It is far too early in the situation circling the emerging market debt to make a prognosis. The financial media is filled with stories about the rising U.S. dollar coupled with a FEDERAL RESERVE that is rising short-term rates while simultaneously enacting quantitative tightening (QT). This is certainly having an effect upon global liquidity but at this point I would caution about the CONTAGION and fallout from this process, especially as the ECB and BOJ still are adding liquidity while standing ready to increase their QE if economic growth begins to falter. My phone and internet haven been inundated with questions about the Argentinian central bank raising short term rates to 40 percent. The Argentinians are in the middle of a reform process that is causing major disruptions in their economy, in addition to a severe drought that is having a major impact on the economy, especially for one relying on the agricultural sector.
Posts Tagged ‘D-mark’
Notes From Underground: The G20 is meeting and Soros is chirping
June 25, 2010It seems that George Soros is the go-to guy for the media as the G-20 gathers. In an op-ed piece in the Financial Times, the palindrome finds his voice about how the Germans are ruining the European project that has been the paradigm for Soros’s long-desired government–of course with George himself as the philosopher KING. He opines that it would be better if Germany reinstated its D-MARK and the PIIGS keep the EURO and let it devalue so that they can begin to work out of the mess the EU has created.