Juggling Dynamite

Apart from some more of the usual nonsense in this discussion about ‘certainty’, the historical context on Japan (who was the last, late, great export leader of the 1980’s consumption boom, similar to what China was in the most recent cycle), is relevant. Only this time, far more than in any other cycle, global monetary policy tanks have already been emptied trying to pause the necessary asset deflation that began in the 2008 contraction. That pause now ended, deflation is back with a vengeance…The “free lunch” of incessant interference to goose capital markets, is over and the bill now due is bigger than ever.

Peter Fisher, BlackRock Investment Institute, weighs in on China’s currency devaluation, and the Fed’s interest rate policy. Here is a direct video link.

The weakest Chinese manufacturing data since the global financial crisis accelerated a selloff in riskier assets, sending emerging-market stocks to the worst week in two years. Investors sought safety in the yen. Here is a direct video link.

Danielle was a guest today with Jim Goddard on Talk Digital Network talking about recent developments in the world economy and markets. You can listen to an audio clip of the segment here.