A few macro and related thoughts today...
Greece - I really liked this story: 'What Would Happen If Greece Doesn’t Pay the
IMF: Q&A':
‘Failure to pay the IMF would entitle some of Greece’s
other creditors, including the European bailout fund, to declare a default.
They would then have the option to demand immediate repayment of all their
loans, a process known as acceleration. Other lenders could then follow suit.
While calling a default preserves creditors’ claims, acceleration -- the bit
that hurts -- isn’t automatic. Each creditor decides on its own’.
FX – “More than ever, countries are relying on weaker
currencies to boost their growth prospects in the global low interest rate
environment”
I would agree on this…worrying reliance. Market volatility and the
higher $ interlinked. Take Japan. Everyone focuses on the recent market run...
...but look at the precipice the yen is on (h/t for the chart @RaoulGMI). 140+ here we come...
Talking about FX matters interesting to see that as per Swift data the yuan retains 5th position in
global payments (link here). I think we can guess the general direction.
Meanwhile talking about China...a couple of 'market boom conditions' charts:
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