• “The prospect of hundreds of billions of newly minted dollars coursing through the global financial system caused currency traders to thrash the greenback by almost 3%.”
• ” The Fed is â��now bringing out all the ammo in its arsenalâ��, according to Rosenberg.”
• “And, for those who think the time is ripe for upping their equity allocations, Mr. Rosenberg would like to remind them of what happened to buyers of the Nikkei 225 after Quantitative Easing was tried in Japan. Longs were treated to a 20% rally that lasted six weeks before stocks set new lows just four months later. Ultimately, predicts Rosenberg, QE helps bond buyers more than stock buyers.”
• “But since I doubt dollar holders will sit idly by as the paper they hold shrinks in value, I see a quick and happy resolution as being a low probability event. Then again, other central banks (the BOE & SNB) are engaging in the same currency-busting policies, so itâ��s not altogether clear whether the worldâ��s fiat currency system can survive a war of attrition.”
• “Weâ��ve arrived at this unfortunate juncture in our nationâ��s financial history because of reckless behavior in both New York and Washington D.C.“
• “Let us all hope the U.S. experiment with pushing the button on Quantitative Easing is more successful for us than it was for the Japanese. But given all the behavior that brought us to this point, we will need to be both lucky and good from this point forward.”

Tags: Economics, USA

Force Structure FY09 Beyond. — the armed forces wrestling with massive budget cuts. And the global manufacturing collapse — not a pretty picture. It is hard to see how we are not going to have significant unemployment issues for years.

Tags: Economics, USA