Choose language

Subscribe to this RSS feed
Economics and politics

Economics and politics (63)

Articles on economics from a political perspective.

16 05 2023
in Economics and politics

Is dedollarisation a chimaera or is it real? (III)

Chinese President Xi Jinping and Brazilian President Luiz Inacio Lula da Silva, April 14, 2023. Xi held talks with Lula, who is on a state visit to China, in Beijing on Friday. Lula stated: “Every night, I ask myself why all countries have to base their trade on the dollar.”
Written by
The present international financial system centred around the US dollar is under pressure from several factors: the use of the dollar to punish other countries, the inflation in the US, the increasing US indebtedness, and the appearance of digital currencies and their potential for making international payments much faster and cheaper without using the dollar. The future is probably a fragmented and regionalised international financial system and a much reduced role of the dollar. But can it work?
Read more...
Be the first to comment!
Tagged under
Sunday, 14 May 2023 23:02 in Economics and politics

Is dedollarisation a chimaera or is it real? (II)

The digital Yuan, E-CNY, is promoted during an expo in Dalian, Liaoning province.
Written by
Central Bank Digital Currencies are coming, and even if they initially will be used only domestically, they are bound to start playing a role in international payments too. This will diminish the need for US dollars in international trade and hence also lessen the US control with the international payment system. No surprise that the US is not at all enthusiastic about this development.
Read more...
Be the first to comment!
Tagged under
Saturday, 13 May 2023 16:09 in Economics and politics

Is dedollarisation a chimaera or is it real? (I)

A cartoon from 1905 shows U.S. President Theodore Roosevelt using his “New Diplomacy”—characterized by the phrase “speak softly and carry a big stick”—to police the world.
Written by
Despite much talk about the coming dedollarisation of the World Economy, the dollar continues to be the preferred currency for international trade and for building up foreign exchange reserves. There is no risk for the US that the Chinese Yuan will take over this role. But in the same way as US hegemony is about to give way to a multipolar world power system, the dollar hegemony will probably give way to a much more fragmented international financial system.
Read more...
Be the first to comment!
Tagged under
Sunday, 09 October 2022 22:28 in Economics and politics

The great decoupling

Signing Ceremony Phase One Trade Deal Between the U.S.
Written by
Whether there will be a technological and trade decoupling between China and NATO+ is not up for discussion any longer – it is already ongoing. What we still don’t know, is how far it will go, and how fast. A vicious political circle may imply that it will go very far, and very fast, at least if the US is to decide. Whether China will be able to prosper despite this technology war, is anybody’s guess. My guess is that it will.
Read more...
Be the first to comment!
Tagged under
Sunday, 28 August 2022 23:40 in Economics and politics

Playing with fire

The English Economist Keynes, sitting in the middle, once said: “If you owe your bank manager a thousand pounds, you are at his mercy. If you owe him a million pounds, he is at yours.” China, Russia and many other countries seem to have forgotten that simple truth.
Written by
Many countries build up reserves of gold and foreign exchange to hedge against sudden adverse events. As the currencies such as the US dollar and the Euro are not linked to any physical asset (as e.g., gold), their value is based on trust (called fiat money). However, the increasing politicization of the international financial system is eroding this trust. This may have far-reaching repercussions as some countries are now looking for alternatives.
Read more...
Be the first to comment!
Tagged under
Thursday, 25 August 2022 21:24 in Economics and politics

Can sanctioned countries survive?

Import substitution: As China is being increasingly cut off from buying advanced equipment from Western countries for production of semiconductors (chips), their hope is that domestic companies as e.g. SMEE will be able to fill the gap. The most advanced SMEE lithography machine SSA600 is able to produce 90nm chips, but the next model (SSA800) will produce 28nm and should be on its way.
Written by
It looks as if sanctions haven’t had the expected disastrous consequences for Russia compared to say Iran, Venezuela and Cuba, at least in the short term. But what about the longer perspective? Will the Russian economy implode or stagnate? Or will it be able to survive and perhaps even prosper? History tells us that both scenarios are possible and that the outcome to a high degree depends on how well the situation is managed and the legitimacy of the political leadership.
Read more...
Be the first to comment!
Tagged under
←StartPrev•1•2•3•4•5•6•7•8•9•10NextEnd→
Page 5 of 11