- There doesn’t seem to be much in the way of serious analysis around about why the Abe Nirp experiment in Japan is having the diametrically opposite effect to that intended – ie, counterintuitively, the Yen is strengthening and the BoJ bonds are being seen as a safe haven. I wonder if more attention should be paid to who (or what) is buying the Yen and its bonds? There are, after all, two obvious culprits: China and the US.
- Under the weight of cheap oil, the Saudi Central bank’s net foreign assets have dropped 38 billion riyals. Cuts in Saudi government spending to shore up public finances are also taking a toll on the economy, with Saudi consumers spending less for two months in a row. 70% of all Saudi revenues relate to oil. The initial catalyst for oil price drops was deliberate US overproduction, ostensibly to bring pressure to bear on Russia. Since then, the situation has been exacerbated by falling demand. But the net result of State Dept foreign policy is that the United States’ dominance of (and access to) oil has never been greater.
- Despite warnings from all quarters about the disastrous effect of rate rises on emerging economies with huge USDollar denominated debts, Janet Yellen raised rates last December. In the build-up to the March US Fed meeting, she was under massive pressure from multinational CEO hawks to raise again.
- The effect of NATO member Recep Erdogan’s deliberate infliction of 320,000 young male Islamists on the eurozone economy has been entirely negative….as has the Syrian refugee problem,which is a direct outcome of US policy in that country. Erdogan doesn’t break wind without asking for US permission first. The pressure of largely US-run vulture finds on ClubMed in general and Greece in particular has helped that economy reach a stage where it is flatlining. The crazy austerity programme for ClubMed was German inspired – and the Germany/US level of security/geopolitical policy integration has never been in doubt.
Whichever way you cut it, the result of US geopolitical strategy could be said (albeit with more evidence needed to nail it definitively) to have neutralised competition from Japan, Saudi Arabia, Russia, the European Union and the Brics.
Surely it is not unnatural to wonder whether Washington really does have a vision of global competition…or merely the hegemonic goal of near-monopoly control of global business.