Economy

These Economies Are Getting More Miserable This Year

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Venezuela tops the list once again, but it’s the moves in the middle that matter Catarina Saraiva and Michelle Jamrisko Bloomberg If 2016 was the year of political shocks, this year could be when we find how they’ll impact the global economy. Bloomberg’s Misery Index, which combines countries’ 2017 inflation and unemployment outlooks, aims to show us just that. For the third year in a row, Venezuela’s economic and political problems make it the most miserable in the ranking. The least miserable ... Read More »

Russia vs US Economic War: Who’s Going to be the Ultimate Loser?

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Full scale economic war in between America and Russia is underway. Russian Prime Minister Dmitry Medvedev said so, and the US administration and the American congress voted it in with new sanctions. Phil Batler NEO The only question that remains is ”œwho will win?” Here’s a look at the future of US-Russia relations and the ultimate loser in this new type of Cold War. A fact most people are not aware of is that the United States is at risk ... Read More »

2017 Nobel Economics Prize awarded to Richard Thaler for contribution to behavioural economics

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An American academic whose research into behavioural economics showed people do not always make rational financial decisions has been awarded the 2017 Nobel Economics Prize. ABC Reuters/AP The 9-million-kronor ($1.4-million) prize was given to Richard Thaler for his “understanding [of] the psychology of economics” Swedish Academy of Sciences secretary Goeran Hansson said. Professor Thaler is considered one of the founding fathers of behavioural economics, a field that shows that far from being the rational decision-makers described in economic theory, people ... Read More »

The Promise of Fiscal Money

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ATHENS – Western capitalism has few sacred cows left. It is time to question one of them: the independence of central banks from elected governments. Yanis Varoufakis Project Syndicate The rationale for entrusting monetary policy fully to central banks is well understood: politicians, overly tempted during the electoral cycle to create more money, pose a threat to economic stability. While progressives have always protested that central banks can never be truly independent, because their autonomy from elected officials increases their ... Read More »

China, Japan and the Energy Quest in the East China Sea

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In early August 2017, Japan lodged a protest with China over its gas exploration in a disputed area of the East China Sea. Confirming the presence of a Chinese drillship close to Tokyo’s proposed median line, Japan accused China of conducting “unilateral development in the area” which remains yet to be demarcated between the two countries. IPP Review Amrita Jash In its defence against Tokyo’s accusations, Beijing categorically pointed out that its oil and gas activities in the maritime areas in ... Read More »

EU Commission bans Baltic Sea eel fishing, while increasing quotas for herring and salmon

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The European Commission proposes a decrease for the Baltic fishing opportunities by 7% compared to 2017, offering a highly differentiated proposal by the type of fishery for 2018. Irene Kostaki NewEurope The proposal, which is a part of a long-term approach, aims to adjust and maintain the level of fishing at long-term sustainable levels, ensuring a stable fishing pressure, higher quotas and hence an improved income for fishermen and their families. Decisions taken on the Baltic fishing opportunities over the ... Read More »

The Eurozone is recovering, but we cannot afford to be complacent. Here are 3 reasons why

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If there is a term that can best describe the current climate in the Eurozone, it is “complacency”. Markets are rising, bond yields are at an all-time low, growth estimates have improved and the European Union has triumphantly declared the end of the crisis, thanks to its “decisive action”. Daniel Lacalle World Economic Forum There is no denying that the European Union is in recovery mode, and that is a positive. Business confidence is rising, and manufacturing indices are in ... Read More »

Alex Salmond has backed independent Scotland to have own pound

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Alex Salmond has backed Scotland to have its own currency if it becomes an independent country. The former first minister has changed his position from ahead of the 2014 referendum when he proposed sharing the sterling with the rest of the UK. Russel Jackson The Scotsman That suggestion was rejected by the UK Government, but now, with the effects of Brexit, Salmond believes Scotland should have its own pound. At his Edinburgh Fringe show, Alex Salmond… Unleashed, he was joined ... Read More »

Whatever happened to East Africa’s oil boom?

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Politics has been central to the progress, or lack thereof, in developing East Africa’s oil. And it will continue to be. Luke Patey African Arguments It was not long ago that East Africa was the shining frontier of the continent’s oil scene. Uganda sparked the rush in 2006 after wildcatters ventured deep inland and made Africa’s largest onshore discoveries in decades. And Kenya’s north­western Turkana region continued the run with new oilfields found in 2012. With crude prices averag­ing almost $112 per barrel ... Read More »

China now patrolling Philippines sea, air space

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China now patrols Philippine seas and air space. Its coast guard controls entry into and the vicinity of Scarborough Shoal, 120 miles off Luzon. Jarius Bondoc The Philippine Star Paramilitary fleets increasingly are fishing in the Philippines’ 200-mile exclusive economic zone. Warships venture close to Zambales and Mindoro in the West Philippine Sea. Chinese aircraft regularly confront Philippine flights to Pag-asa Island in Palawan’s Kalayaan Island Group. Maritime research vessels are exploring the Philippine western seabed as well as Benham ... Read More »

Turkey and Russia’s tomato crisis explained

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Nearly two years after Turkey downed a Russian fighter jet, relations between Ankara and Moscow are largely restored. The two countries last month signed an arms deal, but tomatoes are still a thorny issue. Zeynep Şahin TRTworld Turkish and Russian delegations will meet in Turkey’s coastal city of Izmir on Friday to discuss trade and economic relations. The humble tomato is also expected to be on the table — and it’s playing an outsized role in the talks. The two ... Read More »

IMF’s China debt warnings are eerily familiar

Christine Lagarde 6f Reuters Jacky Naegelen LLLL

The IMF has seen this horror film before in neighboring Japan and the odds of a happier ending for China are negligible. William Pesek Asia Times The International Monetary Fund shouldn’t expect much warmth from Beijing these days. Its latest annual health check on Asia’s biggest economy is blunt, sweeping and sure to ruin Xi Jinping’s month as the Chinese president tries to maintain a veneer of omnipotence and stability. The IMF’s worry, of course, is debt. It’s seen this ... Read More »

Sterling Tumbles as UK Inflation Stagnates

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The Pound dropped to a one month-low against the US Dollar and dipped below the €1.10 mark, when the Office for National Statistics (ONS) published data regarding UK inflation, the UK retail price index and the producer prices index. Miltiadis Skemperis Currency Solutions According to the ONS report, inflation in July remained stable at 2.6%, missing the market’s expectations for a rise at 2.7%. The retail price index edged up higher than expected at 3.6%, raising prospects for steep rail ... Read More »

Tough talk has lifted cost of insuring South Korean debt

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Five big themes likely to dominate thinking of investors and traders in the coming week Reuters Asia Times 1. Jaw-jaw, sell-sell An unnerving war of words between Washington and Pyongyang has pushed the cost of insuring South Korean debt against default to its highest in 1-1/2 years and the expected volatility of the Korean won is creeping higher. Gauges of market risk have been rising but are far off their peaks as the expectation still is that diplomacy would prevail ... Read More »

Hammond Backtracks on Brexit Deal

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Chancellor Philip Hammond has “bent the knee” to Brexit hardliners as he signed a joint article with Liam Fox for the Sunday Telegraph, which said that the UK will definitely leave both the customs union and the single market when it exits the European Union (EU) in… Miltiadis Skemperis Currency Solutions Hammond had called for a transitional deal which could last up to three years, keeping the current trading arrangements with the EU and the rules on movement for workers. ... Read More »

Is The World’s Resources Not Enough for Everyone?

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Today, nearly 8 billion people live in the world. Each year, 4.5 billion tons of food is produced. Our world’s food production has enough capacity to easily feed humanity, even with an overproduction of 50%. In other words, enough food is produced every year to feed 10 billion people. HARUN YAHYA American Herald Tribune This statistic proves that famine is not the reason behind the wars of the world. No one is attacking or slaughtering others to survive; no one’s ... Read More »