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. The new line of thinking
. No QEIII
. US has to reign in it's budget deficit
. May have to raise taxes & reduce govt spending.
. There is excess liquidity in the banking system.
. Fed's money tap is thrown open.
. But Banks's tap is not.
. Reservoir if cash in the banks.
. No incentive to lend in the 0% interbank market & low interest environment.
. An argument put forth : Raise short term interest rate
. Another is encouraging other countries central banks to increase rates to
Indirectly weaken US$
. Therefore the global theme of Infrastructure Investments to absurd the excess liquidity
With concrete yield.
http://seekingalpha.com/article/276233-even-after-qe2-monetary-policy-will-remain-easy
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