Category: Economics

Investment Bank Economists See Improving U.S. Growth in 2015


Several economists at investment banks have predicted strong and improving economic growth in 2015, leading to growing confidence in higher interest rates for U.S. bonds.

Goldman Sachs has published its forecasts for 2015, which predict global GDP growth of 3.4%, above 3% growth in 2014 as both developed and emerging markets see growth acceleration from the prior year. Developed markets expect to grow 2.2% and emerging markets 4.9%, both higher than the 1.9% and 4.6% rates of 2014.

Conspiracy Theories and the Price of Oil


The oil price drop that has dominated the headlines in recent weeks has been framed almost exclusively in terms of oil market economics, with most media outlets blaming Saudi Arabia, through its OPEC Trojan horse, for driving down the price, thus causing serious damage to the world’s major oil exporters – most notably Russia. 

While the market explanation is partially true, it is simplistic, and fails to address key geopolitical pressure points in the Middle East. 

Federal Reserve Cheers Job Market as Housing Forecasts See Rosy 2015


The Federal Reserve is optimistic about economic conditions, and many in the central bank are predicting more Americans will find full-time work in 2015.

Japan’s Tattered Political Opposition to the LDP a Blow to Democracy


Prime Minister Abe’s decision to call a snap election paid off big time for him and for the Liberal Democratic Party (LDP). The LDP and its coalition partner the Komeito emerged from the election with its two-thirds majority in the lower house intact. In addition, Prime Minister Abe came out of it certain of reelection as LDP president next September and having every reason to believe that he will remain at the helm of the Japanese government until 2018.

The Promise of Something Better if Abenomics Works


The 2014 Japanese election result was no more or less than a victory for the political status quo. All it did was reaffirm the Liberal Democratic Party’s (LDP) predominance and the opposition parties’ collective weakness.

U.S. GDP Grows 5% on Consumer Spending


U.S. GDP grew at a 5% annual rate in the third quarter as consumers and businesses spent more thanks to lower oil costs and growing confidence in the economy’s future.

Understanding the Dismal Life in North Korea


For time immemorial, North Korea has been one of the world’s most tight-lipped nations in the world. It is one of the last few countries still under communist rule. The Democratic People’s Republic of Korea (DPRK) formally established in 1948 amid the chaos that had ensued after the end of the Second World War. Its history is dominated by its supreme leader and first president, Kim Il-sung, also known for having shaped its global political affairs for nearly five decades.

China’s Coast Guard – Smooth Sailing or Rough Seas for its Neighbors?


The establishment of the China Coast Guard (CCG) in 2013 created a huge stir. Neighbouring countries may see the CCG as a major instrument for China to reconfigure maritime power structure in the region.

What Happened to Japan’s Political Opposition?


Last Sunday’s general election in Japan has returned Prime Minister Shinzo Abe’s Liberal Democratic Party (LDP) and its ally, the New Komeito, with a two-thirds majority in the lower house of the Diet. That the LDP would get a majority of seats was expected, as various polls had shown since Abe unexpectedly announced snap elections in November. Now the LDP holds 291 seats and New Komeito 35 in the 475-seat lower house.

Russia, Juncker’s Investment Scheme and Greece


Russia’s woes have not been sufficient to spur a change in behavior from Putin.  His press conference today was strident, blaming the US and EU for undermining Russia.  He blames foreign influences driving down the rouble.  The EU will impose new ban on doing business in Crimea.  It will also target Russian companies’ oil and gas exploration in the Black Sea.  The US Congress has authorized Obama to extend sanctions against Russia as well.