Salient to Investors: William Pesek writes: Najib kept his Malaysian coalition in power with a giant spending spree that included smartphone rebates for youths, household electricity subsidies and higher wages for civil servants. Fitch said Malaysia’s public finances are its key rating weakness. It will be difficult to achieve the 3
READ MORE... →Salient to Investors: William Pesek writes: Abe’s economic plans draws heavily on Reaganomics: welfare-spending cuts, debt-swelling tax reductions for the wealthy and corporations, deregulation, a lowering of trade barriers, and reforms that make it easier to fire workers. As in the US, these reforms could hollow out the middle class and
READ MORE... →Salient to Investors: William Pesek writes: Japanese voters seem ready to hand Abe one of the bigger blank checks in memory, so may be setting themselves up for buyer’s remorse. Japan has a fast-aging population, the world’s biggest public debt, a skyrocketing energy bill, and a pension time bomb. The idea of unfettered competition
READ MORE... →Salient to Investors: The IMF said: Global growth will struggle to accelerate in 2013 as the US expansion weakens, China’s economy levels off, and Europe’s recession deepens. Global growth will be 3.1 percent in 2013, unchanged from 2012, and 3.8 percent in 2014. Developing economies will grow 5 percent in 2013,
READ MORE... →Salient to Investors: The IMF said: Global growth for 2013 will be unchanged at 3.1 percent as US growth slows to 1.7 percent in 2013 and 2.7 percent in 2014. Global growth will be 3.8 percent in 2014. Downside risks to global growth prospects still dominate, with the possibility of a longer
READ MORE... →Salient to Investors: Nouriel Roubini writes: Expect a decade ahead of very low economic growth in the US, Europe, Japan and other advanced economies, with rising unemployment and social and political unrest. Unstable disequilibrium, is the new abnormal. The economy was first anemic because of the financial crisis of too
READ MORE... →Salient to Investors: William Pesek writes: Tadashi Yanai has become Japan’s richest man largely because of his success at expanding abroad. Japan Inc. has traditionally failed to excel at taking risks and speaking English when going global. Conservative forces still dominate Japan, Inc. Enough top executives have successfully challenged the
READ MORE... →Salient to Investors: Nomura says: China, Hong Kong and India are in a high-risk danger zone because their monetary policies have stayed too loose over the past 4 years. The average ratio of domestic private debt to GDP across Asia had risen to 167 percent in 2012 and most of
READ MORE... →Salient to Investors: Jim Rogers says when we look back, Prime Minister Abe will have ruined Japan. Huge debt levels, horrible demographics, no immigration, a declining population and Abe saying he’ll ruin the currency. Japan is a disaster in the long-term, and not guaranteed to work in the short-term. Read
READ MORE... →Salient to Investors: Jim Rogers said: When investing, don’t follow the crowd Most government numbers are made up. China has problems with housing and inflation as the US did in the 19th century when it was growing rapidly. Every country that grows rapidly has problems. The US had recessions and
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