Category: News Desk

Russia’s Foreign Assets Fall to Record Low


Russia’s reserves of foreign assets fell by $15.7 billion in one week as the ruble saw signs of strength.

The Russian government continues to sell foreign reserves in an attempt to keep the ruble from falling, causing the nation’s foreign reserves to fall to $399 billion by December 19, and 22% below the peak holdings for the country. Russian authorities raised interest rates but so far resisted instituting capital controls that would limit the amount of rubles sold on open markets.

How Communism has Crippled Cuba


The failure of communism in Cuba has been a long, tragic journey. One can even say that it began with Karl Marx. His doctrine is full of illogical ideals, loopholes, and other unsolved problems. He based his idea of economics on the labor theory of value, a grave oversimplification of the market.

China-Russia Alliance Emerges on Ruble Swap


With a plunging currency and liquidity fears, Russia has turned to China for help in staving off a protracted economic decline, and Chinese lawmakers are receptive to their needs.

Chinese officials announced Tuesday that they would enlarge a currency swap program with Russia, which is already $24 billion. The news helped the ruble rise 4.9%, although it has since fallen 0.53% to 54.70. 

The U.S. dollar strengthened relative to emerging market currencies, and is now up approximately 2% over the past month against most foreign currencies.

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.

Accelerated Economic Growth in U.S. on Cheap Oil


Economic activity is growing at an accelerated rate as oil prices reach a bottom.

The Chicago Federal Reserve announced early Monday morning that economic growth accelerated in November. The Fed’s three-month moving average from economic activity rose to 0.48 in November, up nine basis points from October. 

Moderate Growth in Third Quarter for Mexico’s Economy


Recent statistics suggest that the economic recovery in Mexico continued at a moderate pace throughout the third quarter. Industry, agriculture and service, all contributed. In the July to September period, the gross domestic product or GDP increased about 2.2%.

This is a significant boost in comparison with the third quarter of 2013, and 0.5% higher than second quarter numbers in seasonally adjusted terms, according to the National Institute for Statistics.

Dollar’s Strength could be Global Economy’s Weakness, Says BIS Report


Global financial advisors have warned that the growing strength of the US dollar poses a threat to the stability of emerging economies. The Bank for International Settlements (BIS), often referred to as the central bankers’ bank, has warned that fragility in financial markets could have an acute impact on the global economy, especially in emerging economies like India and China.

The Week in Review: Falling Rouble, Dovish Fed


U.S. stocks rallied and investor confidence returned late this week after a rise in volatility from falling oil prices and geopolitical risks stemming from Russia’s economic collapse.

Several economic indicators showed an improving economic environment in the U.S., even as oil continued to fall and foreign investors exited emerging markets. Most attention focused on Russia, where economic sanctions from the European Union and falling revenues from cheaper oil pressures the energy-dependent economy. 

Singapore Forecasts Moderate Growth


Recently, experts have suggested that Singapore’s economy may be back on track for moderate growth this year, in part because of the economic growth in the United States.  Demand from the US could help Singapore exports.