EconVue Editor-in-Chief Lyric Hughes Hale interviews Michael Lewis of Free Market Inc. on his views on employment, the Federal Reserve, and the growth of the US economy. Recorded on April 5, 2019
By SUN Xi and Herta Monica Montesino Cucos
“The China-US relationship can never be too good or too bad” or so believed Deng Xiaoping, the chief architect of modern China. Today, however, there are new views according to which the China-US relationship will never return to how it was in the past, and that it cannot avoid the “Thucydides trap.” It is arguable whether China and the United States have started a “new Cold War,” but the trade and technology war is clearly already going on.
“For the great enemy of truth is very often not the lie—deliberate, contrived, and dishonest—but the myth— persistent, persuasive, and unrealistic. Too often we hold fast to clichés of our forebears. We subject all facts to a prefabricated set of interpretations. We enjoy the comfort of opinion without the discomfort of thought.” John F. Kennedy, Yale University Commencement Address June 11, 1962
The latest quarterly report by the Bank for International Settlements (BIS) underlines the change in the relationship between the major central banks and financial markets. Claude Borrio, the BIS’s Chief Economist, describes the “extraordinarily tight” relationship between central banks and financial markets in the aftermath of the financial crisis and recession of 2008. Thus, the financial markets scrutinize the central banks for cues, while at the same time relying on central bank “puts” for comfort.
This morning’s very upbeat February Existing Home Sales report. Also this morning, wholesale book-value inventories jumped +1.2% in January; the consensus had expected only a modest gain. However, international data was more worrisome with Germany’s Markit PMI falling further into the red, down -3 points to 44 in March (50 is break-even).
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I am sharing my newly published article that explicitly examines the contribution of the US military to strategic objectives in Latin America through security assistance and security sector assistance, as part of whole-of-government efforts to build relationships and strengthen governance in the region.