January, 27 2017 by lsr team

Successful renegotiation of NAFTA is likely but will not provide the template for the US administration’s future China policies. - US-Mexican trade is dominated by global value chains. US-sourced content in Mexican exports to the US is 40% so it is impossible for Trump to realize his threats to impose border taxes on Mexico without causing major damage to US manufacturing jobs. - This makes a successful renegotiation of NAFTA both possible and probable. - But the same cannot be said about US-China trade, which lacks such well-developed channels for trade. As...

October, 14 2015 by lsr team

We have written before on this subject but continue to receive questions on it and some of these questions deserve careful consideration. To recap, initially, the question was simply ‘can’t central banks just write off some of the massive of government debt that they have amassed through the quantitative easing programs.’ To this we answered ‘yes they can but to what end?’ In this note we answer a selection of the most intriguing questions asked by clients. Is the central bank’s funding liability really a liability? Wouldn’t this...