Turkey: A harbinger of a global debt crisis?
The economic crisis brewing in Turkey seems to have surprised… Read More »Turkey: A harbinger of a global debt crisis?
The economic crisis brewing in Turkey seems to have surprised… Read More »Turkey: A harbinger of a global debt crisis?
The world economy is hurtling towards a global crisis. The… Read More »Q-Review 2/2018: Duck and Cover!
Several economic indicators have turned to the south at the… Read More »Zombies and the end of the ‘global synchronized recovery’
The sudden and fast rise in the London Interbank Offered… Read More »Central bank, my Libor’s keeper?
During the first weeks of the 2018, the asset markets… Read More »The world economy is set to fall
The debt-stimulus of China and the pro-business policy of Donald Trump have given a strong lift to the global economy, but the imbalances behind the façade of this economic expansion continue to grow. These detrimental development during the past 9 years is currently converging towards a “perfect storm” likely to engulf the global economy within two years.
Economists have been somewhat slow to see the threat of China on the global economy, the threat we have been warning since March. Within the last two months, however, the debate has changed a lot. S&P cut China’s credit rating and even the IMF warned about the risks of China. The problems of China can be summarized in two figures indicating that the economy of China is both over-levered and over-invested.