There is one scenario where interest rates will not rise significantly.

Remember this is a world economy not just the United States.That scenario is currently unfolding now.While the USA and England have employed QE(quantitative easing ) to insure liquidity . What is the net effect of QE?The increase of exports,the increase of liquidity,The increase of jobs.The repayment of debt with cheaper currency.

What Asian country just started aggressively increasing QE? thats right Japan . Did everyone notice the jump in the Nikkei since Japan started increasing QE a few weeks ago.
Now since China pegs their currency to the dollar they too must use QE.
What happens to Europe if they dont use QE? High unemployment, less exports, less liquidity, stronger currency etc.

Does the reader see the pattern? QE will be employed by the entire civilized world. The countries that dont use it will be at a huge disadvantage.

It is a very clever policy .Will it work? Well if everyone in the world uses QE at the same time ….then in theory it could work! Is this right? just? moral? Depends on ones view point.

Remember the countries that employ QE right away are the ones that will benefit the most.
This sounds crazy but it seems to be happening right now.

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Related Posts:

• Some things that I cant seem to forget when analysing this downward trend:
• More important than fundamentals are the carry/risk trades :
• JAPAN RAMPS UP QUANTITATIVE EASING ! ! !
• Ok, let’s talk full continuing unemployment:
• China will not do what Japan did in the 1980th to appreciate its currency under US pressure.

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