UK market turmoil is a harbinger of global events to come

Financial Times/Megan Greene/10-12-2022

“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.” 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.