Featured StoryThe IMF is up to no good again.
On Monday they released a new report on international capital flows which relaxed its opposition to exchange controls.
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The Markets or the Mattress: I Know Where My Money is Going
The next 1,000 points on the Dow Jones Industrial Average in either direction are going to be determined by what happens in two cities thousands of miles from our own shores...
Athens and Berlin.
What's more, the risks associated with Europe's redemption, or its failure, are more concentrated now than they were before the crisis began.
There are two reasons: a) Europe won't help itself and b) Wall...
IMF Forecast: Can China Really Overtake the U.S. Economy by 2016?
According to the International Monetary Fund (IMF) "World Economic Outlook," China's output will surpass that of the United States in 2016 - only five years from now.
But don't worry. The IMF calculation is based on "purchasing power parity" (PPP), which does not reflect real money. It relies on projecting China's stellar growth rates five years into the future. And it relies...
IMF Warns of Slower Growth As Currency War Rages On
Meetings of the Group of Seven (G-7) countries in Washington this week could feature a clash of views that have sparked an international currency war even as the International Monetary Fund (IMF) warned that growth in developed economies is slowing.
The conflict represents a fundamental disagreement about how to sustain the global economic recovery among countries that prefer flexible exchange rates like the United States, and others that are resisting calls to allow its currency to appreciate, like China.
Crude Oil Prices Tumble as IEA Warns Economic Woes Could Stunt Demand
Oil prices yesterday (Wednesday) fell below $80 a barrel after the International Energy Agency (IEA) warned that demand could be curtailed if global economic growth is weaker than expected.
The warning came even as the IEA, an energy adviser to 28 industrialized countries, slightly increased forecasts for global crude demand for this year and 2011.
However, those projections were based on revisions to historical oil-demand data and on forecasts issued by the International Monetary Fund (IMF) nearly four weeks...
Hungary's Spat with the IMF and EU Could Signal Another Crisis to Come
The biggest financial news story out of the Europe this summer is getting very little play in the U.S. mainstream press. However, it has the potential to torpedo the European Union (EU), and has disastrous implications for borrowing costs worldwide.
Basically, a miniature banking crisis is festering in Hungary. If it isn't contained, it could grow into a genuine crisis that infects the secondary lending markets around the world.
Hungary is supposed...
The Case for the Yuan: Why China's Currency Isn't the Problem Policymakers Make it Out to Be
By allowing the yuan to appreciate, China at least temporarily placated foreign trade partners that had expressed concern about the currency's value. However, the decision has done little to quell criticism from many U.S. policymakers and trade groups who are angry that the Obama administration refuses to brand China a "currency manipulator."
Still, while the yuan does need to appreciate, critics in the United States should remember that the dollar too is flawed, and that the uneven relationship between the two currencies has...
Uncertainty Undermining the Global Economic Recovery
The International Monetary Fund (IMF) said yesterday (Thursday) that the global economic recovery is losing steam because uncertainty in financial markets is keeping businesses and consumers from investing in future growth.
In a revision to its World Economic Outlook released yesterday in Hong...
Six Ways to Invest in Korea – Asia's Can't-Miss Market
With the U.S recovery looking a bit iffy after last week's unemployment report, Japan and Britain battling huge budget problems and Europe in trouble because of the Greek debt crisis, investors have quite naturally shifted their focus to Asia.
But even there the pickings seem a bit slim. Asian stalwarts China and India show signs of overheating (India more so than China). Taiwan and Singapore - both excellent markets - seem pretty fully valued right now.
That leaves us with one Asian market whose economy is enjoying...
China Boosts Treasury Holdings as European Debt Contagion Sparks Investor Shift to U.S. Securities
China increased its purchases of U.S. Treasuries for the first time in six months in March as concerns about European debt contagion sparked an influx of foreign investments into dollar-denominated securities.
China's holdings of U.S. Treasury securities rose by 2% to $895.2 billion, the first increase since last September, as the Asian juggernaut cemented its position as the top holder of U.S. government debt, according to the monthly Treasury International Capital report, known as TIC. The boost follows net sales of...