Links November 20

Global macro:

  • Bond markets providing a false sense of security. Financial Times.
  • Fixing the world starts with fixing our economic measurements. Quartz
  • Netanyahu calls Obama’s bluff. M K Bhadrakumar
  • Indeed, Obama’s path to Xanadu runs via Jerusalem. Edward Luce. The road from East to West always runs through the Middle.
  • Robert Kaplan meanwhile warns not to forget Eurasia. New Eastern Europe

United States:

  • Obama’s rebalance towards South East Asia nonetheless continues apace. The Diplomat
  • And Myanmar indeed seems to matter more to the White House than Gaza or the fiscal cliff. Asia Times
  • Not that the Asian Pivot matters much to Americans when there’s a distraction: Petraeus scandal puts four-star general lifestyle under scrutiny. Washington Post
  • The myth of the red state. New York Times
  • America’s oil bonanza… perhaps the reason why the Middle East doesn’t matter so much anymore. The Economist. Macro Investor has a special on US energy this week.
  • Solid existing home sales report. Calculated Risk


  • What not to worry about in the Eurozone crisis. Wolfgang Munchau. Excellent summation.
  • The report on France that has upset everybody. The Economist
  • Meanwhile, France’s opposition party is hit by internal vote-rigging claims. BBC 
  • Europe makes budget plans without Britain. Financial Times
  • Three-star pork knuckle: haute German cuisine attracts Michelin Guide. Der Spiegel
  • But austerity-ravaged Britain is in a nutrition recession. Guardian 
  • And Greece’s middle classes are forced to grow their own food, raise their own chickens. Wall Street Journal. Oh dear, the depths of recession-porn must mean we’re about to see a rally.


  • Xi Jinping might be a strong reformer to the surprise of the West. South China Morning Post. This is what we have been saying at Macro Investor.
  • Indeed, Xi to unveil plans for reform in late 2013 says CICC chairman. Bloomberg. “the focus will probably be on reducing government intervention in the economy and breaking up state monopolies.” That fits in with forecasts of a 9-month state-funded economic honeymoon.
  • Still, tell that to the Tibetans: fresh protests erupt. Financial Times
  • And the other Chinese tragedy: street children. Five kids found dead in dumpster. Xinhua. Hukao reform will be essential to redress terrible imbalances between urban rich and rural migrant poor.
  • The upside of staying at home: Subaru shares gain 83% thanks to not having plants in China. Bloomberg
  • Nevertheless, Jaguar Land Rover-Chery to invest $US1.75bn in new Jiangsu factory. Ibid
  • GM opens another plant too. Reuters. But Chery Auto struggles
  • Bal Thackeray, Bombay’s greatest thug, annoys the city one last time with a traffic-stopping state funeral. Times of India. How the hell does a guy like this deserve a state funeral?
  • Bal Thackeray: end of an era. The Economist


  • Is Qantas in play? Financial Review
  • Boart to shutter Perth factory. The Australian. So much for jobs and the mining boom.
  • And so much for the CSG boom – fugitive methane emissions could attract billions of carbon tax liabilities. Business Day
  • Victorian year 12 exam authority apologises for ‘giant robot’ image in Russian revolution history paper. The Age
  • GST review promised. AFR
  • Mining gloom is NBN boom. AFR
  • Rudd backs new labour accord. AFR
  • Indonesian young to be guest workers. AFR
  • Banks and liquidity risk. AFR
  • World Bank sasy we’re on track for 4 degrees of warming. SMH


  • Why Opera (the web browser) thrives in Europe’s last dictatorship. Quartz
  • Claire Danes and Generation Cryface. New Yorker
  • Nassim Nicholas Taleb writes a new book: Antifragile. The Economist


  1. It was a fairly good Q&A last night, but I still cant get a feel for what the “real” Malcolm Turnbull thinks (/would do), and what he’s being required to say and support by Tony Abbot & Co.

      • Only half tongue-in-cheek really.

        Fact is Turnbull is a product of the finance machine, and as successful one he has no reason to question its reason for being. The mezzanine finance layer that covers all industry and innovation works well – if you’re looking down from the mezzanine.

        I suspect he will ultimately be the member for Goldman Sachs et al.

  2. re Banks and liquidity risk
    If only those pesky pensioners would put their money in the bank and not keep their $100 notes under the mattress. /sarc