$1.4 trillion out of thin air The U.S. government has created out of thin air ("manipulated" into existence if you prefer) $1.4 trillion since September 2008 (around the time of the financial crisis) to March 2010. (Source: U.S. Fed.) In December 2008, James Grant wrote an article in the WSJ criticizing the Fed "printing like mad ... and is the wrong approach with … [Read more...] about The U.S. and the Dollar in numbers; how crazy, you decide
economy
The U.S. China Dispute over Renminbi: Who is Right?
Recently, a rising chorus can be heard in the U.S. accusing China of "manipulating" the value of the RMB. In a recent op-ed, Krugman characterized Chinese policy as an "anti-stimulus" to the rest of the world. In an editorial op-ed, the NY Times staff accused China of playing a "beggar-thy-neighbor competitive devaluation" that is "threatening economies around the world ... … [Read more...] about The U.S. China Dispute over Renminbi: Who is Right?
Geely buys Volvo from Ford, and a thought on RMB vs. USD
Geely's deal to acquire Volvo from Ford has been made official today. "Ford sells Volvo to China's Geely auto group for $1.8 billion" and according to L.A. Times, Ford had originally paid $6.5 billion back in 1999. This acquisition helps Geely tap the domestic Chinese market better in the luxury segment where BMW, Lexus, and other foreign brands have dominated in the past. … [Read more...] about Geely buys Volvo from Ford, and a thought on RMB vs. USD
Professor Jiang Ruiping:”Revaluation of Japanese Yen, a historical lesson to draw: analysis”
Under U.S. pressure, the Japanese government revalued the Japanese Yen 200% from end of 1985 through early 1988 to address the trade deficit U.S. had with Japan. Did it make any difference for the U.S.? What happened to the Japanese economy as a result of that revaluation? Professor Jiang Ruiping, Chairman of the Department of International Economics, at the Beijing-based … [Read more...] about Professor Jiang Ruiping:”Revaluation of Japanese Yen, a historical lesson to draw: analysis”
Opinion: Keeping a cool view of the U.S.-China Cooperatition
The term, "cooperatition" was coined by economists to describe corporations both cooperate and compete at the same time. For example, Apple and Google cooperate on getting Gmail and Google Maps integrated well into the iPhone, resulting in a better finish product and while helping both companies in the market place. However, Google also makes the Android phone operating … [Read more...] about Opinion: Keeping a cool view of the U.S.-China Cooperatition