U.S. Bull Market Ends as Fed Money Pump Runs Dry
Stocks are having their worst month in three years as the Federal Reserve ends its quantitative easing program, which expanded the supply of money and helped stocks rise 30% in 2013.
Category: News Desk
Wealth Inequality Accelerates Worldwide on Inheritance, Tax Avoidance
Wealth inequality is growing worldwide, according to a new report by Credit Suisse. A greater share of wealth is being held by a smaller number of ultra-rich families worldwide as larger inheritances, family trusts, and similar arrangements to avoid taxes help the ultra-wealthy gain a greater portion of total capital in economies throughout Europe, Asia, and in the United States.
China is Coming Out on Top in the Global Economy
Economic Overview
China is the second largest Asian country and for some time now, boasts the world’s second largest economy, which has grown rapidly since the government reforms in 1978. China is one of the biggest exporters and importers of manufactured goods, and is a major player in global financial investment. Agriculture continues to be a major force on the country’s economy, with China leading the world in the production of rice, soybeans, tea, and cotton.
Spain Raises its Forecast for Economic Growth
Recently, Spain has surprised many economists by raising its forecast towards a more positive economic growth for this year and the following year. This provides a sharp contrast to other countries in the eurozone that are currently struggling quite significantly. For example, France and Italy have lowered their economic outlook for the coming year and Spain was supposedly just as socialist and backwards.
Just because you are doing better than France and Italy does not mean there is nothing to cheer about.
Italy on Sale, Finland Threatened as ECB fights Germany on Disinflation Fix
Finland has lost its most recent credit rating due to eurozone instability and more Italian assets are being sold to Chinese investors as instability accelerates in the European Union and the ECB fails to convince Germany of the need for quantitative easing.
Europe Eyes Chinese Yuan as Future Reserve Currency
In a surprising move, the European Central Bank is considering buying Chinese yuan as a reserve currency.
According to a report by Bloomberg, anonymous sources in the ECB have said that the Governing Council of the bank will discuss the possibility during its meeting on October 15th. The decision will come amidst decelerating inflation in both Europe and Asia that has increased the risk of deflation in developed nations. A stronger dollar and falling commodity prices have placed the eurozone in a tricky situation in which their options for reserves are shrinking.
High Taxes in Italy Stall Economic Rebound
For some time now, the tax system in Italy has been growing increasingly inefficient and costly. Since the economic crisis in the country, the burden of this poor system has fallen on business owners and workers, according to a new study. According to a report offered by ‘World Bank Doing Business’, the economic crisis response in Italy has severely impacted workers, instead of focusing on public spending cuts. The study underlined that, in relation to taxes, Italy has 138th easiest taxes to pay, in comparison to France at number 52, and the UK at 14th.
North Dakota is at the Top of the US Economy
Recent data has shown that North Dakota is leading the United States when it comes to personal income growth. No other state even comes close to the results that North Dakota is raking in, considering the economy, growth, and even the personal satisfaction of the locals. Between 2008 and 2012, the per-capital income of people in North Dakota jumped by 31%, according to the Bureau of Economic Analysis in the US.
This Week in Review: Job Gains Counter IMF, Fed Pessimism
Equity markets faced declines globally as the IMF downgraded growth expectations and the Federal Reserve said a fragile U.S. economy required more accommodative monetary policies in the short term.
Australia’s Economy to Stay Weak
Statistics indicate that Australia’s economy is likely to remain significantly weaker for the rest of this year, and a chunk of the next. Commodity prices continue to slide back and forth and have offset some of the more positive news generated by the housing and consumer market. The institute-leading index for Westpac-Melbourne, generated to indicate the pace of economic growth over the coming 9 months, has contracted to 0.9%. The number was changed in August, from a previous reading of -0.75%.
