No one has perfected the veiled threat as well as Larry Summers, president Obama’s chief economic adviser. It was on fine display at the World Economic Forum on Saturday.
He was speaking on the main economy panel with Zhu Min, deputy governor of the People’s Bank of China, so it was a great cast list. Mr Zhu’s contribution was to say how he recognised China couldn’t rely on the US consumer for growth in the future, understood there was excess capacity in certain Chinese heavy industries and vowed policy was to make structural changes so that demand would re-balance away from exports and towards consumption. Read more
Ok, so we’ve all known for some time US states have been suffering through the downturn. But take a look at this chart just released by JPMorgan economic research.
Surprisingly, it was Greece’s George Papandreou, and not the Governator, threatening to “draw blood” if necessary to implement an economic stability plan.
Shame. It would have been an apt comment from Arnold Schwarzenegger, who was elected in 2003 after his predecessor Grey Davis, became wildly unpopular after failing to fix the state’s deteriorating finances (a feat which has also, clearly, eluded Mr Schwarzenegger). Read more
After weeks of acrimonious fighting, Martín Redrado, the central bank president who President Cristina Fernández has been attempting to fire , accepted defeat.
Some background for those who haven’t been following the saga:
The dispute started last month, when Mr Redrado refused to hand over $6.5bn to help pay off government debt after an emergency decree from Ms Fernández. Mr Redrado argued that the move could leave the central bank open to suits from bondholders who are still trying to get paid back after Argentina’s $100bn default.
So, earlier this month, Ms Fernandez released another emergency decree: this time sacking Mr Redrado.
Problem was, Mr Redrado won’t comply with that decree either. Read more