Asia’s markets are settled this evening, in response to Turkey jacking their interest rates to 12% in the dead of night, if such sources as Reuters are to be believed.
Central banks have had such a firm hand on everything for the past few years, it really would not surprise me if we just shrug this off and keep going. But I’m not going to rest my hat on that this time.
Ultimately, jacking interest rates to 12% is really bad for growth. Turkey is an importer, so maybe this helps the rest of the world to up that production a little bit. But my concern has always been that we’d hit the point where the rest of the world couldn’t stand the US’ cheap money policies. I thought we were there with the EU, but they passed the buck somehow.
Where did that buck end up, I wonder?
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