While revolution swept the United States – here’s whats been happening in the rest of the world...
1. China's 4 trillion yuan ($586) billion economic stimulus plan – How will China finance this? Well, it will have to sell large number of U.S. securities including treasuries that it holds. This is estimated at $1 trillion. This will add pressure when the U.S. government is trying to issue more securities to finance its own stimulus plan. This will impact bond yields which will fall since borrowing costs will now go up.
2. U.K. - The biggest cut in the history of the Bank of England. (ECB and Swiss National bank followed). As a result of which the LIBOR fell to a 4 year low to 2.29%.
3. Japan - Registered a 10 year low when its machinery orders plunged to 10.4% last quarter, as manufacturers cut investment plans in line with the global slowdown. This is at a time when Japan's 0.3% target lending rate is the lowest among major economies.
4. India – The central bank abandoned the "inflation vigil'' Bloomberg said. "For the first time since 1997, the Reserve Bank of India on Nov. 1 deployed all three of its main tools to shore up growth after inter-bank lending rates climbed to 21%". (Signs of preparing for elections? After all inflation is still twice as high as the central bank target)
ADVICE FOR THE NEW PRESIDENT - TAILPIECE:
The Irish Times says the President has to address common interests across Washington, Tehran, Baghdad, Kabul and Islamabad. The Jerusalem Post quotes Israel's foreign minister Livni "STAY TOUGH ON IRAN" . Interestingly the website of the Post has a permanent link called The Iranian Threat. So many voices....Force be with The New White house Man.