Lee Kuan Yew’s memoirs “From Third World to First: The Singapore Story, 1965-2000” published by Moscow State Institute of International Relations of the Ministry of Foreign Affairs of the Russian Federation (MGIMO) with a Foreword for the Russian-language edition by Alexander Mirtchev. Congratulations to MGIMO received from Dr. Henry Kissinger, Richard Haass and others.

At the beginning of 2010, the Moscow State Institute of International Relations of the Ministry of Foreign Affairs of the Russian Federation (MGIMO) launched its new publishing series with the book “From Third World to First: The Singapore Story, 1965-2000” – the memoirs of the first Prime Minister of Singapore Lee Kuan Yew, the Foreword to which was contributed by Dr. Alexander Mirtchev.

 MGIMO received a number of congratulatory letters in relation to the new publishing series, noting the value and significance of the publication from a number of international policy heavyweights, including among others, former Secretary of State Dr. Henry Kissinger. MORE

 Dr. Alexander Mirtchev, president of Krull Corp., identified in an interview with CNBC that the European debt crisis is currently being addressed as liquidity, rather than a solvency problem, which exacerbates market uncertainties and impedes global recovery. Mirtchev considers that the measures put forward in response to the concerns over Hungary, Greece, Portugal, Spain, etc. are more of a “putting off” than a resolution. The same is valid for the recovery measures for most of the leading EU economies. A practical and viable exit strategy from the government intervention in the markets would entail debt restructuring, growth policies, innovation, competitiveness and, in general, a restructuring of the broader economic arrangements that are unsustainable in the long run. Such a set of measures would prove painful and unpopular, and would therefore depend on the leadership of the major EU member-states, in particular Germany, and on their political resilience. However, other approaches would only deepen and extend the global impact of the European debt crisis, putting recovery further and further into the future. MORE

 Dr. Alexander Mirtchev, president of Krull Corp. in discussion with Dr. Yannis Papantoniou, former Finance Minister of Greece, analyzed the impact of the unfolding European guarantee plan to address Greece’s debt problems on the future of the single European currency. The main question underlying the potential for collapse of the Eurozone is the political nature of the European project, and the vested political interests in its survival. Despite the unsustainable economic arrangements that underpin the Eurozone developments, it is unlikely that this project would be allowed to fall apart, and the member countries would hardly rush to embrace their old currencies. In that respect, the Euro will survive, but would be facing a bumpy ride in the short to medium term. MORE

Dr. Alexander Mirtchev, macroeconomic practitioner and president of Krull Corp. discusses, in an interview with Diplomatic Courier, a Global Affairs Magazine, the path to recovery pursued by rapidly developing and emerging markets through and beyond the economic crisis. In his comments, Dr. Mirtchev suggests that the recovery would be patchy and uneven, and delineates the commonalities and distinctions in the approaches of these economies. He considers that certain rapidly developing economies, being aware of the global economic imbalances, will largely adhere to a course that would correspond to the recovery strategies of the developed economies, but interspersed with specific policies and actions that correspond to the particular strategic interests of the rapidly developing and emerging economies in question. These economies, in Mirtchev’s view, will take global cooperation seriously and endeavor to gain more advantageous positions in institutions like G20 that may enhance their standing in the international economy. For some of those economies, the recovery period will be inextricably linked with a gradual easing of the powerful role of the state in the market. The exit strategies of the governments could include some ad-hoc decisions as well as more structural reforms. Dr. Mirtchev’s stance is that these economies are likely to engineer economic growth initially in certain industries like mining, power generation and agribusiness as the main vectors for maintaining their recovery strategies. It is also likely that, in the process of recovery, the international focus of certain emerging markets would be reinvigorated. The question, according to Mirtchev is what would be the geopolitical implications of the growing international role of these economies, whether the they will do it within the existing rules-based system largely governed by WTO, or allow the process of globalization to fall the victim of a “thousands cuts” of small protectionist measures. One can already spot some symptoms of the fragmentation of the global market. He also does not discount the growing enthusiasm for the formation of various regional and international “economic blocs” as potentially having considerable effect on the emerging network of international trade relations, as well as a geopolitical balances.

Source: Diplomatic Courier

Fall 2009, Issue IV, Vol III

Dr. Alexander Mirtchev, economic practitioner and president of Krull Corp. discussed in an interview with Reuters the rationale and potential consequences for the global economy from the increasing investment activity by sovereign wealth funds.  He draws attention to the fact that the economic crisis has driven sovereign wealth funds (SWFs) to prioritize their portfolios, relinquish the pre-crisis pursuit of “glamour investments” and to move beyond the “withdraw and regroup” stage.  In seeking to offset limitations or inefficiencies that they may have in respect of specific projects, SWFs are now looking to combine with others that may have access to better investment tools and opportunities. This trend may set the stage for the development of supplementary financing mechanisms in investment transactions, a phenomenon that could eventually evolve into an additional layer of the global financial system. The positive effects of improved sovereign investment efficiency and intensified activity could ultimately lead to stabilization of economic growth in selected markets, concomitantly boosting market confidence in various emerging and rapidly developing economies, as well as the “first world”.

Source: ABC Channel 25

August 27, 2009

In an article in the Global Finance Magazine Dr. Alexander Mirtchev, an expert on the policy challenges of the new economy assesses the signs of revitalization in the international mergers and acquisitions market.  In the face of the moderately-paced and uneven global recovery, the revival in international M&A activities has often been interpreted as one of the “green shoots of recovery”. The rationale for the recent resurgence can be seen not only in efforts to tackle the effects of the crisis, but represent also the “long view” of recovery in the post-crisis period. From Mirtchev’s perspective, the increasing number of major corporate alliances and acquisitions reflect the drive to develop synergies beyond the short-term. Major investors are beginning to consider the advantages of combining forces, which not only brings new resources to bear to a particular project, but also enhances the level of expertise brought to the table, as well as providing new resources and even “short-cuts” to better trading terms. This increased willingness of investors to share the benefits from merger and acquisition activities in order to introduce elements of comparatively independent supplementary financing mechanisms in their transactions is another sign of their growing maturity.

Source: Global Finance Magazine

October 1, 2009

Alexander Mirtchev considers that the complexities created by the precarious economic and financial situation are exacerbated by what is perceived as a “failure of the reigning “social contract” between Main Street, Wall Street and the U.S. government. In assessing the short- and long-term implications of U.S. Government intervention, he indicates that there is no “silver bullet” to deal with “elephant in the room” – the specter of economic depression, looming debt and incipient inflation. He considers that to be successful, state intervention should not only be balanced, but also have a clear exit strategy, in order to alleviate the fear and uncertainty about the future, boost market confidence, and ultimately bring a new level of productivity, competitiveness and entrepreneurship. MORE

Source: Smart Money

August 21, 2009

The “Oxford Sovereign Wealth Funds Project,” Oxford University, discussed the comments made in an article by Natsuko Waki on the sovereign wealth fund alliances that have become more and more prevalent, and considers the benefits arising out of this cooperation, as assessed in that article and other studies.

In an interview with Reuters, Dr. Alexander Mirtchev, founder and president of Krull Corp., discussed the post-crisis trend of active cooperation between sovereign wealth funds in investment projects. He notes that such sovereign wealth fund alliances point to the growing market confidence both in the emerging markets and the developed economies. The picking up of investment activity could add momentum to the nascent global recovery. According to Mirtchev, sovereign investment partnerships are not merely another risk mitigation phenomenon stemming from increased risk aversion among investors but rather a healthy search for synergistic opportunities benefiting economic development in the regions where such alliances start operations. He also considers that such cooperation between funds will contribute to market legitimacy and transparency of the funds’ operations, and equip them appropriately for market expansion in regions to which they have not had exposure before. Ultimately, rising investment appetite by sovereign wealth funds could represent a useful catalyst for the recovery of the regions and markets that may otherwise have been slow to do so.

Source: Reuters Hedgeworld

August 18, 2009

In an interview on the Riz Khan Show, Dr. Alexander Mirtchev discussed the potential for a global recovery and the consequences of government intervention worldwide.  He emphasized that the signs of recovery should be considered in context and that the global economy is not “out of the woods” yet, but indicated that both the developed and rapidly developing economies have reached the trough of the downturn, and should be on the upward slope.  The pace of recovery would be determined to a large extent by these economies, and would be contingent on the absence of new external “shocks” and systemic upheavals.  The unprecedented levels of government intervention in the markets worldwide would also be a telling factor on whether or not the path to recovery would be straight or would vacillate. The consequences of state intervention would be subject to continuous assessment and adjustment, and their effect on economic recovery would clearly depend on the formulation of an efficient, timely and straightforward exit strategy.  A specific concern is the drive to make the international financial regulatory framework more stringent, as this may result in impediments to market operations and may restrict entrepreneurship, productivity and, ultimately, economic growth. The best case scenario would be for the regulatory imperative and government intervention to actually facilitate the eventual emergence of a new financial system internationally, possibly in the form of a “financial mega-market” that corresponds to the new economic realities. MORE

Source: MSNBC

May 11, 2009

Alexander Mirtchev, president of Krull Corp., discusses the signs of revival of investment activity, in particular targeting assets that appear undervalued, irrespective of the continuing global economic downturn.  Sporadic indications that growth in certain sectors may be on the rebound are far from reliable precursors of the end of the economic crisis. However, the continued uncertainty about the probable onset of recovery has not deterred select market participants, including private equity and sovereign wealth funds, from becoming more active in seeking investment targets among distressed assets that are perceived to have upside potential, in particular in areas aligned with their new agendas. The targets for such “bottom fishing” are also determined by the consideration that market recovery would be quite uneven, with some industrial sectors pulling ahead, while others would remain on the downward slope for longer periods, making the prospects of recovery dependent on the depth and length of the slump in each specific industry. MORE

Source: Forbes

April 7, 2009

The president of Krull Corp. Dr. Alexander Mirtchev considers that the recovery would be prolonged and uneven, reflecting decades of policy misalignment, over-leveraging and major economic imbalances. In his view, how long the crisis will continue depends to a large extent on the developed economies together with the rapidly developing markets, absent political turbulences, upheavals, and other external “shocks” that have unacceptable socio-political implications. Strengthened market regulation and newly empowered IMF can help resume sustainable growth, provided that more stringent disciplines do not impede financial innovation, create opportunities for “regulatory arbitrage” and stifle the eventual emergence of a new global financial system. In a best-case scenario, the new financial architecture should align itself with the evolving nature of the global financial sector, potentially evolving into a “global financial mega-market,” granting the presence of the requisite political vision and will.

Source: Al Jazeera

June 2, 2009

The president of Krull Corporation analyzes how the financial crisis and massive across-the-board government intervention would affect emerging markets and rapidly developing economies. The propagation of government intrusion in the markets, its rising “acceptability” in the developed economies, and the general public acquiescence to such intrusion by the state, may cause a reversal of market reforms among the rapidly developing economies. This could result in a retrenchment of the government as the “main engine for growth” in these economies. He also notes the growing trend of “reassessment” of the validity of the free market capitalist model and the rising “appreciation of the virtues of alternative” mixed-economy models. He considers that “decoupling” of emerging markets is a notion that has been proven false, but that these markets, when faced with the pressures of the financial crisis and the global recession, would react in a wholly specific manner, in accordance to the available tools and strategic goals. In that respect, any form of solution to the crisis that is expected to succeed would force the need to integrate the emerging markets. Otherwise, they may become a part of the problem. Under these conditions, Dr. Mirtchev perceives that the multinationals feeling pressure from the economic downturn should seriously consider expanding their market focus to include the rapidly developing economies and emerging markets. These markets can provide a positive factor that could offset some of the negative results that are anticipated in their core markets.  He believes that international conglomerates should be bold enough to embrace opportunities that the emerging markets provide because it may position them ahead of the curve and allow them to take full advantage of the subsequent economic recovery.  MORE

Source: Businessweek
February 26, 2009

Alexander Mirtchev, president of Washington, D.C.-based Krull Corp., assesses the short- and long-term implications of U.S. Government intervention to counter the recession for the restoration of the “social contract” between Main Street, Wall Street and the government. The perceived “failure” of this “social contract” has given rise to calls for overhauling the whole system. However, the U.S. government has only a limited set of tools at its disposal to deal with the current crisis in all its complexities, and particularly the presence of the “elephant in the room” – the specter of economic depression, looming debt and incipient inflation. Mirtchev stresses that the use of government intervention in the markets as “cure-all” and a “substitute” for bankruptcy and other corrective market mechanisms, could have unintended consequences, pointing out that government intervention should be balanced and accompanied by a clear exit strategy. 

Source: Al Jazeera

May 24, 2009

Alexander Mirtchev, an economic expert, believes the financial crisis and the economic downturn should be approached as two separate issues that have coincided and are mutually reinforcing their effects on the global economy. Such an understanding would need to be reflected in the progressively intensive government intervention measures undertaken by the developed economies, and should be the basis for coordinated actions worldwide, rather than “localized” efforts with short-term outlook. Government intervention success is predicated on reconciling the divergent concepts of tackling the downturn via increased spending by government and consumers with the restrictions imposed by increasing budget deficits and the process of global deleveraging. In the final analysis, government intervention would be judged appropriate and successful if it provided a boost to market confidence within a relatively short time span, a clear “exit strategy,” and, crucially, a new level of productivity, competitiveness and entrepreneurship, whilst dealing with the social fallout of the crisis. Dealing with the financial crisis, on the other hand, would require creative solutions and involvement of the private sector, as well as recognition of the global nature of the crisis and the development of appropriate international measures to address the systemic weaknesses that engendered the crisis. When analyzing the impact of government intervention in specific industry sectors, Mirtchev considers the dangers of “prolonging the agony” when supporting selected companies, rather than helping them all. Government intervention should take into consideration the extent to which it provides an unfair advantage to specific market players, the appropriateness of the government “picking the winners and losers,” and the viability of the “too big to fail” approach that is currently pervasive in the developed economies. He indicates that in this environment of growing government involvement in the economy, the emerging markets and rapidly developing economies would feel justified in considering alternatives to the capitalist market model, and be encouraged to go their own way. This divergence may distort efforts towards global recovery, and to avoid that, emerging markets should be engaged more closely and in a coordinated fashion. MORE

Source: MSNBC

February 19, 2009

The President of Krull Corp., Alexander Mirtchev, an expert on rapidly developing economies and emerging markets, provided insight into the effect of government support for the banks in these markets in the process of dealing with the credit crisis and the global economic slump.  He indicated that banks would accept government support, but are not in a position to find an immediate solution to applying these funds before finding a market solution to their difficulties. This underlines the importance of such markets like Russia or China, India and other rapidly developing economies, and the intervention measures correspond to the tools that these economies have available to deal with this.  On the other hand, this reflects the efforts by governments worldwide to address global problems with “local” measures, which does not allow for concerted and efficient implementation of measures to tackle the international economic imbalances and the misallocations in the crumbling international financial architecture.  Irrespective of the unilateral nature of measures taken by rapidly developing economies to date, these measures correspond to the priorities that these economies consider to be of strategic importance and reflect the “tools” that they have available to deal with the impact of the financial crisis and economic downturn. VIEW

Source: Bloomberg Television

February 12, 2009

The President of Krull Corporation considers the effects that across-the-board government intervention would have on the emerging markets in view of the ongoing international efforts to combat the economic and financial crises.  He views state intervention by the developed economies as a potential springboard for those emerging markets that are well disposed towards seeking alternatives to free market capitalism, and are tempted by the “virtues” state-led mixed economies. Mirtchev also assesses the potential anti-crisis strategies available to multinationals and the upside that they could derive in the future from a better positioning in the rapidly developing economies and emerging markets during the crisis. MORE

Source: Voice of America

January 22, 2009

Energy expert tells viewers that the world confronts a new paradigm when addressing energy policy with Russia at the start of the new century. He emphasizes that in order for Russia to be a responsible energy market player, it would need to be made a “bona fide stakeholder,” taking into account that it is not going to give up energy as a competitive advantage. Ameliorating the situation would also require curtailing the role of “vested interests” and increasing the transparency and accountability of the process. Being part of it, the EU needs coordinated strategy on gas supplies that could take the form of a grouping along the lines of a “gas consumer association” and should also consider in earnest diversifying its supply sources. He analyzes the new level of assertiveness of Russia internationally and in the energy sector, and what it means for the foreign policy of the United States and the European countries. MORE

Source: MSNBC

January 17, 2009

Krull Corp.'s Mirtchev analyses international energy security in light of the Russia-Ukraine gas dispute

Alexander Mirtchev, founder and president of Krull Corp. and a top international consultant on energy and oil markets, discusses the details of the Russia-Ukraine natural gas supply relationships and explains why Europe will continue to face reoccurring shipment or other disruptions, providing no adjustments are made to current policies. Mirtchev also discusses Russia's expanding influence in the energy sector and how this will affect the foreign policy decisions of European nations and the regional challenges before the new U.S. Administration. MORE

Source: E&ETV

January 15, 2009

Emerging markets expert assesses the implications for government intervention in the banking system in emerging markets in an interview with Mergermarket, a Financial Times company. He discusses the need to look beyond the immediate short-term pressures, and devise a broader policy response that would address the long-term needs to encourage productivity, competitiveness and growth. He believes that when devising such strategies, governments have to take into account the interdependency, engendered by the truly global nature of today's financial system and to mitigate the unintended consequences of large-scale government intervention in the markets. MORE

Source: Mergermarket

January 11, 2009

Dr. Mirtchev considers that some of the rapidly expanding and emerging market economies in the world are better-positioned than others to deal with the pressures of the global credit crunch and economic downturn, providing that they introduce some specific policies. Emerging markets are not at all “decoupled” from the rest of the world, and face the same pressures, but will react to the crisis in different ways, and some of them are better positioned to ride the challenges of the economic downturn. The economic expert also warns about the long-term consequences of state intervention in markets and the unintended effects of attempts to jump-start faltering financial institutions in the emerging markets. MORE

Source: Wall Street Journal Digital Network

January 11, 2009

In an interview with Voice of America television, Dr. Alexander Mirtchev, a prominent economic policy practitioner and president of Krull Corporation, analyzed the implications of government intervention in the markets in response to the challenges faced by the governments worldwide in dealing with the financial crisis and the economic downturn. The measures that have been overwhelmingly embraced by the governments of both developed and developing countries attempt to reconcile ways of creating a consumption-based recovery engendered by government or private spending. He warns that the newly evolved international financial system would require an innovative global approach and a new level of international coordination in order to address the systemic weaknesses that lie at the heart of the financial crisis. In addition, he offered comparison of the rescue options and current measures available to the governments in the U.S. and other G-7 economies and the rapidly developing economies such as Russia, Brazil, China and India. MORE

Source: Voice of America

December 20, 2008

Economic expert assesses the diverse effects of the global economic slowdown and the financial crisis on the growth potential of major multinationals. He analyzes the potential opportunities for growth and upside that emerging markets provide for them even in the current economic climate. Emerging markets economist says the key to creating growth for multinationals post-crisis is to focus on core business and expand their global footprint. MORE

Source: International Business Times
December 8, 2008

Dr. Alexander Mirtchev, an expert on global financial markets, who is also a member of the board of directors of a sovereign wealth fund, discussed the specific effect of the financial crisis on prominent sovereign wealth funds. Mirtchev believes that the crisis is going to lead sovereign wealth funds to abandon the “glamour” and high-profile investments of yesteryear and move towards more tangible profile-driven and productivity-oriented investment strategies, becoming more and more focused on and sensitive to their governments’ need to react to the economic downturn. MORE

Source: USA Today

December 5, 2008

Economic expert reviews and compares the crisis-management measures adopted by emerging market economies, as well as the differences of actions undertaken by them with those of the US and the UK in that they address the liquidity and solvency problems in the banks, as well as work to stimulate struggling parts of the country's economy and take them through the slowdown. Mirtchev, who is also economic adviser to Kazakhstan's prime minister, assesses the specific plans to stabilize the financial sector of the Central Asian country for the duration of the financial crisis and tackle the economic downturn, via immediate crisis-mitigation steps, as part of a growth and stabilization package. MORE

Source: EuroWeek

November 28, 2008

Economic consultant and sovereign wealth fund independent director considers that most of the sovereign wealth funds that gained prominence in the last 5 years would probably need to retool in order to face the challenges that arise out of the global economic and financial crisis. He expects them to shift their focus on productive assets that are related to their base economies, such as natural resources or technologies and promptly restructure, including dealing with non-core assets they have acquired during the boom times. MORE

Source: Gulf News

November 21, 2008

Sovereign wealth funds are likely to shift their focus towards industrial projects that have significance for their own countries’ or regional economies, which would result in a reduction of their holdings of non-core assets they had acquired in the previous boom times. Alexander Mirtchev, president of Krull Corp., said sovereign wealth funds were also likely to face increasing regulatory requirements worldwide, which would provide additional impetus for a general change in direction towards regional and emerging market-oriented acquisitions that would provide strategic synergies for their home economies. MORE

Source: Forbes

November 19, 2008

The global economic and financial crisis has struck emerging market currencies, yet Dr. Alexander Mirtchev, founder and president of the Krull Corporation and a transitional economy expert, believes that central banks in the emerging markets should resist the temptation to restrict currency fluctuations via ad-hoc “quick-fix” measures. Despite the volatility in the foreign exchange markets and the negative impact on emerging market currencies, Mirtchev believes that FX restrictions would inevitably affect the investment inflows and outflows and hinder the prospects of a sustainable recovery. MORE

Source: The New York Times

October 31, 2008

The Effect of Oil Markets Volatility on Emerging Markets and How It Exacerbates the Financial Crisis

Krull Corp. president and economic expert Alexander Mirtchev assesses the effect of the dramatic fluctuations in oil and other commodity prices on the background of the financial crisis. He considers that oil price volatility would have to be accepted for the foreseeable future, as the emerging markets and rapidly developing economies that represent a large proportion of the oil producers are better able to take advantage of their resources. A balanced and coordinated approach to energy production and consumption would go a long way towards sustaining global energy security and alleviating the potential disruptions that affect energy supply stability. As the emerging markets have different needs and characteristics, they will address and resolve specific energy issues in accordance with what they perceive are their strategic interests. In this context, a comprehensive and coordinated strategy of engagement of the emerging markets and making them feel they have a stake in resolving global energy issues, coupled with diversification of supply channels and production capacities would have a better chance of addressing the issues that concern both consumers and suppliers of energy and that are at the core of oil markets volatility. MORE

Source: Focus Washington

October 13, 2008

Dr. Alexander Mirtchev, economic expert on emerging markets, expressed uncertainty on the effect of the massive bailout packages established by European Union nations and the United States on the sources of highest economic growth in the world at present – rapidly developing and emerging market economies. Starting from the premise that emerging markets are far from “decoupled” from the rest of the world, it is to be anticipated that government intervention by the leading economies may cause certain disruptions of the international trade framework established over the course of the last 20 years. He also cautions about the potential retrenchment effect the bailouts may have on those economies that have not fully implemented free market reforms. MORE

Source: Dow Jones Newswires

October 13, 2008

Alexander Mirtchev Analyzes Impact of Economic Crisis on Rapidly Developing Economies

Krull Corp. president and economic expert Alexander Mirtchev assesses the foreseeable and unanticipated effects of the “bailouts” in the U.S. and other developed economies on the policies that rapidly developing economies would undertake to tackle the economic problems caused by the global financial crisis. He anticipates that, as these developing economies have been responsible for the highest proportion of global economic growth in the last few years, their actions in response to the market intervention by the governments of major economic powers may cause global economic effects in unlooked-for directions. The consensus among developed economies that the remedy to the global financial crisis requires a larger role of the government in the markets would bring about some results that the framers of the measures have not planned for. The global effect of steps taken by specific countries to alleviate the crisis would result in some level of market distortion that could offset the positive effect of government intervention. In the case of certain emerging markets, they, despite being faced with the same problems as the rest of the world, will cope better with the crisis, if well led, as they have been prepared by the implementation of free market reforms for the challenges of the crisis, and have certain competitive advantages that they will make use of more and more. MORE

Source: Washington Post

October 10, 2008

Alexander Mirtchev Appears on Bloomberg to Discuss Strength of Rapidly Emerging Markets

Emerging markets expert Alexander Mirtchev analyzes the varied responses of developing economies to the current financial crisis. Mirtchev considers the crisis to be more of a solvency and asset quality crisis rather than a liquidity crisis, and that the government intervention by a number of countries ignores this issue at the peril of a number of unanticipated results. On the other hand, continuing market reforms in emerging markets help alleviate the effect of the financial crisis and these markets are well positioned to effect remedies, if their leadership stays the course of economic reforms and modernization. MORE

Source: Bloomberg

October 4, 2008

Economic expert foresees that the economic effects of the global financial crisis, in particular on some of the rapidly developing economies, would engender differing reactions by governments that may have negative mid- and long-term repercussions for the global economy. Some emerging markets are likely to undertake their own initiatives with regards to specific industries, such as the financial sector, that could actually affect other segments of the economy in ways that have not been anticipated. At the same time, Mirtchev says, government plans should involve the private sector to balance the burden and not to reward mistakes – the financial sector’s malaise cannot realistically be resolved only by use of government funding. However, he advises a “wait and see” attitude while expressing confidence in certain emerging markets and energy-focused economies. MORE

Source: Business Exchange/BusinessWeek

October 4, 2008

Fresh Perspective on the US Government Bailout Plans

Alexander Mirtchev, emerging markets and rapidly developing economies expert, believes that massive government intervention in response to the financial crisis and economic slump looks inevitable. Washington journalist Chuck Conconi interviews the enigmatic Washington-insider Alexander Mirtchev, founder and president of the Krull Corporation, for a unique perspective on the current economic situation, both in the U.S. and in emerging markets. In the interview, Mirtchev assesses the reaction of the U.S. government to the credit crunch as a “bad choice from a plethora of bad choices.” He expresses concern that this may result in misunderstood “nostalgic” pressure to attempt to bring back the new global financial system to the “one country banking sector” model of the 1990’s, a model that is no longer adequate to handle the evolved and intrinsically interconnected world financial markets. Mirtchev also analyzes the deep philosophical differences in the various approaches to the crisis, as well as the viability of different instruments to tackle the crisis. MORE

Source: Focus Washington

September 30, 2008

Emerging markets expert Alexander Mirtchev says that commodities price fluctuations are a fact of life and this should be taken into account by both developed and rapidly developing economies when making plans to tackle the credit crunch. Despite the downward movements of energy prices from the heady heights of the summer of 2008, his opinion is that oil-focused economies are positioned for the better. Even with ongoing price fluctuations and with the potential for a significant downward revision of commodities prices in the expected economic downturn, the long-term stability of energy-heavy economies such as Russia, Bolivia and Mexico is unlikely to be affected. The overall feeling is that the prospect of further massive debt by the U.S. government and the diminishing value of the dollar will further encourage investments in productive assets, including oil, and that certain rapidly developing economies would actually take advantage of the downturn to retool their economy in readiness for the opportunities that the eventual recovery will provide. MORE

Source: iStockAnalyst

September 24, 2008

Today's market increases and the announcement by the U.S. government to undertake a major bailout plan to restore confidence in the world financial system, prompted a rare comment from Alexander Mirtchev, economic expert and president of Krull Corp. He considers that, faced with the exigencies of the credit crunch, combined with public pressure and the needs of the political calendar, the government had little choice but to take visible steps. However, his view is that the Law of Unintended Consequences should not be ignored, and that the government should enter the market with a clearly defined “exit strategy.” Dr. Mirtchev also provided thoughts on how measures targeting one industry sector could affect other segments of the market, what the government intervention in the relatively free-market in the United States could mean for the rest of the world, and particularly emerging economies, emphasized that the diversity of emerging markets would prompt differing reactions to the financial crisis, and advised that the free market should still play a role even among the clamor for more government intervention. MORE

Source: AllBusiness

September 20, 2008