Global Monetary Policy Changes in a Map

Source: Deutsche Bank via Business Insider

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  1. rd commented on Jan 21

    Everybody has pooh-poohed a stock bear market or recession due to an inverting or flat yield curve because the Fed would have had to raise the short rates by 2.5% or more at the long bond yield levels of a few months ago. It was unlikely that the Fed funds rate was going to go up as much as 2.5% within a year or two.

    What are the probabilities now of the long bonds plunging to the short-term yields without the Fed tightening at all, other than not purchasing long bonds anymore in QE (which was focused on lowering the long bond yields in any case)?

    • rd commented on Jan 21

      BTW – Canada just went from yellow to green today as well.

    • Futuredome commented on Jan 21

      They are a energy bearing country.

      I think the US is heading toward Red exactly because of lower oil prices. Once the decline ends, you can really see where inflation is at, which at its basics, will probably be higher.

  2. farmera1 commented on Jan 21

    All of this reminds me of what I read about the GREAT DEPRESSION. The term used was competitive devaluations. A lot of countries did it in the 30s. . Seems most of the industrialized western world is into the game of competivie devaluations now. Beggar thy neighbor or what ever you call it. They do this to protect their export markets. The US was early to the table with this play, and hopefully they got most of the benefits. We shall see,

    By the way I read Russia (admittedly) a unique case, is lowering interest rates from the recently attained lofty heights of 17%. Didn’t do what they thought (stop the exodus of currency and falling currency) and resulted in a crashing economy to boot.

    So riddle me this, how can the FED raise interest rates when the rest of the western/industrialized world is in the process of QE/low interest rates or in general reducing the value of their currency. Answer, I don’t think they can nor will they. The Swiss economy is struggling from their sudden change (increase in value) in their currency be interesting to see how that plays out.

  3. cobaltbluedolphins commented on Jan 21

    Its like a big monetary circle jerk where no one but the banksters gets any relief.

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