November 7, 2014
Today was one more eventful day in the investment world; after several days of bond yields tip toeing higher after falling back to QE levels just about when the U.S. Federal reserve announced an end to its QE, buying its own U.S. government bonds; then rumours of a possible Europe QE program with Japan leading the way and the Dow Jones again reaching toward record heights, just after Warren Buffet lost 2 billion bucks on Coke and IBM. And a few days ago the Arabian OPEC powerhouse dropped its price to the U.S.A..Then today November 7 maybe 2.5 weeks since what was written below on October 21, returns on U.S. bonds suddenly fell back from their tepid climb; and gradually dwindling gold prices just as startlingly came back to life because someone heard Ms. Yellen say that Europe should do what’s necessary to keep its economy alive, maybe like Japan is doing that’s devaluing the Yen to compete better with Europe and Canada maybe, trying to keep wages lower to sell stuff to its biggest trading partner the U.S.A. , and then of course there’s China with whom we all compete.
October 21, 2014; am.
Today, October 21, 2014, after dwelling on Brendan Brown’s notion, “Q.E infinity”, in his 2014 book EURO CRASH How Asset Price Inflation Destroys the Wealth of Nations I might assume that Mr. Bernanke who according to Brown appears to have contrived “Q.E. infinity” to keep rates low was keeping his “cards close to his chest”on June 19, 2013 knowing that rates could not be permanently affected by recent investor actions in the bond market because he had stifled the so called natural impulses of the market and its “invisible hand” with his “Q.E infinity”.
And with North American interest rates having again fallen precipitously with stock markets in America and Europe nervously gyrating, and some business commentators rumouring the unexpected apprehensiveness of some Federal Reserve governors about ending the Reserve’s bond purchases this October, there are whisperings of a Q.E. # 4.
And at about 2:00 pm. with stock markets reversing last weeks plunge with vigorous upward rises, one U.S. commentator said that present stock improvements could be attributed to rumours that Europe may be about to begin its own version of Q. E. (Quantitative Easing/money manufacturing) program.