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Where is the economy and stock market heading?From the Telegraph's (UK) article "RBS tells clients to prepare for 'monster' money-printing by the Federal Reserve": <. . . the Fed is soon going to have to the pull the lever on "monster" quantitative easing (QE)". "We cannot stress enough how strongly we believe that a cliff-edge may be around the corner, for the global banking system (particularly in Europe) and for the global economy. Think the unthinkable," . . . . . . . The Congressional Budget Office said federal stimulus from the Obama package peaked in the first quarter. The effect will turn sharply negative by next year as tax rises automatically kick in, a net swing of 4pc of GDP. . . . . . . The case for fresh QE is . . . to prevent deflation. . . . We are much nearer the tipping today. The M3 money supply has contracted by 5.5pc over the last year, and the pace is accelerating: the 'trimmed mean' index is now 0.6pc on a six-month basis, the lowest ever. America is one twist shy of a debt-deflation trap. There is no doubt that the Fed has the tools to stop this. . . .> http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/7857595/RBS-tells-clients-to-prep are-for-monster-money-printing-by-the-Federal-Reserve.html http://www. telegraph.co.uk/finance/comment/ ambroseevans_pritchard/7857595/ RBS-tells-clients-to-prepare-for-monster -money-printing-by-the-Federal-Reserve.html |
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