Last night, an economic advisor to the People’s Bank of China, Fan Gang, suggested that China may resume a “managed float” of the yuan. He said that a return to the pre-crisis structure may happen particularly if the uncertainty over the economic recovery diminishes. Fan warned against a one time revaluation as it would pose an economic danger to both China and the United States. Fan Gang is a professor of economics at Beijing University, director of China’s National Economic Research Institute and a member of the PBOC’s monetary policy committee was writing in an opinion piece published by the … …READ MORE
Tag Archives: US debt
Solving Gridlock and the Deficit
The Washington is broken chatter is in hyper-drive out of DC with the announcement by Senator Evan Bayh (D, IN) that he is retiring. Bayh was particularly critical of the partisan wrangling and animosity currently on display on Capitol Hill. Bayh stated that he loved serving the citizens of Indiana, but hated the process of making law in the Senate.
Besides making the 2010 mid-term elections a bit tougher for Democrats to retain their large majorities, the comments Bayh made on CBS’s Early Show were particularly damaging. “If I could create one job in the private sector by helping to … …READ MORE
Posted in Front Page Also tagged entitlement programs, gridlock, obama, Senate, US budget deficit Leave a comment
Canada Sounds A US Warning Bell
Over the last two years, many government officials have critiqued the United States for their handling of the crisis. The problem with most of the comments is that they come from countries that are engaging in similar behaviors. Therefore, the validity of their analysis is similar to a family advice column by a golfer.
This is not the case with Canada. The Canadian banking system is held up by many as the shining example of how to avoid financial disaster. (FULL DISCLOSURE: I WORK FOR A CANADIAN BANK.) So when the Canadians offer advice or voice concerns, I think the … …READ MORE
The Debt Hike Game
Due to the explosion in deficit spending, the federal debt ceiling needs to be raised to legally allow the US government to continue to borrow to fund itself. The current debt limit is at an astounding $12.1 trillion and borrowing has been pushed to this limit by a $1.4 trillion deficit in fiscal 2009. Regardless for who you blame for 2009′s spending, 2010 will be a problem for Congress and the current administration to correct. As an example of the fiscal crisis, 40 percent of this year’s budget will be funded by borrowing.
The debt ceiling hike is a game … …READ MORE
