Africa

As China expands its military and economic influence in Africa, the United States should feel “very nervous,” according to journalist James Poulos. China is planning to build a military base on the horn of Africa in Djibouti. It could be the first step toward Beijing’s deeper involvement with the continent. Sputnik reports: Last year, China began talks with Djibouti to install a “logistics hub” and airfield in the east African nation.

Just two weeks ago we warned of the looming "hyperinflation monster" in Africa with the continent appearing to be running out of dollars as some of Africa’s largest economies, including Nigeria, Angola, Ethiopia and Mozambique, are restricting access to the greenback to protect dwindling reserves. Specifically we warned of Angola's already-soaring inflation hampering its ability to 'adjust' its currency towards its black market 'reality'.

To say that Zimbabwe has not had much luck with its monetary system experiments, would be an understatement.

After its disastrous adventures with hyperinflation denominated in its own currency...

... Zimbabwe decided to entirely abandon its reserve currency and shift to the dollar.

Two months ago, when looking at the latest basis spreads, we showed that a disturbing development, first flagged here in March, was getting worse: namely the "Global Dollar Shortage Intensifies To Worst Level Since 2012."