The Summer of Global Discontent

The temperatures are rising and so is the social unrest. A steamy Memorial Day holiday brought the guns out in Chicago and temps are back in the high nineties. Greek IP slid a whopping 11% and most dangerously, unemployment for those under 24 is an astronomical 42%. MENA continues to simmer in a widespread leadership vacuum. The start of summer has the world on a very short fuse.

Currencies did a bit of oscillating last night led by Yen crosses. The US note market - 5's and 10's to be exact - are in coiling mode. The 5 has 3 days of unchanged value and the 10 has put in 6. This is impressive action after a very strong April/May run. I don't see the sideways churn lasting much longer.

A Google search of "competitive devaluation" turned up a plethora of responses for last year at this time. The pressure to opt for this dangerous game is even higher now. The combination of soaring temperatures and high unemployment can be explosive. Even more so when government appears disconnected. No one can say what the spark will be. No one knew who Rodney King was in the Spring of 1992 though either.

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