Tagged with: qe ii
suhasinisakhare.com
The UK's Office of Budget Statistics came out with a report on March 23. The Telegraph has today published a n analytical piece on this report. Some content is worth quoting directly: As a result of higher than expected inflation, living standards will fall for longer than previously anticipated, public borrowing will end up higher, and real terms cuts in public spending will have to be deeper. T...
suhasinisakhare.com
Yesterday, news broke that the UK economy actually contracted by .5% in the last quarter of 2010. George Osborne blamed the snow. Ed Balls blamed George Osborne. Yesterday, economists feared stagflation in the UK. Today, Nauriel Roubini, the economist who predicted the 2007 crash, suggested there are chances of a double dip in the UK. Back in December 2009, before it became clear just how much of...
suhasinisakhare.com
Experts have started predicting that interest rates in the UK will rise before June. Inflation remains a concern. Much of this inflation has been fed by the oil price bubble. Much of the oil price bubble has been fed by QE II and by American exports . If rates in the UK are raised before June, property prices will start to "go south", as one blogger writing in the Telegraph today so eloquently pu...
suhasinisakhare.com
I've been trying to figure out the steady growth in oil prices that we've seen, particularly since August 2010. There is no getting around it, the oil price bubble, which would likely have collapsed in November last year, has continued on. The reason? QE II & American growth. QE II has kept a lot of money floating in the market. Easy money gets easily bet on, easy bets carry high risks, this is t...
suhasinisakhare.com
Ben Bernanke, the chief of America's Central Bank, the Federal Reserve, is on a roll. So, we have the ill advised round of QE II. China & Germany came down hard on the US after QE II was announced earlier this month, complaining that the US sought to devalue the Dollar, by another name. Now, China has taken contractionist measures , including raising interest rates, and asking it's commercial ban...
suhasinisakhare.com
We now know, that America will not adopt structural reform to reduce its trade deficit, but would focus on recreational devaluation through monetary policy tools like QE. We now know, that China cannot, should not and will not appreciate its currency to de-outsourcing to happen. Without structural reform, without de-outsourcing, America is stuck. The main question before it - How to increase expo...
suhasinisakhare.com
Credit Rating Agencies are pretty much a law unto themselves. Moody's recent intervention in the evaluation of Ireland's debt, projecting numbers on the higher side of the worst case scenario, was particularly pernicious . The Americans remain vary of regulating them. The Financial Reform Act passed into law in July 2010 imposed a higher measure of liability on them, but provided an escape route....
suhasinisakhare.com
So, the Fed has done it....it's gone and announced a fresh round of quantitative easing . So here you have money being almost "given" to the banks. The money is not going to reach businesses, nor is it going to reach consumers. The actual drivers that would build health into the economy, drivers like training, sustainable job creation....these are not being corrected, as we speak. Its like treati...
suhasinisakhare.com
Markets expect the Federal Reserve, America's central bank, to announce it will start buying treasuries from the market. This will increase the flow of money in the market, it is expected to influence asset prices, particularly oil. The easing is expected to be to the tune of $500 Billion to 1 Trillion. Lay out those zeros on a piece of paper and ponder them, the mind boggles. I have written this...
suhasinisakhare.com
The Telegraph reported on November 1 that oil prices are set to hit $90 soon, on the back of an announcement from Saudi Arabia that it will do nothing to stop the increase in oil prices . Bank of America have today suggested that should the Federal Reserve announce a QE II of $500 Billion or more, oil prices would go up further . I'd posted in September that oil prices are locked in a mild to mod...
1 year ago
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