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World economy: Fear returns

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Fears that another crisis like that of 2008 could emerge with asset bubbles in China and other countries. Also fears that policies of austerity in southern Europe and the UK, combined with Germany's tight control on spending, could lead Europe to years of slow growth or stagnation. It is a tricky situation especially in Europe, trying to avoid a Greece type situation, and at the same time not cutting spending to the point where it would lead to stagnation. Criticism of the German government's policy to cut spending and fears that the European Central Bank might follow Germany's policy to focus purely on the deficit. Lower US bond yields give the US some room for dealing with the deficit. The need for swift action in China to move the economy towards domestic consumption, and let the yuan strengthen so that China can absorb more of the world's exports.

2010 high Inflation and asset price bubbles in in India and China, and low or no inflation in Europe, Japan and the USA.

01/14/2010

Wide divergence in conditions and the prospects of tightening credit in Asia affecting export prospects of the USA which depends on exports for half the growth generated in 2009 and early 2010 according to Commerce Department figures.

Grouped Articles

Japanese Economic Data Give Abe a Lift

Wall Street Journal 06/10/2013

Central Bankers Hone Tools to Pop Bubbles

Wall Street Journal 07/08/2013

India's Central Banker Lobbies Fed

Wall Street Journal 10/13/2013

Staying Away from Indian Bonds

Wall Street Journal 12/18/2013

Corrosive Inflation Eats at Developing World

Wall Street Journal 02/11/2014

Japan and China: Edging closer

Economist 10/06/2014

German reaction to the debt crisis in Greece, Portugal, Spain and Italy.

04/09/2009

Germany said to be turning nationalistic in this crisis, seeing Germany's economic successes as its own, and not accepting the advantage of export markets in Europe in strengthening Germany's economic position.

Grouped Articles

Europe's Original Sin

Wall Street Journal 03/03/2010

Those Depressing Germans

New York Times 11/03/2013

Germany's Surplus Isn't the Problem

Wall Street Journal 11/11/2013

How Italy's ENI Vastly Boosted Oil Output

BusinessWeek 04/09/2009

Greek Crisis Shows How Germany’s Power Polarizes Europe

Wall Street Journal 07/07/2015

Germany vs. Europe

New York Times 05/26/2010

Germany's economy- 2009-2013

01/14/2010

Grouped Articles

German Optimism Depends On Spanish Deficits

Wall Street Journal 09/25/2013

Those Depressing Germans

New York Times 11/03/2013

Growth in Germany Neared Zero at End of ’09

New York Times 01/14/2010

German Economy Posts Biggest Postwar Slide

Wall Street Journal 01/14/2010

Will Stress Tests Overcome Resistance to German Bank Reform?

New York Times 07/21/2010

Germany Regains Jobs Lost in Recession

Wall Street Journal 07/30/2010

Bubbles developing in many countries in 2010-2013

01/17/2009

China being the largest bubble developing in mid 2010. The other bubbles developing in Brazil, Canada, India, and Australia.

Grouped Articles

Central Bankers Hone Tools to Pop Bubbles

Wall Street Journal 07/08/2013

Mom-and-Pop Investors Bolt Emerging Markets

Wall Street Journal 08/22/2013

This Age of Bubbles

New York Times 08/22/2013

Recognizing Bubbles But Still Cautious About Deflating Them

New York Times 09/10/2014

Canada Grapples With Housing Bubble Risk

Wall Street Journal 01/20/2016

Where Will the Next Financial Bubble Be?

BusinessWeek 05/06/2010

Chimerica as economic monster and the 10-10 deal, 10% growth in China and 10% unemployment in the USA.

11/16/2009

Niall Ferguson at Harvard and Moritz Schularick of the Free University of Berlin say giving a peaceful death to this monster is long overdue. Krugman also calls this a world out of balance on the pages of the NYT, November 16, 2009.

Grouped Articles

China Will Keep Growing. Just Ask the Soviets.

New York Times 10/24/2014

Apple Says App Store Sales Rose 50% in 2014

Wall Street Journal 01/09/2015

World Out of Balance

New York Times 11/16/2009

The Great Wallop

New York Times 11/16/2009

China and the American Jobs Machine

Wall Street Journal 11/17/2009

Why the Chinese don’t spend : The New Yorker

New Yorker 01/04/2010


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