Imad Naffa Twitter tweets related to: Solar, Stunner, Exports, Products, Energy and more. News and views on emerging markets from the Financial Times. The emerging markets hub News and comment from more than 40 emerging economies, headed by Brazil, Russia, India and China.
Sign up for our morning news, opinion and markets data round up from the FT and around the web. We have two emails per day - London and New York morning espresso (sent at approx 6am and 11am GMT). Pretty much everything you need to know about beyondbrics is in our About this site page. But briefly: To comment, please register for free with FT.com and read our policy on submitting comments. There is an overall beyondbrics RSS feed, as well as feeds for all our countries, tags and authors. All posts are published in UK time. Get in touch with us - your comments, advice and even complaints. See the full list of FT blogs. Why The President Doesn't Present A Bold Plan To Create Jobs And Jumpstart The Economy. Americans are deeply confused about why the economy is so bad – and their President isn’t telling them.
In fact, the White House apparently has decided to join with Republicans and blame it on the long-term budget deficit. Before I turn to the President, though, let’s be clear: The lousy economy is due to insufficient demand. Consumers – who are 70 percent of the economy — can’t and won’t buy because they’re running out of cash. They can’t borrow against homes that are worth a third less than they were five years ago, and most consumers are bad credit risks anyway because they’re losing their jobs and their wages are dropping. They also have to start saving for the kids’ college or for retirement, which will cut their spending even more. Without enough consumers, businesses won’t hire enough people and pay them enough to reverse the vicious cycle. So we need another – a bold jobs plan. Which gets me to the President. When I first heard this I didn’t want to believe it. Are China and US Destined to Clash? August 1 is Army Day in China.
Recent improvements in Sino-US military ties are welcome, but conflicting interests mean tensions might still be inevitable. In a recent piece in the New York Times, Mike Mullen, Chairman of the US Joint Chiefs of Staff, stressed the importance of improving Sino-US military relations. Mullen acknowledged that PLA-Pentagon ties have frequently been characterized by ‘misunderstanding and suspicion,’ and complained that Beijing continues to employ bilateral defence ties as ‘a sort of thermostat to communicate displeasure. When they don’t like something we do, they cut off ties. That can’t be the model anymore.’ Actually, curtailing military exchanges has been a favoured diplomatic mechanism for Beijing and Washington to signal displeasure with a particular development in the overall relationship. But the United States has also disrupted bilateral military exchanges with China.
To help this along, Mullen invited Gen. How the deficit got so big. The US continues to rack up more and more debt, with a deficit in the trillions.
But how did we get here? Teresa Tritch for The New York Times examines: In 2001, President George W. Bush inherited a surplus, with projections by the Congressional Budget Office for ever-increasing surpluses, assuming continuation of the good economy and President Bill Clinton’s policies. But every year starting in 2002, the budget fell into deficit. Predicting the future is a tricky game. A Tale Of Two Countries: The Growing Divide Between Silicon Valley And Unemployed America. Editor’s note: Guest contributor Jon Bischke is a founder of RG Labs and an advisor to Altius Education, Fatminds and Udemy. You can follow him @jonbischke.
It was the best of times. It was the worst of times. -Charles Dickens from A Tale of Two Cities For people who spend most of their days within a few blocks of tech start-up epicenters such as South Park in San Francisco, University Avenue in Palo Alto or the Flatiron district in New York, last week’s jobs report must have created some cognitive dissonance. The number of unemployed now eclipses 14 million nationwide. Which bring us to an important question: Should Silicon Valley (and other tech clusters throughout the country) care? On one hand, a thriving tech sector is a beacon of hope for America and perhaps one of a shrinking number of things keeping the country from slipping from its perch as the world’s foremost economic superpower. In addition, a host of technology companies enable people around the country to make money.