overnight. And because Turkey is heavily dependent on foreign goods, most everything was affected, including gasoline, food, furniture and clothing. ... Read More »

Brexit: Ford warns UK it will take ‘whatever action is needed’ after profits hit

The car company blamed withdrawal from the EU for a £760m drop in profitability in 2017 Joe Watts Independent Car manufacturer Ford has issued a Brexit warning to British politicians that it will take “whatever action is needed” to protect its business. The ominous words came after the American car giant blamed uncertainty over Brexit for a colossal £760m drop in its European earnings in 2017. The firm pointed the finger at plummeting confidence in the UK since the Brexit referendum and raised fears of ... Read More »

Can Manila get a good joint exploration deal with China in the West PHL Sea?

NOW that the ball has started rolling for the possible joint exploration by the Philippines and China in the West Philippine Sea, analysts are wary of the risks it will bring. Bernadette D. Nicholas Business Mirror At the same time, however, they see that this can be averted if the technical working group (TWG) entrusted with the hard task of crafting the nitty-gritty of such an initiative will do its job well. Experts also believe that the TWG must ensure ... Read More »

Big consultancy firms call the Federal Government ‘The Dairy’ because they milk it for all it’s worth, inquiry hears

Are consultants making so much money from the Federal Government that they’re now treating departments as cash cows and openly dubbing it “The Dairy”? Henry Belot ABC That’s the charge from federal Labor, which confronted the big four consultancy firms — Deloitte, KPMG, PriceWaterhouseCoopers and Ernst and Young — at a parliamentary inquiry on Friday. The firms, which have won more than $1.7 billion in Federal Government business in recent years, say they are not aware of the nickname reportedly ... Read More »

US ‘picking and choosing’ from the Law of the Sea

A recent article argues that China is ‘selectively choosing the parts of the UN Convention on the Law of the Sea (UNCLOS) that it likes and is ignoring or reinterpreting the parts that it does not like or… Mark J Valencia EastAsiaForum The argument is made on the basis that China sent a ‘spy ship’ to observe the Rim of the Pacific Exercise, the world’s largest joint naval exercise, held in June and July 2018. But this account ignores that ... Read More »