Of special interest, is that at the G20 the loan voice speaking out in support of the US Fed was Stephen Harper. Harper's reasoning may be a bit flawed ... that there is little else to be done ... but in general I've come to believe that 90% of pundits are wrong on this matter; and that Harper is correct.
Of even greater interest to me, is that the inverse relationship between stocks and the USD seems to be reversing. In fact, since the QE2 announcement, the USD seems to be putting in a solid bottom (no currency devaluation there), and stocks have not crashed. This very day, stocks were up up and until the last 30 minutes, as was the US Dollar Index.
Imagine the massive collective pie on face we will see, when and if the Greenback holds or climbs, and stocks climb as well.
Harper will be proven correct, and Benny B. will be proven the genius:
Prime Minister Stephen Harper came to the defense of Canada's biggest trading partner Thursday, challenging the many critics of the U.S. Federal Reserve's plan to create $600-billion (U.S.) to buy financial assets to come up with something better.
Mr. Harper made the comment before the official start of the Group of 20 Summit in Seoul. The Fed's decision last week to resume purchasing securities in a bid to lower interest rates has become a preoccupation of many G20 leaders because quantitative easing, as the policy is called, has the effect of weakening the dollar. Officials from Brazil, China, Germany and Russia suggest this is the Fed's true aim. Mr. Harper, in his first comments on the controversy, dismissed those allegations, saying the Fed is simply doing what it can to breath life into the U.S.'s sluggish recovery.
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