“a plan to criminalize Keynesianism” @nytimes
read more…
- E.U. Leaders Set to Conclude Austerity Is Not Enough - NYTimes.com
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GloboTrends: International Business, Economics, Innovation and global trends. A wiki of Global issues and Trends in International Business, cultures, markets, finance, economics, international relations, politics and more...
“GloboTrends” are fundamental underlying trends, which means that they are important, but might not be obvious. Many global trends are interconnected, and have international implications.
Incredible, the power of the bond-rating agencies to force European leaders to act @euobs:
“US ratings agency Standard & Poor’s has warned it might lower the grade of all six triple-A euro countries if the upcoming EU summit does not deliver.”
Read more…
- EUobserver.com / Economic Affairs / US agency issues eurozone ultimatum
Major change in global financial architecture? from @CFR_org
All students should pay attention…
“In the midst of financial turmoil abroad and phenomenal economic growth at home, China has embarked on a path toward the internationalization of its currency, the renminbi. This government-driven effort has few precedents, though, so many questions remain about how—and even whether—China can pull it off.
This month, experts from the United States and China searched for answers to those questions as part of a symposium organized by CFR and the China Development Research Foundation. Five CGS-IIGG working papers written for the symposium by members of the U.S. delegation are now available online. Read the Complete Series »
- Beijing Papers - Council on Foreign Relations
EUobserver.com / Economic Affairs / What happens when a currency collapses? Ask Bulgaria @euobs ⇢
Fifteen years ago, both Bulgaria and Romania went through rampant inflation linked to a financial crisis. Bucharest narrowly avoided the collapse, but Sofia was less fortunate and experienced a meltdown of the sort Greece is currently trying to prevent.
Read more here: http://euobserver.com/19/114421
Effects of deleveraging, from @bbcnews
“Spain’s cost of borrowing rose sharply when the government sold short-term debt on financial markets on Tuesday.
It was the country’s first fund-raising since the change of government at Sunday’s general election.
Spain raised 2.98bn euros ($4bn, £2.6bn) in an auction of three- and six-month bills, but at higher yields.
On the three-month bills, the annualised interest rate Spain had to pay more than doubled to 5.11%, from 2.29% at the last auction in October.
On the six-month bills they surged to 5.227% from 3.302%.”
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Read more about deleveraging here: http://globotrends.pbworks.com/w/page/14807973/deleverage
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BBC News - Spain’s cost of borrowing increases sharply
Interesting: Qatar’s residents to be the richest in the world, with a GDP per person of $80,000-plus at purchasing-power parity, vastly underrate the wealth of a pampered 250,000 or so who hold the privilege of citizenship.
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The rise of Qatar: Pygmy with the punch of a giant | The Economist
Incredible graphics: An Overview of the Euro Crisis - Interactive Graphic - NYTimes.com ⇢
Use these graphics for teaching courses from Summit Global Education!!
Global issue: population of the Earth nearly DOUBLED since my birth, wow. Take a look your own data from @bbc
“When you were born, you were the:
3,907,202,056th
person alive on Earth
78,174,308,062nd
person to have lived since history began”
- BBC News - 7 billion people and you: What’s your number?
Will this plan work? Or, will it destabilize Eastern Europe?
“Banks must first attempt to raise the cash from the markets, but they must not do so by pulling funds from their subsidiaries, a requirement insisted upon by eastern European states many of whose banks are owned by major financial institutions situated in the heart of Europe.
“During the 2007-2008 financial crisis, eastern European banks were destabilised when their western parent banks withdrew investment from the region to protect core operations.
“This time around, central banks in the east will monitor capital flows from core banks and if they are not maintained at current levels, they will now be able to intervene to halt such losses.
- EUobserver.com / Economic Affairs / EU agrees to fresh bank bailouts
Eurozone Rescue's Moment of Truth - Council on Foreign Relations ⇢
National parliaments—particularly that of Germany—continue to limit the amount of sovereignty they are willing to turn over to the larger monetary union, thus tying the hands of their leaders and repeatedly forcing them back to the negotiating table.
Dangers of foreign-currency borrowing laid bare in Hungary where “A majority of Hungarian mortgages are denominated in Swiss francs (see chart), most of them taken out when the forint was relatively strong. But the steady depreciation of the Hungarian currency over the past three years has left tens of thousands of homeowners struggling to meet their obligations.
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Hungary’s government: Not paid in full | The Economist
The Eurozone in Crisis - Council on Foreign Relations ⇢
A must read summary of the euro zone crisis for all students taking the FIN or EU courses
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