Two well-known and highly respected mainstream economists, Carmen Reinhart, a chief economist for the World Bank, and Vincent Reinhart, chief economist for Morgan Stanley bank, have recently published an article in the widely read capitalist source, Foreign Affairs, entitled ‘The Pandemic Depression’. Arguing primarily from a global perspective, the economists have concluded the US economy as of the 3rd quarter 2020 is not merely now experiencing a ‘great recession’ but now qualifies as another Great Depression.
75 years have passed since the end of the Great Patriotic War. Several generations have grown up over the years. The political map of the planet has changed. The Soviet Union that claimed an epic, crushing victory over Nazism and saved the entire world is gone. Besides, the events of that war have long become a distant memory, even for its participants. So why does Russia celebrate the 9th of May as the biggest holiday? Why does life almost come to a halt on June 22? And why does one feel a lump rise in their throat?
Optimism reigns in global stock markets, particularly in the US. After falling around 30% when the lockdowns to contain COVID-19 virus pandemic were imposed, the US stock market has jumped back 30% in April. Why? Well, for two reasons. The first is that the US Federal Reserve has intervened to inject humungous amounts of credit through buying up bonds and financial instruments of all sorts. The other central banks have also reacted similarly with credit injections, although nothing compares with the Fed’s monetary impulse.
Blocking oil Shipments through the Strait of Hormuz…
Reacting to American threats to crater their economy, Iran’s first vice president Mohammad-Reza Rahimi said last week that the Islamic Republic would retaliate by blocking all oil shipments through the strategic Strait of Hormuz.
As the purported assassination of Osama bin Laden has placed the focus on Pakistan, it is vital to assess the changing role of Pakistan in broad geostrategic terms, and in particular, of the changing American strategy toward Pakistan. Continue reading →