Global Economics Archives

U.S. Massive Deficits Pose ‘Significant Risk’ for the Global Economy

19Apr

By Patti MohrNo Comments

Finance, Currency, Debt, National Budgets & Interest Rates, Global Economics, Types of News: Brief

U.S. Massive Deficits Pose ‘Significant Risk’ for the Global Economy

IMF Warns the United States and China about Massive Deficits April 19, 2024--Even though consumer prices are coming down, high interest rates due to U.S. and China's deficits pose significant costs to other countries and carry a risk to global financial stability, the International Monetary Fund warned this week. "Loose fiscal policy in the United States exerts upward pressure on global interest rates and the dollar. It pushes up funding costs in the rest of the world, thereby exacerbating existing fragilities and risks," said Vitor Gaspar, IMF director of fiscal affairs. Rising Debt Poses Costs By the end of the decade, global debt is likely to reach 99 percent of global GDP. The rising debt levels are increasing "volatility in the United States, raising risks elsewhere thr...

Terror Financing: Where Does Hamas Get Its Money

16Oct

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Corruption, Bribes, Illicit Finance & Money Laundering, Finance, Banks, Cryptocurrency, Metals, Foreign Aid, International Development, Types of News: Brief

Terror Financing: Where Does Hamas Get Its Money

October 16, 2023—Since 2007, Israel has imposed an air, land, and sea blockade of the Gaza Strip. But that hasn't stopped the Hamas from getting access to hundreds of millions of dollars. The terrorist organization and governing body of Gaza has access to a global financing network connected with countries, businesses, and charities, according to reporting by Reuters. Now, in the aftermath of the Hamas attack on Israel, those lines of finance will come under greater scrutiny by governments, international organizations, and banks. Crypto, Credit, and Trade Reuters reported that Hamas receives support from Iran and Qatar as well as charities. Furthermore, it exchanges money with cryptocurrencies, credit cards, and trade deals to avoid international restrictions. Earlier this y...

U.S. Government Sues Amazon.com In Massive Lawsuit

26Sep

By Patti MohrNo Comments

Big Tech, Digital Economy, Types of News: Brief

U.S. Government Sues Amazon.com In Massive Lawsuit

FTC Says Firm Uses 'Illegal Monopoly' Practices To Inflate Prices, Cheapen Products And Stifle Innovation Amazon.com corporate headquarters in Seattle, Washington. September 26, 2023—The U.S. government came out swinging hard today against one of the world's largest tech companies. In a lawsuit filed today, the Federal Trade Commission and 17 state attorney generals accuse Amazon.com ofusing illegal strategies to "inflate prices, degrade quality, and stifle innovation for consumers and businesses." Massive Lawsuit It's an extensive lawsuit in its scope of accusations of monopolistic power. "With its amassed power across both the online superstore market and online marketplace services market, Amazon extracts enormous monopoly rents from everyone within its reach," the FTC s...

In the U.S., One Strike Ends As Another Grows Bigger

25Sep

By Patti MohrNo Comments

Capitalism, Types of News: Analysis, United States

In the U.S., One Strike Ends As Another Grows Bigger

Auto Strike Has Political And Economic Consequences Auto workers strike outside Ford plant in Michigan. EDITORS NOTE: Workers' rights is part of an analysis of economic empowerment. Update: Both strikes ended up in deals with management. Automakers Ford, Stellantis, and GM provided up to 25 percent pay raises over four and a half years, reinstatement of cost-of-living adjustments, and elimination of some tiered wage. The Writers Guild of America secured historic protections from AI including protections against the use of AI in scriptwriting. September 25, 2023—As one major labor union strike in the United States ends, another one is getting bigger. U.S. politicians gearing up for the 2024 election are taking notice. Both strikes are taking place as industries undergo technolog...

U.S. And China Establish Economic ‘Working Groups’

22Sep

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Global Economics, Globalization, Disintegration, Nationalism, Populism

U.S. And China Establish Economic ‘Working Groups’

Deputy Treasury Secretary Adeyemo Likely To Lead Talks For U.S. Interests September 22, 2023—The United States and China are establishing "structured channels for frank and substantive discussions on economic and financial policy matters," according to the U.S. Treasury Department. The department released a statement today saying it is establishing working groups with China's Ministry of Finance and the People's Bank of China to exchange information on a regular basis. The communication channels follow a series of diplomatic meetings between the two countries, the largest economies in the world. Deputy Treasury Secretary Wally Adeyemo is likely to lead both working groups for the United States. For China, the talks will take place at the vice minister level.

13Sep

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Global Economics

Big Banks See Slower Growth In China

September 13, 2023— China is estimating its economic growth to average 5 percent this year. However, even that modest forecast might be rosy. Six international banks, including JP Morgan, Barclays, and UBS, have downgraded their economic forecasts for China in light of the country's falling exports and persistent problems in the real estate sector, according to reporting by the South China Morning Post. Estimates for annual GDP from financial institutions range from 4.2 percent to 4.8 percent. SCMP's Ralph Jennings suggests China's economic problems could have global ripple effects for businesses, particularly for developing countries that rely on trade with China. The news comes at a time when economists are warning about stability in the global economy.

Watchdog Warns About Global Economy Ahead Of G20

5Sep

By Patti MohrNo Comments

Finance, Banks, Cryptocurrency, Metals, Global Economics, Types of News: Brief

Watchdog Warns About Global Economy Ahead Of G20

Historically High Debt Beginning To Feel Credit Crunch From Higher Interest Rates September 5, 2023—As world leaders travel to New Delhi, India for the G20 Summit, the head of an international body monitoring global finance issued a stark warning about debt and stability. In short, interest rate hikes since March 2022 are beginning to impact markets, according to Klaas Knot, a Dutch economist and chair of the Financial Stability Board. 'Historically High Debt' Writing on behalf of the board, Knot warned that a combination of factors could "impair the capacity of borrowers to service the historically high stock of outstanding global debt." Those factors include high global debt, interest rate hikes, persistent inflation, tighter financial markets, and a slowing economy, acc...

Despite High Interest Rates, U.S. Housing Sector Sees An Usual Rise

17Aug

By Patti MohrNo Comments

Global Economics, Types of News: Brief

Despite High Interest Rates, U.S. Housing Sector Sees An Usual Rise

Housing Costs Squeeze Buyers August 17, 2023--Even as mortgage rates in the United States hover at a 22-year high, the housing sector continues to defy logic by rising in price. In fact, increasing costs of shelter in the United States were "by far the largest contributor" to the inflation rate, according to the latest CPI report. The cost of housing rose by an annualized rate of 7.7 percent last month. Meanwhile, the overall inflation rate stood at 3.2 percent. The unusual resilience to rate increases by the Federal Reserve has led Goldman Sachs to revise its prediction for the sector from a drop of 2.2 percent to a rise of 1.8 percent, several news outlets including Axios reported. An 'Aberration' of Trends The investment firm described the unusual occurrence as "unsustainab...

Tax Prep Software Shared Data With Big Tech

2Aug

By Patti MohrNo Comments

Big Tech, Digital Economy, Types of News: Brief

Tax Prep Software Shared Data With Big Tech

Meta Pixel Collects Massive Amounts Of Information August 2, 2023—Several tax-preparation companies used a computer code known as pixels to share millions of data about users with Meta and Google, according to a congressional investigation. The companies TaxAct, TaxSlayer, and H&R Block confirmed to Senate investigators that they used Meta Pixel on their websites and a similar code for Google Analytics. The Meta Pixel is a piece of code used to track website visitors and their actions offsite. According to Meta, the parent company of Facebook, it is used for advertising and ad-targeting purposes. But the congressional report reveals that pixels contain "massive amounts of user data." Data Shared The report indicates that taxpayers who used the company websites to file th...

Global Housing Prices See Both Modest Dips And Gains In 2023

25Jul

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Global Economics

Global Housing Prices See Both Modest Dips And Gains In 2023

July 25, 2023—With some exceptions, the prices of housing have dipped modestly in 2023 in response to higher interest rates, according to Fitch Ratings. In its midyear report, Fitch found that nominal housing prices reacted to rising interest rates with slight drops in prices in most countries under its radar. The exceptions were Australia, Denmark, Japan, Italy, Colombia, Mexico, and Spain, where prices rose. Factors that are impacting prices include inventory, wages, labor markets, government support for homebuyers, building costs, as well as interest rates.