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China’s pivot to America could overshadow the US’s pivot to Asia

Not so much a shift in policy but a growing trend

There has been so much discussion of the United States pivot to Asia that few people have stopped to consider the implications or the success of China’s own pivot to America.

China already wields enormous influence in Asia through its size and its adroitness at negotiating, buying or bullying its way to goodwill among its partners – much like every other player on the geopolitical landscape. It has or is part of free trade agreements that include just about every country in the region.

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A China-US trade war is not likely to be

The “man on the street” will be the biggest loser

All the talk that has erupted in the past couple of weeks about possible trade wars between the United States and China has been interesting in the way that a soap opera is interesting: lots of drama with little link to reality.

Sure, it is easy to use China as a scapegoat. A place that is conveniently far away and too big to understand. It is easy to say “look, it is China’s fault and we will put the hurt on them and things will be lovely all around”. If only that were true.

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Poverty, growth and baseless anger

The economics of misplaced anger

Fast growing Asian countries have “eliminated” poverty at an astonishing speed, bringing people out of extreme poverty into mere gut-reaching poverty.

At first blush, the numbers are suggesting of a hopeful future. In 1990, about a third of the people in the world lived on less than US$1.90 a day. By 2013, it was just 10.7%. In actual numbers, that is 1.85 billion in 1990 compared to 767 million in 2013. A second glance puts in perspective the anger of many people in the world, and not in a good way.

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Bitcoin in Hong Kong

While many see Hong Kong as ideally positioned to become a global hub for digital currencies and internet finance, the road forward seems far from clear.

There’s no doubt Hong Kong is one of the world’s financial centres. But when it comes to crypto currencies, will Hong Kong still be in a leading position?

Bitcoin, which gained massive global public attention at the beginning in 2014 followed by a spike in its value, first surfaced in 2009. It is a payment system invented by Satoshi Nakamoto in 2008 and was introduced as open-source software one year later. It is a peer-to-peer (p2p) system where users can transact Bitcoins directly. Among other crypto currencies such as Litecoin (LTC) and Ripple, bastion remains the best-known and most widely used.

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Malaysian rate hike signals new trend

Looking ahead, inflation is, however, expected to remain above its long-run average. — Bank Negara Malaysia

Malaysia’s central bank welcomed Ramadan fasts and celebrations through July and August by raising the country’s interest rate for the first time in three years.

As many economists expected, Bank Negara Malaysia (BNM) announced after a routine meeting at the beginning of July that it decided to raise its overnight policy rate by 25 basis points. The new interest rate is 3.25 percent with floor and ceiling rates raised to 3 percent and 3.5 percent accordingly.

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