Archive for September, 2016

UK Only Article: 
standard article

Issue: 

An open and shut case

Fly Title: 

The world economy

Print section

Main image: 

20161001_SRD001_0.jpg

Rubric: 

The consensus in favour of open economies is cracking, says John O’Sullivan. Is globalisation no longer a good thing?

THERE IS NOTHING dark, still less satanic, about the Revolution Mill in Greensboro, North Carolina. The tall yellow-brick chimney stack, with red bricks spelling “Revolution” down its length, was built a few years after the mill was established in 1900. It was a booming time for local enterprise. America’s cotton industry was moving south from New England to take advantage of lower wages. The number of mills in the South more than doubled between 1890 and 1900, to 542. By 1938 Revolution Mill was the world’s largest factory exclusively making flannel, producing 50m yards of cloth a year.
The main mill building still has the springy hardwood floors and original wooden joists installed in its heyday, but no clacking of looms has …

via Economic Crisis http://ift.tt/2ddJR6U

Advertisements

UK Only Article: 
standard article

Issue: 

The low-rate world

Fly Title: 

The fall in interest rates

Print section

Main image: 

20160924_FBD001_0.jpg

Rubric: 

Interest rates are persistently low. In our first article we ask who or what is to blame. In the second we look at one outcome: a looming pensions crisis

THE story of rich-world central banks and their protracted entanglement with near-zero interest rates was given another twist this week. One of their number gamely announced it still hoped for a more distant relationship, even if it couldn’t bring itself to turn its back on them yet. Another renewed its vows to stick with them.
On September 21st the Federal Reserve kept its target for overnight interest rates at 0.25-0.5% but indicated that, after raising the target for the first time in a decade last year, it hoped to raise it for a second time soon—possibly in December, after America’s presidential elections. Its rate-setting committee said the case for an increase had “strengthened” …

via Economic Crisis http://ift.tt/2d3wGpj

UK Only Article: 
standard article

Issue: 

The low-rate world

Fly Title: 

The global economy

Print section

Main image: 

20160924_LDD001_0.jpg

Rubric: 

Central banks have been doing their best to pep up demand. Now they need help

THEY do not naturally crave the limelight. But for the past decade the attention on central bankers has been unblinking—and increasingly hostile. During the financial crisis the Federal Reserve and other central banks were hailed for their actions: by slashing rates and printing money to buy bonds, they stopped a shock from becoming a depression. Now their signature policy, of keeping interest rates low or even negative, is at the centre of the biggest macroeconomic debate in a generation.
The central bankers say that ultra-loose monetary policy remains essential to prop up still-weak economies and hit their inflation targets. The Bank of Japan (BoJ) this week promised to keep ten-year government bond yields around zero. On September 21st the Federal Reserve put off a …

via Economic Crisis http://ift.tt/2dcXeaN

For the first time since 2007, U.S. household income rose last year. And, according to the Census Bureau, that helped push down the number of people living in poverty to 53 million.

via Economy : NPR http://ift.tt/2cqHJcj

Median household incomes have increased for the first time since 2007 — rising by 5.2 percent. The poverty rate has declined, and more people have health insurance, the Census Bureau says.

via Economy : NPR http://ift.tt/2cl5fFB

UK Only Article: 
standard article

Issue: 

Art of the lie

Fly Title: 

The G20 and the world economy

Location: 

HANGZHOU

Print section

Main image: 

Great show, shame about the substance

Rubric: 

The global economy has many ailments and few easy remedies

Great show, shame about the substance

AT ITS first leaders’ summit, the Group of 20’s raison d’être was clear. Held shortly after the collapse of Lehman Brothers in late 2008, the forum of big economies reassured a worried world simply by putting on a show of unity. But as the worst ravages of the financial crisis have faded, the G20 has struggled to find the same sense of purpose. This year’s summit in Hangzhou, in eastern China, which ended on September 5th, pulled leaders’ attention in many different directions.
It was preceded by another display of co-operation: America and China ratified the Paris climate-change agreement. Then work began on a long list of problems, including …

via Economic Crisis http://ift.tt/2cnqx8C

UK Only Article: 
standard article

Issue: 

Art of the lie

Fly Title: 

On housing, wild horses, Scotland, child sex abuse, longevity

Print section

Expand homeownership

You argued that America has in effect nationalised its housing market (“Comradely capitalism”, August 20th). But the government has been supporting home financing and incentives for the past 80 years, whether through the mortgage-interest deduction or programmes that ensure affordable mortgage capital. Washington’s inability to press forward with reform has caused uncertainty and restricted credit for homebuyers. People are confident that if they qualify for a mortgage a bank will lend them the money. The Federal Housing Association, Fannie Mae, Freddie Mac and other programmes provided this stability. They took on the credit risk of mortgages so long as Wall Street took on the interest-rate risk. This system must be protected.

The FHA, Fannie Mae and Freddie Mac have worked hard to further their public mission of supplying mortgage capital during depressed markets while protecting their integrity. During the housing recovery they have repaired their …

via Economic Crisis http://ift.tt/2bVNb3A