Emerging South

From a Belgian perspective I believe global protectionistic measures would be a true disaster for the economy. Vincent hopes for an optimistic outcome optimistic and the news today was somewhat soothing.  Yet Vincent also points out to these Apocalyptic outlooks of Macroman.  Indeed: the LIBOR rates are raising again and as I predicted before, inflation will be again on the raise in 2009.

As to protectionism: it is here to stay.  Geert Noels refers to Paul Krugman who is actually srongly supporting US protectionistic matters.   And it would make sense for the US, and Brazil, and... but not for Belgium.  Our open economy would evaporate in a matter of years.   And yes, as Geert Noels points out in the same article: we urgently need new stability in the exchange rates; but as I pointed out before: I don't see this happening soon.  

My advice: maintain (or even acquire) heavy positions in real assets, make smart decissions when picking the domiciles of those (and the currencies) and then accept volatility that comes with it.   And keep a close eyes on the authority of that country;  when you detect white foam around the mouth as in South Africa: run.

Any better advice for asset protection?  Let me know !