And Suddenly The Whole World's Been Turned Upside Down

[Hoosiernorm]

Brazil Did A Massive Rate Cut, And Suddenly The Whole World's Been Turned Upside Down


Read more: http://www.businessinsider.com/brazil-c ... z1sT6Y8NQM

The big monetary policy news of the evening: Brazil's central bank has cut interest rates from 9.75% to 9.00%. That was somewhat expected, but the real news according to Reuters is the dovish tone taken by the bank, implying more rate cuts to come.

Let's take a moment to pause and reflect on the state of global monetary policy.

The other big rate cutter is India, which did a 50 basis point cut earlier this week.

China is generally in an easing mood, though it's been a while since there's been a reserve requirement ratio cut.

So that's 3 of the 4 BRIC nations in easing mode.

On the other hand, today the Sweden's Riskbank held rates steady, surprising some. Then there was the Bank of England, which suddenly took a hawkish tone. And recent comments from the Bank of Canada was also hawkish. Also, the release of the March minutes from the Fed was hawkish, and of course the ECB seems to be in paralysis.

[Torchwood]

Brazil is interesting: such is the national fear of inflation (for good historical reasons) and such has been the fiscal profligacy of politicians that real interest rates have been kept excessively high. With a strong currency, inflation fears are receding but it is really expensive to invest there - the sensible thing is to export raw materials and process elsewhere, not what a nation of 170 million needs. Central government has spending under control, the real problem is the states. Expenditure to close the gap on the appalling inequalities, which have got a bit better, is fine, especially education - but too much still goes to pork barrel projects. Still, this cut is overdue.

[Azrael]

Brazil Did A Massive Rate Cut, And Suddenly The Whole World's Been Turned Upside Down


Read more: http://www.businessinsider.com/brazil-c ... z1sT6Y8NQM

The big monetary policy news of the evening: Brazil's central bank has cut interest rates from 9.75% to 9.00%. That was somewhat expected, but the real news according to Reuters is the dovish tone taken by the bank, implying more rate cuts to come.

Let's take a moment to pause and reflect on the state of global monetary policy.

The other big rate cutter is India, which did a 50 basis point cut earlier this week.

China is generally in an easing mood, though it's been a while since there's been a reserve requirement ratio cut.

So that's 3 of the 4 BRIC nations in easing mode.

I suspect that Russia will be in easing mode soon. Russia's Economic Development Ministry cut their forecast for 2012 economic growth.

On the other hand, today the Sweden's Riskbank held rates steady, surprising some. Then there was the Bank of England, which suddenly took a hawkish tone. And recent comments from the Bank of Canada was also hawkish. Also, the release of the March minutes from the Fed was hawkish, and of course the ECB seems to be in paralysis.

I find it hard to understand monetary policy in Europe in recent years.

[Endovelico]

I find it hard to understand monetary policy in Europe in recent years.

It's not hard at all. It is being run by Germans whose capacity to think about money matters was frozen in 1923. It's like letting your fear of Genghis Khan determine your present day foreign policy... But I have always thought that Germans are not a particularly bright people...

[Apollonius]

... But I have always thought that Germans are not a particularly bright people...

Two whole days since you wrote this. Where is Ibrahim?

[Endovelico]

... But I have always thought that Germans are not a particularly bright people...

Two whole days since you wrote this. Where is Ibrahim?

I keep hammering at it because far too many people think that if you are good at making money you must be particularly bright and be good at everything else... Germans are the living proof that this is not so...

[Apollonius]

Yeah, Germans are no good at mathematics, philosophy, engineering, music, can't write in anything but monosyllables, produce nothing that anyone wants... It's a wonder anyone pays them any attention at all.

I see your point.

[Endovelico]

Yeah, Germans are no good at mathematics, philosophy, engineering, music, can't write in anything but monosyllables, produce nothing that anyone wants... It's a wonder anyone pays them any attention at all.

I see your point.

Science, yes. Engineering, yes. Art and literature? I'm not aware of much coming from Germany in those areas. And whatever comes is definitely anti-system. Just as philosophers are mostly marxist oriented. Bourgeois Germany is only good at making money.

[Simple Minded]

Yeah, Germans are no good at mathematics, philosophy, engineering, music, can't write in anything but monosyllables, produce nothing that anyone wants... It's a wonder anyone pays them any attention at all.

I see your point.

Science, yes. Engineering, yes. Art and literature? I'm not aware of much coming from Germany in those areas. And whatever comes is definitely anti-system. Just as philosophers are mostly marxist oriented. Bourgeois Germany is only good at making money.

I think the 1930s & 1940s pretty much proved the Germans were awesome at implementing "social justice," social engineering, eugenics, etc.

Which some think are enlightened collective goals, but when it comes to working out the details, who holds the gun, who gets shot, who becomes slave labor, who eats, who gets starved, etc............people get all selfish about the results, some even take it personally......

Good thing those guys are all dead now.......Silly people.....

[Typhoon]

Yeah, Germans are no good at mathematics, philosophy, engineering, music, can't write in anything but monosyllables, produce nothing that anyone wants... It's a wonder anyone pays them any attention at all.

I see your point.

Science, yes. Engineering, yes. Art and literature? I'm not aware of much coming from Germany in those areas. . . .

Shirley, you jest.

Composers:

Bach

Beethoven

Mozart

Wagner

etc.

Poets, Playwrights, and Writers:

Remarque

Grass

Rilke

Goethe

Schiller

Mann

Brecht

Kafka

etc.

[Endovelico]

Yeah, Germans are no good at mathematics, philosophy, engineering, music, can't write in anything but monosyllables, produce nothing that anyone wants... It's a wonder anyone pays them any attention at all.

I see your point.

Science, yes. Engineering, yes. Art and literature? I'm not aware of much coming from Germany in those areas. . . .

Shirley, you jest.

Composers:

Bach

Beethoven

Mozart

Wagner

etc.

Poets, Playwrights, and Writers:

Remarque

Grass

Rilke

Goethe

Schiller

Mann

Brecht

Kafka

etc.

I was referring to present day Germany, and you must agree with me as you had to go quite far back to find some names worth mentioning. And some of the more recent names you mentioned are certainly not part of bourgeois Germany. And Wagner is a perfect example of teenage emotions turned into insufferable music...

[Enki]

What about Rammstein?

[Typhoon]

Yeah, Germans are no good at mathematics, philosophy, engineering, music, can't write in anything but monosyllables, produce nothing that anyone wants... It's a wonder anyone pays them any attention at all.

I see your point.

Science, yes. Engineering, yes. Art and literature? I'm not aware of much coming from Germany in those areas. . . .

Shirley, you jest.

Composers:

Bach

Beethoven

Mozart

Wagner

etc.

Poets, Playwrights, and Writers:

Remarque

Grass

Rilke

Goethe

Schiller

Mann

Brecht

Kafka

etc.

I was referring to present day Germany, and you must agree with me as you had to go quite far back to find some names worth mentioning. And some of the more recent names you mentioned are certainly not part of bourgeois Germany. And Wagner is a perfect example of teenage emotions turned into insufferable music...

Last time I checked Günter Grass will still alive and controversial.

Why not provide a point of reference to you claims about Germany? Notable contemporary art and literature types from other countries, including Portugal.

jQYQTFudrqc

[Zack Morris]

Haha. Portugal. The Poland of Western Europe. (And just as jealous of the Germans.)

[Endovelico]

Haha. Portugal. The Poland of Western Europe. (And just as jealous of the Germans.)

Good grief! What do you know about Portugal? Do you even know where to find it on the map? That's the most absurd comparison I have ever come across... As to being jealous of Germans, I assure you we are not masochists...

[Typhoon]

Haha. Portugal. The Poland of Western Europe. (And just as jealous of the Germans.)

Good grief! What do you know about Portugal? Do you even know where to find it on the map? That's the most absurd comparison I have ever come across... As to being jealous of Germans, I assure you we are not masochists...

Well, then please do enlighten us, as you have yet to address my question above.

[Endovelico]

Haha. Portugal. The Poland of Western Europe. (And just as jealous of the Germans.)

Good grief! What do you know about Portugal? Do you even know where to find it on the map? That's the most absurd comparison I have ever come across... As to being jealous of Germans, I assure you we are not masochists...

Well, then please do enlighten us, as you have yet to address my question above.

Do you mean this?

Last time I checked Günter Grass will still alive and controversial.

Why not provide a point of reference to you claims about Germany? Notable contemporary art and literature types from other countries, including Portugal.

Well, yes, Günter Grass is still alive and critical of bourgeois culture in Germany. As to the information on contemporary artists and writers in Europe, please consult Wiki. I have already gone through the trouble of introducing you to contemporary Japanese painters whose quality you seemed to ignore, and I don't feel like continuing doing research for you. After all I am supposed to be the loafer, and you the hard working one...

[Simple Minded]

Does this mean that Australia is no longer "down under"....... but...... "up over?"

I hope Noddy and Carbizene can adjust OK......

[noddy]

we are only ever down under to the northern hemisphere orientated world of usa and eu.

so while your all arguing about who gets to sit on the deckchairs and who has to pay for it, we and the rest of the natural resources rich southern hemisphere are now officially "just below the centre" aka china

so cheers! to the never ending chinese miracle and stuffin ya fingies in your ears about hearin any different... them chineezeries, they knowz whatz they is a doing, none of that silly bubble crap can happen, nonononononononono, they haz the wize elitez managementz of their economiezerizers, not stinky capitalist exploiters.

[Simple Minded]

we are only ever down under to the northern hemisphere orientated world of usa and eu.

so while your all arguing about who gets to sit on the deckchairs and who has to pay for it, we and the rest of the natural resources rich southern hemisphere are now officially "just below the centre" aka china

so cheers! to the never ending chinese miracle and stuffin ya fingies in your ears about hearin any different... them chineezeries, they knowz whatz they is a doing, none of that silly bubble crap can happen, nonononononononono, they haz the wize elitez managementz of their economiezerizers, not stinky capitalist exploiters.

More power to ya brother...... everybody should sit on the throne for a coupla decades each century IMSMO.....

Regarding bubbles...... they seem a function of human nature...... very, vary, little to do with the goals and desire of the economists (ie: alchemists/poker players) and central planners

If we can only get those pesky humans out of the picture.... it would all straighten out sure nuff..

[Typhoon]

Well the election results in France and Greece have certainly scared markets early on:

Nikkei: 22505/07 - 10:36



9,146.12 ↓ -234.13 ( - 2.50%)

[Miss_Faucie_Fishtits]

Commentors are suggesting that the Dow will drop on the average, 200 points by closing bell tomorrow. At least.........

[Typhoon]

Commentors are suggesting that the Dow will drop on the average, 200 points by closing bell tomorrow. At least.........

My jaundiced view is that if market commentators had a clue then they would not be spending their time commenting . . .

It would not surprise me at all too see the Dow up 200 points at the close.

Markets in Asia closed down > 2%, but major European markets are only down < 2%.