The $ 600,000,000,000 hot new money in the next 8 months time, will quickly flow of global capital markets.
600 billion U.S. dollars of the U.S. economy, what role to play in the end? Underweight by the public. But the global capital markets, particularly emerging economies, it is raging between the money supply, hyperinflation, soaring asset prices synonymous.
Push the prices move. Capital markets has made the most direct response to the U.S. dollar index hit a new low, commodity resume its rally, a global stock market excitement ... ... embattled country, the central bank policy meeting held in advance; Europe, the British central bank kept interest rates; and including China, emerging developing countries, it is proposed to be do everything we can to block cross-border hot money inflows.
QE2, the tendency to rely on $ 600,000,000,000 raging hit, how Satan will affect liquidity in global financial markets?
Local time on November 3, breathtaking in the global capital markets concerns, the Fed announced a second round of the quantitative easing policy (QE2): re-printing $ 600,000,000,000 bill. The scale in line with market expectations, boots last fall.
According to the Fed's program, the current round of bond purchases amounted to approximately 600 billion U.S. dollars, will be the progress of 75 billion U.S. dollars per month for 8 months; also expects to reinvest the bond proceeds with the original amount of the 250 billion to 300 billion U.S. dollars, a total of about 850 billion to 900 billion U.S. dollars, the average monthly purchases of about 1100 billion U.S. dollars.
Not only is the QE2. "Bond purchase program will be regularly reviewed and ready to adjust in order to promote maximum employment and price stability." Fed's statement, suggesting that the QE3, even QE4 possible. Making the market expected, if the U.S. economic recovery is not satisfactory, additional quantitative easing Federal Reserve will again scale.
Although the long-expected, the dollar the official restart the printing press, or the weakness of the dollar index has been a long time to play again to low. November 4, the dollar index hit a year low, as of 10:30 last night, Beijing time, the dollar index has dropped to 75.72, close to November 25, 2009 (closing) the low 74.26, also from 2008 年 22 April at near record low of 71.31.
Difficult to return temporary weak dollar
The dollar index on 4 November afternoon around 15:30 (Beijing time) began a sharp decline. To 16:15 or so fell to low of 76.10 in 11 months; to 17:14 or so below 76.00, a record low of 75.94 during the year; to 17:50 fell 75.8. On the same day, the euro against the U.S. dollar short-term substantially ascribed 17:34 Report 1.4241, the dollar around 81.00 against the yen and short-term oscillations.
The news from Wall Street indicate that many currency traders in the Fed after the introduction of quantitative easing policy positions have thrown dollars. More straightforward one trader said: "What need to hold excessive dollar positions? Be thrown to say."
ANZ Bank, from the relatively long period of time, the Fed once again means that the Fed easing, "weak dollar" policy continuity, they maintain long-term bearish dollar view that non-US currencies, the euro, Australian and New Zealand will be strong Australian dollar Australian dollar on Friday in 1983, the first time since breaking a free-floating parity, yesterday continued to move up to the time of writing to 1.0118. The prices of commodities and agricultural products will also be supported
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