International QE3 is on-going. Brazil, Thailand, Russia, Philippines, Malaysia, Chile, China and India are easing monetary policy - by lowering interest rates and, or decreasing bank reserve requirements.
Nov. 2011, the US Federal Reserve offered unlimited USD swaps, to central banks in -
Canada, Switzerland, Great Britain, ECB, and Japan. That's more money
ECB - recent long term refinancing (Greece and so on) created trillions in liquidity.
Low US interest rates and low US inflation, and moderate growth are only part of global picture. Brazil with interest rates of 12%, and many other emerging market countries, have lots of room to decrease interest rates - making more money available.
The complexity is understanding real international growth based on the cost of money and inflation. 6% GDP growth may be negative. Ben paints the picture that real US GDP is positive and growing moderately and US consumers are buying stuff, other than houses. 35 million I-phones sold in 90 days and Apple's stock increased in in value by $35 billion in a matter of minutes, that's real money flow, albeit paper.
Apple and Exxon's' market cap are bigger than Greece's 2011 GDP. Exxon should also report a great quarter, the market is bidding up Exxon shares. |
