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Checkmate. If The Fed Ease Commodities Will Kill Recovereah

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Recovery could derail if commodities surge on QE2: IEA
On Wednesday October 27, 2010, 2:31 am EDT
) - 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.
Eduardo Lopez, IEA's senior oil demand analyst, said the impact of QE2 was unclear because it had not started, but it means basically the United States will print more money.
Dollar weakness on expectations of further quantitative easing has helped drive commodities and oil prices for at least a month.
"If commodities' prices surge further, it could derail recovery," he told a downstream oil conference in Singapore.
"QE2 could inflate prices in nominal terms and bring about inflation and could derail the recovery."

Bottom line: QE2 = Recession2

The market will win in the end and the bubble must and will DEflate.

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  • 432 Brexit, House prices and Summer 2020

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