10/29 cnbc- QE2 by Kudlow

 

QE lite written by Kudlow

QE2 라고 하지 않고 종전의 QE보다 규모가 작다고 생각하여

lite 를 붙였나보다. 마치 카스 라이트처럼!

이번에 미국 중간선거 이후 Fed가 Pump할 달러의 양이 수백조 아닌 수십조규모구나.

우리나라 예산은 대략 300조.

 

 

Minimalist Fed Stimulus

Market experts weigh in on how QE will mean for stocks and the dollar

 

 

 

http://www.cnbc.com/id/39876055

 

The next round of monetary stimulus won’t be anything near $1 trillion to $2 trillion, but more like “a few hundred billion dollars over several months.”

 

 

 

As a result of this story, the dollar rose half a percent across-the-board, and gold is now about $80 below its recent peak.

 

 

Now, don’t get me wrong. I don’t want QE anything. There’s plenty of unused liquidity sloshing around the system. And a stable King Dollar is the best medicine for economic growth and price stability.

* best medicine for

 

 

 

What will trigger a stronger economy with job creation is the $100 billion budget cut now being discussed by Republicans in the House along with a freeze on the Bush tax rates. That’s pro-growth fiscal policy. Join it with pro-growth currency stability.

 

*pro growth 성장 정책의 (pros의 pro인듯)

 

 

But back to the Fed and Treasury. A minimalist Fed stimulus is certainly better than a massive new-dollar creation that would totally sink the greenback and lead to a much higher inflation tax far more quickly than almost all commentators think.

 

 

And here’s an interesting point. Maybe Bernanke & Co. has been watching inflation-sensitive market prices, including gold, commodities, the negative real yield on inflation-protected bonds, and even the run-up in oil. Perhaps the Fed is at least cognizant of the risks of a plunging dollar.

 

*cognizant 인식하고있는, 알고있는

 

 

Even longer-term bond rates have been backing up. So it’s not inconceivable that the Treasury and Fed are watching market-price indicators, including the dollar. And perhaps that accounts for the Fed leak of a minimalist action rather than a dollar-destroying maximum action.

 

*inconceivable 상상할 수 없는 생각할 수 없는

*conceive 상상하다   *conceit 자만심

 

 

And as Hilsenrath points out, there are a lot of doubters inside the Fed. The presidents of the reserve banks in Minneapolis, Dallas, Philadelphia, and Kansas City are leading the skeptical charge. Good for them.

 

 

In any event, since Geithner came out with his statement that no country can devalue its way to prosperity, and that the dollar is low enough against the euro and yen, the greenback has at least temporarily stabilized and gold prices have dropped.

 

 

Let me say this: Stocks soared during the strong-dollar Ronald Reagan ’80s (at least during his first term) and in Bill Clinton’s second term. These were King Dollar periods that helped set the stage for non-inflationary wealth creation and low unemployment.

 

 

More to the point, the expected Republican tsunami come Tuesday is likely to shift fiscal policy in the direction of lower spending, taxing, and regulating.

 

We can debate how much, but that will be the GOP/Tea Party intent. That’s bullish for the dollar, the economy, and the stock market.

 

접속사 죽이네~ more to the point ㅋ