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Canada: no change

Canada’s Liberal Party prime minister Justin Trudeau has managed to get re-elected for the third time in the snap general election he called.  The Liberals won or were leading in 158 seats out of a total of 338 seats, and the Conservatives trailed the Liberals, winning or leading in 122 seats, four more than theirContinue reading “Canada: no change”

Not so Evergrande

China’s Evergrande Group is the second largest property developer in China and it is teetering on the brink of bankruptcy.  Evergrande has hired ‘restructuring advisers’ and warned that its liquidity is under “tremendous pressure” from collapsing sales, facing protests by home buyers and retail investors.  Based in Shenzhen in southern China, Evergrande is saddled withContinue reading “Not so Evergrande”

China and common prosperity

Back in May the Chinese government set up a special zone to implement ‘common prosperity’ in Zhejiang province, which also happens to be the location of the headquarters of several prominent internet corporations– Alibaba among them.  And last month, China’s President Xi Jinping announced plans to spread “common prosperity”, heralding a tough crackdown on wealthyContinue reading “China and common prosperity”

Booms and bezzles

Major stock markets are hovering near all-time highs and commodity prices (food and materials) are rocketing.  At the other end of the scale, short-term interest rates are near or below zero, and even long-term government and corporate bonds are at record prices (record low yields).  All this is driven by huge injections of money createdContinue reading “Booms and bezzles”

The Jackson Hole dilemma

Next weekend, the central bankers of the world meet in a slimmed down COVID annual jamboree at Jackson Hole, Wyoming US.  The bankers will hear from Fed chair Jay Powell and US Treasury secretary Janet Yellen and wade though academic papers commissioned from various mainstream ‘monetary economists’.  The big issue is whether it is timeContinue reading “The Jackson Hole dilemma”

The Austrian Business Cycle

The Austrian school of economics is outside the mainstream. The Austrians start from micro-assumptions. This is not the neoclassical view of rational, fully informed human agents, maximizing their utility and profits. On the contrary, human actions are speculative and there is no guarantee of success in investment. According to Karl Menger, the founder of thisContinue reading “The Austrian Business Cycle”

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