Quantitative Easing Monetary Policy is About to Reverse The

QE has become a lifeline in the global economy, this root rot of straw can not afford the important task of the global economic recovery.
 
    U.S. out of the financial crisis by the quantitative easing monetary policy, Japan should use the collapse of the bubble quantitative easing monetary policy to deal with earthquakes is still used quantitative easing monetary policy, China is far behind even the old master, as early as In the dozen years ago to save the central enterprises and banks to use when re-lending measures, in essence, quantitative easing monetary policy.
 
    Quantitative easing monetary policy, the negative effects of poor showing.
 
    Inflationary pressures emerging countries, emerging countries have had since last year, tightening monetary policy to respond to the inflation rate of around 8%.
 
    Trend of stagflation in developed economies. UK, Eurozone consumer price index rising shows come to an end of quantitative easing, inflation risks began to offset the quantitative easing sense of accomplishment. UK economy did not rise into the clear channel, already the shadow of inflation, such as the accompanying video, is increasing the pressure of stagflation. The most painful is the European country debt crisis, they do not have first-class economy has enjoyed a first-rate debt and toxic securities, has not from the pain after the collapse of the bubble to extricate themselves. Currently, Portugal, the development of sovereign debt crisis and political turmoil, these countries into a vicious cycle of tightening by the government of national resistance, but not austerity policy can not get help from the euro’s stability fund.
 
    Unlike other countries, the United States obtained from the quantitative easing monetary policy, the benefits far outweigh the loss, helped by dollar global seigniorage. But the benefits are not unlimited, the market will always fight back in various forms.Second half of last year, the U.S. debt yields rose CDS prices, indicating a steady stream of global investors for less and less confidence in U.S. debt. Of course, the U.S. debt and gold as a safe haven during a panic, war and natural disasters, the U.S. bond price advantage.
 
    The effects of quantitative easing in the attenuation of the market and passed the Government will withdraw the money shot, not worth all the risk factors mentioned, the current cycle of global capital and money market short and fast. Wake up from the upheaval in the market has been God, since from the March 16 Wall Street fear index VIX CBOE Volatility Index dropped significantly 36%, and in the Asian markets, dollar index 75.66 or so, to five months in ten the lowest level of operation.
 
    QE harm to others. From the dot com bubble in the United States after the collapse of a round of low interest rate policy and monetary policy of quantitative easing, the birth of the capital price bubble, until the collapse of the subprime mortgage bubble so that the world into a black hole. On the surface, the loose monetary ironed out the market cycle, the U.S. narrowly spent dot com bubble collapsed, 911 events, the first round of the collapse of real estate loans and other difficulties, the final price paid is that the U.S. real economy the basis of the loss from the services of financial nature, jump to center stage to become the first productivity, poor quality of business and financial ethics, “greed is good” became the motto of investors.
 
    Quantitative easing monetary policy to the United States has brought new benefits, the Federal Reserve has recently received more than 700 billion dollars in profit to the Treasury, it appears that the Fed buying toxic assets was copied from a big bottom. Do not forget, the Fed’s balance sheet expanded three times, the Fed’s toxic assets, the body of toxic assets the U.S. economy has not cleared away, the poor quality of U.S. financial institutions, culture, the Fed lend a helping hand, and had a chance to recuperate . If you find a new economic model in Europe, well above the euro dollar credit, the war between the U.S. dollar will be re-prompting.
 
    Quantitative easing monetary policy in China is the logic in the road, for which the trap must be cautious.
 
    The so-called market-oriented interest rate of RMB, by no means immediately relax interest rate controls, but carried out under the strict monetary discipline, market interest rates, repayment in accordance with corporate credit rating by the production conditions, when the whereabouts of credit, currency prices are subject to strict control , the so-called interest rate market will become large enterprises for delivery of cheap money, high interest rates for SMEs in disguise. The so-called market-based exchange rate, but also by no means completely liberalize the RMB exchange rate controls, but the first possession of the Meeting on the implementation of public policy, the real exchange rate of the formation of market prices to float within a certain interval and then deregulation.
 
    That the market is the direct deregulation, increased exchange rate directly, it is wrong.
 
    Crazy loans of financial institutions in 2009, second half of 2010 was suppressed, but in 2011 a guarantee for the Housing Bank’s lending policies and objectives of SME loans, although very beautiful do not comply with the competitive market rules, the Government will continue to the implementation of monetary policy of quantitative easing burdens for the banks, or to exploit investors approach the market as a bank blood transfusion?
 
    Quantitative easing monetary policy has become a malignant tumor in the global economy, the dose increases, the effectiveness of getting lower and lower the risk of inflation getting strong, the real economy is difficult to take heart. Whether willing or not, this year monetary tightening in developed countries have started to respond to the crazy prices and raw material prices.
 
    Mr. Yi Gang, deputy central bank said that interest rates are now very comfortable, it is clear from the current situation, he will not be comfortable for long, because the rising heat and the coastal economy large-scale collapse of the manufacturing sector exist, would make him a headache endless.