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World economy so damaged it may need permanent QE

October 16, 2014

Markets are realizing that the five-and-a-half year recovery since the financial crisis may already be over, says Ambrose Evans-Pritchard

Some interesting comments made by these annalists over in Europe. Some worrisome facts include the growth in leverage all around the world and falling markets and commodities. The question that is brought up is can QE ever be stopped?

Click here to read the full editorial.

Discussion
35 Comments
    CFS
    Oct 16, 2014 16:56 AM

    When will these Gurus (not) realize Keynes was wrong, is wrong and always will be wrong.

    Governments have vto decrease their spending and reduce the burden of taxation.
    Communism, extreme socialism does not work.

    QE enriches bankers not the economy. The piper always has to be paid…..

      Oct 16, 2014 16:43 PM

      You are right CFS but I worry they will try to run these Keynesian tactics until the bitter end.

    Oct 16, 2014 16:01 AM

    Marc Faber said a long time ago when QE was started that it could never be stopped. I believed him then and I believe him now. QE5678910………., welfare machines never get smaller when the government is involved and corporate welfare tops the list.

    bj
    Oct 16, 2014 16:29 AM

    Yes, QE to infinity. Once a nation starts debauching its currency, it’s all down hill. At this point, it looks more like jumping than tobogganing. Thinking that sudden stop at the end is going to really hurt.

      Oct 16, 2014 16:44 PM

      Everywhere QE to infinity! I would not be surprised if we see some other label other than QE get tacked on next time. In the long run it will all be the same.

    Oct 16, 2014 16:05 PM

    This comment is for Big Al (because he stated he would answer them) In todays report by Rick, he mentioned that we may have hyperinflation during this massive deflation because the dollar is trash, i completely agree that will happen, not could happen, so my question is: Can big Al and his team chart, predict, or guess when hyperinflation will start and end and what are the best signals to look at other than the US Dollar index? This is to me the $64,000.00 question and main reason a blue collar worker like myself who is completely out of the markets (other than the physical) listens to your show. Thanx to the whole team.

      Farmer……………..go and listen to McAlvany and Russell Napier….commentary today. at MCALVANY REPORT……..they talk about this very issue………………….j

        Oct 16, 2014 16:46 PM

        Sorry buddy but your not Big Al and this is not your show, and i do not just listen to anyone because someone told me to (thats the problem with this country). I made a comment because i am intrested in what Rick and the others have to say, otherwise i would have never taken the time to post. Mind your own business and you won’t be minding mine (another problem with this counrty)

      Oct 16, 2014 16:46 PM

      Good question Fred. We will bring this up with Rick tomorrow as well as our other guests to see what they have to say. I think it is a very hard question to ask because the central banks and governments around the world will do whatever they can to stop it.

      Thanks for you comment!

        Oct 16, 2014 16:55 PM

        So are you saying the fundamentals make a difference to the technicals?

          Oct 16, 2014 16:38 PM

          I sure like your style…..Farmerfred……..I hope you get a good answer to your question , one that gives you an idea were you stand…….but I doubt it……….
          You see nobody really knows.

            Oct 16, 2014 16:41 PM

            BTW….Jerry is not the enemy…..just saying.

            thanks for the input IRISH….appreciate……..CLODHOPPER will figure that out….j..

            sorry I could not resist……………just joking……………

            Oct 16, 2014 16:47 PM

            Honestly, anyone who is a regular to this site is already set for the storm (standing on solid ground) Like it or not it is the sheeple who don’t listen that will be toast. I apologize Jerry if i was rude, i just took it as another channel being promoted over this one. I am sure everyone here has had there fair share of shills and can see my point.

            Appreciate your reply………….and Welcome aboard…………hoping we can all be of benefit to each other…………………….thanks again…………………..j…

          Oct 16, 2014 16:36 PM

          As Charles Nenner has said, technicals ARE fundamentals. Fundamentals drive the actions of most investors and price charts are just a historical record of their collective actions. So, yes, without a doubt, fundamentals make a difference to technicals.

            Oct 16, 2014 16:03 PM

            Charles Nenner also said that the Dow would hit 5000 in 2013. He also said interest rates would go to 15%. Not very credible. Why would you quote from a person whose record has been THAT bad?

            http://www.ritholtz.com/blog/2014/03/dow-5000-in-2013/

            Oct 16, 2014 16:12 PM

            I quoted him because I agree with the quote.

            Oct 17, 2014 17:50 AM

            A Listener, I finally took a look at your link and you obviously didn’t even watch the clip. Nenner called for 5,000 Dow by 2017 or 2018 —NOT 2013. You must be related to Birdman as you are obviously more interested in causing problems than adding anything of value.

            Oct 17, 2014 17:52 AM

            Btw, Ritholz is hardly a credible guy.

            Oct 17, 2014 17:00 AM

            No comment, “Listener?” It’s ironic that you didn’t listen to your own Bloomberg clip.

            good one Matthew……I guess he will now be Listener B….for B or not to B……..that is the question…………..

    NOW we have “A” listener………next will be “B”……then “C”…….

      Oct 17, 2014 17:12 AM

      Jerry, “A Listener” gets an F.

        Matthew….Ha, good one…..btw…..you will have your basket of feathers full this weekend …..the homing pigeon is back , with the band around his ankle …..lol….j

          Oct 17, 2014 17:57 AM

          Ha ha, he probably gets zapped when he ventures too far from the coop.

            All kidding aside………..you and birdie…..always have a good exchange and really stimulate the thinking……….but, I have not changed my mind, and will continue in this market until we get that MANIA BUBBLE ….then it will be time to change, and not until that happens………………….and that may be years from now…..But, it is going to happen.

            Oct 17, 2014 17:58 AM

            Bird and his “Listener” twin rate a “Strong Ignore” in my book.