It is worth furthering the point raised by San Francisco Fed President John Williams. Just as when QE2 ended it wasn’t the end of QE in America, the belated end of QE3 and QE4 also may be just a temporary interruption. Mr. Williams gave essentially two criteria, though I added a few more from my own observations: "If inflation isn't [...]
April trade data for Chinese exports purportedly show a rebound forming, though its size and even legitimacy is still much in doubt. The fake Hong Kong invoice scandal of last year is making comparisons to this year difficult, but that doesn’t and won’t quell the extrapolations. The export data are “somewhat inconsistent with the weakness seen in new export orders” [...]
Global trade is one of the primary “headwinds” facing the global economy, and it does contribute to the lack of dollar flow impeding exchange functions in troubled currency areas. A large part of the “solution” proffered by central banks is an appeal to currency devaluation in order to boost export activity. The primary impediment, something that flies in the face [...]
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