After a long period of calm in the foreign exchange markets, the tectonic plates are shifting. Expect much more volatility than we've become accustomed to.
A group of investors borrowed in a foreign currency at a high interest rate, generating millions in tax relief for property investments that largely failed to materialise. Now the scheme has been ruled above board.
The largest impediment towards institutional investment in Bitcoin has been the lack of established custodians in this sector. This is now changing, and there is a grudging acceptance that cryptocurrencies are here to stay.
Where we are going as a country depends on our choice of the structural features of our economy, on the dynamic path we choose to walk. We need to remember that many of these structural choices are still within our gift to make.
The world still needs and therefore demands dollars. Notwithstanding the relative decline of the US economy, the dollar remains the QWERTY keyboard of the global monetary system.
Nixon lives on. The bulge of credit, debt and danger has simply been shunted into the shadows of leveraged loans, junk bonds, emerging market debt and myriad other dim crevices.
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