Daily Archives: November 14, 2013

President Barack Obama’s nominee for Federal Reserve chair appeared before the Senate banking committee on Thursday. She mounted a vigorous defence of the Federal Reserve’s quantitative easing policy as she faced lawmakers in her first big test of political and communications skills.

Gina Chon and Shannon Bond reported from New York with James Politi in Washington.

 

By Luisa Frey
Deflation is threatening Spain, which just emerged from recession– falling prices result in higher real value of debt, making families’ and businesses’ lives harder.
♦ In China, reforms announced by the Communist party are compared to “small repairs on an old road”.
♦ The New York Times revealed that JPMorgan Chase hired a consulting firm run by the daughter of Wen Jiabao, the former Chinese prime Minister and US authorities are scrutinising these ties as part of a wider bribery investigation.
♦ The New York Times also writes in its blog Sinosphere about a code used by Bloomberg to keep articles away from the eyes of powerful people in China.
♦ Since its independence, almost every political transition in the Central African Republic has come along with violence. The current conflict is no exception with the country risking genocide, writes Peter Bouckaert, emergencies director at Human Rights Watch. Read more

Gideon Rachman

Most of the interest in the outcome of the Communist Party plenum in Beijing has focused on the economic decisions. But the Chinese government also announced that it plans to set up a National Security Council – which has obvious echoes of the White House decision-making apparatus.

The Chinese are not alone in making this move. Japan is also in the process of setting up a new National Security Council, which is meant to be operational by the end of the year. Some might find it a little ominous that at a time when Sino-Japanese tensions are so high, both countries are revamping their national security structures. But it could also be that the Chinese and Japanese are simply following foreign-policy fashion in the West. National Security Councils are all the rage. Britain set up an NSC in 2010, allowing the prime minister to chair regular meetings of all the senior ministers and officials dealing with security issues: foreign affairs, defence, intelligence and so on. Read more

China’s third plenum could lead to far-reaching reforms
Xi Jinping was appointed Chinese president just over a year ago and promised to shake up China’s economy. Now Mr Xi’s agenda for the next decade has become a little clearer with the conclusion of a party plenum in Beijing on Tuesday. In a statement the ruling Communist party pledged to implement wide-ranging economic reforms, with a greater role for market forces. In this week’s podcast Gideon Rachman is joined by Tom Mitchell, Beijing correspondent and James Kynge, editor of China Confidential to discuss whether this is a pivotal moment for the world’s second largest economy.