Perspective Flies Out The Window

摘要

This month’s report has two articles up front. The firstconcerns the volatility that has roiled all financial markets,and some governments, over the past month. Muchof the volatility originated in changes the Chinese governmentand People’s Bank of China (PBOC) initiated,beginning in July but becoming more apparent in August.Many of these changes will bear long-term positive fruit.The shift to a new world paradigm for financial andmonetary markets caught a lot of investors by surprise,however. Furthermore, the changes and the market reactionsspawned an obscene amount of totally preposterousand over-sized fears in global commodities, equities,fixed income, and currency markets.