An alternative approach to analysing the global economy
China as the driver of the global economy
China’s rapid ascension to being the world’s largest manufacturer of goods has handed its economy a vital role in the global economy for the years to come. Together with its rapidly growing middle class and retail market, it is difficult not to see the Chinese economy as the main driving force of global economic activity. > Read more
Is the Dollar about to loose its status as world money?
Perhaps one of the most frequently discussed topics among global investors is the future of the US Dollar as a growing number of signs point to the fading of its hegemony as world money. The US economy is certainly not as strong as it used to be, and as more and more production shifts to the East, the greenback’s relevance in the global economy declines.
Somewhat surprising then is the Dollar’s strength since 2012. It seems to have had more to do with capital flows however, than a substantial revival of US production and exports. What could be argued as the best carry trade ever has seen a marked amount of capital flowing into the US, resulting from the fact that interest rates in Europe and Japan have fallen to zero (or even negative) making comparable rates in the US highly attractive. > Read more