Good day, fti,
Not much has happened during Asia, saw some long position squaring around Tokyo lunch time.
On the talking market, some intelligence saw ECB printed more money than Fed,--- "An opinion piece from the Times Anatole Kaletsky out today argues that the ECB's activities, including its massive liquidity injection from last week, in which over EUR 440 billion was lent in 1-year funds, mean that the ECB has extended more credit than even the US Fed and that the ECB's extension of credit directly to banks is perhaps more risky than...
With rates, where they are now, the CBs have a little less tools in their tools kit. Proping up the M1 is a powerful way of inflating the economics to bump up growth activities. But if iflation runs-away then this action just creates another bubble to tackle down the road. If this inflation was channeled toward the import equation of trade while holding domestic ppp (purchasing price parity) inflation down , it may just improve their international trade leak to the developing nations. Of course their printing activities are already a devaluation stance on their currencies, to create the trade inflations. But this has to be monitored closely as markets and counter parties can adjust to meet the challenge.
Personally, I think it is a dangerous battle MO for the CBs esp in Euro, as there ability to mobilise to change is much slower than,lets say,eg. china (since she's always on the chopping block). Without, the consolidated cohesion in decision making and mobility to reaction as one entirety , I think the MO is counter productive in the long run. "Too many cooks spoils the soup."
regards
I hope these discussions do not disturb your dances. I am in retirement again , at least for the week, gotta get s alittle space to get back into shape. (don't seem to get the handle , since after the holidays) Yesterdays performance was disgraceful, nevertheless I am thankful for the USD/yen hedge that cushioned a major part of the damage. These are cash positions so the hedge is still good and non exposed.
Thats one reason , I do not encourage, the higher skew levels for many of you. Unless you had much foreign cap to work with, it gets nerve recking to anyone. Try stay below level 4 mostly, but sometimes the markets force hand , then its your decision if you have what it takes to rise to the ocassion.
Folding up to fight another day is an option. Just like God, gives us the option to kicking the bucket, if things gets too out of hand(esp aged, sickness), and quality of life is compromised.
as the man thinks.
Turned music critic have I.
