Feb 20, 2013 08:59 UTC

China’s next debt crisis will be a local affair

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By John Foley

(The author is a Reuters Breakingviews columnist. The opinions expressed are his own)

China’s next credit crisis may be a local affair. A recent suggestion of setting up local bailout funds reflects the fact that it’s no longer big banks that present the biggest risks, but towns and regions. The elaborate ties between local borrowers, lenders and governments could make future credit problems both chaotic – and concentrated.

COMMENT

China is riding a wave that when it breaks will be far worse than what happened to the United States which leads me to wonder how it will ripple like be for us? They hold some heavy credit on us from what limited knowledge that I have? Thank you.

Posted by vtyankee14 | Report as abusive
Feb 15, 2013 08:00 UTC

Review: The real story of Bo Xilai’s ruin

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By Peter Thal Larsen

(The author is a Reuters Breakingviews columnist. The opinions expressed are his own)

Sometime in the next few months, Bo Xilai is expected to stand trial in the most high-profile political prosecution in China for over three decades. The former Chongqing party chief, once a contender to join the inner core of China’s leadership, stands accused of corruption, abuse of power and – more prosaically – “improper sexual relations” with women.

Feb 14, 2013 07:45 UTC

Next BOJ chief should accept monetisation

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By Andy Mukherjee

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

The Bank of Japan has a morbid fear of directly financing fiscal deficits. But this “no monetisation” creed sits ill with the $1 trillion or so of public debt – roughly a fifth of the Japanese GDP and about 14 percent of the net outstanding public debt – which it has already turned into money. The next BOJ governor, who will take over when the incumbent Masaaki Shirakawa steps down on March 19, should be more realistic.

Feb 12, 2013 12:02 UTC

Interview questions for the new BOJ chief

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By Andy Mukherjee

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Japanese Prime Minister Shinzo Abe’s war on deflation will soon have a new general. A hard-charging Bank of Japan governor with strong conviction and oodles of savvy could help bring Abe’s plan to fruition.

Feb 6, 2013 07:42 UTC

Dividend reform won’t fix China SOE money-go-round

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By John Foley

(The author is a Reuters Breakingviews columnist. The opinions expressed are his own)

China’s elaborate money-go-round starts and ends with its cash-hoarding state-owned enterprises. So a plan to make them pay bigger dividends sounds promising. Still, if the goal is to return cash to the people, there is a long way to go.

Jan 30, 2013 09:32 UTC

Singapore’s demographic engineering on right track

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By Andy Mukherjee

The author is a Reuters Breakingviews columnist.  The opinions expressed are his own.

Singapore’s audacious proposal to squeeze 30 percent more residents on a tiny island between now and 2030 is fraught with political risks for the ruling party. Voters won’t like it. But it’s prudent economics.

Jan 29, 2013 08:53 UTC

Rate cuts won’t revive India’s stalled growth

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(The author is a Reuters Breakingviews columnist. The opinions expressed are his own)

By Andy Mukherjee

India’s latest interest rate cut won’t revive growth. The central bank’s quarter-percentage point reduction in the policy rate, to 7.75 percent, is just as futile as the last one almost a year ago. GDP will pick up when New Delhi curbs its own profligacy and improves the investment climate. The February budget may be the current government’s last chance to do both.

Jan 24, 2013 08:47 UTC

South Korea may need a rate cut to fight weak yen

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By Andy Mukherjee

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Japan’s weak yen policy could be South Korea’s biggest economic enemy this year. The strengthening won, which has risen 23 percent against the yen in the past six months, was partly to blame for the country’s anaemic GDP growth in the fourth quarter. It’s also putting the squeeze on manufacturers like Hyundai. Lower interest rates could help to ease the pressure.

Jan 23, 2013 13:22 UTC
Edward Hadas

Cameron bets big on confused European ideas

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By Edward Hadas

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

David Cameron is loyal to a European Union. Sadly, it is not the EU that happens to exist, or is likely to exist any time soon. The British prime minister tried to outline his position in a speech on Wednesday, which culminated with the promise of a UK referendum on membership some years from now. Yet his dreaming is confused and counterproductive.

COMMENT

Some of us care as much about democracy as economic efficiency.

Not a very popular idea for M. Hadas. Very poor article.

Posted by TheSweeperUp | Report as abusive
Jan 22, 2013 09:09 UTC

BOJ must now make its bold inflation goal credible

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By Andy Mukherjee

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

After more than a decade of feigning helplessness against falling prices, the Bank of Japan has finally signed up for combat duty.