“The troubles brought on by Chancellor Kwasi Kwarteng’s ‘mini’ Budget are a harbinger of unfortunate events to come across developed markets in the next year. Governments will spend more; investors will be the dominant disciplining force; and central banks will break other things in trying to break the back of inflation.”
USAGOLD note: One of the points former Treasury Secretary Larry Summers has made in recent weeks is that the conditions that brought on a crisis in the United Kingdom are present elsewhere and could create comparable financial market meltdowns. At some point, we might be talking about a black swans event – in the plural. Greene identifies some of the potential hotspots in this opinion piece – nation-states and financial market sectors alike. She is the chief economist at Kroll.