World economy talk

[uls]

aftermath of QE2 announcement

dollar bloodbath

all major currencies up against USD

commodities up, equities up (asia, europe, US futures)

[uls]

oil will be $90 in a few days

[Monseratto]

Hope the peso appreciation can negates the rise of oil prices...

[tidus1203]

Ayan binenta ko na Ford stock ko, time to take money off the table... I can't believe it pinila ko sa $15.75 tinamaan!!!! I was shocked, I was thinking its not reaching it today...

Regarding PHP, all things consider the PHP is not strong at all. The THB is doing 29 right now, talagang mga tira na lang din napupunta sa PHP. Mga tirang investors with left over money hehehe

[tidus1203]

LOOK AT GOLD!!!!

The market is selling toilet paper exchanging them to hard assets or at least even paper that represent hard assets!

[frenchtower]

Gold is just waiting to break the 1.4k per ounce barrier. This is amazingly high.

[tidus1203]

I said before and I will say it again there is no such thing as HIGH or LOW. Only going UP or DOWN...

[uls]

i would prefer all that liquidity flow to gold

the price of gold doesnt affect consumers

but when money flows to food commodities and oil, consumers are affected

sugar


corn


wheat


NYMEX crude

[boybi]

Grabe price ng sugar. It's almost P3000.00 per 50kg sack.

[uls]

Sugar prices hit 30-year peak on Fed, weather worries

(AFP) – 10 hours ago
LONDON — World sugar prices hit their highest point in almost three decades on Thursday, driven by a plunging dollar, fresh US monetary stimulus and increasing weather worries in key producing nations.

The price of unrefined sugar for delivery in March jumped to 31.64 US cents a pound on the New York Board of Trade (NYBOT) -- the best level since January 1981, after having hit similar highs earlier this week.

[uls]

hedge fund manager David Tepper was on CNBC Sept 24, 2010

he said 2 things can happen:

the economy gets better by itself and stocks go up

the economy doesnt get better and the Fed comes in with QE

when the Fed comes in with QE, what goes up? EVERYTHING

just watch the first 2 minutes of the video

[ame="http://www.youtube.com/watch?v=eMx8QimKaMY"]YouTube - CNBC, 09/24/10, Hedge Fund Great, David Tepper, stocks will go up (2 of 4)[/ame]

[uls]

How the hell Fed QE works:

the Fed doesnt print hundreds of billions of dollars of $100 bills

the Fed buys US treasuries from the open market

the Fed then credits banks with newly created reserves

the reserves the Fed creates just exist in the banks' accounts at the Fed

how does the money get spent?

the money only gets spent when the reserves are loan out

the fractional reserve lending system uses reserves to create loans

in QE1, banks hoarded the reserves

everyone was scared then. banks didnt wanna lend and there wasnt demand for loans

so with QE1, there wasnt any inflation coz the money didnt go into the real economy

Now, QE2

here's the risk with QE2: the banks may no longer want to hold more reserves

the banks may want to lend out the reserves (fractional reserve lending means for every dollar of reserve, $10 can be created)

see where i'm going with this?

if a huge flood of money goes into the real economy, inflation will rise (which is what the Fed wants)

but prices of everything will skyrocket

i hope the banks just hoard the reserves

we won't like $150 oil again

[uls]

and that's why gold and risk assets (stocks, commodities) are rallying



everyone is protecting their dollar-based wealth against coming inflation

[tidus1203]

Parang 2008 uli... Wealth Protection becomes the primary motive... Protection against the printing presses... I think we should rename this thread to again "GET OUT OF THE US DOLLAR!!! (Part 2)"

[tidus1203]

Amidst the talks of QE2 lest we forget that today is JOB's FRIDAY!!! :clap:

[uls]

hehe

parang hindi na importante

anyway, if the jobs report later is bad, no problem... may QE2 na, and knowing the Fed, baka may QE3 pa sa 2011

if the jobs is good, mabuti, and may QE2 na

so either way, it's risk on

[tidus1203]

I hope sobrang pangit ng jobs numbers usually that will create a nice pullback. Then we buy!!!

[uls]

I hope sobrang pangit ng jobs numbers usually that will create a nice pullback. Then we buy!!!

o nga

grabe ang pagtaas kagabi

[tidus1203]

US payrolls UP 151,000. Unemployment rate stays at 9.6%...

There goes our correction...

[uls]

amazing

more than double the concensus (60,000)