Global Economic Review: December 2010

Global Overview Global economy gains pace, but Asian inflation risks cause concern Renewed fears about a sovereign debt crisis in Europe and concerns about slower growth in Asia offset continued improvement in global economic data during November. China increased its bank reserve requirements twice last month to slowdown credit expansion and the consequent consumer demand growth, as inflation accelerated again in October. Rising prices are a worry in several other Asian countries, including India, Korea, and Indonesia. It is expected that central banks in these countries may have to tighten monetary policy faster than currently thought, which will likely slow down the pace of growth. Read more

Please visit our web site at www.thomaswhite.com to learn more about 45 countries worldwide, as well as the Thomas White Funds. Short introductions to our most recent content are given below.
Monthly Economic Reviews
	Europe Although several European economies expanded in the third quarter, concerns over the debt problems of countries such as Ireland and Portugal have kept investor sentiments low in the region. Read more
Weekly Postcards
	Morocco King Mohammed VI is the most powerful man in Morocco, but he also owns more than half of what is becoming increasingly one of the most precious economic resources – phosphates. Read more

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Morocco Postcard: Phosphate Kingdom of the World

December 6, 2010 A Postcard from Africa Morocco: Phosphate Kingdom of the World Agriculture is heavily reliant on phosphate for fertilizer, and any shortage in phosphate can cause an alarming upward spiral in food prices. King Mohammed VI is known to be a bit of a moderate, working towards several social and economic reforms for Morocco. As the King, he is the most powerful man in Morocco, but he also owns more than half of what is becoming increasingly one of the most precious economic resources – phosphates. The tiny kingdom can be called the phosphate kingdom of the world. And as king of this resource-rich empire, Mohammed VI is also the unofficial overseer of the country's biggest industrial unit – Office Chérifien des Phosphates or OCP. Phosphate is used in fertilizer and its importance is incalculable in modern agriculture. In addition, phosphate is used in food additives, detergents, and even lithium-ion batteries. A shortage in phosphate can not only drive food prices higher, but also the cost of the latest iPad, and even Coca Cola! OCP doubtless sees an immense opportunity here and is gearing up to meet demand by recently announcing that it will build four new plants by 2015, a project that will raise capacity by almost 70%. It is part of an estimated $7 billion investment that the company is making over the next few years, with phosphate production expected to peak over the next 50 years. Estimates vary as to how long the world's phosphate reserves are going to last. While the journal Global Environmental Change believes that the world will be depleted of phosphate in 100 years, others believe that phosphate mines may continue to thrive for the next 300 years. The U.S. has even less time left – it is estimated that the country's mines have only around 25 or 30 years of mining left, a troublesome figure considering that the U.S. produces around 17% of the world's total phosphate output. Small wonder then that phosphate is a furiously sought after commodity. Much of Morocco's extensive reserves of this white gold, around 50 billion tons of it, lie in the Western Sahara – a 'disputed territory,' which the UN designated as 'occupied,' or 'non-self governing' territories since 1963. It was in 1976 that Moroccan forces annexed the formerly Spanish-occupied region – and today Morocco controls most of the area, while an ongoing dispute drags on with the Sahrawi Arab Democratic Republic or Polisario Front. Predictably, the territory's economy mainly revolves around phosphate mining, and the future of this mainstay is of immense local and global interest in the region. Morocco's phosphate exports surged an astonishing 87.3% in the first 10 months of this year. OCP itself controls 30% of global phosphate exports, and may be producing as much as 54 million metric tons by 2015. For now, it is King Mohammed VI who holds sway here. Knowing the world's dependence on phosphate, King Mohammed VI is now well on his way to becoming one of the most powerful men in the world as well.

Please visit our web site at www.thomaswhite.com to learn more about 45 countries worldwide, as well as the Thomas White Funds. Short introductions to our most recent content are given below. Monthly Economic Reviews Europe New Although several European economies expanded in the third quarter, concerns over the debt problems of countries such as Ireland and Portugal have kept investor sentiments low in the region. Read more Americas New The economic fortunes of several Latin American countries are being increasingly tied to the demand for resources from Asia. This shift has allowed these countries to sustain their growth rate this year when the developed economies have slowed down. Read more

Thank you for subscribing to our email communication services. You may subscribe to additional services here . Remove me from this list You should consider the investment objectives, risks, charges and expenses of the Thomas White Funds carefully before making an investment decision. Prospectus(es) with this and other information about the Funds may be obtained by calling 1-800-811-0535 or by visiting www.thomaswhite.com. Please read the prospectus carefully before you invest or send money as it explains the risks associated with investing in international markets. These include risks related to social and political instability, market illiquidity and currency volatility. The information contained in this message does not, in any way, constitute investment advice and should not be considered a recommendation to buy or sell any security discussed herein. It should not be assumed that any investment will be profitable or will equal the performance of any security mentioned herein. Thomas White International, Ltd. may, from time to time, have a position or interest in, or may buy, sell or otherwise transact in, or with respect to, a particular security, issuer or market on our own behalf or on behalf of a client account. © Thomas White International, Ltd. 2010

Global Players: George Osborne, Chancellor of the Exchequer, U.K.

November 30, 2010 Global Players George Osborne, Chancellor of the Exchequer, U.K. As soon as George Osborne was appointed Chancellor of the Exchequer of Britain in May 2010, he introduced his plans for an austere budget to slash Britain's soaring public deficit.    Read more

Please visit our web site at www.thomaswhite.com to learn more about 45 countries worldwide, as well as the Thomas White Funds. Short introductions to our most recent content are given below. Weekly Postcards United Kingdom It's Royal fever all over again in the United Kingdom. When Prince William announced his engagement and forthcoming wedding next year to Kate Middleton, it generated a buzz in British circles that hasn't been heard since the late Princess Diana's wedding decades ago. Read more Global Players Ajay Banga, CEO, Mastercard Ajay Banga, cuts a striking figure, clad in his Sikh turban and well-tailored suits. His performance as the CEO of MasterCard has been equally impressive since he took over on July 1st 2010. Read more

Thank you for subscribing to our email communication services. You may subscribe to additional services here . Remove me from this list You should consider the investment objectives, risks, charges and expenses of the Thomas White Funds carefully before making an investment decision. Prospectus(es) with this and other information about the Funds may be obtained by calling 1-800-811-0535 or by visiting www.thomaswhite.com. Please read the prospectus carefully before you invest or send money as it explains the risks associated with investing in international markets. These include risks related to social and political instability, market illiquidity and currency volatility. The information contained in this message does not, in any way, constitute investment advice and should not be considered a recommendation to buy or sell any security discussed herein. It should not be assumed that any investment will be profitable or will equal the performance of any security mentioned herein. Thomas White International, Ltd. may, from time to time, have a position or interest in, or may buy, sell or otherwise transact in, or with respect to, a particular security, issuer or market on our own behalf or on behalf of a client account. © Thomas White International, Ltd. 2010

A Postcard from the U.K.: A Royal Boost to the Economy?

November 26, 2010 A Postcard from Europe The United Kingdom: A Royal Boost to the Economy? Westminster Abbey, where many an English coronation and royal wedding has taken place over the centuries. It's Royal fever all over again in the United Kingdom. When Prince William announced his engagement and forthcoming wedding next year to Kate Middleton, it generated a buzz in British circles that hasn't been heard since the late Princess Diana's wedding decades ago. To the outsider, a royal wedding seems fun, exciting and increasingly, a pretty rare event considering there are so few monarchies left in the world. But apart from the romanticism of the event, can the royal wedding of the new millennium lift a tired old British economy and ignite fresh life into it? Well, Verdict Research, a retail analysis company owned by Datamonitor, seems to think so. The firm estimates that the royal wedding can add $995 million to the U.K. economy. Orders apparently are already pouring in for commemorative mugs, champagne and wine boxes, and even iPhone covers, as companies race to compete before the big event next year. Magazine publishers and editors are rubbing their hands in glee at the prospect of a jump in newsstand sales. The travel industry, dragged down first by recessionary woes, the volcanic chaos triggered by Eyjafjallajokull, and then a disastrous World Cup campaign by the English football team, is especially cheering the royal engagement. This time, the travel industry is hoping that the royal wedding, set to take place sometime in spring or summer next year, will spur a jump in hotel and holiday bookings. To get an inkling of things to come, just look to Kenya, the place where Prince William proposed, where there has already been a surge in interest. And the British economy can do with what help it can get. Although the economy surprised analysts with a 0.8% growth in the third quarter, future projections remain pessimistic, bordering more on hopes that the U.K. can avoid a double-dip recession than confidence in its growth. A worried government is trying to cut back on public spending under Chancellor George Osborne's austerity plans. A million jobs are under the axe, and Osborne recently introduced a hike in sales tax from 17.5% to 20%, with the country's net debt already climbing to 57% of the gross domestic product. Consumer confidence then in the British economy is not exactly sky high, but what the royal wedding can provide would be something that economists can't quite calculate – the feel-good factor. Brand Britain will be on display with what will be no ordinary wedding. And when you consider that London will be hosting the Olympics the very next year in 2012, then it appears that Brand Britain has at least two years to do what it can to spur the economy ahead. Royals or gold medals – interesting times ahead indeed.

Please visit our web site at www.thomaswhite.com to learn more about 45 countries worldwide, as well as the Thomas White Funds. Short introductions to our most recent content are given below. Green Reports Green Roofs Can Mean Bluer Skies New Green roofs are those that are covered with plants or other vegetation, resembling a mini-garden and Chicago is touted to be the greenest in the U.S., thanks to the profusion of green roofs over its buildings. Read more Emerging Leaders Ajay Banga, CEO, Mastercard New Ajay Banga, cuts a striking figure, clad in his Sikh turban and well-tailored suits. His performance as the CEO of MasterCard has been equally impressive since he took over on July 1st 2010. Read more

Thank you for subscribing to our email communication services. You may subscribe to additional services here . Remove me from this list You should consider the investment objectives, risks, charges and expenses of the Thomas White Funds carefully before making an investment decision. Prospectus(es) with this and other information about the Funds may be obtained by calling 1-800-811-0535 or by visiting www.thomaswhite.com. Please read the prospectus carefully before you invest or send money as it explains the risks associated with investing in international markets. These include risks related to social and political instability, market illiquidity and currency volatility. The information contained in this message does not, in any way, constitute investment advice and should not be considered a recommendation to buy or sell any security discussed herein. It should not be assumed that any investment will be profitable or will equal the performance of any security mentioned herein. Thomas White International, Ltd. may, from time to time, have a position or interest in, or may buy, sell or otherwise transact in, or with respect to, a particular security, issuer or market on our own behalf or on behalf of a client account. © Thomas White International, Ltd. 2010

Green Report: Green Roofs Can Mean Bluer Skies

NOVEMBER 24, 2010 Green Roofs Can Mean Bluer Skies   The Green Report Once upon a time, the skies of Chicago were black with smoke from factories and filled with sounds of the guns of Al Capone. But today, Chicago has shrugged off that unflattering image. The Windy City is touted to be the greenest in the U.S., thanks to the profusion of green roofs over its buildings. Read more

Please visit our web site at www.thomaswhite.com to learn more about 45 countries worldwide, as well as the Thomas White Funds. Short introductions to our most recent content are given below.
Global Players
	Cynthia Carroll, CEO, Anglo American New When Cynthia Carroll became the CEO of Anglo American in 2007, it was a quantum leap over the 90-year-old tradition of the company. Read more
Weekly Postcards
	Mexico According to Wikipedia, its most famous exports, are sarapes and tiles. But it's also equally famous as the "Detroit of Mexico." Saltillo is rapidly emerging as the country's premier automotive manufacturing hub. Read more

Thank you for subscribing to our email communication services. You may subscribe to additional services here . Remove me from this list You should consider the investment objectives, risks, charges and expenses of the Thomas White Funds carefully before making an investment decision. Prospectus(es) with this and other information about the Funds may be obtained by calling 1-800-811-0535 or by visiting www.thomaswhite.com. Please read the prospectus carefully before you invest or send money as it explains the risks associated with investing in international markets. These include risks related to social and political instability, market illiquidity and currency volatility. The information contained in this message does not, in any way, constitute investment advice and should not be considered a recommendation to buy or sell any security discussed herein. It should not be assumed that any investment will be profitable or will equal the performance of any security mentioned herein. Thomas White International, Ltd. may, from time to time, have a position or interest in, or may buy, sell or otherwise transact in, or with respect to, a particular security, issuer or market on our own behalf or on behalf of a client account. © Thomas White International, Ltd. 2010

Emerging Leaders: Ajay Banga, CEO, Mastercard

November 23, 2010 Emerging Leaders Ajay Banga, CEO, Mastercard With his customary Sikh turban, a full beard, and a well-tailored dark suit, the six-feet tall Ajay Banga cuts a striking figure. His performance as the CEO of MasterCard is equally impressive. Banga took over on July 1st 2010, and MasterCard's profits for the July-September quarter have beaten all estimates.    Read more

Please visit our web site at www.thomaswhite.com to learn more about 45 countries worldwide, as well as the Thomas White Funds. Short introductions to our most recent content are given below. Postcards South Korea U.S. President Barack Obama and South Korean President Lee Myung-bak failed to reach a conclusive agreement on a new trade deal, which the White House says can create 70,000 American jobs. Read more Monthly Economic Reviews Asia Pacific The World Bank, in its latest economic outlook, lifted growth projections for East Asia, estimating real gross domestic product (GDP) in the region will rise 8.9% in 2010 compared to an earlier forecast of 8.7%. Read more

Thank you for subscribing to our email communication services. You may subscribe to additional services here . Remove me from this list You should consider the investment objectives, risks, charges and expenses of the Thomas White Funds carefully before making an investment decision. Prospectus(es) with this and other information about the Funds may be obtained by calling 1-800-811-0535 or by visiting www.thomaswhite.com. Please read the prospectus carefully before you invest or send money as it explains the risks associated with investing in international markets. These include risks related to social and political instability, market illiquidity and currency volatility. The information contained in this message does not, in any way, constitute investment advice and should not be considered a recommendation to buy or sell any security discussed herein. It should not be assumed that any investment will be profitable or will equal the performance of any security mentioned herein. Thomas White International, Ltd. may, from time to time, have a position or interest in, or may buy, sell or otherwise transact in, or with respect to, a particular security, issuer or market on our own behalf or on behalf of a client account. © Thomas White International, Ltd. 2010

Welcome

I study economics as a hobby. My interests lie in Post Keynesianism, (Old) Institutionalism, and related paradigms. These seem to me to be approaches for understanding actually existing economies.

The emphasis on this blog, however, is mainly critical of neoclassical and mainstream economics. I have been alternating numerical counter-examples with less mathematical posts. In any case, I have been documenting demonstrations of errors in mainstream economics. My chief inspiration here is the Cambridge-Italian economist Piero Sraffa.

In general, this blog is abstract, and I think I steer clear of commenting on practical politics of the day.