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The End of Western Globalia?
The End of Western Globalia? Since the 1970’s, international trade has continuously been promoted by leaders of developed countries and economic agents. Several theoretical frameworks have been put forward to explain the benefits of a free trade environment, from Adam Smith’s concept of absolute advantages to more recent firm-based theories. However, the reality is much […]
The Consequences of Budget Deficits For International Trade
THE CONSEQUENCES OF BUDGET DEFICITS FOR INTERNATIONAL TRADE In all the economic mayhem ahead, no one is yet thinking of the consequences for trade imbalances. The twin deficit hypothesis informs us that skyrocketing US budget deficits will lead to increasing trade deficits, a situation with serious political consequences. Furthermore, with foreign interests already saturated with […]
What? Default? Where? Dollar?
What? Default? Where? Dollar? It won’t come as a surprise to anyone that the first half of 2020 has brought, among many other things, renewed calls for the demise of the US dollar. It’s been pretty much a non-stop call for over a decade now, and longer. But this time, like all previous ones, I’m […]
The Weaponization of the Dollar
The Weaponization of the Dollar The Uncivil Civil War discussed the sanguine approach many investors take towards equity risk despite clear signs of domestic political turbulence. The article put the upcoming elections and the growing political divisions amongst the populace into context with market risks. While we read plenty of politically related articles and many […]
The End Is Nigh
The End Is Nigh Recently, US Secretary of the Treasury Steve Mnuchin stated, “If China doesn’t follow these sanctions [against North Korea], we will put additional sanctions on them and prevent them from accessing the US and international dollar system.” This is astonishingly shortsighted, as the US can no more do without trade with China […]
The Fed’s Dollar Distraction
The Fed’s Dollar Distraction In its September policy statement, the US Federal Reserve took into consideration – in a major way – the impact of global economic developments on the United States, and thus on US monetary policy. Indeed, the Fed decided to delay raising interest rates partly because US policymakers expect dollar appreciation, by lowering […]
Exorbitant Privilege: “The Dollar is Our Currency but Your Problem”
Exorbitant Privilege: “The Dollar is Our Currency but Your Problem” The Global Monetary Architecture: Change is on the Horizon There is no better way to descibe the international monetary system today than through the statement made in 1971 by U.S. Treasury Secretary, John Connally. He said to his counterparts during a Rome G-10 meeting in […]
Global finance and the privatization of rural livelihoods | ROAR Magazine
Global finance and the privatization of rural livelihoods | ROAR Magazine. A big piece of news for food politics enthusiasts this summer was India’s veto over a proposed agreement — to be concluded within the legal framework of the World Trade Organization — on ‘trade facilitation measures’. The agreement was meant to regulate a number […]
