Opinion – The Hidden Debt Burden of Emerging Markets by Carmen Reinhart – Project Syndicate – John Gelmini

Irish version of a 1939 British poster, create...

Irish version of a 1939 British poster, created in response to the 2010 Irish banking crisis (Photo credit: Wikipedia)

Like Dr Alf, I am optimistic too because as the Chinese ambassador said last night on Channel 4 whilst making mincemeat of the left-wing news presenter Jon Snow, the fundamentals of the Chinese economy were strong.

The last banking crisis was, of course, an engineered collapse, designed to look like something that the public throughout the world had caused through their own profligacy supposedly egged on by bankers recklessly lending money to people with no prospect of repayment.

This is why before the crisis there was plenty of money but during it there was supposedly none followed by a situation in which the top 1/10th of 1% of people suddenly doubled their money and had it all transmuted into gold bullion, buy to leave properties, fine art, gems and expensive real estate.

There will be a repeat of this at some future point but the Chinese are better prepared than they were the first time as are many of the developing countries.

This does not mean that the financial wolves have been bested but since more people know who they are,how they operate and to a certain extent how they think the road ahead for them is a little harder although the right wars, provided that they are containable, can provide the opportunity they seek.

John Gelmini

Opinion – Putin, champion of the Shias | The Economist – John Gelmini

Vladimir Putin is interested in the defence of Russia from jihadists, terrorists and countries which want its mineral wealth or global domination. To do that he will form alliances with whoever he needs to.

So he is ‘Champion of the Shias’ not by ideological choice as the Economist headline suggests but by expediency and hard-headed calculation.

President Obama has failed this foreign policy test by claiming to want two contradictory outcomes, toppling Assad and putting Isis to the sword.The reality is that toppling Syria, Iran and then Russia is the real objective, and by pretending otherwise Obama, has been caught out by Putin who understood America’s real objectives and pre-empted her by force of arms.

Putin is increasingly gaining popularity at Obama’s expense. Putin is a man of action – Obama’s a ditherer.

John Gelmini