Money For Nothing, Sticks for Free

5 Feb

We wonder whether the economic discord that currently exists across the globe can legitimately be laid at the feet of all of the developed Central Banks. The ease of global capital flows, combined with a desperate grab for yield, has left us with the twitchy capital flight that so often happens when country specific internal imbalances are suddenly exposed. The social discontent stretching from Thailand to Turkey is undoubtedly political in nature, however some of this frustration is borne of a free-falling currency combined with the inevitable uncomfortable rise in the price of basic necessities. While it is true that Central Banks must make policy based on their own circumstances, some of the unintended consequences we have spoken about so often are real and  are currently being displayed right in front of us on the front page. When Central Bankers force people into the risk pool, very little thought is put into just how many might not make it out. One can be sure however that if the local currency is not working, the alternative is not bitcoin. Buy Stuff.

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