- If we want a more balanced and resilient global system, we need to create more places for savings to go beyond just the USA
- Even as the US has pulled back from open trade, others should look to deepen trade and investment relationships
- Leveraged trading of hedge funds and non-financials may be making the system more fragile
- While imbalances adjust slowly, attractiveness of US dollar may have let imbalances persist
- Global imbalances are growing
- The US has been the biggest destination of capital
There is nothing on monetary policy or the outlook here but all the US dollar talk is a good reminder that the Dollar Index is at a one-year high.
This article was written by Adam Button at investinglive.com.
