元   Is the Outflow of China’s Currency Really a Problem?

The great engine of China has performed at an amazing pace since the economic downturn of 2009. Annual GDP growth, despite slowing, has performed at: 2010 ~ +10.6% 2011 ~ +9.5% 2012 ~ +7.9% 2013 ~ +7.8% 2014 ~ +7.3% 2015 ~ +6.9% 2016 ~ +6.7% Details summarize that China’s economy is expanding at the slowest pace in not only seven years, but in more than a quarter of century. Conversely, there has been significant investment in the economic engines of South Asia and the ASEAN region since 2010. The outcome, although positive for Asia, has increased the competitive landscape significantly and strained China. Currently, there is enormous overcapacity in China, which has slowed growth and incr

Border Adjustments and Tax Reforms

Put simply, Paul Ryan’s and President-elect Trump’s “border tax adjustment” proposal would tax imports into the United States at the corporate income tax rate, while exempting income earned from exports from any taxation. The reform would closely mirror tax border adjustments in economies with consumption-based VAT tax systems. If enacted, the plan will likely be extremely bullish for the US dollar. In addition, it would have a transformational impact on the US trade relationship with the rest of the world. On December 21, the Trump transition team announced that economics professor Peter Navarro, a staunch critic of the U.S.-China commercial relationship, will lead a new council in the Whit