Economic Challenges Facing the US

David Brooks Column:

http://www.nytimes.com/2011/12/27/opinion/brooks-midlife-crisis-economics.html

US-China R&D Race:

http://www.nytimes.com/2012/01/01/magazine/adam-davidson-china-threat.html

Rise of Brazil and China

Brazil Overtakes Britain

http://www.bbc.co.uk/news/business-16332115

Update: Florida Benefits from Brazilian Boom

According to a NYTIMES piece:

“American Airlines now has 52 flights a week to Miami from five cities in Brazil, and has applied for more routes. Because it receives the highest number of visitors from Brazil, Florida has benefited most from the country’s new wealth and the expansion of its middle class. Most of the Brazilians who come to the United States visit Florida, and in the first nine months of this year, an estimated 1.1 million Brazilians spent $1.6 billion in the state, an increase of nearly 60 percent from the previous year. Among foreign nations, only Canada sends more visitors to Florida.”

Rise of the Renminbi Continues:

http://www.bloomberg.com/news/2011-12-25/china-japan-to-promote-direct-trading-of-currencies-to-cut-company-costs.html

Who Creates US Jobs?

According to an interesting new study of top VC backed firms:

“Among those with immigrant founders are Silicon Valley darlings like textbook-rental start-up Chegg, online dating service Zoosk, and online craft marketplace Etsy. The most common country of origin for immigrant founders from the top 50 firms was India, followed by Israel and Canada.”

Was 2011 an Unusually Volatile Year for Equities?

As the following video explains, US equity markets were not all that volatile in 2011:
http://video.ft.com/v/1340458136001/Look-back-in-anguish

India's Silicon Valley Evolves

Rise of Tech Entrepreneurism in Bangalore

http://www.bbc.co.uk/news/business-15814537

Financial Economics

Avoiding Home Bias

If you need evidence that a globally diversified approach to investing still makes sense (in the long run), check out this excellent graphic from Fortune magazine:

http://fortunewallstreet.files.wordpress.com/2011/12/global_hot_spots_map_large.jpg

(It indicates stock index returns from 2001-2011)

Disconnect between the Real Economy and the Financial System

http://www.realclearmarkets.com/articles/2011/12/16/finance_now_exists_for_its_own_exclusive_benefit_99422.html

Paul Romer and Economic Growth

Romer’s Experiment in Hounduras

http://www.economist.com/node/21541392

For a background on ‘Charter Cities’, see

http://www.prospectmagazine.co.uk/2010/01/for-richer-for-poorer/

Global Economic Developments

Brazil Consider ‘Dim Sum’ Bonds

http://www.bloomberg.com/news/2011-12-13/brazil-may-sell-dim-sum-bonds-to-establish-corporate-benchmark-valle-says.html

China’s Monetary Growth Slows Sharply

http://www.bloomberg.com/news/2011-12-14/china-money-supply-growth-at-weakest-pace-in-decade-shows-slowdown-risks.html

Cool Graphs of 2011

http://www.bbc.co.uk/news/in-pictures-16090055