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.
- Holiday Days
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- Much Has Changed Since Short Sellers Last Attacked HK Dollar
- Day of Play
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- Inquiry into Guangdong Official 'Linked to Helping Sex Industry'
- Medical Fees Proposal Jolts China's Pensioners
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- China Now Learning It Has 'Environmental Migrants'
- Internet Company Treats 2,000 Employees to Cruise as Holiday Present
- Alibaba Gets Bitter Pill as Gov't Said to Scrap E-Drug System
- Government Edges toward Promised Tax Reform
- Carmaker BYD Fares Well in Hometown, Struggles Elsewhere
- Caixin OnlineAnother Official Tied to Zhou Yongkang Is Handed Jail Term
- U.S. Venture Capital Firm Is Still Betting on China
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- Manufacturing Slows Again to Start 2016, with Caixin China PMI at 48.4