China: bracing itself for financial turbulence
The Chinese financial markets might have to see a few market players stumble and fall in order for the reform process to continue its course on a sustainable path.
The Chinese financial markets might have to see a few market players stumble and fall in order for the reform process to continue its course on a sustainable path.
The trade negotiations between the EU and the US are motivated more by geopolitical than economic considerations.
The Spanish banking system, hard hit by its massive exposure to toxic real estate assets following the collapse of the country’s property market in 2008, is on the mend.
Chinese officials have the suspicion that both the currently negotiated TPP agreement and the TTIP project pushed forward by the Obama Administration have economic but also geopolitical objectives.
Recently, a further subject for debate has appeared concerning the ECB’s policies which, although less newsworthy than its position on the purchase of public debt in troubled economies, may be even more important for the euro’s future: what to do in view of the fall in the inflation rate.
Children are the last people responsible for Spain’s crisis in all its many dimensions, but they are suffering the consequences to an equal or greater extent than other collectives.
The Euro Zone (EZ) debt crisis has dramatically changed the nature of European integration. The combination of poor financial regulation and an incomplete design of the euro have led EMU to the brink of collapse, forcing the EZ to move forwards decisively in order to avoid catastrophe.
Contrary to expectations, China’s economy did not improve during the second quarter of this year (2Q12). Most surprising was the fact that economic conditions worsened despite significant monetary and fiscal easing in previous months.
Spain’s fall from grace is exaggerated. The image is out of sync with reality, yet the perception, for many, is the reality.
Good strategists know that it is risky to have to fronts open at the same time while in a state of internal weakness. That is why the Euro Zone, which is at its darkest hour, has decided to close the Spanish front in order to focus on the Greek one, which could open up again after the elections on 17 June.
Ever since the Greek crisis broke out, Germany has been mulling over a plan for the Euro Zone. It saw the chance to build the strong and federal Europe it had always yearned for by making use of its economic power and influence over the ECB to ensure that aid for hard-pressed countries would only be made available in exchange for greater transfers of sovereignty.
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