03/11/2014
Spreading over 11 contribution .. two of them on their way to the purification
Gold markets at the forefront of the affected from the US quantitative easing
After six years of continuous application, spending about 3.5 trillion dollars (five US annual output value of goods and services) on the purchase of bonds, Janet President Federal Reserve decided to moderate stop quantitative easing program was launched by the US administration, with the outbreak of the global economic crisis of 2008 in an attempt to save the national economy and prevent it from further deterioration. The last time the ' federal ' buy bonds according to Djinnit moderates will be this month, but also pledged to keep interest rates low. According to the ' economic ' Dr. Gordon Boal, head of international economics at the Institute for economic research, ' the resolution reflects a fundamental change in US fiscal policy followed since the outbreak of the economic crisis, the motivation to take is the improvement in the US economy, especially the labor market, by means of entry to the us for consumption.
Gordon said, that ' expectations indicate a growth rate of 3 per cent during the third quarter of this year, but the detective was 3.5 per cent, this improvement has led the ' federal ' quantitative easing program to reduce from 85 billion dollars to 15 billion dollars '. He noted that the cancellation did not mean that US fiscal policy is tight, interest rates, lending by us banks reserve still ranged between 0-0.25 percent, is low explains that full recovery of the economy yet. Global Gold markets was one of the most affected by the US decision, the prices of the yellow metal in European stock markets by about 2.8 per cent per ounce, and the price has fallen to its lowest level during the past four and a half years, due to the recovery of the US dollar with quantitative easing program.
The Dan Roger economic analyst at the World Gold Council for the ' economic ', indicates that the wind is contrary to global gold markets, the decision of the ' federal ' enhanced the strength of the dollar, and raised expectations that interest rates will be raised in America, and now buyers wish to seize the opportunity to convert their savings to the US dollar which will rise during the next period, hoping to gain from it. Roger said ' it also for gold has worsened, as the Bank of Japan increased the quantitative easing policy has in the hope that it would encourage the exit of Japan from its economic crisis, this decision boosted the value of the dollar, a weaker appetite for savers and investors is gold a safe haven for them, but the negative point of view toward the current gold prices meant from the point of view that this situation will last for a long time '. Tim brogon former CEO of bullion and precious metals believed that the prices of the yellow metal will continue to decrease for a long time before the bounce back in the direction of height.
Added to the ' economic ', the ' low gold prices now if temporary and transient, if prices fall, the marginal mines (gold-producing but high cost) will come out of the production process, and will offer, and then take the price to rise again, and add to that the precious metal, with low prices might lose its appeal for small investors, but for sovereign funds, hedge funds and large investors, the lower prices a chance to acquire more for sale at high prices. Emerging markets are also one of the leading providers of watching fallout resolution and its impact on foreign investment have, many officials in emerging economies worry openly that the quantitative easing program raise interest rates in the future to the exodus of foreign investment from its territory and its filtering returning to Washington.
However, Dr. Dorothy Kevin Advisory IMF considers that these concerns are legitimate, but it is exaggerated and says to ' economic ', ' that the quantitative easing program was gradually, US in January last 11 months ago announced it will stop the moderates Janet program, Finance Ministers from emerging economies have had sufficient time to adopt the measures required to deal with the situation when you close the program, the American to raise interest rates in America will be gradually and profitability In emerging markets higher, at least in the early stages of raising interest rates, thus the attraction for foreign investors in emerging markets to leave. Although the implementation of the decision of the ' federal ' quantitative easing program to stop yet, but great suspense haunt international exchanges about the impact of the implementation of the resolution on the stock markets at the start of implementation, the program of quantitative easing is the third of its kind, was preceded by two.
Experience suggests that global equity markets are on the decline for four consecutive weeks by the arrival of former programs, syllabuses, and when the decline stopped were stock exchanges lost nearly 30 percent of its value, they have not improved by more than 12 percent are repeat the same tragedy again , Ryan Morgan Stanley, reduced share prices with the start of the quantitative easing program, but will not go down with sharp as in the previous two occasions, adding to the decline won't last long. And about the reasons for this optimistic answer that ' both times two not the US economy is in good shape, and this time the growth rates in America are higher than expectations, the second in the two markets were aware that phase of quantitative easing is over and a new era will begin, the markets know that ' idea ' to support the US economy through quantitative easing ended completely and they adapt to the new situation.
However, a number of British economists still negative expectations about the future and expressed their conviction that the US economy and the global economy has not recovered fully to take the ' federal ' the abolition of quantitative easing. During a lecture by Dr. Simon former British Government consultative and lecturer at Harvard University, the world spent since the outbreak of the financial crisis in 2008 before the global economic crisis turns at between seven to ten trillion dollars for global financial markets to avoid a complete collapse, and this already but healing did not occur in the quantitative easing program abandoned ', predicting that it will not exceed 11 months and will ' federal ' to return to the application phase IV This quantitative easing.
Some fear that viewpoint, in return for a fourth phase of quantitative easing after less than a year, will coincide with a rise in bank interest rates in America, this means that the pumps ' federal ' money than pumping in the third phase, and this will increase the fiscal deficit and inflation, which will not only lead ousted so far bring the US economy to normality, the worse the prospect of economy in crisis are more complex and deeper crisis 2008 unfinished.
