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Black Swan? January 2, 2016

Posted by hslu in Energy, Global Affair, Islam, Middle East, Muslim, Politics, US Government.
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Saudi executed a prominent Shia cleric which could back fire and, if Saudi’s royal family or Bahrain’s royal family got toppled, it could be the Black Swan the financial and commodity markets are not expecting.

The United States have been going around the world promoting Democracy to its enemies. But, have you ever heard American government calling for Saudi’s royal family stepping down from power and starting a democracy process in Saudi Arabia?

We all know that this will never happen because the United States needs Saudi’s oil.

I call this the epitome of hypocrisy of American’s foreign policy.

Bernanke is at it again, but July 13, 2011

Posted by hslu in Economics, Energy, Global Affair, Gold, jobs, Oil, Politics, stocks.
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Will QE2.5 and QE3 generate jobs?

The answer is “NO.”

It will pop up stock market which Bernanke is intended to do. The rational behind that is people will feel richer and will spend more, hence, stimulate the sagging economy.

But the next run of printing will inevitably increase the commodity prices which will negate any wealth effect bought on by higher stock prices.

Here is the $64 million question:

Will you go out buy a car or a house if your stock portfolio is up by 15% but you food and transportation cost is up by $250 a month?

No way. Not when your neighbors are out of work since March and your wife’s job is on the line.

That’s why QE2 didn’t work and that’s why QE2.5 and QE3 will not work either.

But inflation will be worse all over the world and we will all suffer because of Bernanke’s reckless action.

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