Even as things still seem calm, there is a lot of news swirling about. This weekend I will try to do a recap of the news on Greece, the Ukraine, and the now skyrocketing US dollar. It seems like there is a lot happening right now and all these events can certainly impact the monetary system depending on how things go. We'll try to review it this weekend.
Quick Bullet Points:
- IMF approves new aid/loan package for the Ukraine - tenuous cease fire still in place
- Greece ramps up rhetoric against Germany and vice versa, situation far from resolved
- Greece quoted as saying it cannot pay its upcoming debts
- US dollar rally now starting to look out of control, What will the Fed do?
- how will the stock market react to further rise in the dollar and a Fed rate increase?
- Russia and the US/EU hovering over the Ukraine, potentially provocative military movements taking place
What we have to always keep in mind is that because there are so many derivatives out in the financial system tied to interest rates, currencies, and commodities, sharp movements up or down in any of these can set off problems. If either Greece or the Ukraine implode financially, who knows what the fallout from that might be? Can it be contained? Or will things get worked out again (at lease for awhile)?
Every time problems surface, they seem to stay contained which is a good thing. But they also don't seem to really get solved either. Things continue to have an eerie feel. On the surface, things seem calm, but beneath the surface things seem different. All we can do is try to follow it all. It's a good idea to stay informed as always.