Tuesday, December 20, 2016

Nomi Prins* 
On The World Financial System In 2017
"What is most likely to come from the ECB this round is an expansion of quantitative easing operations (QE) in which more money is pumped into the system. It is also likely that the Bank of England (BoE) will cut rates – the central bank is one of the only major coordinated banks that operates at the same level of the Federal Reserve and remains independent in action. It is also one of the very few central banks that has not acted by cutting rates, so far, in the wake of the financial crisis. The BoE now believes that they have the room to cut rates. If the global markets pattern of turmoil is to be replicated in similar form from last year, they’ll be inclined to act. From there, depending on how bad things get following the market shakeup after the Fed’s action, the BoE will be forced to extend, if not expand, its own UK version of QE .. In the United States, Donald Trump will be the major story. If the infrastructure plan promised on the campaign, that has now been envisioned by many, is to actually take place, it could spur economic growth globally. But that will remain to be seen for some time .. Even if a massive stimulus of infrastructure spending were to take place, it is seemingly a flawed strategy to begin with in regards to budgets and overall impact to a real main street economy .. The biggest moves will be political. It is important to watch the speed and direction in which a president Trump is able to move forward with international alliances. These relations will impact trade, currency and capital flows outside of the U.S. While they were already set in motion during what can be described as an ongoing financial crisis, it will be furthered under a Trump administration."
LINK HERE to the article

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