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Realistbear

Greenspan: World I R Are Accomodative

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http://uk.biz.yahoo.com/02062007/325/green...-rates-low.html

Saturday June 2, 02:42 AM
Reuters
Greenspan says U.S. interest rates low
NEW YORK (Reuters) - Former U.S. Federal Reserve Chairman Alan Greenspan said on Friday that U.S. interest rates are low, but that
rates are low all over the world
.
He said the prevalence of low interest rates throughout the world was one of the things that surprised him as he prepared his reflections on his past for the new book he was promoting, "The Age of Turbulence."

Low IR + loose credit = bubble economies

Low IR + prudent lending practices = positive economies

I'll take my Ph.d. now..................... :)

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i dont think rates are THAT low

but the fact that you can borrow yen at 0.5% undermines national interest rate policy

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i dont think rates are THAT low

but the fact that you can borrow yen at 0.5% undermines national interest rate policy

Is Japan still experiencing deflation ?

Edited by Ash4781

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who cares its free money all round.

yeah apparently the end of deflation is not coming about very fast

which is fortunate for me as I have borrowed 33 million Yen which is sitting in AUS$ earning 575basis points carry

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http://uk.biz.yahoo.com/02062007/325/green...-rates-low.html
Saturday June 2, 02:42 AM
Reuters
Greenspan says U.S. interest rates low
NEW YORK (Reuters) - Former U.S. Federal Reserve Chairman Alan Greenspan said on Friday that U.S. interest rates are low, but that
rates are low all over the world
.
He said the prevalence of low interest rates throughout the world was one of the things that surprised him as he prepared his reflections on his past for the new book he was promoting, "The Age of Turbulence."

Low IR + loose credit = bubble economies

Low IR + prudent lending practices = positive economies

I'll take my Ph.d. now..................... :)

I think they yanks are preparing to hike...that's why they're fudging all the economic figures to make it look like things are going well...otherwise they'd have no chance of getting away with hiking while things are tanking.

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I think they yanks are preparing to hike...that's why they're fudging all the economic figures to make it look like things are going well...otherwise they'd have no chance of getting away with hiking while things are tanking.

I managed to get a couple of quid on a 0.25% raise in Fed rates in June at 70-1.

The numbers have now gone down to 18-1.

These odds are crazy when you look at inflation...obviously the punters don't trust the Reserve to do the right thing either.

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This is the really big problem with globalisation - at least, globalsation as it's been allowed to happen. Each country has different problems and the solutions are different, or should be. However, everywhere is now so linked that no country can apply the rules and expect "expected" outcomes from them.

If Japan has very low rates to counter deflation, and Britain and the US hike them to counter inflation, effectively a new global market is created and money starts moving like crazy. Really, if you're going to have a globalised economy, you need a world government and a world monetary committee and a whole load of rules. Otherwise, in a globalised completely free-capital-market everyone is pretty much screwed because no one is in control: it's just a money making system.

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This is the really big problem with globalisation - at least, globalsation as it's been allowed to happen. Each country has different problems and the solutions are different, or should be. However, everywhere is now so linked that no country can apply the rules and expect "expected" outcomes from them.

If Japan has very low rates to counter deflation, and Britain and the US hike them to counter inflation, effectively a new global market is created and money starts moving like crazy. Really, if you're going to have a globalised economy, you need a world government and a world monetary committee and a whole load of rules. Otherwise, in a globalised completely free-capital-market everyone is pretty much screwed because no one is in control: it's just a money making system.

Very much agreed.

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:lol:

Reading a good book at the moment, Fooled by randomness, Taleb. He goes to some length to describe people who think they have done a great job are quite often merely floating on a favourable tide. I think we have a prime example for the contents of pretty much the whole book!

http://www.moneyweek.com/file/29136/can-me...-inflation.html

Mervyn King: "inflation expectations anchored"

Mervyn King, governor of the Bank of England, celebrated its first decade of political independence with a speech in the City last night. No one lobbed bread rolls or fruit at the governor, not according to this morning's press reports at least. It's only polite to allow a guest speaker his views, after all.

But even a room full of "dismal scientists" must have gasped at the cheek of the man. To quote:

"Inflation expectations [in the United Kingdom] have been anchored," he said, "because the Monetary Policy Committee has responded to events that have pushed the outlook for inflation away from target – and households, businesses and financial markets have understood and anticipated our responses."

Oh yeah? The money supply has been growing at double-digits for two years running. But "the crucial achievement of the MPC is to have anchored inflation expectations," said King. "It is not, I believe, credible to dismiss that solely as the result of luck."

Bravo...encore!

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This is the really big problem with globalisation - at least, globalsation as it's been allowed to happen. Each country has different problems and the solutions are different, or should be. However, everywhere is now so linked that no country can apply the rules and expect "expected" outcomes from them.

If Japan has very low rates to counter deflation, and Britain and the US hike them to counter inflation, effectively a new global market is created and money starts moving like crazy. Really, if you're going to have a globalised economy, you need a world government and a world monetary committee and a whole load of rules. Otherwise, in a globalised completely free-capital-market everyone is pretty much screwed because no one is in control: it's just a money making system.

Yeah nation state going out of fashion fast!

Is the nation state a Brit' legacy ?

Edited by Ash4781

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