WIDE WORLD OF TRADE REPORT" THE DOCUMENTS FILE"

 

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WIDE WORLD OF TRADE REPORT

 Weekly Digest

ECONOMICS IS WHAT MAKES THE WORLD GO ROUND

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by QBKR ASSOCIATION REPORT on September 04 2014

     WIDE WORLD OF TRADE REPORT ARCHIVED SPECIAL: 

GLOBAL ECONOMIC GROWTH

by QBKR ASSOCIATION REPORT on September 04 2014

LEADERS V LAGGARDS

Follow  the leader the Eurozone established austerity while the U.S. Economy stimulated. Now Eurozone is doing stimulus the rates are going up. Investors see a bottom out in bonds investors also noticed the US has not yet raise rates interest rates and the new economy is not going to be normal this is good for bonds. Governments around the world have no choice but to recognize the emerging of global economies, example, when China proves negative economic data the markets in the US economy falter. The same in Europe the size of their economies matters the headache is the different types of societies different governments do have different ideas free capitalist societies entertain more of a solid foundation than others. In the grand scheme of emerging markets regulation is necessary for the world to grow as the US financial reform which is based on regulation eventually stabilizes. The retooling of the US economy which attracts investors and establish trust is necessary for growth in the new age of technology through emerging markets. Thank you and have a great day.

UNCERTAINTY

by QBKR ASSOCIATION REPORT on September 04 2014

Many in the market argue that "bonds are a safe haven" to flee into as stock markets go down. The scenario plays out as if instead of getting out of the market when it goes down buys bonds and stay in. Ok just buy bonds. perhaps another way to short the market and prove brilliance. Are you asking or telling? The liquidity trap is justified.  Uncertainty looks for the market to continue to surge forward. As investors look for the Loch Ness monster of the economic markets. Natural output is unrealistic being that regulation demands for actions that create opportunities within the broad economy. See when prices go down or even become very volatile money increases. In fact a "level of natural output could have been established now that the US dollar is showing some positive signs. However the shock whenever it is coming from usually federal policy entails a decrease in spending something that the new administration in the US is all in for though the tax reform could cause business and consumers to spend more dollars and not hoard more cash it's to early to significantly make a call on what "will" actually happen. The lower interest rate is no more this has already happened and is most definitely factored in most current yield curve models and inflation mandates." The VIX measures volatility. Yet many, from observing market behavior see the VIX being used to challenge the measure of inflation as this VIX shows. 

14The yield curve the true negotiator of target inflation is being put aside for the simpler easier user friendly indicator that can be traded. From a economist perspective his is quite convenient. The new normal suggest the yield curve  offsets price levels when the economy returns to normal. That depends on what's normal. The economy is strengthening and expanding that's for sure how fast and how much more it can grow unharmed in this current economic environment is another story.  When the money is constant and again many will argue that when interest rates are back to normal the job numbers will push to its natural unemployment rate causing inflation to drop. This could be very upsetting for the U.S economy who is in lew of finding the correct money growth formula that benefits the masses of the economy. Keep in mind the major economic indicator that still drive the market is the weekly job numbers that show only those working. This is a charitable argument in many economic circles.