It’s been a candidate for further trouble as soon as the corona crash hit markets back in March. Yet because of the sheer volume of monetary easing ever since, all those potential “fallen angels” threatened by seeing their credit ratings downgraded have been rescued – for the time being.
It has become such a regular feature of the US election cycle that it shouldn’t come as too big a surprise: Long leading the field of contenders for the Democratic nomination in this year’s US presidential elections, Joe Biden stands to be burned before Super Tuesday.
It is a
consensus among analysts at the beginning of this year: That for lack of a
substantially altered monetary policy among the G7, yields cannot but continue
their downward trend or at least stay subdued. Such an assessment, however,
tends to overlook or presuppose one essential factor: fiscal spending. And it’s
that factor making us anticipate the opposite of the majority view.
So far, it has been one of the economies in the eurozone keeping up relatively well in the face of adverse developments in global manufacturing. But of late, the Dutch economy has caught the industrial flu, too, and faces a crucial parting of ways at the beginning of the new year: Whether there will be a sustainable truce in US-sponsored protectionism or not.