Is China's Glass Half Empty Or Half Full?

China economy

Yesterday I read an article in the NY Times entitled "China's Economy Slowed a Bit in the 2nd Quarter." The article reported "The Chinese economy expanded at an annual rate of 9.5 percent during the second quarter, the National Bureau of Statistics reported on Wednesday, a figure that, for all its strength, represented a slowdown from the sizzling pace of previous quarters, and underlined the challenges now facing policy makers in Beijing."

The Atlanta Journal-Constitution reported the same Associated Press (AP) story but entitled it "Strong Economic Growth in China Weighs on Dollar." This article reported, "The dollar is falling against most major currencies as investors were reassured by China's report that the world's second biggest economy grew at a relatively strong pace in the second quarter."

So, the NY Times reports that China's economy is slowing down but the AP reports that the Chinese economy is growing at a strong pace. Which are we to believe?

Reporting in the financial community is often flawed by contradictory opinion and shoddy analysis. The same is true of technical analysts who interpret currency charts. One analyst will report that the dollar will rise while another is predicting the demise of the dollar. Again, who are we to believe?
 

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Posted on July 14, 2011 09:42 by Tom Herod
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Categories: Global Economy
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Congressman McIntyre Introduces Legislation On China Currency Manipulation

Mike McIntyre

Washington, D.C. – According to a press release, Rep. Mike McIntyre, is trying to force a vote on bipartisan job creating legislation that would pressure China to provide the U.S. government with tools to address currency manipulation.

The Currency Reform for Fair Trade Act (H.R. 639) would treat fundamentally undervalued currencies as a prohibited subsidy.

McIntyre joined his colleagues in signing a discharge petition to bring up The Currency Reform for Fair Trade Act. He stated, “It is time to do all we can to create jobs, so I am signing a discharge petition to force the House Congressional Leadership to allow a vote on the Currency Reform for Fair Trade Act.”

McIntyre claims that the measure would help with the creation of half a million to more than two million jobs at no cost to American taxpayers.

McIntyre's is the representative for North Carolina’s seventh Congressional district.
 

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Posted on July 7, 2011 15:53 by Tom Herod
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Categories: Global Economy
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Global Financial Crisis By Design?



What if the current financial crisis was not caused by unforeseen random events, but was instead a carefully orchestrated assault on the US Dollar, designed to cripple the American economy and ultimately gain complete control of the world’s financial markets?

Sound far fetched? These are the questions that John Truman Wolfe examines in his book, Crisis by Design.



John Truman Wolfe, author of America the Litigious, Mind Games, and The Gift released his latest stunning bestseller – Crisis By Design: The Untold Story of the Global Financial Coup and What You Can Do About It” - about 6 months ago and, given the recent crises in the Middle East, it is receiving renewed interest.

Wolfe draws on experience as a senior credit officer in two banks, and co-founder of a prestigious Los Angeles based business management company, and a registered investment adviser.

Throughout Crisis By Design, complex economic concepts that baffle many will be explained in a simple, direct format. By the end of the book, you will be equipped to reach your own conclusions and both understand and survive the global economic collapse.

Read more on John Truman Wolfe's website.
 

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Posted on February 23, 2011 18:11 by Tom Herod
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Categories: Due Diligence | Global Economy
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ECB Charges Politicians for Euro Problems

European Central Bank

The European Central Bank criticized political leaders Tuesday on the grounds of moving too timidly against countries whose excessive spending and borrowing had endangered the stability of the euro.

In its first official comment on proposals by the European Commission to better enforce rules on spending and debt, the central bank’s governing council said there were still too many escape clauses and opportunities for countries in the euro area.

The proposals “go some way in improving enforcement in the euro area,” the central bank said in a written opinion, which came as European leaders prepared for meetings next month to overhaul the way they would manage the euro area. But the proposals “fall short of the necessary quantum leap in the surveillance of the euro area which the E.C.B. deems necessary to ensure its stability and smooth functioning,” the bank wrote.

“The current crisis,” the central bank added, “has amply shown that unsound economic and budgetary policies in some euro area member states and any resulting financial instability may also directly translate into difficulties for other euro area member states.”

Since at least 2005, the central bank has clashed with political leaders over their failure to enforce limits on deficit spending and total debt that are part of the treaty that governs the common currency.

Read full NY Times story...
 

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Posted on February 23, 2011 14:43 by Tom Herod
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Categories: Global Economy | News
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China Hammers G-20 Into Submission

Chinese President Hu Jintao
Chinese President Hu Jintao

China prevailed upon the G-20 to water down a resolution to correct global economic imbalances, even as India's Finance Minister Pranab Mukherjee raised concerns about rising commodity and energy prices.

The final G-20 communiqué that was issued after two days of hard bargaining was a compromise worked out between the member countries. On China's insistence, it excluded key issues like foreign exchange reserves and fiscal deficit.

"There were differences, therefore in this communiqué, it was agreed that we will try to identify and complete the process (of selecting indicators) by April," Mukherjee reported after the meeting of finance ministers and central bank governors.

Mukherjee, spearheading the Indian team at G-20, said that about 500 tax information exchange agreements have been signed between different countries across the globe, a development that will help fight the menace of tax evasion and track ill-gotten money.

China is sitting on huge forex reserves and does not want these to be included as a parameter for tracking and correcting structural flaws to reduce global trade imbalances.

China has $2.8 trillion worth forex reserves and is accused by the U.S. of manipulating the yuan.

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Posted on February 20, 2011 18:38 by Tom Herod
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Categories: Global Economy | News | Regulation
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