By Robert A. Vella
Say what you will about global capitalism. I am certainly no fan, but it is the system we’re all dependent upon in one way or another. And, when that system becomes increasingly volatile as it is now, it’s time for everyone to take notice.
Today, global markets had another bad day. Commodities were driven lower by the continued fall in oil prices, while the shaky economies in China and Europe are constraining consumer demand. All this and more are directing criticism towards the Federal Reserve’s recent decision to raise interests rates. That move by the Fed was based on its beliefs that the economy had sufficiently recovered from the Great Recession, and that the threat of inflation was real. Neither of these conclusions seem warranted given the apparent condition of the global economy.
Update February 11, 2016 – 12:30 PM PST: Markets rebounded a little late in the trading day after OPEC suggested it might decide to cut its oil production levels after all.