Commodity prices happened, with oil in the lead. Weak manufacturing numbers out of the US, China, UK and the euro area all point to oil as the culprit in the global slowdown.
Violence in the Middle East is part of it, the Federal Reserve is the rest. Higher crude goes with the Arab Spring. But it was more than that.
It was QE II, which was a disaster, providing a flood of liquidity when none at all was needed. In the US this deluge sparked an over-valuation in stocks. The rest washed offshore (picture a cow peeing on a flat rock). As most world commodities are priced in dollars, you have the picture.
The administration could not leave well enough alone. The tragedy of stimulus, health and all the rest was the result.
Bernanke’s effort to bail out this failed policy sparked the current world slow down.
Robert Craven
Violence in the Middle East is part of it, the Federal Reserve is the rest. Higher crude goes with the Arab Spring. But it was more than that.
It was QE II, which was a disaster, providing a flood of liquidity when none at all was needed. In the US this deluge sparked an over-valuation in stocks. The rest washed offshore (picture a cow peeing on a flat rock). As most world commodities are priced in dollars, you have the picture.
The administration could not leave well enough alone. The tragedy of stimulus, health and all the rest was the result.
Bernanke’s effort to bail out this failed policy sparked the current world slow down.
Robert Craven
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