Meraglim Blog

China Fires the First Shot in a New Financial War That Will Get Much Worse

This article is about a shot heard round the world. On Wednesday, Jan. 10, 2018, Bloomberg reported that government officials in Beijing were reviewing the composition of Chinese reserves and considering reducing their allocation to U.S. Treasury securities. The news sent Treasury note prices plunging, and the yield to maturity of the 10-year Treasury note shot

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Whatever Happened to the Invisible Hand of Capitalism?

The article I will share with you today was in the works for over a year. I sat down to write it several times, and every time, until the last time, I walked away with just an incomplete paragraph or two. Just like any article about today’s global economy, it is an open-ended article. When

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The Trump Tax Reform Reshuffles the Deck. Florida and Texas Win Big

Most Americans sat down after the Trump tax law took effect and calculated the immediate impact on their own personal tax situation. That’s natural; I did the same thing. But there’s a much bigger picture here. The tax bill not only affects your individual liability but also affects asset prices, capital allocation, capital expenditures and

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China Knows a Slowdown Has Begun. Rest of the World Will Find out Soon

China is the world’s second-largest economy, after the U.S., and represents almost 16% of global GDP. This means that if Chinese growth of 6.7% slows down by 0.5 percentage points, global growth will slow 0.25 percentage points. That’s huge considering global growth is only about 3.5% to begin with. That kind of slowdown does not

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