China Capital Flight: Business Creativity vs. Government Directives

china capital flight

Capital flight from China is soaring as business is expecting drastic measures from the government. Since direct capital transfers are restricted, businesses become creative in their mission of saving hard (or easily) earned money. The Market Watch reports on China capital flight and struggle between individual enterprise and the Communist regime: “A Deutsche Bank economist …

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Russia Country Report: BTI 2016

Russia Country Report

Bertelsmann Stiftung’s Transformation Index BTI 2016 for Russia was recently released. The Russia Country Report contains comprehensive characterization of economic, political and social developments. You may find the full text here. Below are excerpts from the report. Summary “At the time of writing, Vladimir Putin has been in power for more than fifteen years. Putin …

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Russian Economy: What is Next?

russian economy

Low crude oil prices negatively impact the economies of oil producing countries. Russia is not exception, and its economy is experiencing an obvious decline. BBC reports: “Russia’s economy contracted by 3.7% in 2015, according to preliminary figures published by the country’s statistics service. Retail sales plunged by 10% and capital investment fell by 8.4% in …

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Crude Oil Price: Recent Developments

crude oil price

The crude oil price is low and is not coming back anytime soon. The oil production is not dropping as fast as expected, and it may take years before we see oil prices in the range of $80 to $100 per barrel. New York Times reports: “United States domestic production has nearly doubled over the …

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Tax Preparers: Are All of Them Well Qualified?

Finance Investment Trading

Over a few years, the research was conducted with the purpose of evaluating qualification of tax preparers in this country. People were randomly sent to tax preparation offices to have their tax return filed. The article ‘Your tax preparers might not know what they’re doing’ reports: For several years, researchers have been sending people into …

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Negative Interest Rates are Possibly Coming to the US

Finance Investment Trading

Negative interest rates could be on their way to the US. As global economy is slowing down in the conditions of near zero interest rates, the expansion quantitative easing by central banks causes the interest rates fall into negative territory. The Bank of Japan recently set the negative interest rates at -0.1%. The European Central …

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Educational Loans: The Ever Growing Costs

Finance Investment Trading

College tuition is high and still going up. The only way most students can access higher education is by taking huge educational loans. Since the loans need to be repaid after graduation, they may take away significant chunk of future earnings. The inability of many graduates to find employment in the area of their study …

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Cost of Higher Education. Where Exactly is the Fraud?

Finance Investment Trading

The cost of higher education has grown tremendously over the last 10 years (see the chart below). The national average data show that tuition and fees charged by private universities has grown by 170% to $38,000. At public schools the tuition increased even more. For out-of-state students the costs grew by 220% reaching $24,000. The …

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China Foreign Exchange Reserves Plunge

Finance Investment Trading

China foreign exchange reserves fell by another $100 billion in January. As the China’s economy is slowing down, the flight of investors seeking more profitable markets puts pressure on Yuan. The Chinese government, determined to support the value of the currency, is forced to buy Yuan in large quantities. Large scale buying is complemented with …

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Treasury Yield Curve: Is It a Reliable Recession Indicator?

Finance Investment Trading

Treasury yield curve was long considered a reliable leading indicator of recession. The treasury yield curve is a graph of treasury bond interest yields vs. maturity period. In growing stable economic conditions, long term interest rates are set higher than short term interest rates, thus compensating the investors for the additional risk. The treasury yield …

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