Posts Tagged China
Biggest Emerging Market to Crash?
Seems to a growing consensus that China will experience a severe downturn sometime within the next year or so. The professional prognosticators predict that a crash in China’s property market could lead to a recession…or what would be a recession for China. The central government in Beijing understands that a downturn could have tremendous political [...]
BRICs in Bloom
The bottom line: U.S. still economic leader though increasing debt and entitlements could limit growth, U.S. dollar still reserve currency but interest rates will have to rise, Russia still overly dependent on oil and other commodities and vulnerable to future economic shocks, China’s influence growing and economy will continue upward, Brazil outlook very positive, and [...]
Market Intervention Follies…continued
Here at BOZONGO…we are not gloating over the news that oil prices dropped after OPEC announced production cuts. As this article from www. timesonline.co.uk proclaims, the market intervention/manipulation by OPEC could not keep prices from falling, nor will they in the future. OPEC member and other producers will maintain oil flows in an attempt to [...]
OPEC and the Folly of Market Intervention
The folly of market intervention by governments and monopolies can best be illustrated by that of OPEC. Although recently proposed cuts in production by OPEC members and non-OPEC producers like Russia will certainly raise the price of oil…at least temporarily…they have side effects that are contrary to the interests of those same producers.
Emerging Protectionism in Emerging Markets?
One of the primary factors that changed a recession into the Depression of the 1930s, was protectionist legislation enacted in the United States. This set off retaliatory moves by other nations that led to catastrophic reductions in global trade. Ultimately, protectionism combined with increased taxation, pushed the World into Depression as well prolonged it until [...]