Funny how the holidays lulls many into thinking that they should take it easy. Truth be told, everyone is working today. Whether it is delivering gifts or doing the cocktail chit chat, all good traders are watching what is popular both with kids and adults. The best article I did not read until today was from the Economist. Here is an excerpt:
"AS NEW YEAR approached a century ago, most people in the West looked forward to 1914 with optimism. The hundred years since the Battle of Waterloo had not been entirely free of disaster-there had been a horrific civil war in America, some regional scraps in Asia, the Franco-Prussian war and the occasional colonial calamity. But continental peace had prevailed. Globalisation and new technology-the telephone, the steamship, the train-had knitted the world together. John Maynard Keynes has a wonderful image of a Londoner of the time, &quot;sipping his morning tea in bed&quot; and ordering &quot;the various products of the whole earth to his door, much as he might today from Amazon-and regarding this state of affairs as &quot;normal, certain and permanent, except in the direction of further improvement&quot;. The Londoner might well have had by his bedside table a copy of Norman Angell's &quot;The Great Illusion&quot;, which laid out the argument that Europe's economies were so integrated that war was futile.Yet within a year, the world was embroiled in a most horrific war. It cost 9m lives-and many times that number if you take in the various geopolitical tragedies it left in its wake, from the creation of Soviet Russia to the too-casual redrawing of Middle Eastern borders and the rise of Hitler. From being a friend of freedom, technology became an agent of brutality, slaughtering and enslaving people on a terrifying scale. Barriers shot up around the world, especially during the Great Depression of the 1930s. The globalisation that Keynes's Londoner enjoyed only really began again in 1945-or, some would argue, in the 1990s, when eastern Europe was set free and Deng Xiaoping's reforms began bearing fruit in China."
If you haven't read the article, I highly recommend it. While the Fed lulls us all into a sense of surreal security, something could be brewing which is much more possible than anyone currently sees as plausible.