Russia is not only engaged in a military buildup. Russia wants to use its economic muscles. You might ask what economic muscles Russia could have? It is bankrupt, backward, hobbled, demoralized and generally dismissed as an effective economic actor. We must remember, however, that positions in the world economy can change, that tables can be [...]

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America should not live in fear. As Peter Morici, economics professor at the University of Maryland”s Robert H. Smith School of Business, has argued, “If the Peoples Bank of China were to sell enough Treasury securities to disrupt financial markets and cast the U.S. economy into recession, where would China’s factories sell all their stuff? [...]

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The rise of Russia, China and the Islamist states, along with their control of energy resources and the growth of Sovereign Wealth Funds, leaves future dominance by a liberal democracy such as America, in grave doubt. FSM Contributing Editor David Jonsson explains why.
Liberal democracy, led by the United States may have emerged triumphant from [...]

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Ambrose Evans-Prichard’s recent piece, China threatens ‘nuclear option’ of dollar sales, sounded a further alarm. The foolishness of trading with Communist China now comes into sharp focus. The same can be said for free trade with all those countries that are not truly free. According [...]

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Trade: China’s threatening to use the “nuclear option” against the U.S. Another bomb threat? Nope. China says it may dump some of its $900-billion-plus in U.S. investments on the market, creating financial chaos.
Should we be worried? Not really. It’s more hot air and anger over talk of U.S. trade protectionism than it is an actual [...]

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In his famous collection of essays Capitalism and Freedom, Milton Friedman made an argument that has been paraphrased endlessly by those who dismiss the notion that trade deficits are a problem. Postulating a greatly undervalued yen (1,000 to the dollar), the Nobel economist stated that at such an, “exchange rate the Japanese could sell [...]

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And so, the dollar is on top. Every other currency is below. The dollar’s dominant position is obviously unfair, if one assumes that all currencies should be “created equal” and endowed with certain “rights.” Of course, such assumptions are ridiculous. Currencies are not created equal. Countries are [...]

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Economics prides itself on being the most scientific of the social sciences. Yet the X and Y axes can’t always capture globalization’s unpredictable turns. In this week’s List, FP looks at five ways in which the world economy is pushing economists to think outside the box.
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My Comments:
Definitions:
Macroeconomics - Things that economists are generally wrong [...]

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For many months, officials from the U.S. Treasury Department have been quietly traversing the globe in an attempt to convince managers of foreign banks to sever ties with Iran. More than 40 major financial institutions have agreed, dealing a serious blow to Iran’s ability to finance trade deals and oil projects.
Now, the two largest European [...]

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WASHINGTON: A senior U.S. intelligence analyst said parts of China’s financial system are unhealthy but assessed only a low risk of severe financial crisis over the next five years.
Thomas Fingar, the top intelligence analyst in the Office of the National Intelligence Director, told lawmakers that China’s state-owned banks have large balances of non-preforming loans.
But, he [...]

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