Wednesday, May 6, 2015

The Beginning of the End

The Euro has bounced back nearly 10 percent in the last ten days and European interest rates are rising in every locale.  Meanwhile, Greece totters towards its inevitable bankruptcy.  The Wall Street Journal reports today that global inflation is turning up.  Recent data on the US is surprising for its weakness after glowing reports of an economic breakout at the end of last year.

It's time to sit up and smell the coffee.

The long, slow, dull, weak economic recovery in the US is coming to an end.  Europe is stuck in quagmire of its own choosing.  Central bankers in the western world have cooked up the perfect stew of economic stagnation and future inflation.  The BRIC countries are stagnating.  Meanwhile global political instability, almost everywhere, is on the rise.

This looks like the beginning of a "risk-off" cycle.

1 comment:

Karen Baker said...

When applying to schools in the United States, don’t try to “Americanize” your application by focusing on your trip to the United States or even your participation in out of class activities prevalent in the United States. It won’t help differentiate you and may make your candidacy less appealing.