Urging China South Korea FTA To Sign And Enter Into Force As Soon As Possible

Cui Jionghuan, vice premier of South Korea's economy and Minister of planning and finance, held talks with visiting Vice Premier Wang Yang on 23 th, and discussed the enhancement of bilateral economic and cultural cooperation.

The vice premier of the two countries agreed to work together to promote the early signing and entry into force of the FTA between China and South Korea.

At the meeting, the vice premier of the two countries agreed to promote.

Make joint efforts as soon as possible.

Cui Jionghuan expressed the hope that the Chinese government would officially start in December last year.

The Korean won and the RMB direct trading market continue to support and concern.

Wang Yang also said that the South Korean won and the RMB direct trading market will operate smoothly.

Help.

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The global economy is in a very dangerous situation. The only economic engine has been expanding for seven years in a row, and seven years is usually a complete cycle of economic growth.

In the past fifty years, neither IMF nor the US Treasury has successfully predicted the pformation of economic expansion and recession in advance.

The biggest worry now is that if recession occurs, the US may need to cut interest rates by 3-4% to save the economy.

However, at present, the Federal Reserve has no room to cut interest rates.

After 6 years of zero interest rate and QE policy, the US employment market is still in a predicament: the most urgent need for a 25-54 year old male unemployment rate is at a high level.

With the progress of science and technology, more and more enterprises may be closed.

For Europe, a single structural reform is unlikely to change the situation in the job market.

Any wrong decision at the moment can lead to irreversible spiral deflation.

I do not think the Fed has sufficient reason to start tightening.

Without inflation pressure, the Fed's premature tightening will bring the world into a deflationary disaster.

For Summers's view, IMF chairman Lagarde said that if the United States is in trouble, the global economy will be in big trouble.

So I hope Summers's worries will not come true.

IMF expects the Federal Reserve to raise interest rates by the middle of this year.

Summers's view was recognized by Dalio, founder of Bridgewater, the world's largest hedge fund.

Dalio said that compared with the $1980-1985 bull market, the central bank has no more room to cut interest rates to avoid deflation, so the financial market may face extremely dangerous situations.

On the issue of the European Central Bank's QE, Summers believes that QE will not be harmful, but the help of the economy may also be limited, because the European version of QE is too late.

The ECB is doing too much better than doing too little, but it is wrong to think that QE is the panacea.

Summers also believes that the root cause of Europe's economic problems is severe fiscal discipline.

Germany believes that fiscal discipline will collapse, but the result is the economic slump and the rise of political extremism.