One source of angst is the sorry state of American capitalism (see article). The “Washington consensus” told the world that open markets and deregulation would solve its problems. Yet American house prices are falling faster than during the Depression, petrol is more expensive than in the 1970s, banks are collapsing, the euro is kicking sand [...]

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Some autocratic governments are challenging U.S. policies and silencing domestic dissent. But their increased spending raises the risk of inflation, which could erode popular support.
But some of the most obvious effects are in countries whose leaders are most hostile to the United States: Venezuela’s populist President Hugo Chavez, Iran’s stringent Islamic rulers and Russia’s growing [...]

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Is the world’s most dynamic economy headed for the rocks? Chinese stocks have taken a pounding over the last six days on speculation that the central bank will raise interest rates to quell worsening inflation. But it gets worse, Newsweek reports.
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Asia in general, and China in particular: The pressure in Asia is starting to show, beginning with South Korea. But anecdotal reports out of China also show the ratcheting of pressure. We have reports of plant closures due partly to informal taxes for earthquake relief imposed by the government and partly to the business environment. [...]

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An examination of the economic relations between the two countries reveals that, beyond their propaganda value, these relations are of small benefit to Syria and of negligible benefit to Iran. The alliance is driven first and foremost by political and strategic interests, not by economic considerations. While Syria has benefited from Iran’s economic support, this [...]

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By George Friedman
Oil prices have risen dramatically over the past year. When they passed $100 a barrel, they hit new heights, expressed in dollars adjusted for inflation. As they passed $120 a barrel, they clearly began to have global impact. Recently, we have seen startling rises in the price of food, particularly grains. Apart from [...]

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Word that the Chinese cabinet has moved to freeze prices on gas and oil and crack down on profiteering, hoarding and other activities fuelling inflation bodes ill. Prime Minister Wen Jiabao put his name on the announcement which comes on the eve of Chinese New Year’s in early February when millions will leave their jobs [...]

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