Quantitative Easing: Is Japan Next? [View article]
I have few observations to make: 1. Japan already did QE in 2000 to fight deflation and US took a cue from Japan's lost decade and late usage of this policy, cut the lag time and did before-hand, impact of which remain to be seen. 2. Is there a possibility that financial de-leveraging bringing lot of money into the US system increasing M2. So can that money go into buying commodities etc. again causing ---> inflation ? 3. Leverage of 15 times++ would take some time to come, i.e risk aversion would be the mantra for a long time to come. 4. The US fiscal deficit was served by TIC funds, so that reducing continuously for three months, US people have to save to cover up the fiscal deficit (who else?); which i think needs a structural change ---that further means inflation going down big time.
Quantitative Easing: Is Japan Next? [View article]
1. Japan already did QE in 2000 to fight deflation and US took a cue from Japan's lost decade and late usage of this policy, cut the lag time and did before-hand, impact of which remain to be seen.
2. Is there a possibility that financial de-leveraging bringing lot of money into the US system increasing M2. So can that money go into buying commodities etc. again causing ---> inflation ?
3. Leverage of 15 times++ would take some time to come, i.e risk aversion would be the mantra for a long time to come.
4. The US fiscal deficit was served by TIC funds, so that reducing continuously for three months, US people have to save to cover up the fiscal deficit (who else?); which i think needs a structural change ---that further means inflation going down big time.
Kindly reply or criticize, thank you.