My word , my bond
As government’s around the world continue to borrow huge amounts of money the bond markets are getting tetchy. Prices are rising, increasing the cost of borrowing long term, companies are holding back on borrowing and investing, bad news for growth and experts are warning that these are all the signs of a market with serious problems.
This matters because nearly every western country has huge levels of debt, intends and needs to keep borrowing huge amounts and is finding the price of doing that increasing. They have no intention of trying to cut back borrowing it is hard-wired into their economic model.
But higher borrowing costs will force government’s to cut spending, and companies to cut investment. This is the opposite of what we need.
Just when the world thinks it has thrown off the latest crisis and is heading for a sustained period of stability, it gets another rude shock. Shocks it can increasingly not afford.
Economics, trade and Brexit, not necessarily in that order but the dog always comes first.
By Jonty Bloom Media