
The Week in Perspective
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Veteran investor Jeremy Grantham caused a stir this week when he warned that financial markets should brace for further pain, with global economic health at its most precarious level in years, due to stubborn inflation, hawkish central banks and geopolitical tensions.
Grantham, co-founder and chief strategist of asset manager GMO, told the Reuters Global Markets Forum, that "this is a more dangerous looking moment in global economics than even the madness of the housing bubble of 2007”
Over in Europe the energy crisis is being labelled a Minsky moment.
Whatever the band aid solution that is applied, the reality is grim. And the math is simple: Europe can't print more natural gas, oil or coal, so one way or another, it will have to offset the surge in costs, first in commodities and then in all downstream chains, which in the very near future will mean governments will soon be subsidizing Europe's cost of living as the alternative is a violent revolution. In short: we are about to see the printers go brrrr like never before, if only to prevent Europeans from going brrrr this winter...while second quarter GDP and cost of living concerns are also gripping the Cabinet Lekgotla here in South Africa.
To put the week into perspective Michael Avery is joined by Warwick Lucas, Head of Galileo Securities
Isaah Mhlanga, Chief Economist at Alexforbes and Raymond Parsons, Professor at School of Business and Governance at Northwest University
To put the week into perspective Michael Avery is joined by Warwick Lucas, Head of Galileo Securities
Isaah Mhlanga, Chief Economist at Alexforbes and Raymond Parsons, Professor at School of Business and Governance at Northwest University