Debt Crisis
The current global financial order, which was placed into sharp focus by the swap lines initiated by the US Federal Reserve during the 2008 financial crisis, is an American order. Despite generating trillions of debt ( you can read more about our current debt issues here Unwinding Of Biggest Bubble In US History – Cranes Financial News ) and demonstrating a truly dysfunctional politics, the US continues to be the leader, lender, and the preferred asset issuer of last resort for the global economy. But how long can this state of affairs continue?
One school of thought suggests that it can continue indefinitely, given the lack of alternative safe assets, the depth and liquidity of US markets, and the desire of foreign wealth holders to buy safety in the form of US assets. And yet things continue until they don’t. Due either to its own domestic dysfunctions, or to its international entanglements, the ‘barbelling’ of risk that US has been able to play, whereby US investments earn a higher risk premium abroad while foreign investors hold US assets as security for a lesser return may come to an abrupt end sooner than many commentators think. If the US suffers real capital losses on its assets abroad, if the global economy continues ‘long and low’ into negative territory, of if other major players grow tired of America’s dysfunctions, then the dollar order may become less attractive over time, prompting the rise of alternative assets and new institutional arrangements.
This conference seeks to address these topics by answering three questions. First, how stable, if not “anti-fragile’ to use Nassim Taleb’s term of art, is the US order? Second, will the ongoing political crisis and economic recession in the Eurozone, and geopolitical tensions in East Asia, prolong or threaten the US order? Third, is there a new geopolitics emerging underneath this financial system, and if so, what does it look like?
Being prepared for anything is an investors and traders best bets at winning the Wall Steet game. Fiat money continues to lose value Every day as more money inters the economy devaluing the citizens purchasing power. Even with higher interest rates that just isn’t enough to stop the economy from completely imploding. The debt crisis appears that it is here to stay with no signs of slowing down. How to prepare for an economic crash-landing silver Bullion Why You Should Prepare for a Crash Landing – Cranes Financial News
Disclaimer
we are not financial advisors, nor do we claim to be. Investing may cause the loss of your entire investment please consult an investment advisor before taking on risks.