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On August 2nd, the Bank of England announced that its Monetary Policy Committee had unanimously voted to raise interest rates. This recent decision by Britain’s central bank saw its key ‘base rate’ of interest rise for only the second time since the 2007/8 crash. The 25 basis point hike brought the base rate up to 0.75%, its highest level since March 2009.
The Turkish lira collapse should have surprised no one. Yet, in this bubble-justifying market, it did.
First and foremost, the lira decline has been ongoing for some time, and has nothing to do with the strength of the US dollar in 2018. The collapse of Turkey was an accident waiting to happen and is fully self-inflicted.
The Trump administration’s latest attempts to continue this trade war with China have now reached a level beyond comprehension and will only hurt American and Chinese consumers in the process. The consequences might be much more disastrous for America if China dumps their U.S. Treasuries, causing a devaluation in the U.S. dollar, subsequently forcing the Federal Reserve to raise interest rates to crippling levels.
From crime rates to life expectancy to income levels, statistics at the national level are next to useless when it comes to measuring the daily lives of ordinary people in the United States.
Recently, the Trump administration announced it would seek some $12 billion in subsidies to support the farmers hurt by the tariffs set by foreign countries as a consequence of the ongoing trade wars with China, the EU, and Canada, which, it seems, are not that ‘
AEN: Any recent thoughts on hermeneutics?
