The sixth G-20 meeting proceeded successfully in the sceneful French city of Cannes. Tackling an unprecedented global recession, leaders of the world banded together once more seeking feasible solutions. But as some have already pointed out, the summit is becoming increasingly lateral, culminating to a personal conference between the world’s two foremost powers: Washington and Beijing.

Obama, in an effort to both booster domestic support and pulling the sluggering economy back to its track, heavily critized China for its pouching of US intelletual property and artificially undervaluing its currency, creating a massive trade deficit in China’s favour. Hu responded by stressing that China’s currency is not the sole cause of a stagnant American market, and a much needed mutual understanding would serve both countries’ interests.

Did Hu have a point? Maybe. But Obama certainly had his as well. For years, Beijing has kept its currency at a level more or less fixed to the US dollar rather than reflecting its true market value. Experts have estimated that the yuan is undervalued as much 40% against the dollar. Despite having risen by almost 10% in the past 5 years, the yuan’s true value is still underappreciated. Given China’s current status as America’s largest creditor, a full-on open assault would no neither side any good. However, it would be interesting to see how the issue unfolds in the foreseeable future.

Images courtesy of http://news.xinhuanet.com/english2010/photo/2011-11/03/c_131228392.htm and http://www.wantchinatimes.com/newsphoto/2011-02-12/450/CFP410995346-141125_copy1.jpg, in order of precedence.

Europe is in a lot of trouble. The Europeans know this; the Americans know this; the entire world knows this. But it seems theres not much anyone can do to alleviate Europe from its own financial sinkhole. On second thought, somebody might.

Hu Jintao, the president of China, landed in Vienna on October 31st to begin a 3 day visit of the central European country before heading off to France for the next G20 summit. This is only the second time a Chinese leader has visited Austria, and Hu’s second trip to Europe since earlier this year. In addition to sight-seeing, Hu is presented with a much tougher task: increase China’s involvement in the Europe and provide much needed cash to volatile Euro-zone.

How likely is China to bail Europe out? Very likely. Despite annoucing earlier that Europe should still play a key role in solving its own crisis, China would still like to help out its second-largest trading partner. Over the past few years Beijing has tried hard to establish an active presence in Europe, from buying Airbus to importing Chanel No. 5. In turn, China is also Europe’s largest trading partner, who imports hundreds of billionth worth annually. An European demise is no goood news to anyone, and certainly even more so to the Chinese.

Images: http://ec.europa.eu/trade/creating-opportunities/bilateral-relations/countries/china/, and http://asiabizz.com/wp-content/uploads/2010/12/eu-china-trade.jpg, in order of precedence.

As the situation in Europe gets worse and worse, the future of the Euro-zone looks rather grim. Europe, as well as the entire world, now looks to Germany for the rescue. Naturally, being the founder of the Euro-zone, Germany is unlikely to turn a blind eye on the issue (as manisfested by the passing of the Euro-bailout fund), but the reluctance demonstrated by Chancellor Merkel to pass the bill reflects another aspect concerning the German involvement in the European financial disaster.

For decades after the Second World War, Germany has relegated itself to focusing primarily on rebuilding its fractured economy and infrastructure, leaving politics to its western neighbor, France. The robust German economy proved to be something both its European neighbors love and, fear. The scars of German nationalism is still visible to many, and the last thing Europe wants is another wave of “German domination”.

While the other European states certainly have legitimate concerns, it is unlikely that Germany’s active involvement in the Euro-zone will bring about another wave of Teutonic invasion. The German economy relies heavily on export, and any potential political disturbance will mean less profit. As well, in a globalized age such as today, when the interests of all the countries are so tightly intettwined, these concerns are more or less on the foolish side.

Images courtesy of : http://en.wikipedia.org/wiki/File:Flag_of_Germany_(state).svg and http://articles.businessinsider.com/2010-05-17/markets/30087395_1_greek-imf-, inunemployment-rate, in order of precedence.

When the Dutch first settled on Manhattan, they certainly did not expect their fortification of the city of New Amsterdam, “de Waal Straat”, to become the center of global finance three and half centuries later. More commonly known as “Wallstreet”, today it has become the center of yet another revolution. While the wall has long been demolished physically, the symbolism in its name is precisely whats segregating the wealthy, well-off CEOs from the rest of the American populace, protestors claim.

As demonstrators from around the world join the cause, Wallstreet has been branded as “the center of the greed that corrupts the new century,” and in order to rescue the world from this financial meltdown, wallstreet has to go, along with its top bankers and investors who make up to 500 times more than their employees do.

Of course, resolving the economic breakdown won’t be as easy as dismantling wallstreet or sacking the few high ranking executives working for it. If anything, the root of the problem lies with the very people complaining at the moment. For long Americans have spent well in excess of what they earn, forgoing the process of saving. While they may point to their CEOs as the culprit behind this recession, really, Americans have incurred upon this disaster themselves. Perhaps instead of rallying against Wallstreet, they should really do some self-reflections themselves.

Images courtesy of http://infolific.com/fun/collapsed-wall-street-bull/ and http://randalclark.com/debt-consolidation-in-edmonton/, in order of precedence.

The Greeks have long prided themselves in their logic and philosophy; afterall, Aristotle and Socrates did once walk amongst them. However, when it comes to modern economics, it would appear that the Greeks could learn a lesson or two from their European colleagues, especially when the nation is on the verge of bankruptcy. Facing mounting pressures from foreign lenders, Greece’s EU bailout relies under one condition: the approval of a new round of austerity measures. And how did the Greeks respond? Not happening!

Of course, that comes as no surprise. The Greeks have become accustomed to their peppy lifestyles. Years of borrowing by the government ensured that at the very least, an average Greek enjoyed quite a high standard of living, and as one Greek economist noted, ‘Greece is a poor country full of rich people.’ But as the entire Eurozone is plunged into the abysmal depth of the debt crisis, Greece, a country which for years has
faked its deficit numbers, is naturally the first to fall in. Whether or not Greece will remain in the Eurozone is up to debate, but one thing for certain: Greeks need to cut back on their vacations and start working like everybody else!

Images courtesy of : http://www.bokbluster.com/2010/02/19/greek-financial-crisis/,
and   http://trendsreport.files.wordpress.com/2011/07/greece-debt-crisis.jpg?w=440&h=240&crop=1, in order of precedence.

Ryanair, the no-frill pay-for-every-service Irish airline, had been known apparently not only for its unimaginably cheap airfare, but also for its highly imaginative, albeit offensive, company slogans promoting new routes. And as the company aimed to expand to Belgium, its flamboyant chant caught the eyes of the indigenous airline–Sabena, the flag carrier of Belgium, sued Ryanair over its use of misleading ads, one of which quoted, “pised off with Sabena’s high fares?”, making a reference to the Manneken Pis in Brussels.

As expected, Ryanair lost the case and was forced to discontinue the use of the ad from its fleet. However, it claimed that through the controversy it had succeeded in delivering the message across, and coincidentally Sabena filed for bankruptcy the very same year. True that it could be argued that Ryanair’s act of open mockery of its rival breached the code of ethics normally observed in the business world, but did it violate against the spirit of free-market? Ryanair had in essence stated a fact in a more direct manner, and utilized rhetoric to highlight this fact. And as far as Sabena’s concerned, its legal actions merely broadcasted this fact to everybody else who wasn’t aware.

Image courtesy of: www.ryanair.com, http://www.nerjatoday.com/nerjanews/wp-content/uploads/2008/08/ryanair.jpg, in order of precedence.

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