Tuesday, July 31, 2012

Quantitative easing 3 ahead?

Ben Bernanke will likely flood the bond market for another time with fresh printed liquidity in favour to the banks.The markets did price in this decision already and apparently are waiting for the final go to launch another rally.
The Dow Jones Future another time above 13.000 points right now:

Particular after the beginning of QE 2 in April 2011 the inflation went up right afterwards and peaked in 3.9% in September 2011.Since this peak is the inflation rate decreasing again,right now down to 1.7% and therefore under control.It's a logical step for the FED to give the markets another injection of fiscal doping pretty soon.:)
The arrow marks the beginning of QE 2 and the numbers are displaying well the immediate consequences on the inflation rate:

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