Tag Archive: IMF

Global Debt Has Reached a New High

According to the IMF, global debt has reached a new peak. Not only that, but according to the fund, there are three countries responsible: The U.S., China and Japan. These nations account for over 50% of total global debt, and China alone is responsible for about 75% of new private debt since the financial crisis. The numbers are nothing short of staggering: The IMF’s fiscal monitor reportedly stated that total debt reached $164 trillion in 2016. That figure, incidentally, represents 225% of global gross domestic... Continue Reading

IMF Slashes Growth Forecasts

The International Monetary Fund, or IMF, recently slashed its growth forecasts for the U.S. for this year and next. The IMF lowered its expectations for growth from 2.3% to 2.1% for this year, and from 2.5% to 2.1% for 2018. Needless to say, this is far below the 4% growth target that has been discussed in recent months and it remains stubbornly below the 3% mark. The IMF listed numerous factors regarding its decision to lower forecasts, with a very poor showing in the first... Continue Reading

Are the Dollar’s Days Numbered?

Tick tock tick tock…October 1st is quickly approaching and this day is bringing with it what could be a pivotal moment in the global economy and trade as we know it today. On the first of October, the International Monetary Fund will officially add the Chinese Renminbi to its Special Drawing Rights or SDR basket of currencies. With this move by the IMF, the Chinese currency will take its place among the elite currencies of the world including the euro, yen, pound and dollar. This... Continue Reading

World Bank to Become First SDR Bond Issuer in China

The People’s Bank of China recently approved the inaugural issue of bonds denominated in SDRs (Special Drawing Rights) by the World Bank. This is the first bank to receive such approval and represents the beginning of the SDR bond market in the world’s second largest economy. In issuing the SDR bonds, the World Bank is expanding its product base as it looks to open and develop new markets. Why is this important? This new issue of SDR bonds in the Chinese market may yet be... Continue Reading

ECB Ready for More Printing?

The European Central Bank met yesterday and as expected, kept interest rates at record lows in an attempt to revive growth and spur inflation. The central bank also added that it intends to maintain rates at current levels, or possibly even lower for an extended period of time. Back in March, the ECB cut its deposit rates deeper into negative territory and increased its stimulus measures. While no action was taken yesterday, the overall message appears to be pretty clear: Rates could remain low and... Continue Reading