You could be forgiven for missing the latest installment of market panic over the past ten days. It came and went like a summer thunderstorm — passing over the global financial landscape quickly and violently. But unlike meteorological events that inflict actual harm, the sharp gyrations of financial markets have increasingly less relationship to real-world economies and exist in their own never-never land of self-fulfilling prophecies and conventional wisdom.
The Edgy Optimist
As the week continues, so does the furor over the government’s electronic and big data surveillance. It’s largely framed in the terms that President Obama described on June 7th: “You can’t have 100 percent security and also then have 100 percent privacy and zero inconvenience.” That observation may be true, but we are approaching this issue 100 percent wrong.
This weekend, President Obama and China’s new leader Xi Jinping will meet at a retreat outside of Los Angeles. The two men are scheduled to spend six to seven hours covering a range of issues that confront the two countries, from the increasingly fraught issue of hacking and cybersecurity to what to do about an evermore unpredictable and rogue North Korea. The summit was arranged only recently, almost impromptu and more casual and low-key than the pomp and circumstances state visits of the past decade. That should in no way, however, obscure just how important the meeting is.