Category: Economy
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The New American Normal – NYTimes
Op-Ed Columnist – The New American Normal – A great column in NY Times about the uncertainty facing the US economy today. Clearly, there is no new direction emerging from the current economic trends. No one is sure where the unemployment is heading or whether there is a need for further stimulus or not. The…
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The Dog Days – Forbes.com
A good article in Forbes about how US, UK and Germany are approaching economic recovery. Germany and UK have put forth fiscal sustainability (read spending cuts) at the top. Other countries like Spain and Greece had to do it by force. US, on the contrary, opted for massive spending with no plan for spending cuts.…
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Turbocharged Germany
Turbocharged Germany is a relief to the faltering EU economies. At a time when the Europe debt crisis is threatening the economic recovery, Germany posted their strongest growth since unification – backed by strong demand from emerging economies for heavy machinery and luxury cars. Although the optimism is not shared by all countries, especially Greece,…
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India is not alone in higher fiscal deficits
An interesting graphic from NYTimes shows the risind debt levels in Euro zone. India currently has a debt-to-GDP ratio 80%. Luckily, close to 85% of the debt is domestic and hence has less exposure to currency risk or recall risk. It turns out that Euro zone is doing equally bad. The debt-to-GDP ratio, is more…
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Playing hardball with China
Krugman, in his Op-Ed column in NYTimes, wanted the US government to impose 25% duties on Chinese imports. That opinion may sound as protectionism, but something drastic will happen soon with international trade. China is known to keep its Renminbi artificially low and make the exports competitive. Now the matter has come to a head.…