Honest Information, Profitable Trading
|Posted on June 25, 2013 at 6:56 AM|
According to Reg Varney, the Fox news commentator, the world's central banks collectively have pumped in some Fifteen Trillion Dollars into the economies over the last few years. This is a hugely interesting figure...it should suggest the world is swimming in money, and not in need of further stimulus at all at all...
So far as publicly available figures indicate, the U.S. raised its Debt Ceiling by $2.15 Trillion Dollars on 3rd August 2011, and thereafter via QE 2 and QE 3 by a further $85 Billion a month, which has been trimmed by 1/12 since February 2013 since the Sequestration cuts kicked in.
In the United Kingdom, some £375 Billion of Credit Easing facilities have been introduced by the Bank of England, all told, till currently.
I wonder which other central banks have printed that gigantic amount of cash and released it into the system.
The current figures from Russia indicate a slow-down there, with GDP figures progressively being downwards, mainly due to lowering Oil prices on which the economy relies so heavily. Oil prices in the global context are of course likely to head down further, if recession is to be avoided once again.
The current oil stockpiles in the Middle East and the Strategic Oil Reserves would corroborate this scenario, and it can only help the oil exporting nations to keep the oil price low for some time till economies can pick up again.
To avert a slow-down at home which would impact the world, I believe the BRICS nations, with the exception of China, should consider a generous cut in the benchmark interest rate. I would suggest, that is the silver bullet, and they ought to utilise it.
China under the Rising Star of Chairman Xi is bound to do well and he likes progress and prosperity for his people; however, they are unlikely to keep on manufacturing goods cheaply and ship them out to the rest of the world, and on credit at that. A greater demand and consumerism in China itself is likely, and a re-focus is probably causing the current mild hiccup. It is a matter of record that when Honourable Xi was a rising star in his party, his comments and suggestions created a boom. I cannot believe that now he is in charge, anything but the best will be possible for China.
With increased trade between nations, and extension of credit facilities and investment into one another's cultures, a great hope of continuation of the world economic Recovery is always bright.
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