Tag Archives | the Fed

September 2008: How History Is Repeating Itself

By John Richardson

WE know that weak growth in China, Europe and the US will have a major negative impact on the global economy in 2015.

But does this really mean a new global financial crisis? Won’t the world’s economy …

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Another Failed US “Wealth Effect”

By John Richardson

HERE are some alarming facts about the US economy:

The wealth of the average American tops $301,000 per adult, which left  the US in fourth place in the latest Credit Suisse Global Wealth report. But median wealth…

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Fed Policies Increase Emerging Market Poverty

By John Richardson

THERE are 2.8bn people – 40% of the world’s population – who live on $2-10 a day.

These people are “the fragile middle”, according to the Financial Times, as they are constantly in danger of falling back …

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China Pulls Back From Funding Other Emerging Markets

By John Richardson

IT important to be relentlessly realistic about the risks no confronting emerging markets in general, now that China is focusing much more on its own internal problems and needs.

One of these risks – reduced funding of …

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What Yuan Depreciation Means

By John Richardson

THE truth is that nobody has ever entirely understood the nature of China’s chemicals and polymers demand.

During the good times, at the height of China’s credit Ponzi scheme, if you were a sales manager, why ask …

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Central Banks Chase The Inflation Illusion

By John Richardson

IT was Milton Friedman who famously said “inflation is always and everywhere a monetary problem”.

This widely accepted economic wisdom is based on the following premise: Excessive expansion of the money supply is inherently inflationary.

And so …

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China: Do The Maths On 2014 GDP Growth

By John Richardson

DO the maths and you should be able to assess what could happen to China’s GDP growth in 2014:

The Chinese Academy of Social Sciences wrote last week in the China Daily: If the PBOC loosens monetary…

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The US Patient Needs An Operation

By John Richardson

THE Fed’s quantitative easing (QE) programme hasn’t worked because, to use an analogy, it has been equivalent to pumping drugs into a patient that needs major surgery in order to fully recover.

A steady flow of drugs …

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China And The Fed: Still Back To Front

By John Richardson

THEY are still getting it the wrong way round.  Both the Financial Times and The Economist, have said over the last few days that weaker prospects for emerging markets are mainly the result of Fed tapering.

We …

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Global Equities, China, The Fed And Some Perspective

By John Richardson

AS USUAL, everyone will take what they want and need to take, in order to protect their own interests, out of Monday – the worst day for the Dow Jones Industrial Average in seven months. This was …

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