Oil and other commodity prices have recently been dropping. Is this good news, or bad?
I would argue that falling commodity prices are bad news. It likely means that the debt bubble which has been holding up the world economy for a very long time–since World War II, at least–is failing to expand sufficiently. If the debt bubble collapses, we will be in huge difficulty.
Many people have the impression that falling oil prices mean that the cost of production is falling, and thus that the feared “peak oil” is far in the distance. This is not the correct interpretation, especially when many types of commodities are decreasing in price at the same time. When prices are set in a world market, the…
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Fareed asks former U.S. President Bill Clinton for his ‘Book of the Week.’
Mr. President, we usually have an end segment where I recommend a book of the week. We are blowing it out all for you, so I’m giving you the last word, which is what book would you recommend? You’re a voracious reader. If you were to tell our readers, what should they read?
If you’ll give me two.
First, I’d like readers to read Abundance, the Peter Diamandis book with his coauthor, because if they did that, they would see that while the headlines are really bad in the world today, the trend lines are pretty good. Extreme poverty is down. The health care is improving dramatically around the world. There are developments now which make me believe we might be able to do what we did in the 1990s, which is to use technological developments to…
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I am no expert on ISIS and I won’t pretend to be. I don’t know what their true capabilities are, whether they are a function of U.S. troops invading Iraq or a function of U.S. troops leaving Iraq, or whether they would exist if we had armed less extreme Syrian opposition groups at the outset of the Syrian civil war. I do know, however, that President Obama’s statement last night that we will “degrade and ultimately defeat” ISIS can only partially be true. The U.S. can certainly degrade ISIS’s capabilities based on the military plan Obama laid out, and perhaps it can even defeat the group itself by some metric of victory. But ISIS is not a prime mover; it is a symptom. At its core, ISIS is an ideology, and even if the group comprised of jihadi fighters is defeated, it will simply be reincarnated with a different name because…
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Some of the world’s most important people are wooing India’s new Prime Minister Narendra Modi like teenage boys drooling over the homecoming queen. Less than a month ago, Modi was feted in Japan on his five-day official visit, during which he even received an unexpected hug from usually stiff Japanese Prime Minister Shinzo Abe. This week, Modi is hosting China’s President Xi Jinping, who upon his arrival in the country on Wednesday, proclaimed that Beijing wishes “to forge a closer development partnership and jointly realize our great dreams of building strong and prosperous nations.”
Why has Modi become so popular? The reason can be found in how Asia is changing, politically and economically. Ever since China’s paramount leader Deng Xiaoping launched his country’s remarkable economic miracle in the early 1980s, the old Cold War divisions in the region melted away amid increasing economic integration. According to the Asian Development Bank…
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Kissinger on World Order
When Henry Kissinger talks about world order, to some it might seem as if he is living in a previous century. The 17th, perhaps. Beginning with his Harvard doctoral dissertation 60 years ago, he has extolled the concept of international order that was established in 1648 by the Peace of Westphalia, which ended the Thirty Years’ War. Instead of being shaped by wars of religion and the death spasms of the Holy Roman Empire, Europe’s international system was thenceforth based on independent nation-states, each sovereign over religion and other issues in its own territory. States would not interfere in the internal affairs of other states, and order would, ideally, be maintained by clever statesmen who focused on national interests and curated a balance of power.
Kissinger’s appreciation for order, he later recalled, came after his family fled Hitler’s Germany in 1938 and arrived in New York, where he realized he…
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