The Three Central Banks Condone &Nbsp; The Global Asset Bubble Is Forming.

Three big

The global economy was cloudy after two years of Lehman bankruptcy.

Inflation is raging, and the central banks are still maintaining liquidity after considering the budget.

Tyse, the European central bank governor, said in October 17th that he did not agree to quit immediately.

Webb, the governor of the European Central Bank and governor of the Bundesbank, called for an immediate end to the bond buying plan launched by the 13 banks in response to the financial crisis.

Trichet commented, "this does not represent the position of the European Central Bank". At this stage, it is not the right time to withdraw from the bond purchase plan.

In a speech delivered in Boston in October 15th, Federal Reserve Chairman Bernanke said that because inflation is too low and unemployment remains high, there may be a need for further monetary stimulus measures.

With unemployment near 10% and inflation below the Fed's target, Bernanke and his colleagues are considering measures to stimulate faster economic growth.

According to a summary of the September 21st Meeting of the Federal Open Market Committee (FOMC), after lowering interest rates to zero and purchasing $1 trillion and 700 billion worth of securities, the Fed's policymakers are discussing measures to expand their balance sheets by Purchasing Treasury bonds, and to push up inflation expectations in the market.

The CEBR BOE said in October 18th that the Bank of England (BOE) plans to expand the emergency bond buying program by easing the pressure on the government to reduce the financial burden on the economy.

This month, the Bank of England's stimulus package stood at 200 billion pounds.

CEBR also said that the Bank of England will continue to maintain its benchmark interest rate at a record low of 0.5% until the end of 2012. It is also expected that the decision-making level will maximize the relaxation of monetary policy to cope with the impact of fiscal cuts.

Feast of commodities

Since October, the commodity market has been rising all the way, especially soft commodities such as cotton, sugar, gum and so on.

Since October 1st, corn, cotton, sugar, zinc and silver in the international futures market have increased by more than 10%.

In October 8th, USDA's monthly supply and demand report in October sharply reduced the soybean planting area, yield per unit area, and final inventory. On the same day, the three main varieties of the Chicago Futures Exchange (CBOT) were soybean, wheat and corn.

The domestic commodity market in October 11th also appeared a "blowout" market, beans, corn, oil, rubber, zinc and other collective trading, and led to the A share market, many stocks related to stock trading.

Color plates are especially eye-catching, some stocks continue to limit.

After 16 months of adjustment, the international oil price is expected to expand and the market will hit 100 US dollars / barrel. The next target point of Lun copper has reached a historical high of 9000 US dollars / ton. Under the constant monetary policy, there is a challenge of 10000 US dollars / ton.

Since September 30th, the Shanghai Composite Index has risen from 2600 points to more than 2900 points in 6 short trading days, and the Hang Seng Index and Dow Jones index also rose from 22200 points and 10800 points to 23800 points and 11100 points respectively.

Gold broke through the $1300 mark and went straight to $1400.

The performance of silver is even more prominent. Before the festival, the price of silver is only 19 dollars, now it is as high as 23 dollars.

According to Reuters's survey of major US dealers, the new round of quantitative easing policy in the US Federal Reserve is between 500 billion and 15000 billion dollars.

The Fed has more clearly signposted the easing monetary policy to the market, and the US dollar index has fallen again due to a large number of sell-off.

The prophecy has come true, and a new round of global asset bubbles is emerging.

But if the dollar reverses the downtrend, it is likely that commodities will fall.

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Echoes of history

Marx wrote in Louis Bonaparte's eighteen day of fog: "people create their own history, but they do not create whatever they want. They do not create under their own conditions, but create conditions that are directly met, established and inherited.

The traditions of all the dead ancestors have been entangling the minds of the living like nightmares.

Bernanke is very similar to Burns, chairman of the Federal Reserve in 70s of last century.

In the 70s of last century, the rapid economic development led to the outbreak of inflation.

The price of agricultural products has skyrocketed, and the oil embargo in 1973 has doubled the price of oil by four times.

Burns firmly believed that no measures could be taken to defend against these external or external forces.

He classified them as "special factors", that is, the inevitable reversion and self inflating of the non renewable situation, stripping these so-called special factors from CPI.

Stephen Hroch, chairman of Morgan Stanley Asia, said: "that is one of the darker moments in the practice of modern economics - the birth of core inflation."

Burns's fatal mistake was to allow core inflation to guide monetary policy, which led him to maintain the federal funds interest rate under the broad sense of CPI.

The negative real short-term interest rate has provided a fatal stimulus to the already bubbling economy.

His successor Volcker finally raised the federal funds rate to 19% before ending the two digit inflation and inflation expectations.

Burns is Greenspan's teacher at the Columbia University.

Their way to deal with the economic crisis is also the same: flooding the ugly reality with liquidity.

Burns's Federal Reserve lost the opportunity to manage stagflation. Eventually, the United States spent almost all of its economic crisis in the 70s of last century. The Bretton Woods system with the core of US dollar and gold also ended.

Greenspan also stepped down from the altar in the global turmoil of the financial crisis.

Burns doubled the base money in 8 years, while Greenspan and Bernanke increased it by two times in 12 years.

I don't know how history will evaluate Bernanke. His nickname is "helicopter Ben".