by babystrangeloop » Tue 09 Aug 2011, 21:16:51
$this->bbcode_second_pass_quote('pstarr', 'T')here is pretty much universal consensus on this thread (and others) that the SPR release was a political/financial gambit meant to buttress QEII
I think it was done to appease China. China complained terribly about the inflationary havock that QE2 wreaked. There's a good chance the US popped the commodity bubble as best they could with a co-ordinated downgrading and SPR release.
$this->bbcode_second_pass_quote('', '[')b]
China inflation in mild, controllable range: NDRC officialEditor: yan / Xinhua / August 9, 2011
BEIJING, Aug. 9 (Xinhua) -- China's consumer prices are currently within a mild and controllable range after measures to fight inflation have demonstrated some initial effect, a senior government official said Tuesday.
... He expects food prices will remain high in the second half of this year, but the overall price level will fall due to the quick fading of carry-over effects
since August.
However, he warned of a big possibility that the United State will introduce a third round of quantitative easing policy to repay debt and boost economic growth, which may push up prices of international commodities and increase pressure of imported inflation. ...
China knows who has their finger on the QE3 button.