The Case For A Global Liquidity Squeeze

Seeking Alpha | Sep 13, 2019 at 11:22 AM
  • As Newton’s Law would dictate, every action has an equal and opposite reaction – global financialisation is, in many ways, a disease, and as is so often the case, the medicine is likely to be far worse than the disease itself.
  • Even if the current administration only succeeds in making limited progress in its attempts to reduce current account deficits and disrupt global supply chains, this would mean that countries such as China, Germany, Japan, and Korea would have to revert from their current surpluses.
  • Lower trade, reduced liquidity and a limited USD supply could finally be the key to reversing the decades-long leveraging of the global economy post-Bretton Woods.