Why the Global Economy Is Still Stuck
The global economic news is not good lately. The Italian election was a statement against the austerity policy of the previous government, but failed to offer an alternative. The resulting uncertainty keeps Italy's government bond market on thin ice, threatening to engulf the whole euro zone in a new financial storm.
The U.S. government has been embroiled in a fight over something called "sequester" for weeks without a solution. The resulting US$ 85 billion cuts in government spending rekindle the risk of double-dip recession. The cuts are 0.5 percent of GDP and less than one-tenth of the United States' fiscal deficit. The big worries over them reflect the fragile state of the American economy after massive stimulus over five years and a dysfunctional U.S. political system.
- Hidden Anguish
- In Friday's Papers: IBM Workers Strike over Lenovo Deal; Ordos Will Stop Building Homes, Mayor Says
- A French Revolution, Please!
- Lianghui Quotes：March 7
- Egypt's Road to Rejuvenation Is Opening, Veteran Diplomat Says
- Scaffold Collapse
- The Siege of Tsingtao
- The Celestials
- Jilted U.S. Investors and Debtors on the Run
- Lianghui Quotes: March 6
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- Eyes on the Prize
- Electric Car Charging Stations Powering Down
- Zhou Family Was Influential in Jiangsu City before Corruption Inquiry
- The Logic of the Left in China
- Yuan Won't Overtake Dollar until Changes Are Made, Economist Says
- Caixin Explains: The 'Lianghui' Meetings
- From Tycoon to Target
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- Closer Look: So Who Stops a Run on Yu E Bao Accounts?
- China to Grow at 7.5 Pct and Focus on Reforms, Premier Says