Feds tapering into a weakening economy and Feds talking nonsense about raising interest rates when the US debt to GDP ratio is now OVER 100%. What a joke!!! BUAWAHAHAHAHA.....
Wait a minute. They are tapering now to start QE4 in 2015.
Only a change in the White house can stop FED from printing money and buying junk.
In the meantime, Wall street will cash out the chips by October.
Interestingly, the Abenomics in Japan could be in trouble. PM Abe needs the GDP growth in Japan to reach certain number in order to raise the sale tax by another 2%. Given the unexpected slow down in US, and expected slow down in EU due to sanction against Russia, Japan could see low or flat growth by the end of 2014. Then Abe has to decide whether to raise the sale tax, which is necessary for his Abenomics to work.
If the growth number is low and he decides to raise, then Japan might get into a recession in 2015.
If Goldman is correct, the first half GDP growth for 2014 would be zero %. In order to meet the target set by Federal Reserve in June, the Q3 and Q4 numbers have to be 4+%., which is as impossible as successful manned Moon landing on the first try.
Interestingly, the original Fed's forecast for 2014 made in 2013 was 2.9%. Now they probably have to downward adjust it to 1.5% in a few months. Then the question is: should they continue to withdraw the stimulus?
Uncertainty and volatility will come in time for the Fall.
If the FEDS raise interest rates, markets will crash. Take away QE and and the economy goes straight into the sewer. If they continue to increase money supply (QE), they destroy the US dollar. WHAT ELSE IS THERE TO DO??? LMFAOF...