Brazil Launches Salvo of Trade Sanctions Against US

According to the head of economic affairs at Brazil’s foreign ministry, Carlos Marcio Cozendey, the plan is “to distribute the retaliation broadly in order to maximise pressure.”

The “retaliation” he refers to includes trade sections on 100 US goods, ranging from cars to milk powder. The tariffs are in response to cotton producer subsidies the US has kept in place despite a 2008 WTO ruling that found the practice discriminatory.

Investing in India: News and Forecasts for the Long Haul

The private sector ruined itself in the bubble of ’03-’07. Now, it’s the public sector’s turn. All over the developed world – with a few exceptions – the feds are adding debt at an alarming rate.

The US has already passed “the point of no return,” says a report from Casey Research. Ken Rogoff and Carmen Reinhart put that point where external debt passes 73% of GDP or 239% of exports. IMF data, says the Casey team, shows the US has already gone too far on both scores, with external debt at 96% of GDP and 748% of exports.

Deciphering the VIX Index and the Rally in Overconfidence

Hip hip, hooray! Hip hip, hooray!

Our little big bull market celebrated its one-year anniversary yesterday, albeit in tentative style. The Dow managed to eke out an 11-point gain, while the broader S&P 500 fared only slightly better. Investors, it appears, are awaiting the next catalyst to keep the momentum going. But are they running out of excuses to buy?

Japan’s Growing Attachment to China Over the US

Day after day, China’s heavyweight status becomes more pronounced. We’ve discussed it before, due to its economy, which is in the process of overtaking Japan’s second place in size and its growing influence in Latin America. Today, we take a look at its strengthening influence in Asia… and Japan in particular.

Strong Chinese Exports Cause Aussie Dollar to Soar

Yesterday’s price action in the currencies versus the dollar was a drag, man… We did, however, see the higher yielding currencies begin to move away from the pack of currencies led by the euro (EUR). That move higher by the likes of Australia (AUD), Brazil (BRL), South Africa (ZAR), and others, carried over through the overnight sessions, so, as we start today, they are stronger versus the dollar… In fact, the Aussie dollar is near a 7-week high this morning.

Can India Get Soaring Food Inflation Rates Under Control?

India’s inflation in food prices has been soaring lately — holding for weeks above 17 percent — due to a combination of factors including the weakest monsoon rains in nearly 40 years, new taxes on gasoline and diesel, and increased excise taxes on a wide variety of products.

From BusinessWeek:

Zombieland

“The world’s largest shopping mall is almost entirely empty,” says a headline now making its way around the Internet. The mall is not one of America’s consumer emporia. It is not in the US at all. Instead, it is in the Middle Kingdom…and twice as large as the “Mall of the Americas.”

China Dumping US Debt Could be Great for America

Providing the world’s reserve currency has its privileges. Not the least of which is the continued willingness of foreigners to soak up the massive amounts of debt issued by the US despite the nation’s continued debasement of the dollar.

Yet, what if the foreign nations stopped buying? We’ve certainly heard of the calamity that should result from China cutting the US off, but perhaps we shouldn’t be so certain that’s the case.

Titanium Metals (NYSE:TIE): Investing in Aviation Growth

The economic center of gravity will not always reside in the United States. In fact, it’s already in the process of shifting from the US to Asia and the Middle East. Forward-looking investors cannot afford to ignore this trend.

One of my favorite ways to invest in the rapidly growing emerging markets is through the back door, so to speak. Invest in companies, wherever they are, that have what these economies need or want, but don’t have. Airliner production is a classic example.

How Quickly the Fragile US Empire may Collapse

Of late, Harvard University professor Niall Ferguson has been regularly beating his drum, warning in his own way of the impending doom of the American empire. In a recent opinion piece in the Los Angeles Times he checks the pulse of the US in light of the rhythm of history…

From the LA Times:

Soros “Very Cautious” on China’s Economy

With over 10 trillion yuan in Chinese bank loans disbursed in 2009, and more trillions on the way, George Soros, chairman of Soros Fund Management, remains concerned China’s economy is overheated. In a recent Hong Kong interview he explains how a hard landing could be in the making.

From MarketWatch:

Is China More Capitalist than the US?

The markets were atwitter this morning over Greece. But chances are you already know that. It’s China we have on the brain.

And so does Joe Six-pack. ABC News and The Washington Post just polled 1,000 Americans and found…

• 41% say the 21st century will be the “Chinese Century”
• 40% say it will still be an “American Century”
• A slim majority says the US will play a smaller role in the world economy this century
• But a majority also says that will be either a good thing or, at worst, neutral.