Written by John Lounsbury
Early Bird Headlines 10 September 2015
Econintersect: Here are some of the headlines we found to help you start your day. For more headlines see our afternoon feature for GEI members, What We Read Today, which has many more headlines and a number of article discussions to keep you abreast of what we have found interesting.
Global
- Asia stocks stumble as gloomy China, Japan data add to growth worries (Reuters) Asian stocks fell on Thursday after lackluster Chinese and Japanese economic data added to heightened worries about slackening global growth, sapping investors’ appetite for riskier assets. Econintersect: Is the global rally over already?
- The other immigrants: how the super-richskirt quotas and closed borders (The Conversation) It is not only the poor and the displaced who are on the move. The rich, especially from countries such as Russia and China, are also leaving their home countries, but they are not faced with fences and rejection but welcomes and encouragement. A review of these policies highlights the dramatic differences between rich and poor when it comes to immigration. It also reveals the dubious economic benefits of catering to the super-rich. Econintersect: In much of the developed world there is demonstrable economic benefit for increasing immigration by the poor and the young, especially were populations are peaking or already declining. We will look for studies of these effects and post them in full or in our “reading lists” for discussion.
U.S.
- Number of homeless school children in NYC soars to 87,000, new report reveals (Daily News) About 87,000 New York City school children were living in homeless shelters or temporary housing in the 2013-2014 school year, according to a new report on the latest available figures. The number has shot up a whopping 71% since 2007-2008, when about 51,000 homeless students attended city schools. In the last year alone, there were about 6,600 more homeless students in the schools, according to the report by the non-profit Institute for Children, Poverty and Homelessness. City officials said there are now roughly 23,000 homeless children living in shelters, including those who many not be of school age.
- EXCLUSIVE: James Blake, former tennis star, slammed to ground and handcuffed outside midtown hotel by white NYPD cops who mistook him for ID theft suspect (Daily News) Retired black tennis star James Blake, in an NYPD double-fault, was slammed to a Manhattan sidewalk and handcuffed by a white cop in a brutal case of mistaken identity. The 35-year-old Blake, once ranked No. 4 in the world, suffered a cut to his left elbow and bruises to his left leg as five cops eventually held him for 15 minutes Wednesday outside the Grand Hyatt Hotel.
Germany
- Migrant crisis: What next for Germany’s asylum seekers? (BBC News) As large numbers of migrants and refugees travel to Germany in the hope of a new life, BBC News looks at how the country deals with such arrivals and its modern experience of migration. Germany has had extensive experience with migration. In the immediate aftermath of Germany’s defeat in World War Two, large numbers of ethnic Germans found themselves on the move. Millions were displaced from areas of present-day Poland, Russia and the Czech Republic as Germany’s boundaries were re-drawn. The Potsdam conference in July 1945 also ordered that ethnic Germans be “transferred” from areas of Poland, Czechoslovakia and Hungary where some communities had been settled for centuries. Ethnic Germans also left homes in Romania and the former Yugoslavia in the post-War period. In total around 13 million ethnic Germans had to find a new home in West or East Germany. Here is what is written in this article about the modern Germany:
Government figures from 2014 show that 10.9 million of Germany’s population of 81.1 million are immigrants
In total, 20.3% of Germany’s population have “a migration background”, the term German officialdom uses to describe immigrants or their children.
But Germany’s population is shrinking, due to its low birth rate, and it could be argued, as our colleague Robert Peston writes, that it needs migrants to keep its economy going.
Hungary
- Migrant crisis: Hungarian army stages border protection exercise (BBC News) Hungary’s army has begun exercises to prepare for a possible future role in guarding the southern border to try to stem the influx of migrants. Budapest plans to send soldiers to help police at the border where thousands of migrants arrive from Serbia every day. A new razor-wire barrier is already being built along the frontier. MPs are expected to vote on stricter border controls later this month. Authorities have been told to expect 40,000 more migrants by next week. Econintersect: So, if the police and razor wire walls cannot stop the refugees, the solution is to shoot them? Let’s see … the name Hungary is loosely associated with the Huns. Are the modern Hungarians trying to strengthen that association?
Islamic State
- Islamic State’s campaign may be going chemical – why no international outcry? (The Conversation) Evidence is mounting that Islamic State (IS) is using chemical weapons in Iraq and Syria – and yet this egregious crime, which once used to be a “red line” for the rest of the world, has yet to provoke a proportionate response.
Syria
- Syria crisis: Nato concerned by Russia ‘military build-up’ (BBC News) he US and Nato have expressed concern over reports that Russia is increasing its military presence in Syria. Nato chief Jens Stoltenberg said if confirmed, Russia’s involvement would not help to solve the conflict. Russia, a key ally of Syria during its four-year civil war, says it has sent military experts but that is all. Correspondents say that without Moscow’s backing, Syrian President Bashar al-Assad may have fallen by now.
China
- China tightens capital controls as it struggles with devaluation (The Irish Times) China has tightened its capital controls, in a sharp reversal of its market liberalizing rhetoric, as it struggles to contain the fallout from last month’s devaluation of the renminbi. The moves are an attempt to stem the capital outflows which have recently approached $100 billion a month ($94 billion in August). The State Administration of Foreign Exchange (Safe), the unit of the People’s Bank of China in charge of managing the currency, has in recent days ordered financial institutions to strengthen controls on all foreign exchange transactions, according to an official memo and to pay particular attention to the practice of over-invoicing exports, used to disguise large capital outflows. Econintersect: There has long been suspicion that a part of China’s large trade numbers have been a result of the corrupt practice of booking transactions that never occurred. But bogus imports have been a more usual conduit for capital flight from China. Imports booked at $1 million may actually have been half for the material delivered and half for investment overseas. The way exports can be involved in capital flight is that a “service fee” is paid overseas that returns part of the price received for an export to be invested outside the country. See Guest post: uncovering the conduits for China’s capital flight (blogs.ft.com).
- China’s impossible trinity (BBC News) The fundamental problem that China faces is that its economy is deeply unbalanced – both internally and externally – at a time that it is also slowing. Economists tend to look at an economy for internal balance (a state of affairs in which neither employment nor inflation is too high or too low) and external balance (a situation in which a country’s current account (its borrowing or lending to the rest of the world) is neither too high nor too low. China is currently struggling to achieve both kinds of balance. Chinese policy-makers have a tricky task ahead but not unmanageable one.
- China aims for Moon’s far side (BBC News) China is planning the first ever landing of a lunar probe on the far side of the Moon. The Chang’e 4 mission is planned for sometime before 2020, Zou Yongliao from the Chinese Academy of Sciences told state broadcaster CCTV. Mr Zou said the mission’s objective would be to study geological conditions on the moon’s far side.
Brazil
- Brazil’s credit rating downgraded to junk (CNN Money) The country’s debt was downgraded to BB+ with a negative outlook by Standard & Poor’s Wednesday after markets closed. Junk status will make it harder and more expensive for Brazil to borrow money. Brazil is struggling with high unemployment, rising inflation and a currency trading at 12-year lows.
Miscellania
- And food for thought from Facebook is this street sign from an unknown location (hat tip to Doug O’Dell):
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