If this trend continues, QE3 is assured
Despite Federal Reserve Chairman Ben Bernanke’s pledge to maintain low interest rates in conjunction with other central banks around the world, the market is not cooperating.
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Despite Federal Reserve Chairman Ben Bernanke’s pledge to maintain low interest rates in conjunction with other central banks around the world, the market is not cooperating.
While the effects of the great recession are a long way from over, an even greater asset bubble could be forming that would make the housing bubble look like a four year old’s attempt to blow bubble gum.
There is an almost metaphysical exercise taking place among central bankers around the world. Currencies are being devalued across the globe by stimulative monetary policies — but if every central banker weakens his currencies, are any weakened?
As reported in previous articles on www.emergingmoney.com, shaking a tin cup filled with euro bonds did not entice China, Warren Buffett or Jim Rogers into buying any of the sovereign debt.
We talk a lot about global car makers seeing a lot of growth in China and other emerging markets. Toyota seems to be in the opposite position, thanks to the strong yen.
One of Japan’s greatest exporters has given in to what might become the inevitable: the strong yen is not likely to weaken much from here, and the dollar will remain on the defensive.