Salient to Investors: William Pesek writes: No country is more vulnerable to the dreaded slowdown in China than resource-rich Australia, as the mining boom that fueled nearly all of Australia’s recent growth is nearing a cliff of economic risk. Exporting natural resources led to the neglect and atrophying of other critical
READ MORE... →Salient to Investors: William Pesek writes: The world believes that China’s leaders are masterful stewards of their economy, steering brilliantly around the 2008 financial crisis, with near-double-digit growth. But the Chinese economy is a giant and powerful creature born of unorthodox experiments, and its makers are increasingly losing control. Over the past decade, China’s
READ MORE... →Salient to Investors: William Pesek writes: Japan has taught us that slashing interest rates to zero and beyond is much easier than returning them to normalcy. In Japan, credit spreads mean little, the underlying assets on which they are based are drugged up on monetary stimulants, bank balance sheets get muddied, it
READ MORE... →Salient to Investors: William Pesek writes: Unconventional policies have worked out better in the US than in Japan. Abe’s revitalization plan rests on two tired ideas – massive public-works projects and more monetary stimulus. Absent are steps to improve Japan’s economy, including tax reform, deregulation, joining free-trade agreements, empowering women, supporting
READ MORE... →Salient to Investors: William Pesek writes: Singapore’s addiction to population growth shows it has run out of ideas to increase economic vitality. The era of easy growth in Singapore is over and its formula has run its course. Singapore is half the area of New York City, with a population of 3.3 million
READ MORE... →Salient to Investors: William Pesek writes: Woodward-and-Bernstein style tactics are helping to unearth the rot that has taken hold in China – princelings that are reaping outsized benefits from China’s growth, causing inequality levels at pre-Communist levels. One of modern history’s greatest wealth grabs is delaying the reforms needed – of the
READ MORE... →Salient to Investors: William Pesek writes: Indonesian President Yudhoyono is emerging as a regional powerbroker, having exceeded just about everyone’s expectations, but has sometimes seemed content with the achievements of a half-finished agenda. The OECD praise for Southeast Asia emerging resilient from a period of global turmoil is really recognition of how far Indonesia
READ MORE... →Salient to Investors: William Pesek predicts the Asia-Pacific Economic Cooperation summit will end in disappointment. The paucity of accomplishments over the last two decades shows it to be too disparate economically, geographically and ideologically. Brunei, Chile, Russia, the U.S. and Vietnam share a widening income gap Read the full article at http://www.bloomberg.com/news/2012-09-03/cheesy-group-photos-symbolize-economic-paralysis.html
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