Hey guys, It’s Q2. This report is a deep dive, thanks for your patience. We take a 10,000ft view on global markets, financial conditions and the dominant macro-trends framing our perspective, as such enjoy our review of: United States economy The Europe Update
with a country engaging in these intervention isn't it interesting that investors and market participates are still able to negate the facade of these operations if the economy faces serious headwinds. why are these practices engaged if the results are sometimes short lived as oppose to just remaining focused on longer term pivots/ solutions?
Great question Emmanuel. I think it falls down to leadership, when an economy (China) is facing structural issues it's up to monetary and governmental officials to source long term solutions to provide aid and a path to recovery. One important thing is deciphering the severity of the issue at hand, if some issues, i.e a weak currency can be backstopped by a relatively simple and quick to execute solution that takes priority over long term solutions which may result in being just as effective as short term adjustments.
with a country engaging in these intervention isn't it interesting that investors and market participates are still able to negate the facade of these operations if the economy faces serious headwinds. why are these practices engaged if the results are sometimes short lived as oppose to just remaining focused on longer term pivots/ solutions?
Could you clarify which economy and what operations you’re referring to
yeah sure. it’s with respect to the PBOC in 2015 drastically reducing foreign reserve attempting to try stabilise the Chinese yuan
Great question Emmanuel. I think it falls down to leadership, when an economy (China) is facing structural issues it's up to monetary and governmental officials to source long term solutions to provide aid and a path to recovery. One important thing is deciphering the severity of the issue at hand, if some issues, i.e a weak currency can be backstopped by a relatively simple and quick to execute solution that takes priority over long term solutions which may result in being just as effective as short term adjustments.
understood, appreciate the feedback