The US government shutdown is over, but the question of how a wall between the US and Mexico will be funded is unresolved. The threat, or lack of a threat posed by immigrants at the southern border, is a litmus test for US politicians. AMLO, Mexico’s new leader, could achieve what no one has before in terms of eliminating violence and corruption, or he could make things much, much worse and turn his country into the next Venezuela.
The Healthcare Affordability Index shows how the rising costs of healthcare insurance, both for companies and employees, stagnate wages.
As the crisis in Venezuela has deepened over the past week, a mysterious transformation has occurred. What started out as U.S. diplomatic support for the new, constitutionally legitimate government of Juan Guaidó has come to be treated in the international media as a possible U.S. military intervention.
The biggest economic conference of the season, the World Economic Forum, has just wrapped up in Davos. Most of the sessions are now available as they happen, and with the snow piled high here in Chicago, watching them online almost seemed like being there. I’ve included links to some of the best discussions and interviews you might enjoy on this even colder weekend.
This morning, the Wall Street Journal issued a "bombshell" report about changes to the Fed's plans to "normalize" its balance sheet. The story, FMI contends, delivered far less than it promised.
The WSJ reported, in an overwrought and very run-on opening sentence, that “Federal Reserve officials are close to deciding they will maintain a larger portfolio of Treasury securities than they’d expected when they began shrinking those holdings two years ago, putting an end to the central bank’s portfolio wind-down closer into sight.”
I am sharing my new work on the struggle between the de facto government of Nicholas Maduro in Venezuela, and the National Assembly, just recognized by U.S. Secretary of State Mike Pompeo as the country's legitimate (de jure) government.
This report originally appeared at CSIS' Web site.
President Xi will not attend the World Economic Forum’s bash in Davos this year. Two years ago, Xi presented his globalist views as the counterpart to the newly elected President Trump’s populist/protectionist rhetoric. This year, China will be represented by Vice President Wang QiShan, who is expected to face a tougher crowd. In the past year, President Xi and the Chinese leadership have faced new challenges despite an unprecedented consolidation of power since the end of the Maoist era.
The government shutdown has produced a serious economic threat that’s hiding in plain sight: The people who collect, analyze and release all the basic data tracking the path of the economy and its principal aspects are on furlough. So, the shutdown has forced thousands of companies and financial institutions and millions of investors to rely on guesswork instead of data, and each week the problem grows worse.
Predicting the future is notoriously difficult, but that doesn’t stop the flurry of prognostications every January. We’ve gathered a selection of 2019 forecasts, including some predicting low probability events, because just imagining the unlikely can reveal horizons sometimes obstructed by conventional wisdom.
Like previous “year ahead” reviews I have published on EconVue, this is not intended as a prediction of how events will necessarily unfold in real life. Instead, as always my intent is above all to consider the main risks to the stability to the international political and economic environment in various regions of the world that I am relatively familiar with.