MarketMinder - Sensible Stories

Mr. Abe’s ‘Third Arrow’

Editorial Board, The Wall Street Journal — Friday, 17 May 2013 11:53:21 PDT

MarketMinder's View: Fiscal and monetary stimulus gave Japan a boost in Q1, but sustained growth likely requires deep structural reform—and this piece highlights many of the most glaring needs. Prime Minister Shinzo Abe may have the rare political capital to pull off meaningful change, but whether he can seize the opportunity remains to be seen.

US Demand Is Alive and Well

Fisher Investments Editorial Staff, The Street — Friday, 17 May 2013 11:52:41 PDT

MarketMinder's View: Our latest for The Street, on the underappreciated health of US demand.

Leading Economic Indicators Hint at Underlying Strength

Staff, Reuters — Friday, 17 May 2013 11:51:55 PDT

MarketMinder's View: While LEI’s not a perfect gauge of economic direction, a high and rising LEI is one more sign of the US’s underappreciated economic strength.

There May Be No Halting This Tax Juggernaut

Jeremy Warner, The Telegraph — Friday, 17 May 2013 11:51:10 PDT

MarketMinder's View: “As this week’s dismal GDP figures demonstrate, Europe desperately needs some kind of deregulatory growth agenda, and yet it seems determined only on the reverse. To be pushing ahead with a stifling and invasive initiative at a time of deepening recession fair takes the breath away.” On the bright side, though, many in Europe have seemingly started realizing this, and the financial transactions tax looks increasingly likely to get watered down or scrapped altogether.

Japan Considering Tariff Rate Cuts on Australian Beef

Staff, Jiji Press — Friday, 17 May 2013 11:50:30 PDT

MarketMinder's View: Though both nations would likely be better off if Japan scrapped the beef tariff altogether, reducing it from 38% to 30% could help them get past one of the remaining sticking points in their free-trade negotiations.

Does Solar Energy Actually Make Massachusetts Safer?

Steve Goreham, The Washington Times — Friday, 17 May 2013 11:49:37 PDT

MarketMinder's View: Here’s an interesting look at the economic inefficiencies of solar energy. In our view, if an industry can’t profit without massive taxpayer subsidies, its time likely hasn’t come yet—markets, not governments, will tell us when solar’s the way to go.

US May Strip Bangladesh of Tariff Breaks

Howard Schneider, The Washington Post — Friday, 17 May 2013 11:48:43 PDT

MarketMinder's View: Removing Bangladesh’s preferential market access may seem like an obvious policy response to deplorable working conditions in the nation’s garment factories, but as this piece highlights, it’s not necessarily the best solution. It could very well whack Bangladeshi workers without inciting the government to tackle the corruption enabling overcrowded, shoddily constructed factories.

Taiwan, Singapore Conclude Trade Pact Negotiations

Staff, Central News Agency — Friday, 17 May 2013 11:47:37 PDT

MarketMinder's View: Absent official diplomatic relations with most of the world, these economic cooperation agreements are about as close to free trade as Taiwan can get with anyone other than China. Taiwan’s progressing on several such pacts, which should promote trade growth both on the island and throughout Asia.

Germany: Central Banks Can’t Solve All Problems

Staff, Associated Press — Thursday, 16 May 2013 13:47:37 PDT

MarketMinder's View: “Monetary policy can't solve the problems that have to be solved by financial and economic policy, structural policy.” We agree—in fact, excessive quantitative easing is often contractionary, as we’ve written.

UK Shale Gas Programme to ‘Accelerate,’ Say Ministers

Emma Rowley, The Telegraph — Thursday, 16 May 2013 13:45:07 PDT

MarketMinder's View: And if it does, expanding shale gas exploration likely benefits the UK’s economy—promoting increased industry, jobs and domestic and foreign investment and potentially lowering dependence on foreign energy.