President Obama’s fundraising campaign is set to raise US$1 billion and that does not even include the massive ads funded by the Super PACS. Meanwhile, in Washington, the billions spend on lobbying rises ever year. The result is a conservative political system stifled by the influence of big business elites.
Some of the world’s largest economies, particularly the European Union and Japan, have resorted to less tansparent policy instruments, also referred to as murky or stealth protectionism, in a bid to protect their economies against foreign competition.
Since the onset of the global financial crisis, a study has found that governments have been “selectively subsidising” local firms – a clear violation of, albeit weak, World Trade Organisation rules.
As part of China’s adjustment process, it is a virtual certainty that domestic growth will slow significantly for many years. However, many analysts argue that by boosting China’s export competitiveness abroad, a weaker RMB will provide some relief from the sharp expected slowdown associated with rebalancing. But such claims are invalid: China’s export competitiveness will deteriorate no matter what Beijing does to the currency. Why?
Japanese exports have tumbled at their sharpest pace since the aftermath of last year’s earthquake and tsunami. More worryingly, exports to China have fallen to fresh lows amid a worsening territorial spat.
Data released today by Japan’s Finance Ministry showed that shipments slid by 10.3 percent in September from a year earlier, leaving a deficit of 558.6 billion yen ($7 billion), its biggest since May last year when the country was rebuilding supply chains wrecked in the March earthquake and tsunami.
As expected, there were no breakthroughs on the debt crisis at the EU Summit last week, except for the last minute deal to set up a banking union for the region by the 1st of January. This week, the Fed meets for a policy meeting and a GDP reading for the third quarter is expected to show improvements from the previous three months. Could a US recovery be on the cards?
Monday, October 22
Once a standard bearer of economic liberty, the United States is rapidly losing its status as one of the freest economies in the world. This year, the United States dropped to 18th position on the charts, a far cry from its second-place ranking in 2000. How do the other countries measure up?
Energy and taxes have come up as important topics in this year’s race to the White House. From energy independence to tax breaks for the oil industry, affordable gas prices and environmental protection – these are the issues that can and will affect the vote. But with Big Oil working behind the scenes and funding U.S. politicians, the industry’s influence on politics cannot be underestimated.
China is slowing down but that may not necessarily be a bad thing. China’s economic transformation could probably mean better quality growth, according to Goldman Sachs economist Jim O’Neill.
His comments came as China released yet another set of disappointing trade data in August, raising concerns of a “hard landing” in the world’s second largest economy.
The Chinese economy is no longer blistering hot but it has been sending out mixed signals about its state of health. From deteriorating manufacturing output and falling prices to unexpected rebounds the following month, how can we make sense of Chinese contradicting economic reports?
Sales in the luxury market is expected to slow to around 5 percent this year as affluent Chinese shoppers cut back on their spending and concerns over the global financial crisis take its toll on shoppers elsewhere.
Chinese big spenders – the industry’s main engine of growth – are showing signs of slowing down, according to a report published today by business consultants Bain & Co and Italian luxury goods trade body Fondazione Altagamma,
