All the big global economic issues seem to emerge from the financial markets.
I have assumed that Obama's cautious economic approach would give Trump some leeway for a year or two. But his debt-growing policies are a cause for concern. He is increasing corruption as a factor in the domestic economy, which is destructive of value. And he is damaging international trade.
Perversely, flight to quality tends to mean folks moving assets into the dollar. So the dollar's value is increasing.
Now we are seeing some rather pronounced drops in the value of a few canary currencies: Turkey and Argentina. These two countries have apparently over-borrowed in US dollars.
The trouble with financial markets is that contagion is often epidemic. It isn't confined to the first victims. It moves from one country to another.
Hopefully central banks know what to do. But it is time to pay attention again. Maybe csl will start touting gold again!!!
| 