There's One Chart Responsible For The Tectonic Shift In Global Markets

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		Home Tech Finance Markets Politics Strategy Entertainment Advertising Retail Sports Life Wednesday, June 12, 2013 There's One Chart Responsible For The Tectonic Shift In Global Markets It's the most important chart in the world right now: real interest rates in the United States. Real interest rates are just nominal interest rates (the rate you see on a 10-year Treasury bond, for example) adjusted for inflation. So if interest rates are rising, and inflation is falling, that's going to cause real interest rates to spike. For the first time in years, real interest rates are rising rapidly in America, leading to strength in the U.S. dollar – which is causing currencies around the world to crumble (especially in Japan and in emerging markets). The reason rising real interest rates cause the dollar to jump is because investors prefer to have a currency in a market that pays more. As David Wessel puts it in this morning's Wall Street Journal, "The tectonic plates of the world economy are shifting." Read » Also On Money Game Today: A Designer Has Already Come Up With A Way To Improve Apple's New iPhone Icons The Map To 2 Billion Mobile Devices Advertisement Chart Of The Day: People In The UK Have A Much Healthier Relationship With Their Smartphones Than Americans CHART OF THE DAY: People Are Surprisingly Interested In iRadio CHART OF THE DAY: Apple's New Trade-In Program Should Fix This Problem Share this: Facebook Twitter Digg Reddit StumbleUpon LinkedIn The email address for your subscription is: dwyld.kwu.jobhuntportal11@blogger.com Change Your Email Address | Unsubscribe | Subscribe | Subscribe to the SAI RSS Feed Business Insider. 257 Park Avenue South, New York, NY 10010 Terms of Service | Privacy Policy

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