QE3?

[Ferru123]

http://www.telegraph.co.uk/finance/econ ... tance.html

QE2 has still some way to run (the bond purchases are to be phased over several months!), so I think it's premature to even think about QE3!

Does Bernanke think 'As long as I keep printing money, something's gotta give'?!?

Is he basing US monetary policy on Zimbabwe and the Weimar Republic?

Jeff

[aligammack]

Quantitative Easing Explained - Funny

http://www.youtube.com/watch?v=PTUY16Ck ... re=related

[CaerMyrddin]

Is it me, or economy is really hard to read these days?

[Ferru123]

Brilliant!

Over the last year, there have been some quite startling rises in commodity prices: http://markets.ft.com/markets/commodities.asp

And in the UK, petrol is close to a record high: http://www.bbc.co.uk/news/business-11968437

So all in all, I think using QE to fight deflation is a tad premature...

Jeff

Quantitative Easing Explained - Funny

http://www.youtube.com/watch?v=PTUY16Ck ... re=related

[CaerMyrddin]

Althougt I don't agree with the 'printing money at ease', prices are rising at a world basis, which doesn't mean the US won't face deflaction.

Anyway, the problem is the americen economy can become anemic, even in a scenario of world inflaction?

[kuber1]

Oil up. Gold down then up. Silver up. Dollar down, Pound Sterling ..oh dear oh dear oh dear. ... Euro wishing it wasn't. Food up. Real Inflation above interest rates. QE3 what to do? Trade that you know will be used.

[Ferru123]

I hope people don't suddenly start shorting gold, as I've read that the quantity of gold that's been sold exceeds the amount of the stuff in existence!

Jeff

Oil up. Gold down then up. Silver up. Dollar down, Pound Sterling ..oh dear oh dear oh dear. ... Euro wishing it wasn't. Food up. Real Inflation above interest rates. QE3 what to do? Trade that you know will be used.

[Ferru123]

IMHO, QE is a bit like a surgeon performing open heart surgery blindfolded.

He might save the patient, but he's more likely to kill him!

Jeff

Althougt I don't agree with the 'printing money at ease', prices are rising at a world basis, which doesn't mean the US won't face deflaction.

Anyway, the problem is the americen economy can become anemic, even in a scenario of world inflaction?

[Euler]

This is interesting: -

http://www.schwab.co.uk/public/schwab-u ... 40411.html

[superfrank]

Take a look at this graph showing the correlation between commodity prices and QE (FED purchases)...
http://www.ritholtz.com/blog/wp-content/uploads/2011/04/commodities-and-fed-purchases.jpg