Economics Archives - Page 102 of 183

On a Tear, On Tor, Until You’re Caught

On October 2 2013, after months of extensive joint federal investigations, the FBI arrested Ross William Ulbricht (aka “Dread Pirate Roberts”) for his role in leading a major online criminal enterprise.

In May, Ulbricht – now 31 years old – was sentenced to life in prison without parole after being convicted on multiple felony charges in connection with his operation of the Silk Road website, which had become an anonymous black market for drugs and other illegal items.

The OECD Offers Up Some Gloom about Unemployment

“Time is running out to help workers move up the jobs ladder” – at least according to the OECD’s latest employment outlook.

The somewhat gloomy report points to unemployment rates exceeding 11% in most European countries. Around 42 million people are without work across the OECD. That is down from 45 million in 2014 but still 10 million more than just before the global financial crisis.

Is China Not Growing at its Potential Due to Monetary Policy?

There is a debate going on about the appropriateness of monetary easing in China. Monetary policy was excessively tight in 2014 but started loosening more meaningfully from late 2014, in an attempt to cushion slowing growth, facilitate rebalancing, support reform, and mitigate financial risk. This shift in policy stance was warranted, desirable and it will serve the economy well in the short and long term.

Takeaways from the Seventh BRICS Summit

As the focus of the West was fixated in Greece and Iran, the 7^th BRICS Summit began a massive shift from a dialogue to an economic partnership – one whose full impact will be witnessed in the coming years.

The seventh BRICS Summit took place in Ufa, the capital of Russia’s Bashkortostan Republic. In the West, most observers were preoccupied with the “make-or-break” days of Greece, which accounts for less than 0.4 percent of the global economy, rather than the BRICS Summit, which represents about 20 percent of the world economy.

U.S. Swimming in Debt According to OECD

While the downturn of the Chinese and Greek economies has taken center stage, some international economic watchdog groups fear the United States’ economy may also be in trouble. Though the U.S. economy has shown signs of growth after a slight setback in the early part of 2015, the Organization for Economic Cooperation and Development (OECD) has released its latest figures for national indebtedness, and the numbers do not appear promising for the world’s largest economy.

On Investors’ Plates: Greece Course Reversal, Chinese Economic Data and a Possible Iran Nuke Deal

The Greek government has capitulated on nearly all of European demands, seeming averting an unceremonious exit from the monetary union. The Greek parliament must now pass six reform bills that the recent referendum had appeared to reject.

Asian Countries Dependence on China for Trade has Pluses and Minuses

Economic integration has steadily increased in East Asia. But the region still suffers from what South Korean President Park Geun-hye calls ‘Asia’s paradox’, the disconnect between economic interdependence and backward political and security cooperation. Any further economic integration will likely reflect political power shifts in the region.

Shinzo Abe and Park Geun-hye Celebrate the 1965 Japan-South Korea Treaty

The synchronised but separate 50th anniversary celebrations of the Japan–South Korea Treaty on Basic Relations illustrate the relationship between the two countries: inexorably close and painfully distant. The 22 June 2015 celebrations were quite unusual. There was no summit meeting, but two parallel ceremonies with President Park Geun-hye attending in Seoul and Prime Minister Shinzo Abe in Tokyo.

Developments Late Last Week in Europe and China May Pressure the Dollar

Developments in both Europe and China will likely encourage risk taking in the days ahead. Our reading of the dollar’s technical condition warns of near-term vulnerability. The yen is likely to underperform as the crosses adjust.

Neither the US economic data nor Yellen’s testimony before Congress will likely alter expectations for one hike before the end of the year. It is possible that by the end of next week, Greece is no longer a key driver of the global capital markets.

Overtime Pay Rules Overhaul Overdue

Late last month, President Barack Obama took a step around the longstanding congressional gridlock over labor and employment policies by announcing a plan to boost the salary threshold governing overtime from US$23,600 to $50,440 and to index it to inflation.

Essentially, that means white-collar workers in that salary range, currently exempt from receiving overtime pay, would get 1.5 times their hourly wages for anything over 40 hours.