Contrary to expectations, the U.S. Federal Reserve continues to hold back raising interest rates.
Why are they not letting off some air in the low interest liquidity driven bubble?
Most think it is because the perceived US economic recovery is not as robust as believed.
That's probably true for not just the U.S., but globally the internet in conjunction with technology have created structural unemployment that the world will need time to adjust, retrain and retool.
Witness the demise of traditional service providers and brick and mortar shops.
But is there more to it? Maybe it is not just the surfeit of economic woes, that is still endemic post subprime.
The Middle East is brewing. With the troubles on the Temple Mount, would the present internecine Sunni Shiite proxy wars being fought out, be soon reorientated to a broader but more familiar Arab Israelite conflict? The Russians are in Syria now, ready to be an actor in this theatre!
The last major Arab Israelite war was back in 1973, the Yom Kippur war.
What has it got to do with us? That conflict led to the 1st oil crisis in 1974, followed by the 2nd oil crisis in 1978 and the subsequent stagflation.
A world mired in recession, yet pounded by double digit interest rates.
The latter might seem implausible in our present Central Bank induced zero interest rate environment.
But the Bible oft reminds one and all
"man plans, God directs"
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