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FT: A single currency could trigger a credit crisis. Project Syndicate: India may soon pass China in growth. IHT: Ignore North Korea’s bravado and threats.
The US must seek regime change in North Korea
Columnist Jeff Jacoby writes in the Boston Globe that the United States should stop pretending that engaging North Korea will accomplish anything. It must develop a tough strategy and seek regime change.
QUOTE: The thugs who rule North Korea commit atrocities with impunity because the civilized world has been unwilling to confront them.
What China’s diplomatic cables would say
Columnist Thomas Friedman writes in the New York Times that if classified cables from the Chinese embassy in the United States were leaked, they would speak of optimism. They would say Americans are so busy with frivolous political battles that they are missing out on opportunities.
QUOTE: The Americans are oblivious. They travel abroad so rarely that they don’t see how far they are falling behind. Which is why we at the embassy find it funny that Americans are now fighting over how “exceptional” they are.
A single currency could trigger a credit crisis
Columnist Martin Wolf writes in the Financial Times that a single currency system could lead to a credit crisis because the common interest rate will appear low in some countries.
QUOTE: In the eurozone, the fact that global interest rates were low and demand in core economies weak, exacerbated this effect. These ultra-low interest rates triggered asset price bubbles and credit booms in peripheral economies. These, in turn, encouraged construction booms.
Hong Kong regulators should stop focusing on secondary issues
An editorial in the Wall Street Journal argues that Hong Kong regulators are misdirecting their attention. Rather than focusing on critical issues affecting investors, the regulators are busy cracking down on small crimes like insider trading.
QUOTE: Reliable information is the most basic prerequisite for a market to function properly. Insider trading and share ramping schemes deserve to be stamped out, but they are a secondary consideration.
India may soon pass China
Jagdish Bhagwati, professor of economics and law at Columbia University, writes in Project Syndicate that India may soon overtake China and its authoritarian ways. He argues that in such authoritarian political environments, growth can be unpredictable and social unrest may be dealt with harshly.
QUOTE: India has a far more abundant supply of labor, as well as a more favorable demographic profile, so that, as India’s investment rate increases, labor will not be a constraint. India will thus become the new China of the past two decades.
North Korea and Pakistan share much in common
Ramesh Thakur, a professor of political science at the University of Waterloo, writes in Toronto’s Globe and Mail that there are parallels between North Korea and Pakistan, two of the world’s “potential nuclear flashpoints.” Both must maintain tense situations without provoking full-blown war.
QUOTE: Given the geography, North Korea could certainly inflict heavy damage on Seoul, but its ability to sustain protracted combat is highly suspect … Pakistan cannot match India’s military might.
The US should use tax policy to boost the economy
An editorial in the Los Angeles Times argues that American lawmakers should pay more attention to how tax changes could be used to boost the economy and reduce unemployment.
QUOTE: Ideally, lawmakers would have spent much of the last year considering how best to use the tax code to promote growth. Instead, they spent much of the last year campaigning.
American and Chinese students must learn to negotiate cultures
Jon Huntsman, US ambassador to the People's Republic of China, writes in the Wall Street Journal that the United States should do more to use its universities as a way for spreading ideas and American values to Chinese citizens. America should likewise send more students to China.
QUOTE: As more of our citizens understand each other's culture and language, it makes it that much easier for us to work through our differences and find solutions for complex global problems.
Ignore North Korea’s bravado and threats
Contributor Philip Bowring writes in the International Herald Tribune that the United States and South Korea should ignore North Korea. He argues that the North’s provocations are an attempt to make diplomatic gains.
QUOTE: The United States cannot punish the North militarily without risking a wider conflict that would do far more damage to the prosperous, trade-dependent South than to a North accustomed to endless hardships imposed by a brutal regime.
British coalition thinks it can operate outside the rules
Columnist Simon Heffer writes in London’s Daily Telegraph that the British coalition continues to think it can operate outside the nation’s constitution because it is “some sort of miracle” that the coalition was created in the first place. Heffer argues this is not the case and threatens stability.
QUOTE: The Lib Dems' determination to end collective responsibility in the Cabinet will end in chaos.