American Decline a Mirage in a World That’s Rising
MarketMinder's View: In our view, the problems America faces are overstated here. But it’s very true gangbusters growth in Emerging Markets is good for the US and global economies—and hardly means America’s in decline. Consider the alternative: “In hundreds of millions of Chinese and Indians continue to be stick on unproductive farms or in unskilled jobs rather than being freed to develop their human capital, the rest of the world will be denied access to the endless innovations they otherwise might have developed.”
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Poll Shows Greece Electing Pro-Bailout Government
MarketMinder's View: Though it’s early, this poll suggests the second Greek election needn’t automatically lead to Greece’s eurozone exit. The election likely ends up a referendum on euro membership—which over 75% of Greek voters favor—and a bailout-friendly coalition could yet emerge.
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China Warns Solar-Panel Tariff May Backfire
MarketMinder's View: China’s response to the US’s new tariff on Chinese solar panels exemplifies why protectionism backfires: Tariffs frequently spawn retaliatory measures even worse than the “problem” they aim to solve. And that benefits no one.
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Hollande-Cameron Don't Agree on Much – Except Need to Save the Eurozone
MarketMinder's View: Eurozone politicians, no matter what ideological side or country they come from, seemingly remain committed to preventing the disorderly breakup of the euro.
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Late 2013 Expected Completion Date of Taiwan-New Zealand Trade Talks
MarketMinder's View: Spurred on by South Korea’s free-trade blitz, Taiwan’s pushing for several free trade agreements. A race toward zero protectionism, indeed!
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Wealthy French Flee to London Amid Fear of Hollande
MarketMinder's View: This seems anecdotal but still underscores that François Hollande’s 75% income tax on France’s highest earners may not be the revenue machine he assumes. If the wealthy French vote with their feet, France’s loss will be the UK’s (and Switzerland’s and Belgium’s) gain, as those nations benefit from an influx of human capital. For more, see our 05/09/2012 cover story, “An Earnings Sandwich.”
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Was Early-Spring Slump Just a Blip for American Economy?
MarketMinder's View: While there undoubtedly remain pockets of weakness, overall, the US economy’s grown quite nicely thus far in 2012, as highlighted sensibly and succinctly here.
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States and Cities Going Private With Infrastructure Investment
MarketMinder's View: We’re fans of overall smaller government—in no small part because it allows for greater private sector activity, as demonstrated effectively here. If governments can’t afford to finance infrastructure construction, the private sector no doubt can—and it can probably do the job cheaper, faster and with better quality, meaning everyone wins.
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German Stimulus Won’t Save Europe
MarketMinder's View: Peripheral economies don’t need more German spending—they need more capitalism and more competitive economies of their own. The likelihood increased German consumption helps either of those problems much is slim.
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Consumers Put Japan Back on Growth Path
MarketMinder's View: Japan notched solid growth in Q1—up 1% quarterly from a flat fourth quarter—on the back of a particularly strong showing from consumers.
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