Martin Wolf, “Why so little has changed since the financial crash”
(Financial Times – paywall, 4 September 2018)
Normally, we don’t include FT articles because of the paywall, but this one is so incisive and such a salutary warning that we decided to make an exception. The editorialist argues that the current inertia is caused by the power of vested interests. We live in a rent-extracting economy in which monopoly and “zero-sum” activities are pervasive. Few question the value of the vast quantities of financial sector activity that continue to exist or recognize the risks of further big financial crises (reads in 6-7 min).
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Daniel Moss, “OK, So China Will Surpass the U.S. Economy. Then What?”
(Bloomberg, 3 September 2018)
In the long-term, the US will outstrip China because the Middle Kingdom has set itself up for a brutal demographic collapse. Shortly after China overtakes the US economy in size (around 2030), all the legacies of the one-child policy coalesce as the society seriously ages, stalling out China’s expansion. The US will also face demographic challenges, but nothing on the scale of China. India and Indonesia will benefit (reads in 4-5 min).
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