If We Have "Economic Allies", Who are our "Economic Enemies"?

Have you noticed how correlated and coordinated actions have
been worldwide throughout this crisis? The concept of economic allies
presupposes that we also have economic enemies. It's easy to construct
a theory that countries like Russia and China are using financial
markets to exert leverage in a nascent form of economic warfare.

It is
also easy to construct a theory that says that we are the enemy
ourselves. That human nature's fear and greed instincts and reflexes
almost inevitably spiral into a cavalcade of horrors.

The butterfly effect theorizes that a butterfly
flapping its wings in Beijing on one day can create or affect a rainstorm over
Chicago a few days later.

Likewise in a world where there is so much global
communication, and where automatic trading programs can respond to each other from anywhere on the globe, it's no wonder that market moves are
getting bigger, faster, and more volatile.

Perhaps governments are cooperating and collaborating because of a collective recognition that a new form of
protection is needed to dampen the increasing speed, size and leverage behind
market moves?

One Comment
Leave a reply

Your email address will not be published. Required fields are marked *