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Policy At The Federal Reserve

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Ben Bernake has been incharge of the Fed for a quarter now.

What do we know about him and his approach?

1). He talks more than Alan Greenspan

2). He likes inflation targeting

3). He can now print money on the hush hush

4). He is moving rates up

What else do we know?

1). The BIS wants a different approach, they have stated this publically.

2). Japan is amassing reserves

3). Japan is ready to move

4). The US owes an epic amount of cash

All comments welcome:

It looks to me like the Fed will continue to raise rates to protect the dollar as they print money to send to Asia.

America has got it's foot hold in the Middle East and the corresponding strategic reserves, the Far East funded it. The West now has to work to repay the Far East to remove the burden of the debt to allow us to compete with the new much larger economies who's growth and new infrastructure we have funded.

This means more work and less reward for a few years (for the average Westerner).

It means higher rates, it means greater liquidity of Western currencies, it means inflation, it means errosion of Western equity in real terms (i.e. hours worked), it means tighter margins, it means cost cutting.

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It means higher rates, it means greater liquidity of Western currencies, it means inflation, it means errosion of Western equity in real terms (i.e. hours worked), it means tighter margins, it means cost cutting.

What does liquidity of a currency mean/imply?

Peter.

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What does liquidity of a currency mean/imply?

Peter.

It means more cash printed, it means more dollars in existance, it means a dollar is easier to come by.

Central Banking is a great business to be in, interest rates control the demand and the printing presses the supply.

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It means more cash printed, it means more dollars in existance, it means a dollar is easier to come by.

Central Banking is a great business to be in, interest rates control the demand and the printing presses the supply.

But don't higher rates tend to mean less liquidity?

Peter.

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But don't higher rates tend to mean less liquidity?

Peter.

Yes, they do. That's exactly what they mean.

But in this case, under the current policy, the Fed are printing masses of dollars. Enough dollars to increase liquidity during a hike process.

Its the reason the Russians amongst others are hoping to trade energy futures in another currency they are nervous of the Fed unravelling the dollar and are seeking protection and fast.

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Yes, they do. That's exactly what they mean.

But in this case, under the current policy, the Fed are printing masses of dollars. Enough dollars to increase liquidity during a hike process.

Its the reason the Russians amongst others are hoping to trade energy futures in another currency they are nervous of the Fed unravelling the dollar and are seeking protection and fast.

So, they've got their feet on both the brakes and the accelerator, but with a bit more weight to the latter? Strange behaviour,

Peter.

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So, they've got their feet on both the brakes and the accelerator, but with a bit more weight to the latter? Strange behaviour,

Peter.

Yep. Except the foot on the accelerator is supposed to be a secret, or on the QT at least.

It means instant revs when you release the brake, kangarooing you and your passangers forward.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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