Analysis - Policy-making gets harder in wake of global credit

Greece's latest austerity steps have squeaked through parliament, avoiding an imminent default. Politicians in Washington may manage a similar last-minute trick later this year to raise the U.S. sovereign debt ceiling, allowing the United States to continue borrowing.

But almost wherever you look in the wake of the global financial crisis of 2007-2009, widening domestic and international faultlines -- including those between political elites and the people they rule -- are making economic policy-making a more anguished process.

Risk of global 'shocks' has increased, says OECD

The complex network of connections linking the world together leaves the global economy highly exposed to natural and man-made disasters, according to a new report from the influential think-tank the Organisation for Economic Co-operation and Development (OECD).

Can Global Economic Policy Be Freed From Its Paralysis?

The Bank for International Settlements in Switzerland has just published its annual report, and it is a dour document. The BIS (as it’s known) was created in 1930 to handle post-World War I reparation payments from Germany to Britain and France. The Great Depression ended reparations, and now the BIS provides—among other things—sober commentary on the global economy. Its latest report oozes foreboding.

BP report shows economic growth still depends on oil

The relationship between energy and global economic growth has never been clearer than in BP’s World Energy Statistical Review for 2010. No sooner had the global economy shook off the shackles from the last recession than energy demand exploded. It grew by more than 5.5 per cent last year, the largest annual increase in more than 30 years.

Not surprisingly, oil played a centre stage role in last year’s spectacular increase in global energy demand. It is, after all, the world’s single most important fuel, accounting for more than a third of all the global energy produced last year. What makes last year’s global oil numbers particularly interesting is the fact world oil demand had fallen in the two previous years - a victim to the global recession. They were the first annual declines in global annual oil consumption since 1983.

Roller-coaster ride for global economy

THE past six months have been a roller-coaster ride for the global economy with US growth concerns, inflation worries and the euro-zone debt crisis affecting investor confidence.

Besides these factors, the tsunami, earthquake and nuclear plant crisis in Japan have also dampened sentiment.

While the overall outlook was generally gloomier than last year, some glimmer in the flow of macroeconomic data inevitably would see investors betting that the worst is over.

Oil little changed, markets assess global economy

NEW YORK (AP) — Oil settled slightly higher Friday as investors weighed the latest economic data and the planned release of 60 million barrels of oil onto the world market.

Benchmark West Texas Intermediate crude for August delivery rose 14 cents to settle at $91.16 per barrel on the New York Mercantile Exchange. In London, Brent crude, which is used in many international blends, fell $2.14 to settle at $105.12 per barrel on the ICE Futures exchange.

KKR Hires Morgan Stanley’s Henry McVey to Advise on Macro-Economic Trends

KKR & Co., the leveraged-buyout firm led by Henry Kravis and George Roberts, hired Morgan Stanley’s Henry McVey to advise it on macro-economic trends.

McVey, who will be head of global macro and asset allocation, will help KKR and its clients assess global economic issues across the firm’s businesses, including private equity and hedge funds, New York-based KKR said today in a statement. Cyril Moulle-Berteaux, a founding partner of hedge fund Traxis Partners LP, is replacing McVey as head of the global asset- allocation team at Morgan Stanley, the New York-based bank said in a separate statement.

BOJ's Morimoto warns of global risks, upbeat on output

Global economic risks have heightened somewhat following a slew of weak U.S. data but not enough to affect the outlook for Japan's economy, a Bank of Japan policymaker said, reinforcing views that the central bank will remain on hold in the near term.

Yoshihisa Morimoto also repeated the central bank's view that Japanese output and exports will return to levels seen before the March 11 disaster in the third quarter, as companies make steady progress restoring supply chains.

Dr. Alexander Mirtchev Discusses the U.S. Government's Measures to Deal With the Global Economic Crisis and Stresses the Imperative for Viable Exit Strategy on the Riz Khan Show

Dr. Alexander Mirtchev, founder and president of Krull Corporation, discussed the U.S. government's actions in response to the crisis in the economy on Al-Jazeera's Riz Khan Show. The complexities created by the precarious economic and financial situation are exacerbated by what is perceived as a "failure of the reigning 'social contract'" between Main Street, Wall Street and the U.S. government. "To put it simply, Main Street was relying on Wall Street to go about its business, with the government perceived as the arbiter and even guarantor of sure returns. Presently, the collapse of this 'contract' is giving rise to calls from different quarters for overhauling the whole system," according to Dr. Mirtchev.

Cooperation to form 'economic pole' among neighbor countries

BRUSSELS - Increasing cooperation between China, Russia and Central Asia is forming a global economic pole and will benefit countries throughout Europe and Asia, said European observers.

They made the comments during Chinese President Hu Jintao's tour of Kazakhstan, Russia and Ukraine, which they said would substantially enhance the three nations' geopolitical and economic ties with China.

"Robust and stable regional cooperation will bring benefits to the rest of the Eurasian countries," David Fouquet, director of the Europe-Asia Network in Brussels, told China Daily.

China and allies back Russia against U.S. missile shield

Russia won the backing of China and other members of a regional security body in criticizing U.S. plans for a missile shield, saying on Wednesday it could undermine global security.

The Shanghai Cooperation Organization (SCO), a security bloc grouping Russia, China and four ex-Soviet Central Asian states, signed a declaration condemning any unilateral build-up of missile defenses after their leaders met in the Kazakh capital.

Opportunities for Africa from the global economic crisis

The recent global economic crisis has provided us in Africa with an opportunity to review how we do business and think about the future, a future that needs to be grounded in fairness, integrity and sustainable development as opposed to greed and cronyism that has all too often been the case in the past. I believe that a key factor for the future will be the role played by the private sector on the one hand and how Governments set the playing field for investment on the other. This latter point requires strong political leadership.

Infosecurity Experts Unite to Create Global Cyber Security Research Agenda

The information security industry has often been criticised for its reluctance to unite and work together. At the inaugural World Cyber Security Technology Research Summit, held at Queen's Centre for Secure Information Technologies (CSIT) in Belfast in March, however, this is exactly what many cybersecurity experts did.

Cyber security experts and government policy makers from around the world gathered at Queen's University Belfast to develop and agree the first ever collective global technology research strategy to counter cyber terrorism.

Asia talks up super ambitions

A LEADING Asian official has talked up the region's future but admitted there are big, hurdles to overcome.

Indonesia's President Susilo Bambang Yudhoyono said Asia could be "the continent of the future" but must first confront the challenges of rising demand for food, energy and water.

Speaking at the start of a two-day World Economic Forum on East Asia, an event drawing political leaders and industry chiefs from across the region, Yudhoyono said Asia's growth will put it at the heart of the global economy.

Destruction of U.S. Manufacturing: The Unusual Suspects (Guest Post)

By Andrew Butter

If you want to know the real “culprits”, have a look at this chart:


The blue line is US Employment in Manufacturing (from the St Louis Fed), the purple line is the cumulative amount of money that Americans (mainly US Corporations) invested in projects outside of USA, instead of inside USA; (from the BEA time series on International Transactions Line 51).

Chile Stocks Close Lower On Global Economic Health Jitters

SANTIAGO (Dow Jones)--Chile's blue-chip Ipsa index ended lower Friday, tracking slumping U.S. markets as worries about global economic health returned to the forefront.

The Ipsa closed 0.5% lower at 4737.51 points, while market volume decreased to 137.5 billion Chilean pesos ($294.0 million) from CLP145.8 billion in the prior session.

Trading in financial services group Grupo Security (SECURITY.SN) accounted for 30% of volume after the company sold 181.1 million shares and raised $842 million through a capital increase.

Are we prepared for a multipolar economy?

WASHINGTON — At a time when the global economy is suffering from a crisis of confidence, structural imbalances, and subdued growth prospects, looking ahead 10 years to predict the course of development requires careful modeling and something beyond sagacity. What is needed is a multifaceted approach that combines a sense of history with careful analysis of current forces such as the shift in the balance of global growth toward the emerging world.

Fact Sheet: U.S.-German Global Economic and Development Cooperation

The United States and Germany share global economic goals, from addressing financial reforms to development and food needs worldwide. Reinforced through strong bilateral economic and political ties, we also cooperate in fora such as the U.S.-EU Transatlantic Economic Council, the G-8 and G-20. We work together to advance energy security and efficiency and to address environmental concerns while promoting policy measures to benefit emerging economies and sustainable practices worldwide. The United States and Germany look to increase bilateral cooperation through:

UN Secretary-General Ban announces to seek second term

UNITED NATIONS (BNO NEWS) -- United Nations Secretary-General Ban Ki-moon on Monday announced his intention to run for a second term as UN chief and said he would be "deeply honored."

"It has been an enormous privilege to lead this great Organization. If supported by the Member States, I would be deeply honored to serve once more," said the UN Secretary-General

Is this the Asian century?

Last month, the Asian Development Bank (ADB) released a report in its annual meeting held in Vietnam entitled "Asia 2050 -- realising the Asian century." In a breath-taking sweep of economic trends and visions it describes two possible scenarios -- first an "Asian century," which is expected, and the other a "Middle income trap."

ADB prognosticates that Asia's rise this century would be led by seven countries. They are India, China, Indonesia, Japan, Korea, Malaysia and Thailand. In 2010, these seven economies had a total population of 3.1 billion (78% of Asia) and a GDP of $14.2 trillion. But by 2050, these seven economies alone will account for 45% of the global GDP.

The Greatest Depression Has Only Begun

The greatest depression in human history is still in its starting stages. What the media and many officials often refer to as the "hangover" from the global financial crisis is in fact the end of the beginning. Originating in 2008, the global economic crisis took the world by storm: banks collapsed, the "too big to fail" became bigger by consolidating the rest, governments bailed out their financial industries, masses of people lost their jobs, the 'developing' world was plunged into a deep systemic crisis, food prices rose, which in time spurred social unrest; and the Western nations that took on the bad debts of the big banks are on the precipice of a great global debt crisis, originating in Europe, hitting Greece and Spain, but destined to consume the industrialized world itself. Though many claim that we are in a "recovery," things could not be further from the truth.

Russia frets over Eurasian domino theory

By Yong Kwon

Post-Soviet Russia has been consistently perceived as anti-American. Despite several shifts in Moscow's foreign policy during the past two decades, the Kremlin's opposition to North Atlantic Treaty Organization (NATO) operations in former Yugoslav republics, its war with Georgia and the recent protest against military action in Libya have all been attributed to Russia's designs to leverage its influence against the West.

Gates Discusses Bolstering Asian Security

SINGAPORE — Faced with a future of significantly reduced military spending, the United States should pursue a program of “cost effective” cooperation with Asian allies to defend regional security and enhance American interests, Defense Secretary Robert M. Gates said Thursday.

Mr. Gates, who arrived in Singapore on Thursday for an address at an Asian security conference, underscored the vast scope of challenges to regional stability, like natural disasters and an ascendant China.