Finance

How Long Can China Ignore Its Growing Debt Pile?

Beijing has been reluctant to tackle reforms to politically sensitive state-owned enterprises, fearing the potential for popular discontent. Anthony Fensom The National Interest Quarter after quarter, China’s gross domestic product numbers keep coming in nearly perfectly on Beijing’s forecasts. The trouble for the world’s second-biggest economy, however, is that its debt keeps on rising while necessary reforms take a back seat to the… According to China’s National Bureau of Statistics, GDP expanded by 6.9 percent in the second quarter from ... Read More »

UK watchdog to require banks to publish data on service

[LONDON] Banks in Britain will have to publish data every quarter from next year to show the quality of service they provide to customers to try to boost competition, the… SPH Performance based on set criteria should be measured every three months from April 2018, and published on a bank’s website within six weeks of the end of the quarter, the… First publication is expected in mid-August 2018, with issues such as the… UK watchdog to… Read More »

IMF downgrades UK and US growth forecasts

The UK and US economies will expand more slowly in 2017 than previously predicted, according to the International Monetary Fund (IMF). BBC It said “weaker-than-expected activity” in the first three months of the year meant the UK would grow by 1.7%, compared with an earlier 2% forecast. The IMF also revised down its US growth forecast from 2.3% to 2.1%. However, its overall global economic predictions – of 3.5% growth in 2017 and… IMF downgrades UK… Read More »

Australian dollar stung by RBA’s interest

The Australian dollar slid back below US79¢ on Friday after Reserve Bank deputy governor Guy Debelle said there was no automatic reason for rates to rise after a recent outbreak of hawkishness by global… Eryk Bagshaw with Reuters and Bloomberg The Canberra Times The Australian dollar dropped about half a cent to US78.77¢ following the comments, having touched a high of US79.92¢ earlier in the week. “Just as the policy rate in Australia did not need to decline to the very ... Read More »

US calls for smaller deficits in new NAFTA talks

The US government says trade deficits and market access will top the agenda as it renegotiated trade terms with Mexico and Canada. BBC US President Donald Trump has described the North American Free Trade Agreement (NAFTA) as a “disaster” and ordered fresh talks earlier this year. The objectives have been released in advance of the start of meetings with Canada and Mexico next month. Economists have warned that reaching the goals might be… US calls for… Read More »

Rich Pakistanis pay little under country’s unjust tax system

The poor pay 80% of total taxes collected in Pakistan while the rich contribute a miserable 5% because of special rights, privileges or concessions F.M. Shakil Asia Times The poorest of the poor pay 80% of taxes collected in Pakistan while the rich, whose total contribution to overall tax revenue does not exceed 5%, enjoy special rights or… The poor pay huge indirect taxes on utilities, petrol, and mobile communication which come to 80% of the country’s total… The 36 ... Read More »

How Can Greece Pay Back China?

EXECUTIVE SUMMARY: China and Greece have an almost entirely one-sided economic relationship. Roie Yellinek       BESA China’s deep involvement in Greece is part of a long-term strategy to achieve control of the marine paths from China to the EU. This strategy means China is willing to invest and take part in the rehabilitation of Greece – but there will be a price to be paid for… How Can Greece… Read More »

UK business group: Government has no ‘clear plan’ for Brexit

The President of the Confederation of British Industry Paul Dreschler said that business was “no wiser” about Brexit than a year… Joshua Posaner  Politico The U.K. government has no “clear plan” for Brexit and needs a “serious fact-based discussion about what the future looks like” outside the EU, Paul Drechsler, president of the Confederation of British Industry lobby group, said… Speaking on Sky News’ Sophy Ridge on Sunday show, Drechsler said that… UK business group… Read More »

The European Union Has a Currency Problem

Germany is largely to blame for it. Milton Ezrati The National Interest Donald Trump, for all his rhetorical clumsiness and intellectual limitations, still sometimes makes a valid point. He does when he says that Germany is “very bad on trade.” However much Berlin claims innocence and good intentions, the fact remains that the euro heavily stacks the deck in favor of German exporters and against others, in Europe and further… It is surely no coincidence that the country’s… The European ... Read More »

What Happened to America’s Wealth? The Rich Hid It

If you find yourself traveling this summer, take a closer look at America’s deteriorating infrastructure — our crumbling roads, sidewalks, public parks, and train and… Chuck Collins CounterPunch Government officials will tell us “there’s no money” to repair or properly maintain our tired infrastructure. Nor do we want to raise taxes, they say. But what if billions of dollars in tax revenue have gone… What Happened to… Read More »

Puerto Rico following Greek footsteps to economic woe

It is said that those who cannot learn from history are doomed to repeat it. Desmond Lachman, opinion contributor The Hill Sadly, this seems to be the case with respect to the Puerto Rican government and its Financial Oversight and Management Board in their handling of the Puerto Rican economic… By not drawing the right lessons from Greece’s recent failed attempt at fiscal austerity in a Euro straitjacket, the Puerto Rican government is all too likely to exacerbate rather than ... Read More »

Home ownership remains strong in Australia but it masks other problems: Census data

The great Australia dream of owning your own home is still alive despite the various problems plaguing housing affordability, new Census data shows. Wendy Stone Kath Hulse Margaret Reynolds Terry Burke The Conversation Even though the overall home ownership trend remains strong, it’s masking other issues. The latest 2016 Census data assesses what the national home ownership and rental rates are and how these vary location. It also gives us a picture of mortgage and… Home ownership remains… Read More »

World food security risks growing, Chatham House says

The world’s food security is increasingly reliant on 14 “chokepoints” for trade, a think-tank report has warned. BBC UK-based Chatham House says more needs to be done to protect key transport routes such as the Panama Canal, the Suez Canal and the Turkish… Almost 25% of the world’s food is traded on international markets. This, the report says, makes food supply and prices vulnerable to unforeseen crises or climate… World food security… Read More »

Ten years since the global financial crisis, world still suffers ‘debt overhang’

It is almost exactly 10 years since the financial world began a wobble that would swing into what we now know as the global financial crisis. Nassim Khadem Brisbane Times On June 22, 2007, the public downfall of New York-based global investment bank Bear Stearns began in earnest. America’s then fifth-largest investment bank was among a number of Wall Street giants exposed to bad bets on the US subprime mortgage… Ten years since… Read More »

Meadows: Freedom Caucus eyeing $1.5 trillion debt ceiling increase

Some House Freedom Caucus conservatives want to raise the debt ceiling by a smaller amount than the Trump administration would like — just long enough to clear the 2018 mid-term elections, the… Rachael Bade Politico The Freedom Caucus has not taken an official position on a specific… But Chairman Mark Meadows emerged from a group meeting Tuesday night saying some of his conservative colleagues are looking at a $1.5… Meadows: Freedom Caucus… Read More »

Ali Sherif al-Emadi: Sanctions will not harm economy

Finance minister says Qatar can defend economy and currency against tough sanctions imposed by neighbouring GCC nations. Al Jazeera and news agencies Qatar can easily defend its economy and currency against sanctions by other Arab states, Qatari finance minister Ali Sherif al-Emadi told CNBC television in an interview broadcast on… He said that the countries that had imposed sanctions on Qatar would also lose money because of the damage to business in the… Ali Sherif al… Read More »