What recovery? Nominal economic growth has largely been a product of quantitative easing (QE) or currency devaluation. When currency devaluation is stripped out of the markets and economic series, it reveals the economy remains in a secular down trend. Another round of quantitative easing (QE2) will simply be more of the same. Stocks, gold, silver, and commodities are simply rising at various rates in response to the universal policy response of QE.
The global economic recovery could derail if commodity prices rise further after the U.S. Federal Reserve's move on further quantitative easing, details of which are expected next week, an official with the International Energy Agency (IEA) said on Wednesday.
Source:
finance.yahoo.com
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