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Rob Hawcroft
Registered Member

Date Joined Jul 2008
Total Posts : 280

Posted 5/5/2010 5:26 PM (GMT +8)

What do Gavekal think the impact of QE/ monetisation will be in the medium term in the debt deflation countries, or Europe since Gavekal's divergence trade is now playing out? Will it just be a weak currency and 'keeping the show on the road' until the Asian consumer economies are running CA deficits, or do Gavekal think that it will trigger an inflation issue or just that a weak currency will drive an inflation/ deflation whereby disposable income purchasing power shrinks as the cost of living goes up? What would a weak Euro mean for Germany? Thanks.

Post Edited (Rob Hawcroft) : 5/5/2010 5:20:22 PM GMT

Rob Hawcroft
Registered Member

Date Joined Jul 2008
Total Posts : 280

Posted 5/5/2010 5:27 PM (GMT +8)

For the record I am presently thinking inflation/ deflation

Rob Hawcroft
Registered Member

Date Joined Jul 2008
Total Posts : 280

Posted 5/7/2010 1:13 AM (GMT +8)

Is it not inconceivable that german who have a significant unfunded liability and demographics problem with the baby boomers retiring might also find a weak Euro (ie a German CA surplus outside the EU) to be of interest for the next 5 years despite the talk that the likes of Axel Weber come out with.

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