Fiscal flood

ENAR

People may like to think otherwise, but the majority of catastrophes throw very visible shadows ahead. For example, most floods can be foretold by analyzing the human impact on terrain and studying long-term weather patterns. Prudent preparations can be made to help avert the worst outcomes. In 2016, Lebanon will face a rising tide of devastating consequences. The deluge will not be one of rain — which we usually pray for more of in Lebanon — but instead a gradual flooding of global financial markets with higher interest rates. This rise is announcing itself from the west, where most of our economic and financial weather is made. The possibility of a hike has recently been hinted at by Federal Reserve officials in Washington in various sibylline statements as likely to commence six months after the end of its quantitative easing program, presumably at the end of 2014. The expectations for