April, 2016 Economy

Bond dumping isn't the real danger.
William T. Wilson

In recent years there has been much speculation over what would happen to U.S. financial markets and the economy if Chinese authorities suddenly decided to sell the approximately $1.3 trillion in U.S. Treasuries or government bonds they are estimated to own. In recent weeks, rumors have circulated that the Saudis were considering selling theirs—up to $750 billion of American dollar-denominated assets held by the kingdom.

BURAK BEKDİL, hurriyetdailynews
Tragically, and in his own words, Turkish President Recep Tayyip Erdoğan thinks (or pretends to think) that “the primary reason behind terror in Turkey is to prevent Turkey from getting into the world’s top 10 economies.”

MaSu, cc Flickr  Maersk Line, modified, https://creativecommons.org/licenses/by-sa/2.0/

Omar Mawji

The Arab Spring uprising left Egypt with an assortment of leaders and an uncertain future. After the ousting of President Hosni Mubarak in February 2011, the Egyptian economy fell into a sustained decline. Soon after the Mubarak era ended, Mohamed Morsi began a short-lived reign that ended with his ousting in July 2013.

Stratfor Analysis
Deserts are seemingly obvious places to locate solar technology. In fact, the swath of desert stretching from the Atlantic Ocean, across North Africa and the Arabian Peninsula, to the Persian Gulf has vast solar potential. But until recently it has not been economically feasible, or even necessary, to develop the renewable resource. In many areas, geographic constraints such as rough terrain have made solar projects impractical.

Ian Black Middle East editor
Saudi Arabia has approved an ambitious strategy to restructure the kingdom’s oil-dependent economy, involving diversification, privatisation of massive state assets including the energy giant Aramco, tax increases and spending and subsidy cuts.

Economy, Energy, Middle East

U.S. President Barack Obama with International Monetary Fund Managing Director Christine Lagarde in Honolulu, Hawaii, November 2011. U.S. economic leadership is indispensable, argues Treasury Secretary Jack Lew.

The Case for U.S. Leadership
By Jacob J. Lew

When U.S. President Barack Obama joined other global leaders at the G-20 summit in Turkey in November 2015, the United States was in the final stages of a multiyear effort to secure the approval of a set of important reforms to the International Monetary Fund.

 John Vibes 

As we have been covering this week, the release of the Panama Papers has created a panic among world governments, by exposing some of their darkest secrets. In the leak, 11.5 million documents were stolen from Mossack Fonseca and were leaked to Suddeutsche Zeitung, who then turned to the International Consortium of Investigative Journalists to examine the documents. In the time since, media organizations have been scrambling to sift through a large number of documents, in hopes of finding stories that they can spin to fit their narrative.

The hosting of Mugabe reveals the duelling pressures that face Japan as it looks to engage more states in Africa, writes Miller [EPA]

 

J Berkshire Miller

The hosting of Mugabe reveals the duelling pressures that face Japan as it looks to engage more states in Africa, writes Miller [EPA]. Last week, Japanese Prime Minister Shinzo Abe hosted Zimbabwean President Robert Mugabe for an official five-day visit in Tokyo. Abe has now met Mugabe three times, despite Harare's isolation from the West - and, more acutely to Japan - especially the United States.

 


Project Syndicate, Adair Turner
SHANGHAI – The Chinese economy faces an enormously challenging transition. To achieve its goal of joining the world’s high-income countries, the government has rightly urged a “decisive role for the market.” But, while market competition works well in many sectors, banking is different. Indeed, over the last seven years, China’s reliance on bank-based capital allocation has led to the same mistakes that caused the 2008 financial crisis in the advanced economies.

General view of high-rise buildings in Panama City, Panama [EPA]

C J Polychroniou
Panama has always been one of the best tax havens in the world - both during and after the reign of General Manuel Noriega - and Mossack Fonseca (run by a Swiss tax expert named Jurgen Mossack and his Panamanian partner, Ramon Fonseca) is one of the dominant players in the parallel world of tax havens.