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Tag Archives: China

The Ant and the Grasshopper: A Window into Macro Part II

Regardless of the dollar's role and function in the world economy and the halls of finance, in the near and intermediate terms, investors and businesses are more concerned with foreign exchange prices.  The greenback has fallen out of favor. Its main supports, like wide interest rate differentials, favorable growth differentials, and political certainty if not stability, have weakened. The pace accelerated from mid-June through the end of July.  It seems to have entered a consolidative...

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Position Adjustment Dominates ahead of US/Canada Employment Reports

Overview: Escalating dramas may be behind the position adjustment today ahead of the US jobs data.  The US and China feud expanded beyond Tiktok to WeChat, and efforts to tighten disclosure rules for Chinese companies listed in the US are nearing.  The negotiations between the White House and the Democrats broke down, preventing or at least delaying additional stimulus.  The US reimposed 10% tariffs on unprocessed aluminum from Canada, while Ottawa threatened dollar-for-dollar...

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Why Taiwan Is at the Heart of a Geopolitical Struggle to Produce Cutting-Edge Computer Chips

Yves here. Marshall gives a helpful, high level overview of the stat of competition in the chip biz and why Taiwan is a key player, as well as how Taiwan’s prominent position feeds into US/China economic and geopolitical jousting. Marshall Auerback is a market analyst and commentator. Produced by Economy for All, a project of the Independent Media Institute The media likes to dabble in war game fantasies between the 21st-century great powers China and the U.S., but it’s a distraction from the...

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Asia shrugs off OPEC supply rise as refiners grapple with crippled demand

Middle Eastern sour crude supply is expected to increase this month after OPEC+ members on July 15 agreed to pare back their production cut commitment. But Asian consumers, who under normal circumstances would have welcomed the move, have barely taken notice. It remains to be seen where all this excess oil will eventually end up as Asian buyers grapple with crippling demand and have to tweak refining strategies to minimize losses. S&P Global Platts Analytics in a recent note said that it...

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Peter Kuznick: Why Did Americans Accept Barbaric Slaughter of Japanese Civilians?

Yves here. I am glad that Paul Jay decided to cover the 75th anniversary of the bombing of Hiroshima and Nagasaki. This was a horrific episode that gets less attention as time passes. It’s too often glossed over that Japan was already prostrated due to firebombings of Japanese cities and that Japan had been suing for peace for months. One important account of the normalization of mass killings of civilians in World War II comes in the excellent but grim book Humanity: A Moral History of the...

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Markets Consolidate

Overview:  The Australian dollar powered to marginal news highs for the year as the move against the US dollar continued yesterday.  The euro stopped a few hundredths of a cent below the high seen at the end of last week.   However, neither sustained the upside momentum and have come back offered today.   The greenback is narrowly mixed against the major currencies, with sterling performing best, encouraged perhaps by the more upbeat message from the Bank of England.  Led by the continued...

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International Trade Has Cost Americans Millions of Jobs. Investing in Communities Might Offset Those Losses

Yves here. On the one hand, it is useful to have an economist amplify the World Bank analysis that documented the magnitude of US job losses after China entered the World Trade Organization. It is also useful to have an economist debunk the “Let them eat training” recommendation to workers who suffered and offer an alternative. On the other, the critique of training as a remedy is timid. Professor Batabyal merely notes that people in communities that have lost out due to more open trade don’t...

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Corrective Pressures in the FX Market Prove Short-Lived

Overview:  The drop in US yields to new lows amid paralysis in Washington, except apparently over a lip-syncing app's threat to US national security, sent the dollar back to its lows after a modest recovery in early North American trading yesterday.  The greenback remains under pressure today, falling against most of the world's currencies.  The beleaguered Turkish lira is a notable exception.  The Norwegian krone and dollar-bloc currencies are leading the move.  Global equities are...

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What’s In The Same Number? China’s Part In The (euro)Dollar Story

There’s one part of the dollar story I’ve not yet touched on recently. We’ve already heard, too much, about how the Fed’s killing the dollar, or at least is aiming to with all its immense money printing fire power. While it’s the euro which has demanded so much from DXY that it almost seems plausible (to a few) this time, what’s the real big one still lurking out there have to say about all this?CNY.According to the People’s Bank of China (PBOC), the balance of foreign assets reported on...

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Markets Looking for Fresh Directional Cues

Overview:  Asia Pacific equities rallied after the US shares rallied with the Nasdaq reaching record highs after it and the S&P 500 gapped higher yesterday.  Japan and Hong Kong led the rally with more than 2% gains, while the Shanghai Composite lagged with about a 0.1% gain.  However, the momentum did not carry into Europe, where the Dow Jones Stoxx 600 is paring yesterday's 2% gain, which was the most in two months. US shares trading with a heavier bias (~-0.3%).  European bond...

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