My comments: Look how poorly interest rate cuts have
worked to stimulate things in the United States.
Stimulate? It's like a cat trying to do chin-ups on a
bar, and just managing to HANG IN THERE!
Quote: (the Dominos are ALL LINED UP!!)
But such actions by central banks are becoming less
effective, says one money manager, who suggests that
policymakers should instead let the economic bust work
itself through the system.
"There's virtually zero chance of that succeeding,"
Bill Smead, CEO of Smead Capital Management, told CNBC Asia's
"Squawk Box" referring to
pump-priming by the central banks. He cited the work of
Michael Pettis, Finance Professor at Peking University, who
said that when an economy that's dependent on fixed-asset
investment like China unwinds, there are only two
options.
One is to have a "deep and long recession"
lasting three or four years,
and the other is to go through 10 years of zero
growth, Smead said.
But this will have huge impact on the prices of all assets
across the board, he warned.
"We don't think people have got it in their models, what
all these mean to oil prices, what all this means to copper,
steel and coal prices, you name it," Smead added. "There is
going to be a massive revamping of the secular global
synchronized trade pricing mechanism and it's started but
we're probably in the second inning, we think."
Jian Chang, China Economist of Barclays, agrees that that
further moves by central banks around the world will not be
effective in spurring growth.
"At this point, such central bank moves no long
impress the market. Central banks rate cut may well be
perceived as a sign of panic or desperation,"
Chang said. "Markets remain cautious, given the weakening
growth momentum seen across the board in major economies and
they doubt the effectiveness of such monetary easing may have
in lifting growth."
My Comments:
And what knocks all the dominos down? THE RAPTURE...SOON? I hope so.
And what knocks all the dominos down? THE RAPTURE...SOON? I hope so.
If not.....what lies ahead in the world economy looks
pretty BLEAK!!
TICK TOCK...
YFIC,
Randy
Is there a RAPTURE in the next 70 days??? On Rosh
Hashanah 2012? Mid Sept?
I HOPE SO!!!!!!!!!!!!!!!!!!!!f
