The Future of the Yuan

According to a growing chorus of pundits and economists, China -- already the world's most prolific exporter, largest sovereign creditor, and second-largest economy -- will someday soon provide the world's reserve currency

When Currencies Collapse

The international monetary system rests on just two currencies: the dollar and the euro. They are essential to global trade and finance. Were they not widely accepted, the global economy could not sustain current levels of international trade and investment.

Major Economies Headed for Slowdown

A top European economic think-tank is predicting that the world's largest economies -- and several large developing ones -- are heading for anemic growth and continued fiscal malaise

The Perverse Side Effect of the Euro

We may be looking at the possibility of a worldwide financial meltdown

Global Financial Regulation: Goal Many Espouse But Can It Be Done?

Calls for a more coordinated system of international financial regulation have been growing as the Occupy Wall Street protests in New York inspire similar demonstrations around the world

Animal Spirits: Shaping Patterns of Economic Growth

'Birds of a feather flock together,' the old saying goes. So, too, do investors. Increasingly, talk is of a 'double-dip recession', 'Euro zone collapse' and the United States and Europe 'turning into Japan' -- that is, experiencing years of economic stagnation

Dodd-Frank Brings Transparency to Financial Industry

The calls for repealing the Dodd-Frank financial reform bill are more than a little bizarre. It was only three years ago that the whole financial system was at the brink of collapse

China Cuts Its Holdings of United States Debt

China has cut its holdings of United States debt in response to Standard & Poor's downgrading of the credit of the U.S. government

Rise of the Renminbi as International Currency

Over the last few years, use of China's currency for international trade has been growing steadily. Some argue this is the start of a journey that will see the renminbi displace the dollar and become the international reserve currency within a decade. This column asks whether such prophecies are realistic by looking at how other international currencies established themselves

Could QE3 Help the Economy?

While this might be welcome news for jittery investors clamoring for Fed intervention to help boost market confidence, experts caution that another round of quantitative easing wouldn't be a panacea for the ailing U.S. economy

Germany: German Tiger or European Growth Engine?

What is increasingly apparent from the 2011 first half economic data in the euro zone is a widening growth gap between Germany and all other euro zone economies. The growth divergence (real GDP) is most pronounced between Germany on the one hand and Portugal, Greece, Spain and Italy on the other hand

European Union Spending Cuts and Tax Hikes Hurt GDP Growth

A new round of second-quarter GDP figures shows slowing growth in the EU, which makes for a complicated economic situation, as reduced government spending can further stifle growth. Some economists say that, in tackling this dilemma, European governments are focusing too closely on their balance sheets and neglecting to propose real growth policies

Who's Worse Off: Europe or the United States?

To be sure, both the United States and Europe continue to grapple with slow economic growth, the crushing weight of enormous public debt, and austerity measures designed to trim government expenditures. But many of the similarities between the debt-ridden European Union and the United States end there

Global Economic Downturn: A Crisis of Political Economy

The current economic crisis is best understood as a crisis of political economy. Moreover, it has to be understood as a global crisis enveloping the United States, Europe and China that has different details but one overriding theme: the relationship between the political order and economic life

Economists Forecast 2.3 Percent Growth Rate

Economists shared a gloomy outlook for the U.S. for the second half of 2011. They forecast the country's economy would register a 2.3 percent annual growth rate from July to December

Crisis of Confidence: Debt Debate Erodes US Global Standing

Few Americans know, or much care, about the opinions foreigners hold of the United States. This was displayed during the ignorant and solipsistic debate over when or whether the United States will pay its debts

Stiglitz Upbeat About China and Latin America

Joseph Stiglitz is quite upbeat about Latin America, Asia and other emerging economies when I interviewed him extensively about the possibility of a new world recession

Is Japan Now a Good Bet?

In the first quarter of 2011, the Japanese economy shrunk by 3.5 percent. Projections for the second quarter also call for further contraction, but experts are expecting a sharp pickup in growth in the second half of the year and in 2012 as the country rebuilds

Is Germany the New Safe Haven?

Germany, while still potentially exposed to the ongoing sovereign debt crisis in some of the peripheral countries like Greece, has the strongest economy in the European Union

Latin America Not Immune to U.S. Debt Deal

While much has been written about the fact that Latin America's rapidly growing economies are largely immune to U.S. financial woes, President Obama's deal with Congress to avoid a U.S. debt default will have a negative impact throughout the region

Why There's a Disconnect Between Stocks and the Economy

While the U.S. economy is saddled with sluggish growth, a near double-digit unemployment rate, and a housing market plagued by foreclosures and falling prices, the stock market has been booming since hitting bottom in March 2009

Do We Need the Debt Ceiling?

The debt ceiling itself is unnecessary for managing the country's finances, and according to some critics, has become more of a symbolic political tool than a real mechanism for controlling debt. Here's why

European Debt Crisis: Could Italy Be Next?

The latest fear in Europe is that the sovereign-debt crisis could spread to Italy -- one of the largest but weakest economies in the European Union. Because Italy is the third-largest economy in Europe, it is attracting most of the attention

Tax Havens: Shady Deals

In recent years, tax havens have come under increasing critique. They are widely seen as helping firms and wealthy individuals from other countries to avoid and evade the taxes and regulations of their home countries

Financial Rebalancing Act: Stop Worrying About Global Flow of Capital

The global financial crisis has only just begun to recede, but economists and policymakers are already considering its future implications. Has the Great Recession introduced a new economic era? Or was it a temporary shock that will eventually correct itself? The answers to these questions will affect a number of vital economic issues

Globalization and Unemployment

By relocating some parts of international supply chains, globalization has been affecting the price of goods, job patterns, and wages almost everywhere. It is changing the structure of individual economies in ways that affect different groups within those countries differently. In the advanced economies, it is redistributing employment opportunities and incomes

The Secrets of Germany's Economic Success

As Americans fret about persistent economic challenges, particularly high unemployment, a nearly opposite mood pervades Germany. Neither the economic crises in the rest of the eurozone nor the instability in the Middle East has dampened a deep-seated conviction among German business leaders and economists

Federal Reserve Forecasts Weaker Growth for 2011 and 2012

The Federal Reserve reduced its forecast for the U.S. economy for 2011 and 2012. For this year, the Fed estimates that the country's economy would expand from 2.7 to 2.9 percent only

Greek Cabinet Approves Austerity Measures; Debt Default Still Possible

A day after winning a confidence vote in the Greek Parliament, the country's cabinet approved austerity measures for the 2012 to 2015 budgets and laws for the measures' application

A World of Three Reserve Currencies -- Good or Bad?

Those who snoop around the finance/currency sections, in recent weeks, have detected an interesting debate emerging: namely, a debate among bankers and economists regarding how our world will look should the U.S. dollar lose its peculiar status as the world's only reserve currency and become, instead, merely one of three such currencies

Eliot Spitzer's 10 Rules To Fixing the Economy and Corporate Mismanagement

In a new and short book, former New York Gov. Eliot Spitzer, who made a name for himself attacking corporations while New York's attorney general, says Washington didn't go far enough to reform Wall Street and corporate misnamagement during the 2008-2009 bank bailouts. Here's Spitzer's 10 rules to fixing the economy and corporate mismanagement

Why Copper Is the Metal to Watch

In recent weeks, metals of all sorts -- precious and industrial -- have taken a beating in a major selloff in the commodities market. Experts cite a number of reasons, including speculation, increased margin requirements, and concerns that the economic recovery may not be as strong as previously thought. But experts say the losses in copper are the most troubling

Why DOHA Trade Negotiations Are Doomed and What We Should Do About It

It is time for the international community to recognize that the Doha Round is doomed. Started in 2001 under the auspices of the General Agreement on Tariffs and Trade and its successor, the World Trade Organization (WTO). Yet after countless attempts to achieve a resolution, the talks have dragged on into their tenth year, with no end in sight

What Standard & Poor's U.S. Outlook Downgrade Means

Investors awoke last Monday to two important reports on the U.S. government's credit worthiness from two of the biggest ratings agencies in the United States. Standard and Poor's downgraded its outlook for U.S. debt to negative, while Moody's Investors Service held its rating at stable

Why the World Caught a Cold When the U.S. Housing Market Sneezed

The world is flat, the economy is global, and on any given day you're as likely to speak to a call center in India or the Philippines as you are to visit your local grocery store. The world's boundaries have blurred, but at the same time the easy and immediate communication of a Twitter or Facebook makes the planet feel smaller and more connected

Demand and Disasters Complicate Global Energy Picture

The global energy picture has become more complicated in 2011, but investors are making some sense of it. The nuclear outage in Japan and turbulence in oil-producing nations is prompting increased demand for alternative electricity sources such as natural gas and coal, though both carry some environmental concerns

7 Problems That Could Derail the Global Economic Recovery

At the beginning of the year, expectations for higher global growth in 2011 were high. Now, a string of unexpected events, unrest in the Middle East and a devastating earthquake in Japan, has cast a shadow over some of that optimism. In the United States, the housing market still looks weak and unemployment remains high. Add higher gas prices, and the outlook for global growth looks less rosy

5 Reasons Investors Should Not Bail on Japan

Japan's economy doesn't show signs of recovering any time soon, especially in the aftermath of the earthquake and tsunami, and amid concerns about a damaged nuclear plant. But despite its hardships, Japan is still a legitimate force in the world economy, and many trade partners depend on exports from a range of Japanese companies. Here are five reasons investors shouldn't abandon Japan

What Happens After Quantative Easing 2 Ends?

The Federal Reserve's second round of quantitative easing is slated to end in June. Experts expect the Fed to finish the program, in which it pledged to buy $600 billion worth of treasury bonds. There has been much speculation about what will happen in the markets when the Fed ends QE2 and the economy is left to stand on its own without any stimulus

A G-Zero World: New Economic Club Will Produce Conflict Not Cooperation

This is not a G-20 world. Over the past several months, the expanded group of leading economies has gone from a would-be concert of nations to a cacophony of competing voices as the urgency of the financial crisis has waned and the diversity of political and economic values within the group has asserted itself

The Post-Washington Consensus

The last time a global depression originated in the United States, the impact was devastating not only for the world economy but for world politics as well. The Great Depression set the stage for a shift away from strict monetarism and laissez-faire policies toward Keynesian demand management. More important, for many it delegitimized the capitalist system itself

Currency Wars: Then and Now

In 1933, the global economy was still mired in a depression. In the two countries hardest hit, Germany and the United States, unemployment was above 30 percent. The United Kingdom, the nations of the British Empire, and a handful of other European countries with close commercial ties to London had abandoned the gold standard in late 1931, leaving exchange-rate arrangements in complete disarray

Currencies Are Not the Problem

Washington is not alone in trying to influence its currency. China continues to hold the yuan relatively stable against the dollar. Japan intervened in the exchange markets to prevent the yen from rising too quickly, and many emerging-market countries have used a mix of similar interventions and capital controls to keep their own currencies from appreciating. However, intervention is a zero-sum game

The Wealth Gap Around the World

Innovation during the Industrial Revolution meant food, clothes, and other goods could be produced faster and better, increasing productivity and enriching the world. But some were left behind. The historic economic boom in the 1700s and 1800s also meant a bigger gap between rich and poor. Branko Milanovic, lead economist at the World Bank, breaks down this tale of financial disparity

America's Corporate Recovery Is More Fragile Than You Think

At a time when corporate profits are through the roof, the Dow has reached 12,000, Wall Street paychecks are fat again, and big corporations are sitting on more than $1 trillion in cash, you'd expect jobs to be coming back. But you'd be wrong.

'Latin American Decade' or Wishful Thinking?

'Will 2011 be the dawn of the Latin American decade?' asked the headline of a Standard & Poor's webcast. When I saw it, I wondered whether the firm was making a big blunder, or I was missing the biggest economic story in the region. The headline was only the latest of several optimistic reports about Latin America's economies. All of a sudden, Latin America is becoming an emerging economic star

Davos Man and the Real World

There was a time when going to the World Economic Forum in Davos, Switzerland, was a real treat, and highly exciting. Then the glamour faded somewhat as the annual themes became more economic, more high-tech, and less to do with the real international scene

From Davos to D.C., A Crossroads Moment for the World

'Humanity is at a crossroads,' Klaus Schwab said, the World Economic Forum's founder. 'We can either continue to work as lobbyists for our narrowly defined self-interests and keep doing the same old things that got us into the crisis in the first place,' or we can 'act together as true global leaders, with the long term global public interest in mind and at heart.' It's a sweeping statement

Consumer Staples Positioned Well for the Recovery

Companies that make consumer staples tend to excel as consumers gain confidence and begin to treat themselves to discretionary items whose purchase didn't seem pressing in the midst of an economic downturn. Beauty products are an example of goods that usually gain in sales as the economy perks up. Here's stock recommendations based on the belief that consumer discretionary activity will gradually be picking up speed

The Euro: Until Death Do Us Part

The challenges that the global economy faces in 2011 include not only the normal threats posed by volatile background conditions, but also the possibility of a major structural break-up that might have far-reaching, possibly devastating, repercussions

Latin America's Economic Bonanza May Be Short-Lived

There have been big headlines in recent weeks about projections that Brazil will become the world's fifth-largest economy in five years, and that Latin America in general will become a new global economic star. But there are little-known data that should raise questions about such optimistic forecasts

The Consequences of Fiscal Irresponsibility

The U.S. government is incurring debt at a historically unprecedented and ultimately unsustainable rate. The Congressional Budget Office projects that within ten years, federal debt could reach 90 percent of GDP, and even this estimate is probably too optimistic given the low rates of economic growth that the United States is experiencing and likely to see for years to come

G20 Summit: Hitting Singles in Seoul

In their uninspiring communique from Seoul, leaders of the Group of Twenty (G20) sought to put a favorable gloss on their disappointing summit. But their 'pledge to continue our coordinated efforts and act together' could not paper over a sorrier reality: The further the G20 gets from the financial crisis, the farther apart its members drift

How Quantative Easing 2 Could Affect Your Money

The Federal Reserve's second round of quantitative easing, commonly referred to as QE2, has sparked huge debate on topics ranging from the future of the dollar to the threat of a bond or commodity bubble. The Fed will pump another $600 billion into the long-term treasury bond market, which is supposed to spur lending and kick-start economic activity

Inflation or Deflation: What's It Going to Be?

October 25th an historical day for the Treasury Inflation-Protected Securities (TIPS) market. For the first time ever, a group of TIPS were sold with a negative yield. Investors generally use TIPS to protect their money from inflation. These securities are intended to generate a gradually rising stream of interest payments as inflation rises

China's Rate Hike: Winners and Losers

China's sudden interest rate hike reverberated throughout global markets recently, driving down stock prices and touching off fresh concerns. While it will be a few months before new GDP numbers capture the impact of the rate increase, a number of the new policy's impacts are already clear. Here's a look at what the hike means and who the winners and losers will be

Economic Woes Put Brittle Nations on Edge

Lingering effects of the global economic slowdown are forcing vulnerable governments across the developing world to take actions that can provoke bursts of public outrage, particularly in countries where trouble was already brewing beneath the surface.

A Divided and Insular European Union

The eurozone fiscal crisis has called into question the future of the European Union project. Unwieldy budget deficits in peripheral eurozone countries have led to calls for the European Commission to strengthen the rules governing member countries, even as stronger EU members reassess the risks and benefits of further European integration

American Dream of Home Ownership Has Become a Nightmare

Why has housing been such a core element in the story of American civilization? These days the American dream of home ownership has turned into a nightmare for millions of families. They wake every day to the reality of a horrible decline in the value of the home that has meant so much to them

Americans Are Pessimistic About the Economy

Although statistics show the economy is on the mend, an increasing number of Americans are pessimistic about the economic outlook over the next year, according to a poll released recently

The Tortoise Economy

Word from the 12 Federal Reserve Banks, summarized in the Fed's Beige Book, shows the economy slowing in July and August. Duh. But the Fed is quick to point out the economy overall is still growing -- even though it's growing more slowly than in the spring. Can we have a moment of realism here, please?

Hard Economic Times. When Will They End?

The United States Census Bureau reported that one-in-seven Americans are now living in poverty. Here's a look at the economy's domino effect

5 Traits of the New American Consumer

It's official: Consumerism is dead, and it's been replaced with something better. We've slowed down, started prioritizing financial security over materialism, and wouldn't drive a mega-SUV or live in a McMansion if you paid us. Here are five traits that define the today's consumer

Republicans' Tax-Cut Proposals Would Double the Budget Deficit

The tax-cut bill that Senate GOP Leader Mitch McConnell unveiled -- a combination of making permanent the Bush tax cuts and throwing in a host of other tax credits -- has a price tag of around $3.9 trillion. For those keeping score at home, the self-styled party of fiscal responsibility wants to blow an even bigger hole in the budget

A Tale for Hungry Times

Signs of our troubled and troubling economy (the lines for jobs; the empty, unsold houses; headlines every day) are so obvious and omnipresent that I feel guilty for pointing out one of the more subtle indicators of our country's dark mood

Tax Increases Would Cause More Unemployment

The preferred approach by the Obama administration and congressional allies is to raise taxes on upper earners and use those proceeds to fund more government spending. This is a bad idea. People are eager for reliable, well-paying jobs. Entrepreneurship provides those jobs. And entrepreneurs often pay taxes at the top marginal tax rates

Don't Extend Bush Tax Cuts for the Rich

We understood the fiscal challenges facing our nation and challenged the arguments touted by President Bush and congressional Republicans that tax cuts for the very rich would spur economic growth and create jobs, let alone pay for themselves. History has proven that the strong economic growth and job creation Republicans promised from the 2001 and 2003 tax cuts did not materialize

How the New Consumer Bureau Will Help You

The new consumer financial protection bureau, which was created this summer by the bank reform bill, aims to make complex financial products easier to understand. The bureau will serve as a watchdog over credit cards, mortgages, payday loans, and other products. So what does this newly created bureau mean for you? Here's what you need to know

Setting up the new Consumer Financial Protection Bureau

While she wasn't named director, Elizabeth Warren nevertheless has major responsibility for getting the new Consumer Financial Protection Bureau, her brainchild, up and running by its statutory deadline of July 2011. The agency is intended to provide more federal scrutiny and regulation of mortgages, credit cards, and other kinds of financial products to protect consumer interests

Dueling Realities on Unemployment and the Economy

Out on the campaign trail, there are two parallel universes when it comes to describing the economy, a Democratic reality and a Republican reality. This became especially clear this month in remarks by President Obama and an assortment of leaders of both parties, including Republican Rep. John Boehner of Ohio

Obama Insists He Made Right Decisions on Economy; Struggling Middle Class Begs to Differ

The problem isn't that President Obama's economic policies have been slow to succeed or unpopular -- it's that they have been inadequate given the magnitude of the crisis

The Great Recession's Toll on Higher Education

The Great Recession has had a devastating effect on higher education, forcing many students across the country to pay more for colleges that offer less. Yet the downturn has also penalized individuals who don't spend the time and money to get a college degree

Bernanke Carries Extra Burden for Economic Recovery

Federal Reserve Chairman Ben Bernanke is a man on the spot. With Congress tied in knots over how best to boost a weak economy, there is an extra burden on the powerful Fed leader to keep the economy growing amid considerable uncertainty. So his words will undergo even more scrutiny than usual whenever he testifies on the outlook for the economy.

Downward Pressure on Home Prices Mounts

The tally of unsold homes on the market increased in June, a signal that real estate prices may face additional downward pressure in the coming months.

Dirt-Cheap Mortgage Rates: Here for How Long?

Although economists have grown increasingly concerned that the real estate market may slip into a double-dip economic recession, today's consumers are being handed a tempting incentive to buy property or refinance their home loans: ultra-low mortgage rates. Here's a look at the forces that have created the current mortgage-rate environment and the direction rates are headed

Weak Demand & Tight Credit Keeps Builders On Sidelines

Builders broke ground on fewer new homes than expected last month, as weak buyer demand continues to hogtie a revival in the residential construction industry.

Obama and Big Business Trade Blame on the Economy

The war between the White House and big business is getting worse. Tom Donohue, CEO of the U.S. Chamber of Commerce, fired the latest salvo when he warned that President Obama's policies, including new government regulations and vast government spending, are slowing growth and stalling job creation. The Obama Administration is fighting back

Why Start-ups Could Make or Break the Job Recovery

Start-ups are particularly critical to job growth. Federal Reserve Chairman Ben Bernanke noted last week the importance of small businesses to the job market, and in particular, the significance of start-ups.

Before the Wall Street Crisis, There Was 'Poverty, Inc.'

For the most part, the narrative of the economic crisis has featured teetering banks from Wall Street to Main Street, a tide of bad mortgages, and countless distressed, middle-class homeowners. But in 'Broke, USA: From Pawnshops to Poverty, Inc.-- How the Working Poor Became Big Business', journalist Gary Rivlin says there is another dimension to the story

New Finance Bill: Mountain of Legislative Paper; Molehill of Reform

The American people will continue to have to foot the bill for Wall Street's mistakes because the legislation does nothing to diminish the economic and political power of big banks. It does not cap their size. It does not resurrect the Glass-Steagall Act. It does not even link the pay of traders and executives to long-term performance. It does nothing to change the basic structure

Financial Reform Another Talking Point for Obama & Democrats

President Obama signed another major piece of legislation, as Democrats in Congress declared victory in their financial reform fight. What started as a bipartisan initiative to end the risky, and ultimately damaging, Wall Street practices that led to the nation's Great Recession passed with little Republican support

Forget Obama - Fear the Real State Capitalists

Since President Obama has taken office, a chief assertion from his critics has been that he is socialist. But there is little evidence that he wants to dramatically revise the U.S. economic system. While imprecise accusations of socialism score political points for the accusers, in listening closer to Obama's critics they seem to actually be accusing him of being a state capitalist

Imperative Need for America to Become an Innovation Nation

On a recent flight, I started reading 'Innovation Nation,' the new book by John Kao. It was both frightening and inspiring. Frightening because of the details it provides about the ways America is falling behind the rest of the world; inspiring because Kao imbues it with a sense of optimism and great possibility. Yes, there is much to be concerned about

Jobs Bill a Tough Call for Democrats

With the unemployment rate stuck at around 9.7 percent, a Senate vote on a bill to extend unemployment benefits and boost job creation should be an easy 'yea,' a way to win points with voters in a tough economy. But this year is different

What Soldiers at War Can Teach Us About Surviving Financial Warfare

Right now, the perils we are facing are not as tangible and immediate as those faced by our soldiers. I don't mean to draw an equivalency to the deadly threat our men and women in uniform are bravely facing every day. Yet, This economic crisis has put into question the American Dream and threatens the very survival of the middle class as the economic and cultural engine of our country

5 Things to Know About the Newest Jobs Bill

When it comes to jobs, the White House and Washington have managed to plug the leak, but they haven't yet found a way to jumpstart hiring. And that's a problem, as 15 million unemployed Americans continue to search for work, nearly 7 million of whom have been hunting for more than six months. Here are five things to know about the newest jobs bill

New Home Sales Plummet to Record Low

Home sales activity plummeted in May, as a key housing stimulus was removed from the market.

The Housing Market's Unexpected Drop

Home sales declined unexpectedly in May, even as federal stimulus efforts kept transaction levels artificially elevated.

When Obama Trades Jobs for a Higher Priority

If there's one message that has tolled consistently from the mouth of nearly every White House official over the past two years, it's that 'jobs are our top priority.' But the administration's strict moratorium on deepwater drilling would seem to trade jobs for a higher priority

When National Politics and Home-State Economics Collide

What do a Democrat from Arizona, a Republican from Massachusetts, and a judge from Louisiana have in common? In a nod to home-state economics, all three have recently made moves to upset often-fragile compromises at the national level.

Reasons -- and Ways -- to Splurge This Summer

We live in an era of frugality. Splurging has become somewhat passé. Tips for saving on everything from groceries to home purchases abound. But what if we've gone too far? What if we should be spending more, not less? Some intriguing new research from the world of behavioral economics suggests that we might be better off with a slightly looser grip on our cash. So what is the "right" amount of indulgence?

What China's Currency Reform Means For Investors

The Chinese government's move to allow its currency, the renminbi, to appreciate against the dollar provided a big boost for U.S. stocks as investors expressed their confidence that American companies will be able to gain a firmer foothold in China's notoriously protective economy.

The Democrats' Economic Vision Problem

We are constantly told that the American working man is so much worse off than he used to be. And if you measure income one way, you can make that case. Indeed, the Democratic Party in recent years has become obsessed in looking at the economy only in that one negative way to justify its avocation: giving more stuff to the poor and middle class because they are falling behind. However, ...

Urban Abandonment

America's cities are in trouble -- and desperately needed help may not be on the way. Will America's cities turn into cauldrons of poverty, desperation and fear? Or will we revive our cities and rebuild the broad middle class in the process?

Coping With China's Financial Power

It is true that China's approach to economic development has turned that country into a lopsided giant, an export juggernaut with one huge financial arm. Never before has China had this much financial might, and it is now experimenting with how best to use it in its relations with other states. Although China sometimes sounds ambitious, it is being prudent.

Financial Reform's Uncertain Promise

Politically, the Senate's financial reform bill is a victory for President Barack Obama. Substantively, the Senate bill could be significant or insignificant, depending on how it is implemented. Its main provisions are likely to mitigate financial risk without solving the threat posed to the ultimate insurers of the system -- governments and taxpayers.

The Way We're Working Isn't Working

From Wall Street, to the lagging economy, to Greece and the 'euro zone,' to our broken regulatory system, to the high-speed computer trading system that might have played a role in the recent stock market mini-meltdown, to those two wars we're still in a decade later, it's clear that something is wrong.

What Gold Can and Cannot Do For You

While the Euro has taken a hit, gold has shot up to all-time highs, above $1,200 per ounce. Investors must decide for themselves whether or not commodities like gold belong in their portfolio, but for those who want to know what all the fuss is about, here are a few things to know

Why Some Women Skirt the Wage Gap

Take a look through the Labor Department's data on wages and you'll see an astonishing pattern. Nevermind modernity and women's liberation, men still make more than women in nearly all occupations. If a woman must work but she cannot provide the necessary level of income, her entire household suffers the cost.

The Crippling Price of Public Employee Unions

The American public feels it is drowning in red ink. It is dismayed and even outraged at the burgeoning national deficits, unbalanced state and local budgets. There is a mounting sense that taxpayers are being taken for an expensive ride by public sector unions. The extraordinary benefits the unions have secured for their members are going to be harder and harder to pay.

European Union Funding Proposal Is Only the Beginning

The dramatic European Union funding proposal is an important first step. Next comes enforcement of tough fiscal reform guidelines, which introduces a series of new political challenges and risks.

Why Wall Street's Gain Has Been America's Loss

Jobs -- everybody is in such total agreement that we need more of them that the word is in danger of becoming meaningless, of going from tangible policy to talking point. In Washington, saying you're for jobs has become just another obligatory, perfunctory throat-clearing preamble. However, not all jobs are created equal when it comes to the economy

Euro Crisis has American Fingerprints

The obituaries written of the European currency, the euro, have demonstrated the divergences in national and cultural temperaments, the European funereal and laden with gloom about the future, but unyielding, and the American and British cheerfully and self-satisfiedly shoveling earth onto a casket of euros already six feet into the ground. Defy the markets, will they, these Europeans!

Wall Street Probes: Collateralized Debt Obligations

Collateralized debt obligations, once hailed as the ingenious brainchildren of a Wall Street that knew no bounds, are now at the center of a widening government probe into the nation's most prominent banks. And as the focus gradually shifts from Goldman Sachs to all of Wall Street, CDOs have become the rallying cry for those who see the need for regulators to erect walls between banks' divisions

Voters See Debt Crisis. Why Doesn't Washington?

It should come as no surprise that politicians spend even as families have to cut their budgets. That's because to an elected official, the biggest 'toxic asset' on the books these days is the federal budget deficit. No one wants to touch it. For years, both parties engaged in pandering, finger-pointing, and overheated rhetoric on the subject of taxes, spending, and the national debt

Social Security Inflation Adjustment Debate

Should the government create a distinct consumer price index for older Americans to protect the purchasing power of Social Security checks from inflation?

European Debt Crisis Affects Investments

Despite the initial confidence boost, a number of questions remain unanswered. Chief among them is what European Union countries will do to keep the problem from spiraling out of control after this temporary stopgap expires. Here you'll find explanations as to what has already happened and tips for what's on the horizon

Greece: Model of Socialistic Excess

Greece is one of the poorest kids on the European bloc. It also is one of the most carelessly socialistic, which largely explains why it is so poor. The birthplace of democracy, today it is a model of socialistic excess. Unable to reduce its debt by inflating its own currency, Greece has had to call upon other EU countries to bail it out.

Who Got Hit Worst in the Market Crash

Media coverage of the 2008 market crash often focuses on investors close to retirement age. The story line is that pre-retirement investors took some of the worst hits and compounded their difficulties when they panicked and sold at market bottom. All true. But, the overall record of these close-to-retirement investors actually is considerably better than those of other age groups

Expeditionary Economics: Spurring Growth After Conflicts and Disasters

The United States' experience with rebuilding economies in the aftermath of conflicts and natural disasters has evidenced serious shortcomings. The economies of Iraq and Afghanistan continue to falter and underperform. Meanwhile, the earthquake in Haiti revealed deep economic problems. Yet there is a proven model for just such economic growth right in front of U.S. policymakers' eyes

Why More Diplomacy Won't Keep the Financial System Safe

The global financial crisis that began in 2007 marked the failure of an ambitious experiment in financial diplomacy. International agreements on the regulation of banking and securities did little to protect against a financial meltdown that severely damaged the world economy

Muddling through Greece's Tremors

Global markets plunged as investors continued to react with nervousness to the prospects of Greek's debt crisis spreading to other countries on the European Union's periphery. This is primarily because Greece remains in a murky situation despite its parliament's approval of tough new austerity measures linked to its bailout

Greece Financial Crisis Raises Doubts About European Union

The European Union's woes over Greece's financial crisis strikes me as neither odd nor unexpected