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Financial Times (October 8)

2012/ 10/ 09 by jd in Global News

“The Federal Reserve’s new round of quantitative easing may stall the dollar’s long term appreciation but it will not reverse it.” The dollar is being driven higher by four fundamentals: 1). The growing U.S. economy 2). The safe-haven status of U.S. bond markets 3). The shale gas revolution reducing U.S. dependence on imported energy 4). The determination of other central bankers not to let their national currencies appreciate. QE3 merely “presents headwinds to the dollar’s favourable fundamentals.”

 

Financial Times (September 21)

2012/ 09/ 22 by jd in Global News

Concern is dampening initial celebration over the third quantitative easing (QE3) program, which was announced by Federal Reserve Chairman Ben Bernanke last week. This monetary program is not a substitute for a proper fiscal solution. QE3 is neither a “free lunch,” nor without risk. Still, “Mr Bernanke has shown commendable bravery in compensating for Congress’s inaction. But his aggressive policy stance will not work forever. US politicians would be foolish not to use wisely the time the Fed has bought them.”

 

Forbes (September 9)

2012/ 09/ 11 by jd in Global News

“There is a country that, more than any other, needs the Federal Reserve to embark on QE3.” A third program of quantitative easing “may not help the U.S., but China certainly stands to gain.” QE3 is expected to weaken the dollar. “A weak American currency means a weak Chinese one, and a weak Chinese currency helps the nation’s struggling exporters on global markets.”

 

Financial Times (July 8)

2012/ 07/ 09 by jd in Global News

“If the eurozone did not exist, the world would be focused on America’s recovery problem.” With unemployment so high and Treasuries so low, Congress should be utilizing fiscal stimulus. Since they’re not going to, the Fed should step in with quantitative easing. “Last month’s jobs report confirmed that the US recovery is stalling for the third year in a row….The case is now strong enough for the Fed to embark on a QE3 asset-purchase programme at its next meeting at the end of July.”

 

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