标题: Effects of QE2 on Nations Other Than US [打印本页] 作者: choi 时间: 11-7-2010 12:12 标题: Effects of QE2 on Nations Other Than US 本文通过一路BBS站telnet客户端发布
QE2 stands for the second Quantative Easing.
(A) Price of world commodities will rise.
Only US will survive QE2, because commodities are denominated in DOLLAR. Not reminbi.
(B) QE2 is a jargon economists deliberately create to befuddle
laypersons. The plain English is: injecting $600 billion into US economy.
What will happens to China? That sinking feeling! (But China deserves it,
for stubbonly refusing to appreciate renminbi years after years. I am in US,
so I cheer for US. It is that simple. I do not even think about Taiwan
right now.)
(1) Sewell Chan, Fed Is Poised to Aid Economy, but Impact Is Cloudy. New
York Times, Nov. 2, 2010.
http://www.nytimes.com/2010/11/02/business/economy/02fed.html?_r=1&scp=8&sq=quantitative%20easing%20bernanke%20bond&st=cse
Quote:
"In theory, the Fed could print trillions of dollars to achieve its aim, but
it is far more likely to start with a smaller amount — perhaps a few
hundred billion — and gradually buy more bonds as conditions warrant.
That open-ended, conditional approach would be a departure from the Fed’s
first, $1.7 trillion round of debt purchases, which lasted about 15 months
and ended in March.
"The Fed’s actions, Mr. Calvo said, will mostly be felt abroad.
Quantitative easing is likely to push down the value of the dollar and send
even more money flowing into the faster-growing economies of Asia and Latin
America, where interest rates are higher and inflation is a greater worry
than in the sluggish economies of North America and Western Europe.
(2) For two years, Paul Krugman is a lone voice in the wilderness which has
consistently cried for more stimulus, bolder action. I do not know if it is
correct, for economics does not allow experiments as hard science do.
(a) Before, during and after the election, I have pondered: Does Pres. Obama
deserve blame, if any? It is unclear to me that the president governed/
governs poorly. Should the president have done more (at least for the left,
that is obviously dishearened or even dissilusioned)? I wondered. Then I
read
Paul Krugman, Focus Hocus-Pocus. New York Times, Nov. 5, 2010.
http://www.nytimes.com/2010/11/05/opinion/05krugman.html?scp=1&sq=krugman%20%22lack%20of%20audacity%22&st=cse
("Mr. Obama’s problem wasn’t lack of focus; it was lack of audacity. At
the start of his administration he settled for an economic plan that was far
too weak. He compounded this original sin both by pretending that
everything was on track and by adopting the rhetoric of his enemies.")
I am an unwavering partisan of former president Chen Shui-bian of Taiwan. He
is sitting in the prison, ever since soon after his departure from his
office. He is innocent. But I do blame him for his misery. During his
presidency, he sought to compromise--rather than wielded a broom as he
should have. His enemy, KMT and the sitting president Ma Ying-jeou staged a
comeback 反撲 much like 慈禧 did to 光緒.
(b) This is the saint who is speaking:
Paul Krugman, Bernanke And The Shibboleths. New York Times, Nov. 7, 2010.
http://krugman.blogs.nytimes.com/2010/11/06/bernanke-and-the-shibboleths/?scp=1&sq=quantitative%20easing%20bernanke%20bond&st=cse
(c) vocabulary:
(i) hocus-pocus (n; imitation Latin phrase used by jugglers): "nonsense or
sham used especially to cloak deception"
(ii) shibboleth (n; Hebrew shibbōleth stream; from the use of this word in
[Bible] Judg 12:6 as a test to distinguish Gileadites from Ephraimites):
"a word or saying used by adherents of a party, sect, or belief and usually
regarded by others as empty of real meaning <the old shibboleths come
rolling off their lips — Joseph Epstein>"
Both definitions are from www.m-w.com.
(C)
(1) Financial Times commented--before the hell broke loose and before the world is familiar with the term QE2--that it appeared US and China had talked back and forth about renminbi appreciation and options US had if China said no, that China did say no, and that US showed its hand (or sword, if you will): QE2. This is the earliest--and so far only--report/commentary I have seen about the root cause of QE2 in relation to China. If true, China can not say it did not receive fair warning.
John Authers, Fed’s desperation is watershed moment. Financial Times (Lex
Column), Nov. 6, 2010.
, which is NOT available online for free (for subscribers only, that is).
(2) FT (www.ft.com) has two more about QE2 vis-a-vis China.
(a) QE2 worsens China’s currency dilemma. Financial Times, Nov. 6, 2010 (
blog).
(b) Lindsay Whipp, Robert Cookson in Hong Kong and James Fontanella-Khan,
QE2 poised to heighten Asian currency dilemma. FT, Oct. 15, 2010.
Unlike Lex Column, FT allows non-subscribers to read these, after
registration.
※ 修改:．choi 于 Nov 7 15:27:41 修改本文．[FROM: 129.10.0.0] 作者: choi 时间: 11-8-2010 12:02 标题: Re: Effects of QE2 on Nations Other Than US 本文通过一路BBS站telnet客户端发布
My comment: Chinese can not blame QE2, for prices for sugar and cotton are
skyrocketing worldwide, due to poor harvest.
【 在 choi 的大作中提到: 】
: QE2 stands for the second Quantative Easing.
: (A) Price of world commodities will rise.
: Only US will survive QE2, because commodities are denominated in DOLLAR. Not reminbi.
: (B) QE2 is a jargon economists deliberately create to befuddle
: laypersons. The plain English is: injecting $600 b
: (以下引言省略...)