The World Will Face A Stress Test
As The Bond Rout DeepensAmbrose Evans-Pritchard emphasizes how the most of the world is still linked to the strong U.S.$ & how Federal Reserve tightening is felt everywhere .. "Surging rates on dollar Libor contracts are rapidly tightening conditions across large parts of the global economy, incubating stress in the credit markets and ultimately threatening overvalued bourses. Three-month Libor rates - the benchmark cost of short-term borrowing for the international system - have tripled this year to 0.88pc as inflation worries mount. Fear that the US Federal Reserve may have to raise rates uncomfortably fast is leading to an increasingly acute dollar shortage, draining global liquidity."
LINK HERE to the article