U.S. - More Soft Quantitative Easing

By: Ian Campbell | Thu, Jun 21, 2012
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Why Read: To get beyond newspaper reporting to a 'what it may mean discussion'.

Featured Article: Shortly after noon Eastern Time yesterday, multiple articles and other media coverage began of the U.S. Federal Reserve announcement that:

"The committee is prepared to take further action as appropriate to promote a stronger economic recovery and sustained improvement in labor market conditions in a context of price stability."

Commentary: So what does this really mean? A few things:

all have resulted in political leaders and political influencers being in what is highly likely to prove to be 'between a very hard rock and a very hard place' where they eventually 'run out of wiggle room'.

The end-game seems obvious:

It is unpredictable as to what changes then will result in the both the developed and developing countries. The only thing that seems certain is that things indeed will change, likely significantly in ways that are currently to some degree unpredictable - but are likely to be negative before eventually turning positive.

Anemic U.S. economy spurs the Fed to 'Twist' again
Source: The Globe and Mail, Kevin Carmichael, June 20, 2012
Reading time: 3 minutes



Ian Campbell

Author: Ian Campbell

Ian R. Campbell, FCA, FCBV
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Through the Economic Straight Talk Newsletter Ian R. Campbell shares his perspective on the world economy, the financial markets, and natural resources. A recognized business valuation authority, he founded Toronto based Campbell Valuation Partners (1976), Stock Research Portal (2007) a source of resource companies market data and analytic tools, and Economic Straight Talk (2012). The CICBV* annually funds business valuation research in his name**. Contact him at icampbell@srddi.com.
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