Spotlight on Geopolitics

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Last week’s top-level political meetings which took place in Brussels and Hanoi ended up with similar calls on the US to avoid stimulating the American economy by printing more dollars. Trying to stimulate growth by flooding the American banking system with liquidity is only of marginal importance to the US economy’s woes. Yet this is… » read more

Posted by Florian Pantazi

The G20 finance ministers’ meeting which took place last weekend in Gyeongju, South Korea, did not do much to ease fears of a potential currency war between developed and developing nations. The only worthwhile achievement was an IMF-brokered decision to increase India, China and Brazil’s clout and voting power on the IMF board. Geithner’s initiative… » read more

Posted by Florian Pantazi

The recent Merkel-Sarkozy compromise regarding penalties against EU states which ring up big budget deficits has been attacked by German coalition partners, experts and the press for being too mild on offenders. In an article published on Europe’s World (“Designing a new institutional architecture for the eurozone”), Mr. Jurgen Stark, executive board member of the… » read more

Posted by Florian Pantazi

The IMF’s semi-annual meeting in Washington this weekend has failed to produce concrete proposals aimed at avoiding a currency war. The unrealistic pressure put on China to allow the yuan to suddenly appreciate by 20 percent has been strongly resisted by Zhou Xiaochuan, the Chinese central bank’s governor. He had good reason to do that:… » read more

Posted by Florian Pantazi

In the wake of the attacks on Greece, Portugal and Spain’s credit ratings, it is worth knowing how NY speculators – the same who provoked the 2007-2008 global financial crisis – are now using rumour-mongering and the subsequent investor panic to turn a profit. Pitiful, but true. In an editorial on the current debt crisis… » read more

Posted by Florian Pantazi

A Feeling of Deja vu

By now, the scenario employed against Greece, Portugal and Spain by New York-based international financial scoundrels is all too familiar to anyone who recalls the events of the 1997-98 Asian financial crisis. Then, as now, hedge funds targeted a country whose GDP was largely dependent on tourist dollars – Thailand – and had fiscal problems… » read more

Posted by Florian Pantazi

In the first quarter of 2009, eurozone economies have contracted for the first time in 60 years by around 2.5 percent. Unemployment is expected to rise to around 10 percent of the workforce by 2010, while consumption of goods and services has decreased accordingly. All across the continent, car makers, builders and exporters are feeling… » read more

Posted by Florian Pantazi

No later than last week, the Hungarian and Romanian prime ministers have both asked the EU officials to speed up their respective countries’ accession to the eurozone. After years of neglecting structural reforms in favour of stimulating domestic consumption, these countries, Poland and the Czech Republic are particularly hard hit in the current crisis. Their… » read more

Posted by Florian Pantazi