Washington Post (August 2)
“China’s state-driven economic model has created many problems. Monetary policy isn’t one of them.” On the heels of the Fed’s rate cut, the ECB “looks poised to follow suit in September” and “the temptation is high for other central banks to fall in line.” But often they’re “canceling out each other’s efforts,” which is one reason the dollar didn’t fall with the latest rate cut. “Developed nations play out what is a zero-sum game.” In the process, they’re “using up the ammunition they have available to support their economies in the event of a downturn.” In contrast, the PBOC has avoided playing the rate cut game and “China’s 10-year government bond yield is relatively unchanged since the end of 2018.”
Tags: Canceling out, China Economic model, Developed nations, Dollar, Downturn, ECB, Fed, Monetary policy, PBOC, Rate cut, Temptation, Zero-sum game
Washington Post (October 2)
In his negotiations on a nuclear agreement with Iran, “President Obama should resist the temptation to make further concessions in order to complete a long-term deal by November. In the absence of a dramatic change in its positions, Iran should be offered, at best, an extension of the existing arrangement, with the current sanctions left in place — and threatened with tougher measures if it does not accept.”
Tags: Concessions, Extension, Iran, Negotiations, Nuclear agreement, President Obama, Sanctions, Temptation
