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QE is happening globally. As you noted, QE3 ended in the US Oct-14. On the final day of US QE3 ending, the Bank of Japan announced another round of QE in the
by jhulla 11y ago
QE is happening globally. As you noted, QE3 ended in the US Oct-14. On the final day of US QE3 ending, the Bank of Japan announced another round of QE in their economy.
http://www.reuters.com/article/2014/10/31/us-japan-economy-boj-idUSKBN0IK0B120141031 http://www.reuters.com/article/2014/10/31/us-japan-economy-b...
The European Central Bank announced QE in Jan-15.
One way to think of QE is global competitive devaluation to capture global demand. QE + ZIRP or even negative interests are the primary tool of central banks now. Capital misallocation continues on a global scale.
- walterbell 11y agoHow would negative interest rates compete with cash which has a zero interest rate, or premium real estate which offers a long-term return?
- jhulla 11y agoThis is a good summary of why people might buy negative interest rate bonds: http://www.vox.com/2015/2/5/7981461/negative-interest-rates-europe http://www.vox.com/2015/2/5/7981461/negative-interest-rates-... e.g. Cash is not secure in your bank account. A government backed bond, even at negative interest, may be more secure than a cash balance. ZIRP and negative interest rates are pushing people out on the risk curve and raising asset prices. As I said in an earlier comment, IMHO, all investment decisions are bets on central banks.