With oil prices high and excess liquidity in the world, there aren't reasons for massive worry.
IT, have held down inflation, and excess liquidity has instead been bottled up in asset markets.
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Historically, this excess liquidity has made its way to riskier assets, i.e. stocks and commodities.
No balance sheet expansion means less support for gold, which benefits from excess liquidity.
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Excess liquidity plus ever more leverage are enabling equity funds to buy out almost any publicly held company.
With QE2 nearing completion, should he raise interest rates and extract excess liquidity before inflation destroys the middle class?
Apple and Google can take care of themselves, their balance sheets awash in billions of dollars of excess liquidity.
In 2004 gold shot up well above its 12-year average, thus screaming that the Federal Reserve was creating excess liquidity.
Brazil Finance Minister Guido Mantega told the Brazilian Senate on Tuesday that the excess liquidity led to speculation in the emerging markets.
Danareksa president Iwan Pontjowinoto is also trying to set up an Islamic money-market fund that will help Sharia banks handle excess liquidity.
But Hamada says that Avnet now finds itself with having excess liquidity.
By holding down the value of the yuan and allowing a consequent build-up of excess liquidity, China risks repeating the same error.
When are corporations, starting with Apple, likely to shed some excess liquidity?
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It thought the U.S. economy was much weaker than it was and therefore pumped out excess liquidity and kept interest rates artificially low.
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High-yield short duration bonds and senior bank loans (also known as leveraged loans) are both attractive for excess liquidity in the current low-yield environment.
If not for the excess liquidity created, there would not have been sufficient fuel to distort the housing market and ultimately the financial system.
As markets factor in a more optimistic growth outlook, excess liquidity has moved from the sidelines into risk assets, putting upward pressure on inflation.
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Inflation has remained low, but excess liquidity now flows into the prices of houses and shares rather than the prices of goods and services.
The already booming housing market was, in effect, shot up with steroids as lending standards were lowered to put all the excess liquidity to work.
As a result, very little, if any, excess liquidity spilled over into imprudent hands as indicated by the current low inflation and low capacity utilization.
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The Fed has glued together the punch bowl of excess liquidity.
So that's led to a phenomenon that economists called excess liquidity.
Also pushing up neutral, the pipeline of excess liquidity is still filling despite rate hikes, most visibly in commodity speculation and record levels of corporate cash.
In China, on the other hand, the current pace of intervention cannot continue because it is creating excess liquidity and thus, at some stage, will also create inflation.
In the other corner, global central banks are forcefully trying to counter these deflationary pressures by providing excess liquidity into the banking system via numerous forms of money printing.
In summary, I believe that these recent price increases are more attributable to the excess liquidity in the financial system than a sudden positive shift in global economic fundamentals.
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As excess liquidity often is tied to higher inflation, instead of sitting on short-term cash with no real earnings, investors have been purchasing commodities ahead of potential further price increases.
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Instead, we expect rates to remain elevated for many quarters, perhaps years, as the excess liquidity provided by the U.S. and Japan works its way out of the global economy.
The strongest argument for a revaluation now is not that the yuan is undervalued, but that an adjustment would halt speculative capital inflows and so mop up the excess liquidity.
Whereas in the recent past, one currency may be reduced in value compared with other currencies, this time there is global competitive devaluation as excess liquidity is put into the system.
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