Some financial accidents, e.g., trust products defaulting, may occur in the coming months. Their impact on the real economy will be limited. As the land bubble deflates, the resulting reductions in production costs and consumer prices should support the real economy by boosting exports and consumption.
When a few financial incidents occur simultaneously, the [...]
The US economy has been expanding wildly for two centuries. Are we witnessing the end of growth? Economist Robert Gordon lays out 4 reasons US growth may be slowing, detailing factors like epidemic debt and growing inequality, which could move the US into a period of stasis we can’t innovate our way [...]
If our leaders could have recognized the signs ahead of time, do you think that they could have prevented the financial crisis of 2008? That is a very timely question, because so many of the warning signs that we saw just before and during the last financial crisis are popping up again. Many of the [...]
Yet the signs are now unmistakable: China is in big trouble. We’re not talking about some minor setback along the way, but something more fundamental. The country’s whole way of doing business, the economic system that has driven three decades of incredible growth, has reached its limits. You could say that the Chinese model is [...]
The wheels have come off the endless growth via expanding debt machine.
Progressives and conservatives have long shared a single agenda: growth. Growth increases prosperity and wealth, and this makes for contented voters who will keep voting for incumbents.
This agenda makes three implicit assumptions:
1. Inflation is OK as long as the economy [...]
Coming to terms with the Asian century means coming to terms with the biggest change in the global distribution of wealth and power since the Industrial Revolution. This change is driving nothing less than a revolution in the Asian regional order.
For the West, it means having much less power over how that order is [...]
China is pushing ahead with a sweeping plan to move 250 million rural residents into newly constructed towns and cities over the next dozen years — a transformative event that could set off a new wave of growth or saddle the country with problems for generations to come.
The government, often by fiat, is replacing [...]
An expert on China and its government warns that the communist nation has been aggressively claiming territory in the South China Sea. The United States, meanwhile, has responded weakly.
Gordon Chang, an attorney and author, says China has been claiming disputed islands in the area for over a year, which would shut the waters to [...]
Central-planning manipulation “works” by closing all the safety valves of market feedback, creating a dangerous but politically appealing illusion of stability and “growth.”
If we see the economy as a system, we understand why removing or suppressing feedback inevitably leads to financial crashes. The essential feature of stable, robust systems (for example, healthy ecosystems) is their [...]
As the ongoing territorial row between Japan and China continues with no end in sight, the nations’ joint economy is often said to be the greatest victim. With many Japanese companies, most notably in the auto industry, pulling their manufacturing operations out of China and moving to other locations in Asia, [...]