Inflation, deflation, recession, gold and other things that make you go hmmmm
Williams joining Mauldin could be a great product. Meanwhile, here is the last “old school” pdf by Grant Williams.
QE3 IS coming folks. Maybe not quite yet, but soon and when it does, it will be a coordinated blitz between the Fed, the eCb, the boe and the pbOC with the boJ tagging along because… well, why not? Not only will it be coordinated, but it will be gigan- tic. It’s really all they have left now. The fear of falling that surrounds deflation has paralyzed the world for the last four years and drastic measures have been taken to stave off that which central planners fear the most.
Lately, the big problem the world has faced has been Europe’s unwillingness to get its head out of its a** come to a collective decision about how to tackle the suffocating debt, but in recent weeks Mario Draghi has seemingly lost patience with political leaders and has begun to force the issue.
Coincidentally, this week, as he opted not to attend Jackson Hole, in an op-ed published, im- portantly, in Germany’s Die Zeit, Draghi signaled just how Europe was going to finally turn on the printing presses:
“The ECB will do what is necessary to ensure price stability. It will remain independent. And it will always act within its mandate.
Yet it should be understood that fulfilling our mandate sometimes requires us to go be- yond standard monetary policy tools. When markets are fragmented or influenced by irrational fears, our monetary policy signals do not reach citizens evenly across the euro area. We have to fix such blockages to en- sure a single monetary policy, and therefore price stability for all euro-area citizens.
This may at times require exceptional mea- sures. But this is our responsibility as the central bank of the euro area as a whole.”
In essence?
“In order to uphold the law, Your Honour, sometimes we have to break the law”
Full 2012-09-03 Hmmm