Foreign Policy Blogs

Global Markets

Can Latin America handle another global shock?

Can Latin America handle another global shock?

A decoupling of emerging markets from the struggling developed world is a myth, as we saw in 2011 when euro and US shocks caused a sell-off in EM currencies, including in Latin America. Next year could be rough as global growth slows. Countries from Brazil to China are rushing to …

read more

Time to Applaud the TARP

Time to Applaud the TARP


The TARP covered banks across the nation

The US government’s Troubled Asset Relief Program (TARP) was such a success that it not only saved America’s financial system, with the help of the Federal Reserve, it also saved the global economy AND turned a …

read more

The Federal Reserve’s Balance Sheet

The Federal Reserve’s Balance Sheet


The Federal Reserve Board

With right-wing Republican presidential candidates these days either calling for the Fed to be abolished (Ron Paul) or simply calling the nation’s central bank “treasonous” (Rick Perry), thinking citizens should at least be concerned about the Fed’s activities. I defended the Fed on …

read more

Unasur and Banco del Sur

Unasur and Banco del Sur


The Union of South American Nations

Will the Union of South American Nations (Unasur) and its monetary fund, Banco del Sur, be successful?
It has been difficult for emerging markets to diversify their sources of balance of payments (BOP) support. During the 1997-98 Asian crisis, the shame such …

read more

A View on Europe

A View on Europe


The following post is an edited version of an article that appeared in the Jerusalem Post earlier this month by Pinchas Landau, author of The Landau Report, a newsletter and consultancy service addressing the needs of foreign firms and financial institutions active in Israel and the …

read more

China’s View of America and Europe’s Debt and Their Efforts To Get It Under Control

China’s View of America and Europe’s Debt and Their Efforts To Get It Under Control

With America’s latest market crash, the debt debate seems so ‘last week’ (hey, it was last week!), there is still much to learn from the tumultuous process. Niall Ferguson attempts to provide an outside perspective on the whole debt limit battle. It’s a pretty important outside perspective too; …

read more

Western Debt Crises Raise Concerns Over Character of Global Leadership

Western Debt Crises Raise Concerns Over Character of Global Leadership


The debt and deficit crises driving a 2000 point decline in US Markets over the last two weeks and a credit downgrade lies at the heart of the Western financial and political system goes way beyond the debt & …

read more

Republicans Seek to Force Default on US Debt

Republicans Seek to Force Default on US Debt

In the Republican-controlled House of Representatives, an idea once confined to the conservative ‘wingnut’ fringe of the Republican party has morphed into the party’s mainstream – the belief that intentionally allowing a Federal default on paying the National debt might be an acceptable price to pay to make a political point by forcing the Obama administration to assume ownership of a fiscal mess created by the previous Republican president.

read more

Road to Deauville G-8: What's on the agenda?

Road to Deauville G-8: What's on the agenda?

THE ROAD TO DEAUVILLE, FRANCE 2011 G-8 SUMMIT: President Barack Obama arrives in Europe today beginning a six-day trip that seeks more resources to promote and support the pro-democracy movements in the Middle East’s Arab Spring, a trip to Ireland, an address before the British Parliament to “re-set’ US-European relations, and a G-* Summit in Deaville, Fr to discuss integrating Suub-Saharran Africa into the Global economic framework.

read more

DSK Forces Emerging Markets Fracas at IMF

DSK Forces Emerging Markets Fracas at IMF

 
A power shift at the International Monetary Fund (IMF) in favor of Emerging Market nations has now set the stage for a fierce international battle over who should succeed Dominique Strauss-Kahn (DSK) as he battles well-publicized

read more

US Court: Rating Agencies May Continue to Mislead

US Court: Rating Agencies May Continue to Mislead

US Court rules the three major credit rating agencies may continue to lie, mislead & cheat investors by assigning false ratings, and helping investment firms to structure transactions that gain ‘AAA’ status. The rating agencies ‘opinions’ are protected under First Amendment protections as free speech. This ruling is a set-back to individual investors & ordinary working Americans everywhere.

read more

Third US-China Strategic & Economic Dialogue Underway

Third US-China Strategic & Economic Dialogue Underway

Secretary of State Hillary Clinton and US Treasury Secretary Tim Geithner play host this week to the third round of a newly formed bi-lateral talks between the US and China. This is the first time the so-called US-China Strategic and Economic Dialogue (SE&D) is being held in the US. The purpose of the talks, Geithner said in his opening comments on Monday, is to look for opportunities to build closer economic ties between the World’s two leading economic powers.

read more

OBL Is Dead, Focus On Fixing The Economy

OBL Is Dead, Focus On Fixing The Economy

After initial excitement, this moment of unity in the capture & killing of Osama bin Ladin registered as a momentary blip in Global Markets as investors worry about the immediate risk of a terrorist backlash and, more generally, the malaise of the US economy. Yet bin Laden’s death has the potential to become a focal point for the country, and for President Barack Obama in particular, if the spirit of unity & partisan cooperation can be translated into broad-based, bipartisan progress on economic issues such as re-employment, infrastructure investments, increased corporate spending of their HUGE profit margins, decreasing the Federal deficit & the National Debt levels that are central to the long-term economic health & prosperity of the nation, and the world.

Unemployment remains stubbornly high.

read more

World Markets Dump Greenbacks, Buy Gold

World Markets Dump Greenbacks, Buy Gold

The Greenback has lost nearly 15% of its value against foreign currencies since the precipitation of the global financial crisis in 2008, and almost 5% since the end of last year. As a result, in 2010, Central Banks around the World became net buyers of Gold reserves for the first time in two decades, adding 87 metric tons of gold in government purchases by countries such as Saudi Arabia, Brazil, Cuba, South Korea, Bolivia, India, Russia and Nigeria, according to World Gold Council data. Interestingly, OPEC which denominates its oil reserves in US Dollars, has recently floated the notion of ditching the Greenback in favor of either the Euro or Gold as an alternative reserve denomination. China, with more than $3 Trn in foreign currency reserves, plans to set up new sovereign funds to invest in precious metals. Russia alone bought 8 tons of gold in 1st Q 2011. As developing countries accelerate purchases, gold may reach $2,000 per ounce this year,

read more

IMF: China to Outperform US Economy by 2016

IMF: China to Outperform US Economy by 2016

A new study by the International Monetary Fund (IMF) forecasts that the so-called “Age of America” will end in 2016, stating, ‘we are witnessing the end of American economic hegemony in the World.’

read more