DislikedFti,
Hi, question for you if I may.
Do you think the Feds actions on buying US securities had anything to do with China's comments the other day. Seems there was some dispute over tariffs and China threaten to pull money.????
trying to find a press release.......
regards,Ignored
Truthfully , I don't know.
But the action will dilute the value of China's USD trade surplus holdings.
The Us equity markets will move up to adjust to the usd parity. where strong companies will revalue upwards and weaker ones may hold price without having to drop.
The increase of M1 (money in circulation) will increase and more money is available in the economy by virtue of the multiplier effect. M1 injections is the most liquid method of increasing money in the shortest time. Like injecting drugs right into the blood stream. The impact should be instantaneous.
If inflation holds managable, some growth should be felt by the next quarter. whether this may create jobs will be seen then too. So the indicators next quarter should be watched closely to gauge the impact of this monetary action.
regards