
What does any nation with a significant amount of trade with China want? Probably many things, but a free floating renminbi exchange rate would be high on the list.

Take a lackluster, nay, flat to falling economy in Europe and under-performance in the US and match that with record highs for the S&P, which hit a new all time high on 28 March and may well do so again before this blog appears in print, and you are not alone if you find yourself scratching your head and wondering what, exactly, is driving things? It can't just be all that new money being created, surely?

Russia's attempt in the 1990s to "leap with one bound" from a Soviet style "ownership of the means of production" to a modern, capitalist, private ownership model for major assets was a huge success, if by success one means the transfer of some state assets at ludicrously low prices to former party bosses and apparatchiks, with the inevitable result of transforming the lucky few into billionaire oligarchs.

Opponents of austerity have no reason to love a couple of high powered economists who seem to be on a mission to convince senior politicians everywhere that too much debt is seriously bad for a country's prospects. The economists in question are MIT's Carmen Reinhart and her "partner in crime", Ken Rogoff, a former chief economist with the International Monetary Fund. Their mission, for some years now, has been to stiffen political resolve to cut debt.

There wasn't much of an outcry in the media when the US Congressional Budget Office told the Senate Budget Committee and the House Budget Committee that instead of achieving 3.0% growth in 2013 as had been widely reported, the CBO expected the US economy to grow by no more than 1.5% by the end of this year. That is way below trend for the US economy.

Each week QFINANCE.com brings you some of the biggest news stories from the past five days in finance and business – essential reading to keep you up to date with the latest topics.

Each week QFINANCE.com brings you some of the biggest news stories from the past five days in finance and business – essential reading to keep you up to date with the latest topics.

Penning my last blog for 2012, it seems natural to look ahead rather than behind. After all, who wants to sum up 2012 with its austerity, euro woes, China slowdown fears, and of course, that US fiscal cliff we were all stumbling towards at the end of 2012 as the US political establishment engages in its favorite game of dancing at the edge of the precipice?

Snowplowing is a classic technique for newbies learning to ski. You put the skis into a triangle, apex forward and get slightly up on the edges. The natural motion of each ski is opposed to its partner, cancelling out any forward movement on a gentle slope. If the slope is too steep, the triangle shape becomes impossible to maintain, the skis naturally tend towards the parallel, and it's goodnight and goodbye to the newbie as gravity takes over.

Each week QFINANCE.com brings you some of the biggest news stories from the past five days in finance and business – essential reading to keep you up to date with the latest topics.
Morningstar
Pensionomics
Ian Fraser and Anthony Harrington
Economy Watch
QFINANCE Editor
Wolfgang Fengler
Searching Finance
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John Grange
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Chris Hewett
Leslie Kossoff
Christoph Lindinger
Mindful Money
Insider Monkey
Stacy Pruitt
Shaun Richards
Bill Sharon
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