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jueves, 4 de noviembre de 2010

The Bank of Japan will issue 35 billion yen only a few approx. 500,000,000,000 U.S. dollars

Good afternoon I wrote some days ago in Spanish, but I see readers from countries far away, so I write again in English Greetings The Bank of Japan will issue 35 billion yen only a few approx. 500,000,000,000 U.S. dollars It is a little less (35/80) x10exp (12) but we will not be arguing for more antics antics least half a trillion dollars looks better If I'm reading the news for the Bank of Japan http://www.boj.or.jp/en/ and the minutes of policy meeting on 4 and 5 November http://www.boj.or.jp/en/type/release/teiki/giji/g101005.pdf and on page 8 says that the U.S. and Europe do not seem to have realized the Japanese experience since 1990 The shtick is 35 billion 5 billion was already over another 30 billion more. (The end on page 26) Then how much the Fed will issue it a lower-ranking economic power like Japan will issue a pocoton? A great power like the U.S. can not sit back and have to issue 2 billion by issuing one trillion nothing happened as Europe and analysts say that with the help of 500.000 million U.S. dollars in investors just yawn. A Reuters poll published in the journal Management of Peru in the print edition of Friday, October 29 page 24 says that investors expect to hear at least 1 billion to put the batteries and others say that only 2 billion and began to walk the thing (the title is Federal Reserve may purchase up to 1 billion in bonds.) daily management in the same section mentions briefly and said that Japan will be 1.5 more than 2 trillion yen, but 35 I'm reading today November 2 (Sunday) of the Bank of Japan. About China supercomputer purpose is atomic, if I have time I write in my blog (http://economiaytecnologiaentrujilo.blogspot.com), and testing of commercial war began with the seizure of the lanthanide series for China, yesterday was suspended as a gesture of goodwill before the Fed meeting (if I can write it) Greetings from Peru The 'nightmare' without quantifying the Fed http://www.cnnexpansion.com/economia/2010/11/02/estimulo-monetario-fed-eu-mercados 500.000 million dollars cash injection equivalent to cut rates between 50 and 75 basis points, experts, the QE2 can create unintended consequences that turn into nightmare scenarios. The Fed could inject more than U.S. $ 500.000 million to the market to strengthen the U.S. economy. (Photo: Reuters) RELATED ARTICLES By: Isabel Mayoral Jiménez MEXICO CITY (FORTUNE) - The repurchase U.S. government securities, of at least U.S. $ 500.000 million, would have an effect equivalent to a monetary easing from 50 to 75 basis points, and looking for liquidity to the market in the hope the banks to make funds available to families and small businesses. "The Fed seems insensitive to the fact that consumers are highly leveraged and are trying to absorb the losses created by the implosion of the credit bubble and the decline in housing prices," said Walter Molano, chief economist at BCP Securities. However, third quarter data showing that the U.S. economy remains weak, and the midterm elections this November 2 probably marks the beginning of a very combative legislature, the Fed has no choice. The U.S. central bank is firmly in the letter of the law's mandate is to keep the U.S. economy as close as possible to full employment and price stability. Since the unemployment rate continues to linger around 10% and consumer prices are well below trend, then the Fed must act, said the economist of this investment bank. 95.000 U.S. employers cut jobs in September compared to reduction of 57,000 jobs in August, a figure higher than expected by economists, in another sign that the labor sector has challenges to recover. "The problem is that we are in uncharted waters, and this new monetary expansion (QE2) can create unintended consequences that could become nightmare scenarios," he warned Molano. Were nine years of quantitative easing policy in Japan, which did little to turn around Japan's economy, which continued sluggish, full of billions (trillions) yen in overdue loans and property prices down. "With consumers through leveraging and securitization markets in tatters, thanks to sloppy documentation process, the amount of capital to get into the real economy will be zero," said Molano. Therefore, most of the funds will find its way into emerging markets. The capital is flowing enthusiastically to the developing world, as investors seek better performance and growth prospects. This is the reason why emerging market currencies continue to appreciate in nominal and real terms. Also why central banks around the world are taking steps to introduce capital controls. However this is producing a new asset bubble, where yields are not commensurate with the underlying risks. The problem is that when the bubble bursts emerging markets that will sweep the last engine of global economic growth, and prospects for a widespread slowdown will dominate the skyline. However, "there is another problem with the QE," explains economist at BCP Securities. "Nobody has ever happened was way out of this. The Fed is prepared to do 'everything necessary' to pull the economy out of depression through the use of monetary policy, the chances are that they are exceeded and future inflation roaring back to life. " This scenario dictates the death sentence for emerging markets. The Fed will be forced to act aggressively raising interest rates quickly and Treasury yields being above the levels recorded in emerging markets. The result is the massive outflow of capital from emerging markets and the collapse of the asset bubble. Despite all the compelling arguments for investing in emerging markets, they always need to have higher returns than developed markets equivalent, due to the inherent risks and institutional constraints in the developing world. Therefore, if an event raised yields in the developed world, by definition, developing economies also need to increase their revenues even more, so they are preparing for a big correction. The day the QE reaches its end, the Fed will be forced to reverse course and tighten monetary policy. As a result, billions (trillions) of dollars begin to flow back to the U.S. and is exactly what happened in 1982 when the Fed abruptly raised interest rates and triggered a series of sovereign defaults in most parts of the developing world. "Ironically, the banks again fell into chaos and had to be subsidized by the Fed But of course the zombies will never learn because they are brain dead."

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