Argentina has been the center of global discussion for the past 14 years. No, it’s not because of its amazing soccer players or its spectacular waterfalls. The reason that Argentina has been the topic of debate is due to its decision to simply not pay back it’s debt of $100 billion. Argentina saw it could not provide the government services that their people needed, so they told the world they were going to sweep their debt under the rug. How do global entities and foreign lenders deal with a country that refuses to pay back their loans? Well, Argentina’s investors Continue reading Argentina’s Tale of Debt Struggle
In response to China’s stock market crash in the third quarter of 2015 China began a monetary easing policy which consisted of “pumping funds into state lenders known as policy banks to finance government-backed programs.” The stock market crash marked the end of China’s good fortune, as well the end of the stream of foreign investment which funded much of their economies productivity. Weak demand for Chinese products, along with less foreign investment, both added to the case for more stimulus. (Surprisingly China’s unemployment rate has floated consistently at around 4%.) And now just a few months later in 2016 China’s reserves Continue reading Some Economists Think China’s Monetary Easing Policy is Hitting Home.