Category: State of the Economy

The Bond Market Is Trying to Tell Us Something (Worry)

The bond market is sending powerful signals that there’s economic trouble ahead for the United States economy. They’re powerful enough, in fact, that they’re even rattling the parts of Wall Street that people do talk about. New York Times

Economists are rethinking fiscal policy

Olivier Blanchard, a former chief economist of the IMF, told the annual meeting of the American Economic Association that there were many reasons to doubt the supposed costs of public debt. Since then Jason Furman and Larry Summers of Harvard University, both of whom advised Barack Obama on economics, have written in Foreign Affairs, a journal, that it is time to kill off the “debt obsession”. The Economist

The story of China’s economy as told through the world’s biggest building

The Global Centre—the tale of its construction, its occupants and its evolution is neither a spectacular success nor a catastrophic failure but a long economic struggle, a contest between China’s tremendous potential and the cracks in its foundations. America is only a secondary player in the drama. China, for better and for worse, is writing its own story. The Economist

The Real Legacy of the 1970s

In most histories of how Americans became so polarized, the Great Inflation of the 1970s is given short shrift. But inflation was as pivotal a factor in our national crackup as Vietnam and Watergate. New York Times

Chilling Davos: A Bleak Warning on Global Division and Debt

In a letter, written by Seth A. Klarman, a billionaire investor known for his sober and meticulous analysis of the investing world, a huge red flag about global social tensions, rising debt levels and receding American leadership is set. (New York Times)