IMF warns Turky on its economy

The IMF warned Turkey to reduce its investment incentives recently. Since the United States isn't sending financial aid to Turkey their president chose to increase financial incentives to stimulate the economy . However world sentiment is  changing on these policies because of their high inflation.
https://ahvalnews.com/turkish-economy/imf-warns-turkey-economy

European countries should make it easier for refugees to work

This article talks about how asylum seekers in European countries are not allowed to work until 6 months of arrival and even then, 75% of their income is taken to cover room and board while they live in government run housing. Studies show that the long-term gains to everyone of allowing refugees to work outweigh the short-term costs, not just to the public purse, but to natives’ jobs and wages. In America the average refugee becomes a net fiscal contributor just eight years after arriving. Moreover, Germany has allowed municipalities to adapt their refugee-integration policies to local conditions, whereas Scandinavian countries have one-size-fits-all policies. Scandinavian countries could come up with better policies to integrate their refugee population as studies shows that although vast majority of them have low paying jobs, a large number of these move on to higher skilled higher paying jobs. The governments need to play a more active role to make sure refugee jobs are more complementary to those of native workers, rather than competitive. 

https://www.economist.com/news/international/21740726-it-eases-fiscal-burden-without-hurting-locals-prospects-european-countries-should-make

Bitcoin Is The Religion, But Ripple Would Pack Higher Return

This article compares and contrasts the potential returns on Bitcoin and Ripple (XRP) in the future. To be honest, I have never really understood the craze or uses for these cryptocurrencies. I always feel like the people who write about them are fairly biased/optimistic. For instance, this article mentions that Bitcoin could have a 140% return on investment if its price were to return to its previous high of $20,000. At least for now, I feel that that is an unachievable goal in the near future. XRP is similar in the sense that it reached a high price of $3.30, yet it is currently trading at $0.70. I think this article reveals the high level of risks in these cryptocurrencies. In addition, the endowment effect is very evident, as the crypto owners and article writers ascribe more value to things merely because they own them. What do you think about cryptocurrencies?

https://www.forbes.com/sites/naeemaslam/2018/04/20/bitcoin-is-the-religion-but-ripple-would-pack-higher-return/#605f6f25504b

Mike Pompeo meets with Kim Jong Un

This article discusses the revelation that Mike Pompeo, former CIA Director and current nominee for Secretary of State, visited North Korea earlier this month and met with Kim Jong Un.

The article goes on to discuss the possibility of later visits, including possibly President Trump meeting directly with Kim Jong Un. This is relevant to the class as it deals with the ways in which countries operating by two economic systems relate to each other, as well as the ways that the economy can become a weapon of diplomacy through sanctions. The amount of North Korea's GDP that goes into funding military research and testing also speaks to an economic system where military prowess is valued over production of consumer goods or basic agriculture, somewhat like the former Soviet Union.

Starbucks will close 8,000 US stores May 29 for racial-bias training

The announcement follows uproar over the arrest of two black men who were waiting for a friend at a Philadelphia Starbucks last week. The store manager called the police. The racial bias training will be provided on May 29 to about 175,000 workers. Starbucks says the training will be developed with guidance from experts including former Attorney General Eric Holder. Sherrilyn Ifill, the president of the NAACP Legal Defense and Education Fund, and Jonathan Greenblatt, CEO of the Anti-Defamation League, will also help design the program, as will executives from the Equal Justice Initiative and Demos, the progressive think tank. The experts will also review the effectiveness of the training, Starbucks said. The two men entered the Starbucks on Thursday and asked to use to the bathroom. An employee told them it was only for paying customers. When they then sat in the store without ordering anything, the manager called police, and the men were arrested for trespassing. No charges were filed. The company says the manager who called the police is no longer working at that store. Starbucks would not comment on other reports that she has left the company by mutual agreement.

http://money.cnn.com/2018/04/17/news/companies/starbucks-store-closings-racial-bias-education/index.html

RPT-EXPLAINER-The state of Raul Castro's economic reforms in Cuba

This article is a summary of what Cuba is doing in order to reform their economy. It seems that the government is shifting to more of a capitalist economy, but they are trying to hold onto the socialist equality background. One part that I thought is interesting is the part about private property. The government recently authorized the buying and selling of homes and cars in 2011. Another part that was interesting was that the government still has a centrally planned and monopoly on foreign trade, but they are slowly privatizing the state owned companies. There seems to be clues that Cuba is shifting slowly into a transition economy.

https://www.reuters.com/article/cuba-politics-castro-changes/rpt-explainer-the-state-of-raul-castros-economic-reforms-in-cuba-idUSL1N1RT1YK

IMF Sees Global Risk in Trump Trade Threats and Tax Cuts

A recent report by the IMF predicts overall strong trade growth in major world economies in 2018. However, one area of concern for them was in President Trump's recent policies. The report never mentioned him by name, but it nonetheless warned of the growing likelihood of a trade war between the US and China. His recent tax cuts were also a cause for concern, as the IMF predicts that this could cause inflation within the United States. These outside warnings will likely fall on deaf ears, however, as Trump is known for his strong disdain of international organizations and his stubbornness.

Source: https://www.nytimes.com/2018/04/17/us/politics/imf-global-economy-interest-rates-inflation.html?hpw&rref=politics&action=click&pgtype=Homepage&module=well-region&region=bottom-well&WT.nav=bottom-well

Pound's strong run continues with push above $1.43

The pound has continued its recent strong run against the dollar pushing firmly above $1.43.  It is the seventh session in a row that the pound has made gains against the US currency.  The strong means that among the G10 group of rich nations the UK has the best-performing currency this year.  Traders say the the prospect of higher UK interest rates has made the pound more attractive while in the mean time the dollar has been hit by fears of trade disputes.  Since the vote to leave the European Union in June 2016 the pound sank, but since then it has made a comeback.

http://www.bbc.com/news/business-43786232 

U.S.’s Re-Entry in Pacific Trade Deal Would Come at a Price

Trump has recently asked two economic aides to look explore the issue of re-entering the Trans-Pacific Partnership, originally created to counteract Chinese influence over various markets. In the original partnership deal, the 11 countries of the TPP suspended approximately 20 provisions, many of which benefited the U.S. If the TPP-11 are to see the United States return to the TPP, they will likely need to reinstate provisions extending the "length of copyrights, boosting intellectual-property protection for biologic drugs and reducing barriers for overnight delivery companies, like FedEx Corp," to entice the US to re-join. Negotiations are poised to be difficult as unanimous consent from all 11 nations is required to re-admit the United States. Trump may have to concede bits of his "better deal", something he referenced in a recent tweet regarding the manner. It is likely, that Trump is beginning to take the TPP more seriously as he aims to tighten his grip on trade with China

https://www.wsj.com/articles/u-s-s-re-entry-in-pacific-trade-deal-would-come-at-a-price-1523814894