The US Federal Reserve and Bank of China

Posted: March 24, 2014 in Uncategorized

During the last week, the Fed marketing office invested a lot of time with the various financial media outlet trying to undo the first Yellen speech (end of QE in October 2014 and first interest rise in April 15, summarizing), explaining that nothing is set in stone and trying to calm the market.

As the economy is not as good as it seem…once Q3 is ended we could find ourselves with QE4 or some other fancy names (Eg the operation twist in the bond market).

At the same time there was the first official comment from China on how they see things (Vice Finance Minister Zhu at China Development Forum):

– They are preparing for eventual consequences

-They are aiming at quality growth and not mass growth (so letting some defaults happen)

– Interesting Lou (Finance Minister) said this year there will be NO major stimulus program

So they are preparing for things to get worst before they get better. So should you

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