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Shift of the Global Economy

We all are very aware that the global economy is shifting. But in what direction is it shifting and what are the major causes for this movement? It is projected that the BRIC economies (Brazil, Russia, India, and China) will soon overtake the G7 (United States, Canada, Japan, Germany, France, United Kingdom, and Italy). China is leading this charge as it is currently 2/3 the size of the U.S. economy and is…

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According to the CNBC news article, it appears that the world’s two largest economies, the United States and China, are making progress and the result is that both countries markets are showing signs of improvement.  Gao Feng, a ministry spokesperson for China’s Commerce Ministry, said “that both sides had agreed to simultaneously cancel some existing tariffs on another’s goods.” The spokesperson also states that both sides are closer to a “phase one” trade…

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India is ducking out of one of the largest free trade agreements, as it wants to protect its framers and local business. Indian prime minister Narender Modi decided not to sign the agreement on Monday at a summit in Bangkok. As the Indian prime minister is considered about the trade of balance and fairness for the entire country.

India was worried that the entire market would be flourished with Chinese products and agriculture and dairy products from Australia and New Zealand, which…

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China is desperately trying to solve its financial crisis as one of its largest banks was forced to shut down and more and more are needing to be bailed out after years of messy growth. For decades China had been the world's leader in growth, taking over many industries by becoming the top producer in manufacturing goods for people all over the world. Now, it looks like their growth was not sustainable as the country is facing many financial situations as word comes out that top banks were…

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Status of the USMCA

While researching a group project for my economics class, I found a very useful article by Amanda Connolly on the Global News Canada website, with an update on the USMCA agreement that may soon replace the NAFTA agreement. The article is based on an interview summarizing some democratic points of view and how it is believed that democrats in Canada want to pass USMCA, in some part, to show that they can part take in bipartisan agreements.

The USMCA agreement was signed by Mexico, the…

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John Heywood, a very prominent English playwright in the 15th Century once posited that “Rome wasn’t built in a day, but they were laying bricks every hour”. This is the perfect quotation that best describes the current relationship between China and Africa in China’s quest to dominate global trade in recent times. China has now turned its attention to the African continent mainly because according to UNEP (2019),…

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China and the United States have been stuck in a trade feud for 16 months, and no initial deal has been made.

China's trade surplus with the United States in October was $26.42 billion while $25.88 in September. October trade surplus was up a bit based on customs data from Reuters.

In August, China’s exports in U.S. dollars unexpectedly fell by 1% year-over-year, while imports were dropped 5.6% in the same period. That brought its trade surplus to $34.83 billion. China’s exports…

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Globalization and the World Economy

 

Globalization and the World Economy

 What does “globalization” mean?  

The worldwide development toward monetary, financial, trade, and interchanges incorporation.

 Globalization infers the opening of nearby and nationalistic points of view to a more extensive standpoint of an interconnected and reliant world with free move of capital, goods, and services crosswise over national wildernesses. Be that as it…

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How Bad will the Next Recession Be?

We all know another recession is coming eventually. It’s part of the natural business cycle. The real question though, is how bad will the next recession be? Can we expect something as bad as the 2008 recession?

The short answer is most likely not. Overall, the 2008 recession was “generally terrible”. A typical recession will see a 30% drop in the S&P, while the 2008 recession saw around a 50-60% drop. We also saw a huge hit on GDP in 2008, 5.1 percentage points. In the past, we…

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The War that's Benefiting Many

United Nations Stated that India made a smaller but Substantial additional export gain of 755 million to the U.S in the first half of 2019 following trade diversion effects of USA’s tariff war with china.

The trade war between the two economic powers stands at $21 billion for the 1st half of 2019 with countries like Canada, India and south Korea are amongst the most beneficiaries of the trade war.

China has lost approximately $35 billion in exports this year in the…

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As we know the US trade deal with China has affected global trade, while certain economies are being challenged, some economies are reaping the benefits. In recent economic news, China signed a $15 billion contract with France. This contract represents trade deals between the two countries in terms of aeronautics, as well as energy and agriculture; this contract also led to the approval of 20 French companies to export poultry, beef and pork to China. China and France also discussed…

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IMF forecast pointing to recession in 2020

Chief economist of Moody’s Analytics, Mark Zandi, says risk of global recession is awfully high if something doesn’t stick to script. He also mentioned that even if we don’t have a recession over next 12-18 months, we are going to have much weaker economy. His stick to script includes

  1. U.S. President Donald Trump not escalating trade war with China
  2. U.K. finding a…
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Latest Jobs Report

The October jobs report was just released with encouraging statistics. It has been feared that we are entering a recession. In the latest report, unemployment did rise slightly to 3.6% but 128,000 jobs were created. The rise in unemployment was due to new job seekers. I think it's great that people who had left the labor market are not re-entering and looking for jobs. That is a positive for the economy. The United Autoworker strike from GM didn't even have the effect on the jobs report that…

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Artificial Intelligence (AI), this technology is quickly reshaping the economic activity and human behavior. Several estimates suggest that AI could create trillions or tens of thousands of dollars in wealth. Right now with AI, we have a set of partially connected national economies playing a global stage.…

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CT Teacher Pension Crisis

A recent report published by the Yankee Institute for Public Policy, based in Hartford, provides some staggering data about the extent of this issue and the looming crisis it is creating.  Yankee points out that not only are Connecticut tax payers on the hook for higher taxes to fix this mess but the current system does a poor job of helping towns recruit and retain talented teachers and leads to a tremendously inefficient use of public dollars in our education system.…

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Hong Kong has entered a recession in their third quarter for the first time in a decade. Reported on October 31st, their economy shrank 3.2% during the quarter and economists expect it to continue into the New Year. With the continuation of the US-China trade war Hong Kong, being a major trading hub, has suffered greatly. However, political unrest has also played a huge role in their economic decline. Hong Kong has being going through months of anti-government protests resulting…

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Federal Reserve October Decision and inflation!

 

Yesterday, Mr. Jerome powell has announced interest rate cuts, The  Fed cut its Fed funds target rate 25 base points to 1.50% to 1.75%, and gave its point of view about the US economy and expectations, so what is the role of the federal reserve, why this decision has been made, why inflation is main issue to Fed?

The Federal Reserve was founded in 1913, and it is the central bank of the US, the general role of this bank is…

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            According to an article by CNBC, analyst Rohit Kulkarni of MKM Partners has predicted that Amazon will surpass Oracle as the second-biggest enterprise software company. This is expected to happen in the next 12 to 15 months. The article goes on to explain that Amazon Web Services or AWS is more profitable than the company’s core e-commerce business, generating impressive amounts of $2.26 billion in operating income in Q3 and $9 billion in revenue. Moreover, analysts polled by…

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The United States has the most dominant currency in the world. Their status has come under pressure since dominating countries also known as “Major movers,” including China, Russia and the European Union are desperately trying to take over the top-ranking spot to become the most powerful currency.  Korin, the co-director at the energy and security think tank stated, “We don’t know what’s going to come next, but what we do know is that the current situation is unsustainable”( “A 'Growing…

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