Global Financial Markets

For years, inflation was low, allowing central banks to pursue an increasingly loose monetary policy and drive up the prices of real estate, equities, and bonds. Now that China's rapid development and the rise of new technology are rapidly reshaping the world order, this era is coming under pressure and structural weaknesses in the West are being exposed. In this report, we explain why this foundation is faltering and what it means for the key financial markets.

Modern technology and cheap imports from emerging markets are causing a split in the West: a small group that profits from rising asset prices, and a majority whose purchasing power is falling behind. That anger is now translating into a strong rise of populist parties, leaving governments ineffectual. In this report we show how this divide emerged and what the consequences are for the key interest rates and currencies.

Higher government debt is becoming a problem in more and more countries, and the markets are now sending a clear signal about it: long-term interest rates are rising. Those rates actually need to come down, because with today's mountains of debt, refinancing at higher levels only makes the situation more precarious. In this report we explain how that could be achieved and what this means for the key interest rate, currency, and equity markets.