Tuesday, August 7, 2012

Citi Presents 14 Global Hot Spots That Have The Potential To Explode

The headline is a bit misleading, as some cited countries may face upcoming crises or indeed implode, but the shock waves might be regional at best.  For example, France's chance of causing a critical global situation depends more on the conjunction of every other EU country imploding as well.  The usual suspects are included (N./S. Korea, Venezuela, Syria, Egypt..), but seriously, the Netherlands?  Is turmoil in the Netherlands really going to spark any kind of global conflagration?  C'mon..  Business Insider.  Excerpts:

The European economy is deteriorating and leaders across the continent are being booted from office in favor of a new generation of politicians. Rising tensions in the Middle East and uncertainty over leadership changes in emerging markets worldwide are adding to investor concerns.

Tina Fordham, Senior Global Political Analyst at Citi, is out with her mid-year outlook, presenting all of the bank's views on all of the biggest political risks emanating from the world's key hotspots over the remainder of this year and into 2013.

With key elections ahead, unresolved conflicts that continue to roil entire regions, and rising nationalist sentiment in major world economies, investors will want to stay abreast of developments on the international political scene.

Why Citi bothered to include Russia or China (Both fairly stable, at the moment)to the list, or formally recognize how America's potential economic meltdown might either blow up internally, or critically hobble most financial markets is puzzling.  Of real concern:  Israel/Iran/Syria/Turkey/Saudi Arabia/Egypt (Multiple scenarios involving each other, Russia/China and/or NATO), Greece/Italy/EU meltdown, and surprisingly not on the list, Japan's economic and radioactive death spiral.  Fukushima doesn't rate as a "global hotspot?"

I'm sure Ms. Fordham got paid a shitload of money for her analysis, and I'm glad I didn't have to actually pay money for said analysis.  I've got a friend whose rantings are more comprehensive, more pertinent, and much more interesting and/or entertaining than the USA Today version of geo-political current events Citi has offered up. 

I'm also sure that there are a lot of clueless rich people who will gladly pay for this "analysis," confident they're the ones with the valid information.  Good for them.  I'll take ______ insights anytime, whether he's sober or drunk.  His narrative is far more compelling than this dreck, slurred or not..  And it's free.

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