Nouriel Roubini, the respected New York University economist, says
the Federal Reserve’s quantitative easing (QE) is brewing a credit
bubble that means trouble down the road.
Through QE, the Fed has injected more than $2 trillion into the financial system over the last five years,
“The risk from QE isn’t goods inflation; it’s not going to be
a rout in the bond market, because the Fed will exit slowly,” Roubini
tells Yahoo. “The risk is like during the 2003-06 cycle. We exited very
slowly, and we got an asset bubble.”
But he thinks this bubble could be “bigger than 2003-06.”
…
Citi‘s currency guru Steven Englander weighs in on what we just saw in Italy.
This is the first European election in which voters didn’t do the
right thing. Instead they gave surprising support to politicians who
reject austerity and, in some cases, the euro. This could become a major problem if it proves contagious.
The feel-good from the runup in Italian asset markets was not enough to
offset the feel-bad from austerity, low growth and unemployment. If all
it would take to fix this was an ECB rate cut, they would do so
immediately, but euro zone politicians may need to ease fiscal
constraints and find ways to quickly stimulate growth. Elections are
more problematic than market scares or sentiment shifts as they can’t be
undone by printing money. Still the outcome does not seem so dire that a
bit of growth and ECB flexibility could not turn it around.
Meanwhile, SocGen currency analyst Sebastien Galy titles his note: “Instability Cubed.”
La Republica confirms what we long thought highly likely: The Italian Senate is Ungovernable.
A Senate majority takes 158 seats and no party has more than 123 at the moment. The current results look like this:
Senate Seat Projections
- Bersani 104
- Berlusconi 123
- Grillo 57
- Monti 17
There are 315 total seats and the total above is only 301. Although
14 seats remain, not even a Monti-Bersani coalition in addition to those
14 seats would bring Bersani’s total to 158.
Curiously, it appears Bersani received a plurality of the Senate
popular vote with 32% compared to Berlusconi’s 30.2%. Grillo weighs in
with 23.9%, and Monti at 9.1%…
TheAlexJonesChannel, Published on Feb 25, 2013
On today’s program, Alex welcomes former Congressman Ron Paul to
break down the use of force by federal agents to enforce unjust and
unconstitutional laws and the victimization of Americans for simply
engaging in commercial transactions.
The US, UK, Japan & eurozone are desperate to grab a slice of
someone else’s growth if they can’t generate any of their own. How badly
will this go down with the developing world? & are we seeing a
money printing competition? Is printing mone…
Rising sovereign debt levels in advanced
economies are spawning a crisis that threatens to topple the dollar and
other reserve currencies, AFP reports citing a Chinese credit ratings agency.
Dagong Global Credit Rating said developed economies were spawning a
“currency crisis” by trying to prop up their economies through loose
monetary policies following the 2008-2009 financial meltdown.
Dagong says it is an independent private company but its chairman has
previously advised the Chinese government, which has the world’s
largest foreign exchange reserves.
“In this stage, the world will more actively look for a new currency
other than the US dollar, euro, Japanese yen and British pound to
replace the current international currency system,” the report said.
…
We have seen this all before…
