New Core, new era in globalization's advance
Tuesday, July 14, 2009 at 12:53AM BUSINESS DAY: "Developing Markets in Bloom Again: A Bounce in Russia Is Easing Pressure For Economic Change," by Andrew E. Kramer, and ": Optimism From India To Brazil, and Maybe A Touch of Exuberance," by Vikas Bajaj and Kieth Bradsher, New York Times, 4 June 2009.
NATIONAL WEEKLY EDITION: "They're a Drag: As the United States inches toward recovery, Europe and Japan slow the global rebound," by Anthony Faiola, Washington Post, 1-7 June 2009.
While the decoupling theory (the rising East would prevent any global slowdown triggered by the aging West) proven invalid--for now, there's no question that the East is leading the global recovery, while high government spending in the West may work to squelch some of it. Naturally, commodity prices--to include oil hovering around $70/barrel--have risen back up as a result.
Why was Geithner so nice in Beijing recently? As his most recent testimony on the Hill indicated, he's well aware that "recovery here depends on recovery abroad."
Europe, meanwhile, is described as a definite drag on global growth for the next one or two years. No wonder the lefties aren't doing so well in elections there.
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