Russia, Iran and above all China form the backbone of an axis bent on destabilizing the Western political and economic order. The Russian and Iranian economies are basket cases and as such incapable of supporting a prolonged war effort. China on the contrary has developed a formidable economic and industrial machine. Nevertheless, China faces huge challenges and massive problems.
The case for the September interest rate cut of the Fed was much more clear-cut than the case made by the ECB. Yet both central banks risk re-igniting a debt-fueled financial boom that will further feed financial and economic instability.