by Frank Li
China is becoming yesterday’s America, while America is becoming yesterday’s China!
China is a competitor, not an enemy. The only way for America to have any chance to fend off the competition from China is to become better itself, which can’t be done without a better understanding of China. In an earlier post, I briefly explained China’s political system in an American way. This article will provide an overview of China’s recent history and list out five big political and economic lessons from China for America.
by Guest Author John Mauldin - Thoughts from the Frontline
My friends at GaveKal point out that this is “… the sixth time in 18 months European leaders have announced a definitive solution to the Euro crisis. Should this version of the final bailout be taken any more seriously than the first and second solutions to the Greek crisis in May and September 2010 or the Irish bailout of December 2010 or the Portuguese rescue package of March 2011 or the breakthrough vote in the Greek parliament of last month? The supposedly good news for markets was that the -21% haircuts to be imposed on Greek creditors (as estimated by banker groups) were less than half those suggested a few days ago.”
by Guest Author Marshall Auerback, New Economic Perspectives
by Rick Davis
(In a number of recent articles we have explored potential "unthinkable" solutions to both the U.S. sovereign debt problem and the fiscal consequences of a suddenly balanced U.S. Federal budget -- given that a balanced budget would suck about 14% out of the country's GDP, meeting the clinical definition of a depression. These articles are listed at the end of this one under Related Articles)
As we consider the "unthinkable" paths out of our current economic mess, some are clearly more nightmarish than others. Full fledged episodes of either deflationary depression or runaway hyper-inflation certainly fall into that category. A couple of decades of anemic and stagnating growth while "kicking the can down the road" (e.g., Japan since 1990) probably also qualifies as a nightmare -- at least for those currently not enjoying life near the top of the food chain. But there are other possible nightmares, particularly if governments conclude that past interventions in the economy failed merely because they were not intrusive enough.
by Dirk Ehnts
Søren Kierkegaard’s 1849 classic The Sickness unto Death provides us with some thoughts about debt and sin. Let me present a quote from the Penguin Great Ideas edition of the book (p.131):
Also the law for the growth of this continuity differs from that of a debt or a negation. A debt does not grow by not being paid back, it grows every time it is increased. But sin grows every moment one fails to get out of it. Far from being correct in thinking that only new sin increases the sin, it is his being in a state of sin that, in Christian terms, puts the sinner in the greater sin, it is the new sin. We even have a proverb which says that to err is human while to remain in error is of the devil.