Period of inflation in 2008 then 2009 .. stagflation..
Easing monetary policy in US
US easing of monetary policy would mean cheaper US dollars on par vis a vis with world currencies, esp ASIAN currencies.
Also coupling with the fact, FED does not publish M3 data.1 We are not even sure of the circulation of dollars available in US right now. On top of that, $41 billions of dollars of emergency money pump were pumped to rescue investment banks of their credit crunch. 2
This will devalue the US currency even more.
This is evident with YEN rising to 110 a dollar as of yesterday. 3
Along side the credit crunch, estimated of 64 billions of value of investment bank holdings were written off. 4 This is the most likely the result of the failed launch of the superfund by the investment bank themselves. 5
TBC…
1 http://www.federalreserve.gov/Releases/h6/discm3.htm
2 http://biz.yahoo.com/ap/071101/fed_markets.html?.v=2
3 http://www.fxstreet.com/news/forex-news/article.aspx?StoryId=62dee82a-ec77-4887-819b-a356513c5162
4 http://www.reuters.com/article/companyNewsAndPR/idUSN0823401520071108
5 http://www.marketwatch.com/news/story/failed-siv-rescue-plan-would/story.aspx?guid=%7B6078635E-F9BB-457E-8A4C-F054D3FAFF61%7D
Tags: crash, doom, FOREX, inflation, stagflation
