Benedictus Budi

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The world still needs a way to stop hot money scalding us all

Bill Gross, America’s “bond king”, who made his fortune betting on IOUs from companies and governments, is suing his erstwhile employer for $200m, we learned last week. He says his colleagues were driven by greed and “a lust for power”.<p>His chutzpah was a timely reminder of the vast sums won and …

Interest Rates

U.N., World Bank to launch refugee and reconstruction bonds | Reuters

LIMA (Reuters) - International agencies plan to raise billions of dollars to tackle the worsening refugee crisis in the Middle East and North Africa by issuing new bonds to help displaced people and support reconstruction in the war-torn region.<p>Syrian refugee children pose as they are pictured in …

North Africa

Malaysia should reject Trans-Pacific Partnership Agreement

<b>Datuk John Lo</b><p>1. Coming out from Atlanta, USA is news that trade ministers from 12 countries in the Pacific area have reached agreement on TPPA [Trans …

The golden age of central banks is at an end – is it time for tax and spend?

Turn those machines back on. So demands the unscrupulous banker, Mortimer Duke, when he finds he and his brother Randolph have been ruined by their speculative scam in the film Trading Places. Having lost all his money betting wrongly on orange juice futures, Mortimer demands that trading be …

Economics

Germany readies itself for more woe as scandal and slowdown hit economy

When the German football team lost 1-0 to the Republic of Ireland on Thursday night in a European championship qualifying match, it capped a grim week for national pride.<p>The shock defeat on the football field followed the ritual grilling of Michael Horn, the US boss of disgraced car-maker …

Economy

Is the world heading for its third global financial crisis?

The IMF annual meetings have been filled with a series of stark warnings, but will a "triad" of challenges for the global economy trigger a fresh crisis?<p>It's another grey day in Lima. The sunless sky hangs over Peru’s capital as a mist forms over the coastline. Across the city, there isn’t a gap in …

Central bank cavalry can no longer save the world | Reuters

LIMA (Reuters) - In 2008 central banks, led by the Federal Reserve, rode to the rescue of the global financial system. Seven years on and trillions of dollars later they no longer have the answers and may even represent a major risk for the global economy.<p>Former European Central Bank (ECB) …

Economics

Is the global economy heading for recession?

As far as economic expansions go, our’s is pretty long in the tooth. Since World War II, the average length of time between recessions is about 58 …

The world economic order is collapsing and this time there seems no way out

The refugee crisis is paralleled by the savage fallout from a global financial system running out of control<p>Europe has seen nothing like this for 70 years – the visible expression of a world where order is collapsing. The millions of refugees fleeing from ceaseless Middle Eastern war and barbarism …

European Central Bank

QE doesn't cause inflation, it causes deflation

One answer is that, while bank reserves were boosted, lending didn't take off and there was no uptick in the velocity of money - the speed at which capital zooms through the economy and turns over. Absent velocity of money, QE could be looked at as either ineffective or actually causing a <i>de</i> …