Comment, analysis and other offerings from Wednesday’s FT,
Martin Wolf: Choices made in 2009 will shape the globe’s destiny
This is a year in which the fate of the world economy will be determined, maybe for generations. Some entertain hopes that we can restore the globally unbalanced economic growth of the middle years of this decade. They are wrong. Our choice is only over what will replace it. It is between a better balanced world economy and disintegration. That choice cannot be postponed. It must be made this year.
Vaclav Klaus: Do not tie the markets - free them
The president of the Czech Republic Vaclav Klaus writes: It is a common feeling that the Czech Republic is taking over the European Union presidency at a rather complicated moment, even though almost all “moments” can eventually be called “complicated”. We should not panic and must say No to people who – by describing the current moment as the historically unique one – want only to manipulate us.
John Redwood on how another rate cut would be a big mistake
The former cabinet minister and chairman of the Conservative party’s Economic Competitiveness Policy Group writes how the problem is no longer the price of credit that the Bank of England is recommending but the availability of credit.
John Kay: What Tesco knows and Woolworths forgot
The failure of Woolworths demonstrates the power of a giant retailer lasts only as long as its customers want it to.
Editorial Comment: Settle the Ukraine gas dispute
The European Union is, rather belatedly, waking up to the fact that the Russia-Ukraine gas dispute is more than a bilateral issue for Kiev and Moscow. While Brussels would still prefer the two sides to settle the quarrel themselves, it is now considering the “extreme option” of a three-way EU-Russia-Ukraine summit.
Lex: The chemical imbalance
Chemicals makers face a horrible chain reaction. The first step is a collapse in demand for the materials used to make the plastics that go into all the products that nobody is now buying – cars and houses. Just look at the price of naphtha, which is widely used in the manufacture of plastics.
FT Video interviews the Chancellor
Alistair Darling tells Chris Giles the UK is “far from through” the recession, in a clear signal that he will have to abandon the government’s forecast that the recovery would start in the second half of this year.
Analysis: Onerous issuance
With the scale of the intended new global bond issuance his year at dramatic proportions the risk is that some governments will not be able to raise as much money as they would like – or may find they have to pay higher interest rates to attract investors.
