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’On misunderstanding QE and UK inflation
Is QE money printing, or not? That is the question.
Is it hyperinfaltionary, or not? That is another question.
Ever since the strategy was rolled out by central banks in 2009, the vogue has certainly been to describe it as such.
At least you’re not in Belarus
Country asks for another IMF bailout, after screwing up the first one. There are few signs of spending coming under control. The neighbour which really holds the purse strings demands ever more privatisation.
Further further reading
For the commute home, where the carry trade means helping your better half unload the car in exchange for first dibs on the remote,
- The FT visits Bernie Madoff.
- Where Galleon allegedly made its money.
Godzilla QE
Either Willem Buiter is setting out to shock, or he really is worried about Japanese deflation this time.
Because Citi’s chief economist really is thinking BIG on what to do about it:
The 5trn yen ($60bn) additional QE announced recently by the BoJ is far too small to achieve anything,
Dylan Grice vs Emerging Markets
Société Générale strategist Dylan Grice is back on the Rudolf von Havenstein trail.
Grice first brought up von Havenstein back in March, noting the Prussian central banker’s penchant for monetising Germany’s debt during the First World War — leading to massive bouts of hyperinflation.
Nikkei 63,000,000
And to think the market shorthand has always been Japan = deflation.
Trust Société Générale strategist Dylan Grice to think of the Japanese future a little, um, differently. From Friday’s Popular Delusions note:
‘Some useful things I’ve learned about Germany’s hyperinflation’
That’s from Dylan Grice — über-bear Albert Edwards’ sidekick at Societe Generale.
He’s done a review of inflation during the Weimar Republic inflation in his latest `Popular Delusions’ note. Prussian central banker Rudolf von Havenstein developed a habit of monetising Germany’s debt during the First World War,
A Zimbabwe rally effect?
When is an equity rally actually symptomatic of an inflationary environment to come?
That would be when it happens in Zimbabwe.
As Hinde Capital, a gold-focused hedge fund, notes in a recent report entitled “Aurophobia”
Hyperinflation is a possibility, say Morgan Stanley
That’s not in Zimbabwe by the way.
Morgan Stanley’s Jocahcim Fels and Spyros Andreopoulos look at the possibility of hyperinflation hitting the western shores of the UK, Europe and the US in their latest note.