Germany is caught in a dilemma. On the one hand, while the Germans cannot afford austerity in troubled states due to the resulting decline in demand for German goods, cannot simply tolerate Greek-style indifference to fiscal prudence as well. In dealing with other countries such as Spain or Italy, Germany must now show with Greece that there are consequences to not complying with the orderly handling of debt without default.  Read more

The current economic crisis demands solutions. But while most government officials, central bankers, and Wall Street economists have subscribed to the standard Keynesian formula for recovery, the potential results from this step simply paper over much of the real problems to the economy and create an illusion of normalcy. (Attached Video: Raghuram Rajan on Risks to the Global Economy)  Read more

As the world continues to clamp down on untamed speculative finance, disagreements between nations, global banks and financial institutions are likely to intensify. At the same time, the financial sector, and its lobbyists, will be doing all they can to adulterate, block or water down any reforms. Can any of the reforms stick, or will they ultimately have the perverse effect of increasing, and not decreasing, financial instability?  Read more

Goldman Sachs is the bank everyone loves to hate. In the first of our two-part investigation into the bank, we ask why they emerged as the biggest winners in the financial crisis. We also look at how they lobbied the US Government to reduce banking regulations, how they acquired massive fortunes by selling sub-prime mortgages, and how they deceived their clients by betting against the products they sold.  Read more

The Year of the Dragon could be a challenging time for Asian countries as uncertainties – from within and without the region – are growing rapidly. As such, a calm, sensible, and prudent approach is needed to ensure Asia’s steady economic and development transformation.  Read more

While there remains much optimism in the potential of emerging markets, the truth is their economies are still largely dependent on the performance and health of developed markets. By most accounts, emerging markets are export-driven, and highly sensitive to currency movements and commodity prices. Given the weak slim chance of global recovery this year, what is the fate of emerging markets?  Read more

The pragmatic commitment to growth that one sees in Asia and other emerging markets today stands in contrast to the West’s misguided policies, which, driven by ideology and vested interests, almost seem to reflect a commitment not to grow. As a result, global economic rebalancing is likely to accelerate, almost inevitably giving rise to political tensions.  Read more

There is a remarkably wide spread of views among professional oil analysts concerning oil prices in 2012. While some factors, such as shale gas, could potentially push prices down, the situation in Iran for instance threaten to send the price of oil soaring. Still, despite the uncertainty, there appears to be a consensus-anticipated range among analysts. Or at least for now it seems.  Read more

1.3 billion tonnes of food is wasted globally every year. While carelessness is the main source of blame for food waste in the developed world, the annual food waste in developing countries often comes down to poor infrastructure development and post-harvest losses.  Read more

In 2011, the total investments in renewable energy in Africa rose from $750 million in 2004 to $3.6 billion. By 2020, this sum is expected to grow to $57 billion – a staggering 1,583 percent increase in nine short years. Will Africa be able to do what it takes to ensure its energy future?  Read more

Tensions are high between the West and Iran. Over the weekend, United States President Barack Obama imposed new financial sanctions that would directly affect Iran’s oil export market. Very swiftly, the European Union announced that it will ban the import of all Iranian crude, a big blow to Iran since that represents almost 20 percent of its export market. How will Iran react, and what implications does this have for the oil market, and geopolitical security?   Read more

The Jawaharlal Nehru National Solar Mission is a major government initiative in India that aims to promote ecologically sustainable growth for the country, while addressing India’s energy security challenges. But, disputes between the private and public sectors threatens to cast a dark shadow over the project. Will India’s National Solar Mission get its chance in the limelight?   Read more

Since the eurozone debt crisis crisis erupted in Greece almost two years ago, EU leaders have failed to propose a solution that balances austerity and economic growth, without which confidence in the euro cannot be restored. Perhaps European policymakers should look to Argentina for the answer.  Read more

The world has turned upside down. All of a sudden, “rich” countries were the ones running large deficits, while “poor” countries ran surpluses – accumulating large stocks of external assets, including financial claims on Western economies. At first glance, this could seem to reflect what advocates of a new international economic order had in mind. But appearances can be misleading, and, in this case, they are misleading in a significant way.  Read more

The world’s greatest shortage is not of oil, clean water, or food, but of moral leadership. With a commitment to truth – scientific, ethical, and personal – a society can overcome the many crises of poverty, disease, hunger, and instability that confront us. Yet power abhors truth, and battles it relentlessly. So let us pause to express gratitude to Václav Havel, who died this month, for enabling a generation to gain the chance to live in truth.  Read more

We’ve heard both sides of the debate of how China’s economy will land. Some have predicted a soft landing, others the contrary. At the same time, many others have said 2012 will be the year of the Europocalypse and the final mile for China’s economic boom. But what does the Chinese Central Bank feel about 2012, and what can we infer from the Bank’s recent reserve cut?   Read more

2012 will be a bumpy year for the global economy: recession in Europe, anemic growth at best in the United States, and a sharp slowdown in China and in most emerging-market economies. To paraphrase Bette Davis in All About Eve, “Fasten your seatbelts!”  Read more

Though more than 20 years have passed since Saddam Hussein led Iraq in invading Kuwait, eventually sparking the First Gulf War, conflicts over the two countries over the 10 oil fields that spread across the Iraqi-Kuwaiti frontier still remain. Once again, both countries are throwing accusations at each other, with Iraqis complaining that Kuwaitis have been “stealing” their oil, while Kuwait alleges that Iraqi companies are extracting oil from Kuwaiti oil reserves. Will there be a third Gulf War?  Read more

According to a recent EIA report, Mexico is now sitting on very large natural gas fields that could allow it to end gas imports and could give it energy independence. But in order to unleash the natural gas, Mexico will have to utilize the process of hydraulic fracturing, or “fracking”, which has numerous environmental risks. What will the Mexican government do?

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As the indebted eurozone countries scramble to find ways to raise liquidity or risk default, contagion threatens to spread across the continent and the globe – an unfortunate reality of globalization and the interdependency of economic and financial markets. However, the pain is for citizens across Europe to bear, for they will inherit a national debt.  Read more

Australia, like all modern economies, needs an assured supply of energy to function effectively. Presently, coal generates about 80 percent of Australia's electrical energy output; but as external sources of fossil fuels continue to decline, a shift to renewable energy sources is needed. But the costs for such a move, particularly to solar power, are high. What are Australia’s alternatives?  Read more

Europe, it seems, is determined to resolve its problems using other people’s money. But there are at least three reasons why the IMF should resist this pressure, and abstain from increasing its (already extremely high) exposure to Europe.  Read more

Even if China replaces the US as the world’s largest economy within a decade, a global anchor currency can be more resilient than the economic and geopolitical dominance of its country of origin. That is why the dollar will most likely remain the dominant global currency long after the US has been surpassed.  Read more

The re-regulation of derivatives has been a subject of enormous debate. After the US government completely deregulated over-the-counter derivatives back in 1999-2000, many critics argued that the complexity and lack of transparency in the market amplified the problems of the 2008 financial crisis. However, proponents say that the flexibility of OTC derivatives provide for financial innovation and user customization. As such, should the “wild beast of finance” be tamed, and more importantly, can it even be tamed in the first place.  Read more

In 2011, Kazakhstan's oil exports ran at 1.74 million barrels per day. The total value of the nation’s oil exports have also risen by 112 times in the last 20 years, with the nation now exporting over $54.086 billion worth of oil in this year. But despite being one of the world’s rising oil exporters, Kazakhstan has also begun diversifying its energy exports to nuclear resources as well, with the nation now becoming the world’s largest producer of mined uranium.  Read more

Back in 1992, Standard and Poor’s downgraded Canada’s triple A credit rating to AA+ amid concerns over its fiscal health. But in just six years, the budget was balanced and Canada won its prized AAA rating back within a decade. How did they do it, and what can the United States, Italy, Greece, Portugal, Spain, Hungary and many other indebted nations learn from Canada?  Read more

Since the collapse of the USSR in 1991, the nations that border the Caspian Sea – namely Russia, Iran, Azerbaijan, Turkmenistan and Kazakhstan – have quarrelled over how to properly divide its waters. With as much as 250 billion barrels of recoverable oil, 200 billion barrels of potential reserves and 9.2 trillion cubic meters of recoverable natural gas, at stake, tensions have risen over recent moves by Russia to develop its offshore resources.  Read more

As the US readies itself for a complete withdrawal from Iraq by the end of the year, the rest of the Middle East have also been preparing for this eventuality. The dynamics between Iran, Iraq, Syria and Israel could determine the future of the region as Washington’s influence becomes increasingly distant and irrelevant.  Read more

The mounting problems that continue to plague the US and the eurozone has left many people worried. These problems have also led to numerous paradigm shifts that could potentially alter the face of the entire global economy. With uncertain times ahead, what we can do is to monitor developments, learn from them, and ultimately adapt.  Read more

The year 2011 has been a roller coaster ride of sorts.It began with the Tunisians toppling their authoritarian regime, which we soon realized was a catalyst for what many have labelled the “Arab Spring.” What we then saw was unprecedented – the power of collective action inspiring a suppressed generation across the Arab nations. Egypt disposed of their dictator Hosni Mubarak. Libya experienced a hostile armed struggle for months, before Muammar el-Qaddafi was eventually captured by rebels.

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In just one month, both Greece and Italy have made dramatic changes to their governments. The technocrats are now in charge, with the governments from both nations seeing fit to appoint un-elected officials into power in a desperate attempt to deal with their respective crises. But are we heading down a slippery slope towards a “banker’s coup” in the heart of Europe?  Read more

Hydraulic fracturing, or “fracking” as it is otherwise known, is the process by which pressurized water is used to fracture rock layers thus releasing petroleum, natural gas, or other substances so that they can be extracted. While oil and gas companies have taken out very expensive media campaigns to promote the benefits of the technology, genuine concerns have emerged over its environmental and ecological impact.   Read more

The US does not need an experiment with a flat tax. A careful study of countries that have embraced a flat tax system demonstrated three main pre-conditions that required a flat tax; none of which the US has. Adopting a flat tax would only confirm what many suspect but hope is not true: that America is broke, desperate for inward investment, incompetently governed, and increasingly ruled by a self-regarding oligarchic elite.  Read more

The European Union was formed by high-minded elites who believed that closer economic integration and interdependence between nations would result in fewer military conflicts that stemmed from nationalism.  However, the financial crisis that has engulfed the continent has since revealed the fault lines to the EU’s system – one that replaces military conflicts with economic ones. As such the ongoing crisis in Europe should not be seen as a crisis about the euro, or even a crisis about economics. Rather, it is actually a crisis about nationalism.  Read more

Barclays Chief Executive Bob Diamond surprised many this month when he admitted on a lecture broadcast on BBC Radio 4 Today that banks had done a “poor job” of explaining how they contribute to society and that many people had failed to notice how the banks had changed since the 2008 financial crisis. But while Diamond’s statements appear reconciliatory, much of what he said was cosmetic, window-dressing, and lacking in real substance. Has “the most dangerous man in Britain” changed his spots or has this been all one grand charade?  Read more

Wind power may currently only contribute to less than 1 percent of Egypt’s energy output, but most experts believe that it has the potential to meet the nation’s energy needs. The largest bottleneck thus far to expanding Egypt’s wind power facilities, though, has been in securing funding for the development. But with the overthrow of the Mubarak government coupled with newer, and more ambitious plans for the industry, there is renewed optimism for a wind-powered revival in the country.

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If Russia has its way, a Eurasian Union (EuU) will be formed by 2015 – comprising of Russia and many of its former territories under the old Soviet Union regime. The EuU, while not a recreation of the Soviet Union, is a representation of a new Russian empire that will serve the nation’s strategic and economic needs; even at the expense of a new confrontation with the US.  Read more

Several nations are contesting the South China Sea’s offshore resources. China has stepped out to warn that it is not to be provoked, while countries like the Philippines and Vietnam are hoping that international law would provide some backing for its claim to oil. But no one is raising any eyebrows; after all billions in oil profits are at stake here. 

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Many believe that science is about innovation that can improve the living conditions of humanity. For decades, the study of economics was conceived and taught as a “moral science,” until the fateful day Cambridge University decided to categorize economics under the school of “social science.” One of this year's Nobel Prize winner for economics is a keen advocate of efficient markets, a school of thought that has contributed much to the current financial meltdown. In light of the current economic crisis, we wonder: What has economic science done for humanity?

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In April this year, the IMF published a preliminary set of guidelines for capital controls that would impose a “code of conduct” for governments that wished to regulate the flow of capital in and out of their capital accounts. It was hoped that these regulations would ensure that nations involved in currency intervention would not go out of hand. But while the IMF’s proposed code was a step in the right direction, much of it has eventually been proven to be a misguided effort.  Read more

As a consequence of the global recession that began in 2008, prices for photovoltaic solar panels worldwide have receded. The failure of the US federally subsidized company Solyndra, for instance, has also put a damper on the solar power industry as governments start to question their support for alternative energy companies. How has this affected Israel, where energy imports remain a major topic of concern to the government?  Read more

We, as a collective society, have to shoulder some of the blame for financial crisis as we essentially allowed Wall Street and our policymakers to run the global economy into the ground while we slumbered in blissful ignorance of their misdeeds. But while we have stirred from our slumber, as evident through protests such as Occupy Wall Street, our true awakening will only come when we acquire the knowledge required to fully comprehend the issues.  Read more

Stall speed is a terrifying risk for an economy like that of the US, which desperately needs to grow robustly. However, The private sector alone cannot and will not counter the risk of stall speed. What is desperately needed is better policymaking. But US policymakers are at an impasse, and unless they can break this impasse, the greater the risk for the US economy.  Read more

Despite the need for strong and sustained fiscal stimulus in many countries, today's political leaders seem to be held hostage by financial interests and associated media, ideologists, and oligarchs. As a result, the main threat that now confronts us is not public debt or inflation but rather a downward economic spiral.  Read more

If Moody’s, Fitch and Standard & Poor’s had a decent public relations consultant he/she would advise a calm period of low profile, or, in other words, the exact opposite strategy to the headline-chasing frenzy that appears to have gripped all three agencies. It is as if they are desperate to get the message across that hey, they’re not afraid of downgrading anything any more. But simply firing out downgrades cannot undo the damage they did to themselves prior to the financial crisis when they were happily dishing out AAA ratings to rubbish securitized packages of mortgages.  Read more

The Libyan Investment Authority, the sovereign wealth fund in which Muammar el-Qaddafi’s regime allegedly stashed and misused Libya’s oil wealth, has cast a dark shadow on SWFs all across the world. While no one should infer from the Libyan case that other SWFs are riddled with corruption and conflicts of interest, there are critical issues that are applicable to global corporations and funds.

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Hosni Mubarak’s three-decade long reign in Egypt has had frightening consequences on its economy. Especially in the wake of the European debt crisis, the extent and impact of Egypt’s public debt has become impossible to ignore. Here, Ammous makes a compelling case about public debt servicing costs and liability on behalf of a people experiencing severe economic, political and social problems.

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In 2008, France, Belgium and Luxembourg jointly stepped in with €150 billion of guarantees to tide over Dexia after it ran into financing difficulties. Today, the three nations are once again bailing out the embattled Dexia, with the Belgian state buying Dexia’s local unit for €4 billion.   Read more

6 October 2011. In the course of the past few days, three leading figures attempted to redirect the attention of the markets by giving positive speeches about economic plans for their country/region. Yet all three failed miserably as the markets responded worse than ever. The big lesson from the three speeches is clear. The markets are no longer in the mood to tolerate political pap. They want substance, or else!  Read more

4 October 2011. Europe’s increasingly vocal and powerful Far Right parties have swapped a racist agenda for an Islamophobic one, moving them closer to the mainstream, where anti-Muslim views are commonplace among conservative commentators and politicians.  Read more

 30 September 2011. There have been many rogue traders in the course of financial history. Bernard “Bernie” Madoff operated the world’s largest Ponzi scheme and was sentenced to 150 years behind bars in June 2009. One would imagine that a recent precedent in Madoff would deter financial fraudsters from striking again, at least for a while. Apparently not.  Read more

Despite being contrarian to Islamic beliefs, opium production is one of the biggest industries for the war-torn country. Afghanistan alone is responsible for supplying more than 90 percent of the world’s opium, the raw material for manufacturing heroin to drug addicts all across the globe. Myanmar, trails in second place.   Read more

 26 September 2011. The massive contagion spreading across euro zone countries have morphed into an urgent problem for policy makers. Some claim the euro is too big to fail, others assert that it is too big to bail. The pros and cons of proposed solutions have been debated endlessly without gaining much headway. But one thing is clear: Something must be done to help the stricken economies. 

Earlier this month, the former CEO of Yahoo! was unceremoniously removed by the company board, via a telephone call. Many have questioned and wondered if it had anything to do with the fact that Carol Bartz is a woman; if the termination could have been better handled if Bartz were a male.    Read more

 20 September 2011. Global markets are in unchartered territory. A series of austerity measures have been announced, but the news coming out from Europe and the United States continue to bear the same consistent note of pessimism. The risks ahead are not a double-dip recession, but a severe contraction that could lead to Great Depression II. But can it be prevented?

16 September 2011. In 2008, the Bank of America (BoA) purchased Countrywide Financial for US$4 billion. However, in the aftermath of the housing bubble bust, the purchase of Countrywide has already brought losses in excess of US$30 billion to BoA – forcing BoA’s CEO, Brian Moynihan to sell an equivalent amount of assets in an attempt to right the ship. But, this was not an isolated incident. The wreckage of such deals has littered banking history in recent years.   Read more

14 September 2011. The obvious solutions to economic stagnation have been tried and have failed. Clearly, more innovative ideas are needed to reinvigorate the economy. The latest proposed solution making its round have been to use a sharp, contained bout of inflation as a way to reduce debt. While it may seem like an attractive solution at first glance, there is cause for concern.  Read more

12 September 2011. The G-20 lost it way after 2009 when its member states abandoned efforts to coordinate global economic policies for national solutions. Going alone though has reached its limits. The way forward to sustained growth and employment is not through a flurry of one-off national initiatives, but rather through global policy coordination.  Read more

Goldman Sachs recently released a report, State of the Markets – Long and Short Risk Strategies, that is currently making its way around the Internet. Originally intended as a private report for its institutional clients, Goldman makes suggestions on how to profit from a downturn. More importantly, is the euro really bound for a crash?  Read more

 6 September 2011. Iraq’s economy is recovering fast. Despite ever-present threats to its political, social and economic stability, the IMF still expects its GDP to grow by 12.5 percent in 2011 – largely on the back of increased oil exports, and high energy prices – after growth of just 1 percent last year. So, is this the right time to invest in Iraq?  Read more

2 September 2011. The mad pursuit of corporate profits is threatening us all. To be sure, we should support economic growth and development, but only in a broader context: one that promotes environmental sustainability and the values of compassion and honesty that are required for social trust.  Read more

 31 August 2011. The future of energy in Europe is trapped in a political quagmire. As a result of the political bickering among opposing views in European parliaments, little is being done to address the energy problems for the future. Will a compromise be reached?  Read more

29 August 2011. As the remnants of the Gadhafi regimes is slowly washed away, the National Transitional Council (NTC) now faces tough decisions and challenges in order to rebuild the country from scratch. While it is too early to predict the future of Libya, the NTC must address fault lines that have already emerged.  Read more

Evidently, the medium is the message. The act of self-immolation by 26 year-old Mohamed Bouazizi in Tunisia was the catalyst that brought about what is today known and referred to as the Arab Spring. Despots and autocratic rules who had held on to power for decades have been unceremoniously ousted after mass demonstrations and violent protests. Over in India, one man by the man of Anna Hazare is starting a non-violent process of change.   Read more

23 August 2011. Karl Marx was right, it seems, in arguing that globalization, financial intermediation run amok, and redistribution of income and wealth from labor to capital could lead capitalism to self-destruct. However, socialism is clearly not the answer as well. With the world seemingly destined for another economic crisis, what can be done to prevent a Great Depression 2.0?  Read more

19 August 2011. Socio-economic factors, including poverty and high unemployment rates, were major factors behind this month’s rioting across England, but politicians and many journalists persist in branding the rioters “thugs” and “wild beasts”  Read more

17 August 2011. Politics and economics are intrinsically linked. For classical economists, it was impossible to understand politics without economics or economics without politics. Accordingly, the current global economic crisis can also be best understood as a crisis of political economy. The evolution of the crisis across the US, Europe and China has one overriding theme: the relationship between the political order and economic life.  Read more

15 August 2011. Once more, famine stalks the Horn of Africa, where more than ten million people are fighting for survival, mainly pastoralist communities in the hyper-arid regions of Somalia, Ethiopia, and northern Kenya. But the current crisis could yet mark the start of regional recovery and development.  Read more

Last week, credit ratings agency Standard and Poor’s (S&P) downgraded U.S. debt from a stellar AAA rating by a notch to AA+. The move sent financial markets in panic mode as investors grappled and tried to comprehend the severity and extent of the United States’ ability to finance its bills. China, who holds a massive amount of U.S. Treasuries, wasted no time in letting known their impatience and displeasure, criticizing Washington's “addiction to debts” and inability to “live within its means”.   Read more

9 August 2011. The US media are full of ordinary Americans venting their rage these days at the incompetence and immaturity of their politicians. But the last-minute agreement to raise the debt ceiling is proof that the politicians did what they were sent to Washington to do: represent their constituencies and compromise in the interests of the country as a whole.  Read more

5 August 2011. The painfully negotiated US budget legislation that Barack Obama signed on August 2 has three major flaws. One offsets the other, and the third threatens what America needs most in the coming years: economic growth.  Read more

What does everyone need to know about the debt crisis and how can you beat the bad economy? FOX Business Network stocks editor and reporter Elizabeth MacDonald has been closely monitoring the debt crisis currently enveloping the United States. It’s an issue that extends beyond the US and one with many complexities, MacDonald takes time to weigh in and break it down in this exclusive interview.  Read more

1 August 2011. One out of 6 people in the world live in India. But just how big is India? And how can we think about the country and its economy when its population and GDP varies so vastly from state to state? One way would be to look at the size of each state, in relation to its GDP and population. But what would the numbers really mean? Another way would be to compare each state to a country, revealing India's fundamental problems.  Read more

28 July 2011. On paper at least, few would consider Greece to be a systemically significant economy. Yet today, the country is at the centre of a crisis that threatens to engulf the entire European Union. But the case of Greece is not unique. In 1997, another relatively small economy, Thailand, was at the epicentre of the Asian Financial Crisis. How can small economies cause such big problems? By Kemal Derviş.  Read more

Last week, Chinese officials uncovered five fake Apple stores in the southwestern city of Kunming, and suspended two of the faux outfits. When in China, equity markets are not spared from allegations of false accounting practices and fraud either. Sino-Forest Corporation was the latest company from China to characterize what is fast becoming a truism: for Chinese companies listed abroad  short selling through reverse takeovers can prove to be immensely profitable. The key question then is can, or should investors believe the numbers from Chinese companies?  Read more

A study by American Express and Harrison Group shows that global spending on luxury goods is set to increase by nearly 8 per cent to US$359 billion in 2011. Rich shoppers are driving an increase in consumer spending and according to Moody’s Analytics, 5 per cent of the richest households account for 37 per cent of consumer spending. For nearly two years, households clamped down through the economic slump, exercising utmost restraint and discernment in their purchases. However, that is all changing in 2011. Find out how the rich are spending today.  Read more

20 July 2011. The 2008 global financial crisis was meant to be a wakeup call for policymakers around the world. Yet, in the aftermath of one of the worst financial crises ever, policymakers continue to adopt failed policies and weak strategies that threaten to curtail recovery efforts. Joseph E. Stiglitz writes about how the US and Europe – considered to be the bastions of western capitalism – are bound for economic failure if they choose to undertake “another costly experiment with ideas that have failed repeatedly.”  Read more

18 July 2011. On 1 November 1993, the European Union was formally established with the Maastricht Treaty – a culmination of a vision that began over 50 years ago when a small group of European politicians recognised the need for greater European integration to combat the wave of extreme nationalism that devastated the continent during World War II. Yet today in the face of a deepening debt crisis, Europe stands divided. George Soros, chairman of Soros Fund Management, warns that unless a Plan B is adopted, Europe faces “incalculable consequences.”  Read more

14 July 2011. Thailand is about to inaugurate its first female Prime Minister. Yingluck Shinawatra led her Pheu Thai party to victory in July's general election winning 265 seats, and giving her party a majority vote in the 500 member parliament. Ms Yingluck prepares herself to lead Thailand out of its political standstill that began in 2006 when her brother, Thaksin was ousted in a military coup. However she's widely considered by many as Thaksin's proxy and expected rule the nation with her brother's motivations. So do her proposed policies resemble to her brother's during his 2001 – 2006 administration?  Read more

Last week, Beijing released its June inflation and national trade account figures, with data suggesting that the government’s current measures to cool down its economy may be inadequate. In a bid to cool surging inflation, the Chinese central bank raised key interest rates for a third time this year. Benchmark rates for one-year loans were raised by 25 basis points to 6.56 per cent. So, is China necessary showing signs of an economic slowdown?  Read more

8 July 2011. On 9^th July 2011, the nation of South Sudan will finally become a State. Having been part of the Republic of Sudan for more than five decades, the South Sudanese population will now have the opportunity to govern and fend for themselves – albeit in a region mired in conflict and uncertainty.Though immeasurable challenges lie ahead, the people are optimistic.

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6 July 2011. Joseph J. DioGuardi, a CPA and former Congressman who represented Westchester County, New York, for two terms (1985-1989), is a public advocate for fiscal responsibility as the leader of Truth In Government. He speaks exclusively to EconomyWatch about the what is not working in the US monetary system and the potential risks the US and rest of the world faces if something doesn't change.   Read more

4 July 2011. China is one of the top fastest growing economies in the world, and some economists believe China will overtake the US with a larger GDP in a matter of a few years. Last year, the number of millionaires in China grew 12 percent, and while the US still has the most millionaires – they’re 15 years younger in China.  But with life expectancies high in China and an already aged population, economists are asking: Will China get old before it gets rich?  Read more

30 June 2011. Everyone knows Fifa is corrupt, but the world football’s governing body is a Papal institution, with the power to excommunicate any opponent. This threat is one of several reasons why Fifa’s power is untouchable, and it remains unaccountable. IT seems as long as Blatter is bringing in money for Fifa – and they have a $1.2 billion surplus – there’s not that much concern in most countries about the corruption.  Read more

28 June 2011. The Euro-zone is faltering. Bogged down by the ails of the PIIGS, the Euro-zone is fragile and susceptible to a potential economic meltdown.With Greece heading towards an inevitable default, despite the recent announcement of a second bailout in just over a year, the word on the street is not about whether the other Euro-zone countries would once again leap to Greece's rescue when this happens but rather on whether Greece would eventually be kicked out of the Euro-zone – a potential precursor to a dissolution of the Euro-zone.   Read more

It’s already June. Where has the year gone? For some who’ve made personal finance and investment goals to grow rich this year or increase your company profits by tenfold your New Year resolution for 2011 – you might start to hear that countdown clock to 2012 ticking already. Forget those passé get-rich-quick schemes of the 90’s. If you’re stuck in a mid-year rut, here’s some money advice from the world’s filthy rich to inspire.  Read more

22 June 2011. Illegal gambling exists everywhere, but in Asia its present on a different scale compared to anywhere else. Asian gangs not only corrupt their own leagues, but have infiltrated every major football tournament, and several international cricket teams. David Smith investigates the secret world of illegal sports gambling and match fixing in this week’s expose.  Read more

20 June 2011. In his latest article – The Eurozone Heads For Break Up – published in the Financial Times, Roubini expresses his belief that current policies adopted by European nations has not and will not resolve the Eurozone’s fundamental problems of competitive and economic divergence. The Eurozone, in its present form, is thus on a path to separation. By Nouriel Roubini  Read more

16 June 2011. It has become rather cliché to describe India as a land of contrasts. After all, in a land of more than 1.2 billion people, with hundreds of languages, and a history that dates to over five thousand years, there are bound to be contrasts that have emerged along the way. Still, India is often characterised by the degree of contrasts that exist within the country. In fact, the government and the people of India have come to accept, and even embrace this profile. As one Indian netizen puts it, India is a country with unity in diversity…all are undoubtedly united by one sole feeling of ‘being an Indian'.  Read more

14 June 2011. Ackermann emerged from the panic of 2008 after pledging 8.5 billion Euros to bailout a big German bank on the brink of collapse. He is at the centre of more power circles than any other banker in the Continent. And he’s helping shape Europe’s economic and financial future. From advising politicians and policy makers on the Greek debt crisis to economic relations in Europe and the ECB’s future. Make no mistake, Ackermann’s allegiances lie with the banks. More bailout money and more austerity on the other hand means: buying time without hope of recovery.  Read more

10 June 2011. Since the second half of last year, global wheat prices have more than doubled according to the World Bank, and prices of corn, sugar and oil have skyrocketed. The Cereal Price Index soared a shocking 69 percent from May 2010 to May 2011. On average, the Food Price Index averaged 232 points in May 2011, 37 points higher than May 2010. So who's going to go hungry?  Read more

8 June 2011. Billions of dollars of illicitly-earned money is laundered every year, often through reputable banking systems. One of the most shocking cases involved the Miami-based Wachovia Bank, which admitted responsibility in 2009 for moving $420 billion for account holders thought likely to be involved in the laundering of drug proceeds. Yet the measures taken to control these crimes don’t appear to be working. David Smith looks at the scale of the problem and assesses the far-reaching consequences of money laundering crimes.

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6 June 2011. Calling the G-8 or the G-20 'irrelevant institutions' is like calling the US economy 'flawed'.

The whole world knows it - and has been saying it for years.  However, what really makes the G-8 or the G-20 stand out as a lightning beam for criticism is the exclusivity of their respective summits as well as the reserved statuses for the core members of the group. The organisations have also generally justified their rigid stance in membership by stating the need for “effectiveness and continuity of its activity”. Is ensuring continuity really more important than staying relevant or being more representative of the global economy?  Read more

2 June 2011. The impact of regulation and cloud technology dominated talks at the recent Financial Services Technology Summit in Germany – but BBVA’s channel integration efforts stole the show. Delivering tailored, geo-localised services to account holders will be an essential element in retail banking during this decade, and BBVA demonstrated how it has embraced this strategy, underpinned by robust analytics tools and a CRM system capable of delivering significant business value. “It needs to be about giving the customer the right information, at the right time, in the right format,” explained Luis Uguina, BBVA’s Chief Mobility Officer.  Read more

31 May 2011. The threat of serving a jail sentence doesn’t seem to deter corrupt officials anymore according to activists in New Delhi. After all, he can enjoy the ill-gotten gains after his sentence. Now, a drafting committee agreed to confiscate and liquidate assets obtained through corruption under the proposed Lokpal bill. So will seizing India’s corrupt assets deter corruption - or if corruption continues in India, could it affect the countries’ growth and continued success?  Read more

27 May 2011. Credit card companies are battering consumers across the board with monstrous fees, high interest rates and disappearing rewards. If you signed up for a credit card in the past year, the chances are - you've been ripped off. Your interest rate might have gone up, had your credit limit reduced, or your credit card issuer gutted your rewards. Analysts say: it's only going to get worse. Still, you may be able to get a good deal, as long as you don't chose these cards singled out by experts for being the world's worst credit cards.

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25 May 2011. The Rothschilds are the most famous banking family in history. In the 19^th century they lent money to Kings and Governments and funded both sides in the Napoleonic wars. They once saved the Bank of England from collapse with their own money. But how did they come to be so fabulously wealthy? In this two-part feature we first look at their rise from the ghettoes of Frankfurt, and then in part two we ask why they have been accused of everything from deliberately starting wars, to assassinating presidents and controlling the entire global financial system.  Read more

23 May 2011.Unacceptable unemployment figures is the top concern of EconomyWatch readers, and who’s to blame them? The US, as well as other countries hit badly by the 2008 financial crisis continue to struggle bringing unemployment levels back to pre-crisis levels. In the meantime, hundreds of thousands of people remain jobless and financially crippled with no sight of light at the end of the tunnel. However some argue, reliance on unemployment benefits is playing a role in the bills to cap benefits. Are they right?  Read more

20 May 2011. Unless you’ve been living under a rock for the past few days, you probably already know the tale of Dominique Strauss-Kahn (often referred to in the media as DSK), the now EX Managing Director of the IMF. By now you would have also heard about the sordid details of what allegedly happened in a New York hotel room, or about DSK’s reputation and history as a womaniser, or even about how the whole incident was a conspiracy to undermine DSK’s presidential bid in France. Here at EconomyWatch.com however, we only care about one thing – whether DSK’s scandal and subsequent resignation has had any impact on the global economy.  Read more

In the wake of the recent Sony PlayStation hack, Amazon EC2 outage and Epsilon data theft, information security is once again back in the news – for all the wrong reasons. The web has become a playground for hackers and malcontents eager to phish, defraud and steal wherever and whenever they can. Policing this landscape is a logistical nightmare, and battle lines are being drawn and redrawn many thousands of times a day – which perhaps hints at why many of us are still uncomfortable with the idea of storing sensitive data in third-party environments.  Read more

16 May 2011. Thirty two years ago, as a nine year old boy, I said Bye Bye Basra. Now here I sit, all these years later, on the other side of the world, with Saddam dead and buried close to five years already. And yet, that old specter of fear still haunts me. I still worry. Should I really write this article? Might it come back to haunt me or – worst still – my family one day? Unless you have lived through an oppressive regime, you may never know what that fear is like. That is the real change that has taken place in the Middle East. Its citizens have broken out of the mental ghetto they have been consigned to, and the world will never be the same again.

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12 May 2011. One of the positives of raising interest rates is that they attract foreign capital. On the surface, this makes complete sense. If U.S. rates are near zero and the European Central Bank raises its main rate to 1.25%, the current level, then anyone with a few functioning brain cells can see there is more cash to be had on European money markets than in America. In fact, after hinting at more rate hikes to come, European central banking brainiacs might have even hoped for a rise in foreign investment as a pleasant side effect of increased lending costs. That may never happen.

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Last month Warren Buffett invested in BYD, an electric car company in China. So does this mean we should all jump on the China tech investment bandwagon? At the end of Q1 2011, China even overtook the US in green investments. According to a study led by the Pew Charitable Trusts, Chinese investment in clean energy soared by more than 50 percent in 2009 to reach $34.6 billion, far more than any other country in the Group of 20 major economies. Franck Nazikian, the founder of CHINICT shares his thoughts on Technology and Investments in China with EconomyWatch.  Read more

6 May 2011. Afghanistan, which produces 90% of the world’s heroin, as well as the largest share of cannabis resin, could stake a claim as the “drug capital of the world”. But, in reality, there are many “drug capitals” when it comes to drug consumption and production. Naturally, most of the poison is consumed in richer nations, while it's produced in poorer countries. The picture, however, is complicated and ever-changing. Follow the drug trade around the worlds' drug capitals in this expose by EconomyWatch journalist, David Smith.  Read more

4 May 2011. By clicking on this story, you may be a speculator if you thought this information might add value to your knowledge base, or your bank account. The only risk is your time. Oil and other market speculators basically act in the same way, except they are willing to take monetary chances in exchange for higher profits. For some reason, many politicians and much of the public currently despise that mentality. Betting on the future generally receives the stamp of immorality when elected officials and consumers come out on the losing end. President Barack Obama and the European Union both recently announced plans to hound evil profiteers.

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30 April 2011. No one seems to really know the real cost of Kate Middleton and Prince William’s Royal Wedding that took place in Westminster yesterday – but they’re taking a good guess. Some reports put the cost as high as £50 million, and nothing lower than £30 million. That’s still under the £70 million it cost Charles and Di to tie the knot in 1981. The extra bank holiday was expected to cost the country £5 billion in lost production according to the CBI.  Read more

28 April 2011. Since 2003 3D printers have been on the rise, and over time, their costs declined. The technology is a form of additive manufacturing where 3D objects are created – and are more affordable and user friendly than other additive manufacturing technologies. The products allow developers to print parts and assemblies made from several materials with different properties in a single process.

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26 April 2011. The original ‘money’, gold has always been highly valued for its brilliance, malleability and purity. King Croesus is credited with the invention of the first gold coins, which remained a primary currency across the globe right up until the beginning of the 20^th century. The ancient kings succeeding him were also probably responsible for the very first cases of inflation after they began adding lead to gold coins – enhancing the royal money supply but simultaneously reducing the coins’ value. In times of war, pestilence and political instability, gold has been jealously hoarded as protection against the vicissitudes of life.  Read more

 
Are You Careless With Your Cash? You’re Not Alone.
Credit: emdot

23 April 2011. Let’s face it, we all have our bad money habits that border on shameful from time to time. But would you be more shocked to find out that as you “buy now and worry later” on your credit card – hordes of others are doing the same? We’re all trying to get out of debt, but only end up burrowing deeper into it. It’s time for some eye-opening credit card and debt statistics and take stock of your finances and control of your financial destiny.

This Easter weekend, check out these 12 shocking personal finance statistics and tell us where you fit in the big picture.  Read more

Fastest Euro Zone Price Rise in 3 Years
Credit: jurjen_nl

20 April 2011. Are all nations in the European Union created equal? The European Central Bank seems to think so. And is hiking interest rates by a quarter of a percent signaling a “return to normal standards,” according to Ewald Nowotny, member of the ECB Governing Council and governor of the Austrian National Bank. The ECB raised interest rates this month for the first time since July 2008.

Policymaker Nout Wellink said the bank neded to remain “very alert” on inflation dangers to avoid falling behind the curve. However ECB President Jean-Claude Trichet said he does not see alarming signs of second-round inflationary effects.  Read more

Since China's inflation is the hottest topic in the world political economy today, this seems a good time to look at the dynamics of China's luxury market. Especially so as many people other than long-time "China bust" folks are now starting to say inflation will require China's national government to slam on the brakes. Indeed, it may do so with such force, the world's strongest economy since the Black September 2008 meltdown will, finally, not just slow down, but have to swerve sharply to avoid a total crash. So this MAY be the proverbial "last irony", but, if so, at least we did it BEFORE everything in China came grinding to a halt ;-) Or not.  Read more

Webvan - Tech Favorite Crashed & Burned 10 Years Ago:
Lesson Learned or Shape of Things To Come ???
Credit: Thomas Hawk

While Internet capital pools today are far greater than 2000, the stock market is not glutted with offerings. In 1999, there were 308 tech IPOs - in 2010, just 20. Tech start-ups today are real businesses — not just eyeballs and clicks. Facebook has fast-growing revenue and Groupon, profitable since June 2009, is on track for billions in revenue this year. In 1999, 248 million people were online, less than 5% of world’s population. Today one in three people globally equal two billion users. “In those days, you had tiny companies going public that hardly had a business plan. And now you’re talking only a few companies — that are already global with revenues.” Still, with only a few perceived “winners,” some investors must be choosing losers or paying too much: “When you see the valuations bandied about — I do think, boy, these better be really special.”  Read more

12 April 2011. Last week, an arbitration tribunal indefinitely blocked a BP share-swap agreement with state-owned oil company Rosneft. The ruling indicates how seriously BP's American CEO, Robert W. Dudley misread Russian politics - despite the fact he headed a separate / private / and VERY lucrative for BP joint venture with a different group of billionaires there from 2003 - 08. Apparently they didn't like their partner canoodling with the hated state-owned competitor. So they went to an arbitration panel when the Rosneft deal was announced, saying it breached their own shareholder agreement with BP in the partnership called TNK-BP. To the surprise of few, except apparently Dudley, they won. Now the Rosneft deal is suspended, just in time for BP's annual stockholder meeting on Thursday. Fun.  Read more

8 April 2011. You can be in a relationship and still be single, financially. Couples in long term and serious relationships who put off marriage for their careers and a myriad of other reasons, don’t think twice about neglecting to discuss joint financial arrangements – or bank accounts. Even though one of the most common causes of a relationship breakdown it turns out, is: money.

So, where do you start? What are shared and joint finances in a relationship all about – and what do you need to do, and know to protect yourself? After all, you’ve worked hard to earn your money, invest it and maintain a squeeky clean credit rating and record. One wrong move, by either party could wreck both of you financially.  Read more

6 April 2011. The central focus of China's new 5-year economic plan is its shifting economic base away from manufactured exports toward one rooted in demand for goods and services by increasingly affluent consumers. That is crucial to Communist Party’s central aim: keeping allegiance of a society that wants a bigger share of national prosperity. Raising living standards appears to be government’s main priority, calling growth of domestic demand “a long-term strategic principle”. Environmental protection, energy conservation and technology are also allotted ambitious goals. And for the first time, government will place a cap on total energy use.  Read more

4 April 2011. Although Chernobyl remains the calamity by which all subsequent nuclear accidents will be measured, the ad hoc device that avoided a meltdown - so-called core-catchers - are now a design feature of the newest reactors Russia’s state-owned nuclear power company, Rosatom, sells globally. Inventor of the "core catcher" expresses what may sound like a jarringly opportunistic sales pitch: Chernobyl was the hard-earned experience that made Russia the world’s most safety-conscious nuclear proponent: “The Japanese disaster will give the whole world a lesson. After disaster, a burst of attention to safety follows.” Opportunistic or not, in recent years, Russian nuclear industry has profited handsomely by selling reactors in emerging markets, including China & India — whose insatiable energy appetites keep them wedded to nuclear, despite vows to proceed more cautiously in light of Japan disaster.
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31 March 2011. Businesses in a number of industries are trying to adapt to a new reality. No longer can they count on reliable access to critical supplies, prompting frantic phone calls, contingency planning and product redesigns. Film and television producers, along with the companies that support them, for example, are scrambling to stock up on commercial-grade videotape. A major supplier, the Sony Corporation, closed its factories in Japan. Many studios say they face no shortage now, but there is a fear of one soon — and that is all it takes to put companies on edge. “Folks everywhere know there will be a shortage and are buying as much as they can”

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Yantian Container Port, Shenzen:
Strict Radiation Screening If Anywhere Near Japan
Credit: Bert van Dijk

28 March 2011. Fearing radiation's potential impact on crews, cargo and vessels worth tens of millions, some of world’s biggest container shipping lines have restricted or barred ships from ports in Tokyo Bay. China is starting to require strict radiation checks on ships arriving from Japan. In California Friday, the first ship to reach Port of Long Beach since the earthquake was boarded and scanned for radiation by Coast Guard and federal customs officials before being allowed to dock. Big southern Japanese ports, like Osaka and Kobe, are still loading and unloading cargo. But the Tokyo Bay ports of Tokyo and Yokohama are normally Japan’s two busiest, representing as much as 40 percent of its foreign container cargo. If other shipping companies join those already avoiding Tokyo Bay area, delays in getting goods in and out of Japan will only worsen.  Read more

Silicon Wafers:
Crucial Link in Global Hi-Tech Supply Chain
Credit: pengo-au

23 March 2011. In many ways, modern global supply chains mirror complex biological systems like the human body. They can be remarkably resilient and self-healing, yet at times quite vulnerable to some specific, seemingly small weakness — as if a tiny tear in a crucial artery were to cause someone to suffer heart failure. Day in and day out, global flow of goods routinely adapts to all kinds of glitches and setbacks. A supply breakdown in one factory in one country is quickly replaced by added shipments from suppliers elsewhere in the network. Sometimes, the problems span whole regions and require emergency action for days or weeks. But the disaster in Japan presents a first-of-its-kind challenge.
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"Past Performance Is No Guarantee of Future Success"
Credit: Euronews

21 March 2011. Assessing the impact of the current crisis in Japan proves once again that economists and other self-styled experts have not solved the “tragedy of the commons,” the quandaries that arise when many people, acting in their own self-interest, create a threat to the common good. However imperfectly, though, markets WILL pass judgment, despite an unusually uncertain outlook. Investors, like everyone else, should understand today's world is a risky place. “You need to use a whole range of approaches to understand the market in a situation like this, and you need to be humble.” And, perhaps, accept an unpleasant reality: the next -- so called / alleged / but all-too-predictable -- black swan is definitely out there somewhere.

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Who Will Pay ???
Credit: Loco Steve

17 March 2011. Japanese insurance companies, global insurers and reinsurers, hedge funds and other investors in so-called "catastrophe bonds" are all expected to bear a portion of losses likely to exceed $100 billion. Greatest uncertainty surrounds contamination from nuclear accident prompted by earthquake and tsunami. Operators of nuclear plants in Japan are required to buy liability insurance thru Japan Atomic Energy Insurance Pool, an industry group. But they are required to buy coverage of only about $2.2 billion for liabilities, and pool does not sell coverage for earthquake damage or business interruptions, suggesting it will be up to Japanese government to bear the brunt of those costs. Stocks of some US life and health insurers with operations in Japan sank on Tuesday, responding to Prime Minister Naoto Kan’s warnings that risk of radiation exposure had worsened. “What makes today’s natural disaster so extraordinary is that 4 of the 5 costliest earthquakes and tsunamis in the past 30 years have occurred within the past 13 months”  Read more

Tsunami Only Start of Japan's New Problems
Credit: enciclopediapt

14 March 2011. Japan was probably more ready than any other society for a cascading series of inter-locking natural & man-made disasters. Yet confronted by nature's force, there was little even a well-prepared country could do. Sadly, the terrible events of last few days & those perhaps to come are likely to WORSEN chronic economic problems Japan has faced since 1989, not least due to a perverse RISE in value of the yen. In that paradox lie important lessons for the other stagnating advanced economies, the US & EU. But whether they're ready to learn those lessons remains gravely in doubt.  Read more

iWoz: Culture Shiok in Singapore. Credit: tsevis

10 March 2011. Singapore is well known around the world for its efficiency, success and cleanliness. It’s a place of ongoing progress and growth in the global economic arena and a hub for multinational organizations expanding their reach to in South East Asia. But what about innovation and creativity?  Read more

5 March 2011. It was not that long ago that Turkey was the Sick Man of Europe, the ragtag remains of the Ottoman Empire struggling with inflation and military corruption, while France was a dynamic economy and one of the pillars of the global diplomatic sphere. In a way, those roles have been reversed. France’s President, Nicolas Sarkozy, went abroad not on a diplomatic mission but a domestic one. His speech in Turkey was designed to appeal to right-wing Islamophobic French voters, causing considerable offence to his hosts. The Turks, meanwhile, have got their economic house in order, and are becoming a pivotal power in the Middle East and Central Asia, leading some to call for the ‘BRIC’ countries to be renamed the ‘BRICT’.

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24 February 2011. During the 5 terms John Roberts has been Chief Justice, the percentage of both business cases on Supreme Court docket and pro-corporate decisions has grown visibly. Roberts court ruled for business 61 percent of the time, compared with 46 percent in last 5 years of Rehnquist court. A key factor in pro-corporate surge has been US Chamber of Commerce. Chamber now files briefs in most major business cases. In the last term its side won 13 of 16 cases. Six of those were decided with a majority vote of five justices, of which five favored the Chamber. One was infamous Citizens United, in which Chamber successfully urged court to guarantee what it called “free corporate speech” by lifting restrictions on campaign spending. Chamber spent tens of millions in 2010 midterm elections, mostly to help Republican candidates. As head of Chamber's litigation unit puts it, “there has been a return on investment, not to sound too crass”  Read more

22 February 2011. India's telecom scandal reveals a small group of powerful conglomerates fighting for resources and projects in mining, land, infrastructure, cellphone spectrum. Scandal shows incestuous world of journalists, corporate lobbyists and politicians, reinforcing the view of Indian economy dominated by small, tightly connected elite. Growth depends increasingly on selling whole swaths of state-directed economy to private sector, whose capital and expertise are critical as India embarks on massive infrastructure upgrade. “Even as government cedes control over large parts of economy, its graft-ridden approach to privatization will leave long-lasting scars holding India back from reaching its potential. Open corruption and rising stark disparities in wealth are volatile mix that will affect social stability if benefits of growth don’t filter down.” Asia Development Bank warns: “India could evolve toward oligarchic capitalism, in which market and political power of major corporations will slow long-term growth”
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17 February 2011. Economy Watch has long been concerned with the destructive power of derivatives -- and their STILL yet-to-be-fully-felt impact on the world political economy -- ever since their explosion onto the scene during the global financial meltdown of Black September 2008. This lengthy but fast-paced story will give even those familiar with the derivatives nightmare a brutally clear idea of why we consider them so dangerous -- and also why the REALLY Too-Big-To-Fail bankers just won't let them go. If you get scared and / or disgusted reading this, don't worry -- such reactions are PERFECTLY normal.

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15 February 2011. At EconomyWatch, we consider micro-credit a key issue in one of our main concerns: the impact of world political economy on ordinary people's lives. We have looked at the situation from the perspective of those promoting micro-credit for profit, the specific problems for-profit micro-finance has caused in India, and the growing resentment towards the "industry" world-wide. Here, Bangladeshi Muhammad Yunus, the "founder" of micro-credit, via his Grameen Bank, talks about the problems of micro-credit today, and the most effective means to solve them -- first and foremost, effective / intelligent / EMPATHETIC government regulation.  Read more

10 February 2011. Foreign direct investment reflects a country’s economic muscle. The UK owned 45 percent of world FDI in 1914; US share peaked at 50 percent in 1967. Today China, including Hong Kong and Macau, has just 6 percent. Inevitably it will rise. Listed Chinese firms, largely state-controlled, already among world’s biggest, account for 10 percent of global stock market value. Huge cash reserves will spur deals too. Today it is recycled into rich countries via sovereign-wealth funds and central bank, which act as bond-buying portfolio investors. But China WILL diversify, a shift accelerated by its political aims. Yet deals are often tricky, due to cultural differences and the role of the Chinese state. There have been great successes - and disasters  Read more

8 February 2011. Central Asia is an eternal hot spot of world history. 19th century Britain and Russia engaged there in the "Great Game," a bitter struggle over natural resources and strategic bases. Today's board involves 5 ex-Soviet Republics: Kyrgyzstan; Kazakhstan; Tajikistan; Uzbekistan; and Turkmenistan, all with major conflicts internally and between each other. Former players Russia and UK are joined by key new ones: US, Iran and China. The region is critical to future energy supply of Europe, China & India. While the current Game is far from over, at this point,  China looks like the best bet. It isn't suspected of religious agitation, like Shiite Iran, or playing military and political power games, like US and Russia. It seems to want only to engage in trade with, and secure the resources of, this ever-vital region.  Read more