Insight and investigations from our expert reporters
Here’s what Nick Carey had to say today about his special report “Stuck between the Tea Party and a hard place.”
Not long after the battle over the 2011 fiscal budget in Washington ended in mid-April, I received a few emails from Tea Party groups expressing frustration with the apparent failure by the Republican Party establishment to follow through on promises that they would cut spending in that budget by $100 billion.
Check out two special reports out of Tokyo today.
Here’s how one expert sums up the situation:
“They might have been prepared for an earthquake. They might have been prepared for a tsunami. They might have been prepared for a nuclear emergency, but it was unlikely that they were prepared for all three,” said Ellen Vancko, an electric power expert with the Union of Concerned Scientists.
Worrying about the power China has over the U.S. as America’s largest foreign creditor has become a national pastime. It’s a bipartisan issue in Congress and a favorite subject among pundits lamenting the decline in U.S. influence around the world. But could China really use its Treasury purchases to shape U.S. policy? Diplomatic cables released by WikiLeaks and obtained by Reuters suggest that has already happened.
Emily Flitter’s special report outlines a diplomatic flare-up between the two superpowers following the U.S. financial crisis. Chinese officials said they were worried about the safety of their U.S. investments. U.S. diplomats worked hard to ease the tensions, but the conflict ultimately led to the request of a personal favor by a top Chinese money manager in a meeting with U.S. Treasury Secretary Timothy Geithner.
We went behind the scenes of Dubai’s debt debacle last November and found a much more sober city-state starting to rebuild itself from the $59 billion hole that was dug by the whizz kids who had powered its transformation. Loans don’t come as easy — particularly the nod and the wink of association with the royal family isn’t cutting it like it used to.
Some people see a connection between the crisis and the fact that Dubai has also started to tighten up on its trade with Iran, in line with broader international sanctions, but we’re not so sure about that.