Is the trillion dollar deficit an issue?

It was going to happen sooner or later. Maybe the meltdown in the world of finance hastened the trillion dollar deficit, though US governments have been trying hard to breach that milestone. Three months before the end of this financial year it’s happened. Maybe it’s not such a frightening number in the context of the …
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12 year lows are rare

I don’t think that the economic contraction has ended yet, but there are signs of a bottoming out of some markets. The US market has been cleaning itself out for six months, though moral hazard remains as do some big skeletons (like the Madoff, Stanford …). The Fed Chairman is concerned about stagflation too. But …
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China’s NPC opens with some interesting indicators

China’s National People’s Congress opened today with a speech by Premier Wen Jiabao. While these presentations are usually quite unrevealing and perhaps a bit propagandist, some interesting things were said.  There will be a continued push to stimulate the economy including a € 0.5 trillion investment package.  But part of the bdget includes an increase …
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Destruction and massacre in The Middle East- the embarrassment of the rich world

A cease fire in Gaza has allowed the full scale of death and devastation to be be seen. Hundreds of people killed and wounded, mostly civilians in a few short weeks. Buildings and utilities destroyed. For what? For pride. There is no doubt that the conflict in Palestine is complex. There is no easy solution. …
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One country – two systems, again?

It is encouraging to see the relationship between China and Taiwan improving.  Practical aspects like increased flights and trade will benefit both countries.  Maybe China is willing to engage because they envision another “one country – two systems” arrangement evolving which would allow both China and Taiwan to save face while continuing on their current …
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Africa insulated from financial crisis.

As contended in our Financial Crisis 2008 notes, it is likely that Africa will not suffer the same fate as Western economies in this implosion of the financial markets. In this report the BBC asks Can Africa gain in the credit crisis? I see a number of issues in Africa’s favour: It is coming from …
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Living in Hebron: A work of fiction. But only just.

A new film shows the reality of life for people in the middle east.  A simple story of students breaking curfew to go to a school reunion it brings to life the tension and impossibility of humanity in the middle east.  It will not be released till April, but this review gives a sense of …
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India bans smoking in public …

India has banned somking in public.  This is a bold move.  On the upside it will reduce deaths and illness from both passive and active smoking, will encourage healthier lifestyle and will also support a transition to a more enlightened social dynamic (as the “cowboy” image is depreciated).  But it will not be easy to …
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Get the right perspective.

So, the media leads with the headline that China’s economy slowed during the olympics because businesses were closed to help clear the atmosphere. But its important to get the detail.  The rate of growth remains high.  Far beyond what western economies are experiencing. industrial output growth of 12.8% in August retail sales up at an …
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