- As the U.S. Fed announces a $15 billion per month tapering of its Q.E. injections into the financial system, it’s worth noting that past tapering periods have coincided with rising government bond prices/falling yields.
- Since May, many economically-sensitive commodity prices have already been off the boil, but highly financialized ones like oil and copper continued to levitate into October before weakening this week.
- Trillions in debt-financed emergency payments to the private sector hyped expectations of runaway inflation and insatiable demand, but that money is now spent.
For further details see:
Tapering Means Less Liquidity To Inflate Risk Markets