The Economist: “The Fed's have-it-both-ways policy”

R.A., regarding Bernanke’s Jackson Hole speech, your column notes that you “found the tone on monetary policy to be confusing and timid.” Expectations now turn to what President Obama will say next week and what the Fed will do (or not do) when they next meet. Uncertainty again prevails.

Alexander Mirtchev

The new EU External Energy Policy: an important move - if it is not too late

 By Alexander Mirtchev

  

With the adoption of its new External Energy Policy, the EU has finally made a first step towards its integration as a single negotiating bloc in the world energy market. As such the External Energy Policy could become an important factor in the global energy security picture and a possible geopolitical game-changer. However, it remains to be seen whether the big EU member states will be willing to subordinate their interests to the wider EU interest. The External Energy Policy has probably come five years too late, argues Alexander Mirtchev, President of Krull Corp. and Vice-President of the Royal United Services Institute for Defence and Security Studies.

Will Financial Regulation Trash Global Economic Securi

Alexander Mirtchev, Contributor

Under the auspices of the Financial Stability Board, more than 30 recommendations have been set out as part of a massive and far-reaching G-20 financial regulatory reform package to ostensibly minimize risk in the financial system and maximize consumer protection.

How the Alternative Energy Megatrend will impact global geopolitical relations

The Greening of Geopolitics

By Dr Alexander Mirtchev

 

The advent of renewable energies is generally regarded from a fairly narrow perspective: whether – and to what extent – they are able to replace fossil fuels and what this would mean for the energy system and the economy. Such a perspective profoundly underestimates the potential consequences of what is in fact a revolutionary global development: a socio-political and techno-economic megatrend that has the ability to become a global societal game-changer, writes Alexander Mirtchev, Vice-President of the Royal United Services Institute for Defence and Security Studies (RUSI). According to Mirtchev, the ‘Alternative Energy Megatrend’ will have far-reaching effects on global geopolitical relations and security concerns – effects that have yet to be fully grasped by most observers. This article is adapted from his upcoming book: “The Alternative Energy Megatrend: A Global Security Discourse in the Universally-Securitized World”.

Gold Prices Struggle to Stay Near $1, 700

Gold prices fell Wednesday on negative economic news from China and Europe plus concerns that the world's No. 1 economy is barely advancing.

The Evolving Nature of Corporate Mergers and Acquisitions in the Wake of the Global Economic Crisis

WASHINGTON (Marketwire) - In an article in Global Finance Magazine Dr. Alexander Mirtchev, economics expert and president of Washington-based Krull Corp., a consultancy with a focus on new economic trends and emerging policy challenges expounds on the signs of revitalization in the international mergers and acquisitions market. He assesses the implications of the resurgence of investment activity and the potential repercussions of the growing trend of investors' "clubbing together" for major acquisition and investment deals.

After the international M&A activities "cratered" in the midst of a global recession, there are finally indications that corporate tie-ups and "teaming-ups" are once again becoming an attractive form of prioritizing investment activity. According to Alexander Mirtchev, "looking towards recovery, joining forces allows investors to achieve better terms and access 'tailor-made' financing tools. This has led to intensifying interest in mergers and acquisitions of a size that until recently appeared unviable due to the impact of the global economic crisis." Despite the fact that global economic recovery is "moderately-paced and uneven," he added, "M&A activity has picked up noticeably, perhaps even beyond the level that is perceived to correspond to the actual state of the global economy."

The rationale for the recent resurgence can be seen not only in efforts to tackle the effects of the crisis, but represent also the "long view" of recovery in the post-crisis period. From Mirtchev's perspective, mergers and acquisitions are not simply driven by the growing perception that asset prices have dropped to a level that makes them attractive. "Rather, a number of major corporate alliances and acquisitions reflect the drive to develop synergies beyond the immediate," he indicates. "Merger and acquisition activity is being driven not just by the growing perception of attractive asset values in the wake of the crisis. Stronger investment interest is also due to the momentum of private equity firms, investment companies and sovereign wealth funds "teaming up" in order to achieve shortcuts to improved market knowledge, better trading terms and increased opportunities for investment with a realistic medium to long-term significance."

According to Mirtchev, "there is, in addition, a view among major investors that combining forces brings new resources to bear to a particular project, as well as enhancing the level of expertise brought to the table. The primary advantage of forming clubs is to spread the risk while increasing potential profits. Meanwhile, the co-financing is welcome at a time when lack of financing is the biggest impediment to dealmaking." Skeptics would suggest that, given uncertain demand, M&A recovery reflects the desire by CEOs to use cash to eliminate their weakened competitors rather that invest in organic growth and innovation. From Mirtchev's vantage point, this is a sign of maturity by investment companies and funds, which are now interested not only in short-term gains or in "glamour investments", but are more focused on the results in the long-run.
Moreover, a number of investors are showing greater willingness to join forces, in order to pool their exposure to risk, generate additional opportunities and multiply the effect of their resources. "The increased willingness of investors to share the benefits from an acquisition in order to introduce elements of comparatively independent supplementary financing mechanisms in their transactions is another sign of their growing acumen," posits Dr. Mirtchev. "These signs of maturity reinforce the legitimacy of mergers and acquisitions, and provide an added level of liquidity to a system that is still struggling to cope with the effects of the global financial and economic crisis."

About Krull Corporation

Washington, D.C.-based Krull Corp. was founded in 1992 with a mission to address new economic trends, relevant business strategies, and economic and political risk mitigation.
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