China’s slump, Europe’s debt, oil’s decline are all happening at the same time. At they continue the depth of their connections are becoming apparent. The reach is becoming apparent, too. China, Europe, and oil were strong just a few years ago. Now, China is using reserves to prop up its currency while its economy slows. Within Europe there had been powerful economies, but the EU’s problems aren’t being resolved, while they are also beginning to experience negative interest rates. Oil was headed to a peak, and may get back there again, someday; but the oil price war has undermined portfolios, increased bankruptcies, and destabilized countries that count on oil revenue. The US economy had been recovering (unequally) and now looks like the most secure, but the unsettling of the rest of the global economy is unsettling American businesses (and the multi-nationals that started there but moved off-shore.) Each issue may have started as separate, but as they persist the influence each other. Each issue, however, has to be dealt with as if it was separate because of national limits. The resolution may involve levels of collaboration that we’ve haven’t experienced but must develop in such an interconnected world.
(Click on the graph for the link.)