Below the radar, there was a meeting this weekend of 43 European and Asian nations in Beijing to prepare a “comprehensive reform of the international monetary and finance system.” The U.S. was not invited. At the Nov. 15 international financial summit in Washington, D.C., we can expect the rest of the world to present their plan to us. Essentially, our creditors met this weekend, and they will present their “workout plan” to the debtor next month. While it is certainly NOT the end of the world, it is the end of the era when we can dictate to the rest of the world.
The stock markets hate uncertainty. By the end of next month the presidential election will be over and the future shape of the international financial system will begin peeking at us. Besides, November is historically a much better month than either September or October . . . thank goodness!