Care about your savings or business? Peer offshore. Pushed into a corner by an activist Fed, all sorts of sovereigns have raised rates this year. Thursday is a big day as we will find if the European Central Bank is about to do the same. Any hint of growth and the Bk of England will also clear leather. Planners at the Fed pour money onto a flat rock and may compound that error with QE III. This would be a tragedy; it would do nothing to impact US growth but would further irritate price pressures offshore, resulting in even more tightening by the likes of Russia, China, India, Brazil, Sweden to name a few. Slower world growth - a less-than-pleasant circumstance.
Robert Craven
Robert Craven
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