To a Chinese Scrap-Metal Hunter, America's Trash Is Treasure: Johnson Zeng is a Chinese trader who travels across the U.S. in search of scrap metal. By his estimate, there are at least 100 others like him driving from scrap yard to scrap yard, right now, in search of what Americans won’t or can’t be bothered to recycle. His favorite product: wires, cables, and other kinds of copper. His purchases, millions of pounds of metal worth millions of dollars, will eventually be shipped to China. [more inside]
Networks of the Hanseatic League - The Hanseatic League was a late-medieval network of economically largely independent long-distance trade merchants which was based on trust, reputation and reciprocal relations. The informal cooperation among its members kept transactional, informational and organizational costs low, allowing the Hanse merchants to make good profits from the long-distance trade between the Baltic and the North Seas. Thanks to personal and institutional links with confederations of towns, the Hanse merchants were initially able to strengthen their international position of power. Since the late 15th century, however, the transaction costs of long-distance trade increased as a result of growing exclusivity and formalization efforts in the Hanseatic league. Moreover, changes in the European economic structure, triggered by the discovery of America, and internal conflicts ultimately led to the disintegration of the Hanseatic networks.
We're All State Capitalists Now 'No, according to some commentators, the contest between the two Asian superpowers is also fundamentally a contest between economic models: market capitalism vs. state capitalism.' [more inside]
The once shining beacon of capitalism in the Persian Gulf has lost a lot of its luster since the global financial crisis in 2008. But is it too soon to declare Dubai dead? [more inside]
Can China Adjust to the US Adjustment? Prof. Michael Pettis of Beijing University on the macroeconomic parallels between the present crisis and that of the 1930s, with China playing the role today that the US played back then.
"What we are now seeing is the break up of Bretton Woods mark 2." The Guardian's economics editor, Larry Elliot, on growing fears of a global depression. [single link op-ed alert]