The Risk of a New Economic Non-Order
Mohamed El-Erian worries that failure to reform international governance institutions could lead to their breakdown.
New Russia sanctions: The “free trade” wing of the Republican Party has taken the United States into a trade war that it cannot win, David P Goldman contends. The new sanctions passed by the House and Senate last week force Europe into a de facto alliance with Russia against the United States, and by extension with China as well. It is the dumbest and most self-destructive act of economic self-harm since the United States de-linked the dollar from gold on August 15, 1971, and it will have devastating consequences. READ THE STORY HERE
China, South Korea: Beijing’s opposition to Seoul’s deployment of the THAAD missile defense system is less about missiles and more about efforts to weaken the US’ longstanding network of formal and informal alliances in Asia. Grant Newsham writes that the THAAD controversy displays China’s familiar modus operandi: First, pick a fight over an allegedly offensive act; next, follow up with vitriol and veiled threats; and then inflict economic pressure.READ THE STORY HERE