Well, are you worried about the bills in your wallet? The world's finance ministers are meeting in Wyoming to discuss global economics in today's world. Janet Yellen, chairwoman of the US Federal Reserve Bank, joined other bankers in this annual conclave to exchange information and to put current conditions into perspective. Mario Draghi, the Italian banker and chairman of the European Central Bank was the other high profile central banker in attendance. Between the two, they can make the ground shake.
Recent global data indicates that a broad recovery is underway around the globe. Europe has finally begun an emergence from years of no growth following the worldwide recession and massive unemployment. Germany continues to be a bright spot on the continent as its economy improves at a sustainable rate. Spain has also added its figures to the growth curve. The Bank of Japan has supplied the meeting with optimistic numbers indicating that consumers there are finally opening their wallets, driving the moribund economy ahead, leaving hope for expansion in the near term.
Despite recent economic improvements worldwide, certain regional problems persist. The never ending war in the Middle east continues to drag down any country directly affected and many indirectly affected. Syria and its supporters(Russya and Iran) continue to punish rebel forces supported by Europe and the US. Sanctions have been imposed by the US Congress against Russya and Mad Vlad. The Chinese economy has slowed and the problem of too much debt has created anxieties among investors and businesses alike, to include Facebook and Apple. Moves by Beijing against pro-Democracy adherents in Hong Kong are a concern.
In Latin America, Nicolas Maduro's government is under severe strain, bordering on overt rebellion as inflation roars on, crippling the local population; forcing many to slowly starve and to seek desperate solutions. In Brazil, political representatives continue to be indicted in a long anti-corruption scandal that forced the impeachment of former Pres. Dilma Rousseff. Her replacement, Michel Temer, has his hands full as he tries to avert the same fate, while at the same time, trying to move the country and its economy on a path to growth by privatizing government monopolies.
Jackson Hole, Wyoming is a beautiful location in August, and far enough away from the mainstream of populations that the meeting is rarely the site of organized demonstrations. Wise selection by organizers. So, we will wait for the final results of the meeting of economic eggheads, discussing our future.
What about the LIBOR fixing case? Will the central bankers name the replacement yardstick for loan rates or is that asking too much?
ReplyDeleteHow about the major banks that are big auto loan generators? Will the Fed go after the bankers or will the Comptroller of Currency be left to deal with the rogue lenders among our major banks? Hmmm. Seems like the Consumer Protection Agency has its work cut out for it.
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