Monday, November 30, 2020

Tag: As Economy Tanks

As Economy Tanks, Indonesians Turn to Gold

by Peter Schiff, Schiff Gold:

The Indonesian stock market has plunged nearly 7% this year. The country’s currency, the rupiah, has fallen 9%, and is at its weakest level since the 1998 Asian financial crisis. Bond yield have soared. To weather the storm, Indonesians are buying gold

Indonesia ranks as Southeast Asia’s biggest economy, but like many emerging markets, it has suffered capital outflows due to a rallying US dollar and global trade tensions. The country has been hit particularly hard by the emerging market crisis because foreign investors own so much of Indonesia’s government debt – around 40%. The government also runs a deficit, meaning it must continue borrowing money to stay afloat. This makes for a bad dynamic in a world of rising interest rates.