As long as the Japanese keep their US treasury sales to modest or none, the Fed will join in providing QE to Japan.
This is not what I think, but rather what I hear.
Jim
I agree with Jim.
Capital is clearly anticipating another liquidity blast. This viewpoint is supported noticeable changes in several long-term secular trends. For example, the downward trend in the small to large cap ratio is beginning to accelerate. The rate of acceleration, trend illustrated below, will increase once the 2006 lows have been breached. This trend is highly sensitive to currency devaluation.
U.S. Large Cap Stocks Total Return Index (LCSTRI) to U.S. Small Cap Total Return Index (SCSTRI) Ratio:
Marc Faber: QE8 on the Way?
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