Relevant and even prescient commentary on news, politics and the economy.

A little perspective on the impact that a weaker USD will have on overall economic activity

The Japanese yen, the Eurozone euro, and the British pound have appreciated 16%, 14%, and 9%, against the USD, respectively, since their 2010 lows. Some say that the “US wins” since the Fed’s quantitative easing (QE2) will drive export growth via a weaker dollar. (Note that the Fed has not actually announced QE2, this is […]

…and thereby improving our exports.

by Stormylifted from an e-mail –and thereby improving our exports. Some background: Presently, Colombia enjoys a healthy trade surplus with the U.S. “Colombia’s biggest surpluses in the January-April period were with the U.S., at $2.325 billion, and with the Netherlands, at $425 million.” Colombia also is actively promoting its sourcing capabilities: “Colombia’s IT sector already […]

It’s not hard to understand why Asia’s worried about Europe

On the forefront of the Chinese economic releases this week was the trade data, where headlines shouted +48.5% Y/Y export growth in May. This report didn’t go unnoticed in Washington, as renewed obsessions with the Chinese peg against the US dollar fired up again. But the Chinese release overshadowed the Philippines April trade report, which […]

Are exporters in Asia real-ly losing their competitive edges?

by Rebecca Central banks across Asia are concerned and actively engaged in some kind of currency manipulation – direct intervention, quasi-capital controls, and/or public speech (I will refer to this later, but RGE published a great article to the fact) – as investors flock to global capital markets seeking the “risk-on” trade. Central banks are […]