Coordinating QE

[semaforo]

   Just a theory that I've been thinking about lately, maybe those with more knowledge of economics can add something to this or explain it to me.

   It seems to me that as QE has been tapering in North America, it has been increasing the the EU and Japan.

   It seems somehow to make sense to me. My theory is that the dollar currently being relatively strong has somehow to do with this, my question is how?

   Also, the strength of the dollar and the move in oil prices have to be somehow related. Low oil prices make a lot of strategic sense right now for the US. Key allies in Europe are struggling with deflation, and low oil prices take the edge off it. Most of the strategic enemies of the US are highly dependent on oil exports. The gulf states have enough reserves to weather it without any problem.

    It feels to me like the nations are getting into position for war.

Another consideration is that a lowering price of oil would lead to more demand for oil as countries start to squirrel away strategic reserves, leading to increasing demand for dollars. This leads to strengthening of the dollar, which masks the inflationary effects caused by QE. This is then further covered by the increase of QE in Japan and EU, thereby lowering all the major currencies relative the dollar and creating an illusion of strength.

      Honestly, it really feels like someone is at the helm of all of this.

 I know this is kind of rambling, but does anyone know more about QE in Japan and the EU, if this is being coordinated with QE tapering in the North America for a global effect? I know the central bank leaders meet at the BIS every month to coordinate things in the utmost secrecy, I'm just trying to figure out what might be going on.

[painlord2k]

They must coordinate their QEs, because if they do not, they would not be working.
But the problem it is QEs are not working for the people or the economies, they are working just to prop up failed governments, failed banks and a few failed or failing industrial complexes.
They are a way to siphon out purchasing power from the people, the working people, and siphoning in the politically connected elites.
So they act in a way to distract people, the do a Qe in 2009, another in 2012, another in 2015 in the US. And other central banks do the same when the fed it is not doing it.
In this way, the Central bank of a country is syphoning out the purchasing power of the assets denominated in his currency. If someone is smart, move to another currency, but the other central bank will syphon out the purchasing power just a few months later.
If too much people move too much wealth from a currency to another, the exchange rate change and the receiving currency's central bank start printing (like the SCB with the Swiss Franc).

So, the only safe heavens are commodities like gold, silver, platinum, palladium, bitcoins, etc.

The problems we see now are just appetizers. The real problems (and the opportunities too) will show up when people will start to be fed up with their currency and recognize the other are not so much different.
They all are running to the bottom and if you do not want to get to the bottom, you must ditch them all, together. When the people will be fed up, they will just try any way to get rid of their currency. They will buy anything durable just to keep up their purchasing power. In Venezuela people with savings buy Mercedes not because they need or like a Mercedes, just because the Mercedes keep its value better than the Bolivar in one year or in two. Prostitutes just earn more from selling their hard earned USD than they do selling their services to the foreign sailors paying in USD. This is the moment we will see hyperinflation.

If another currency that keep its value and can not be inflated at will will be available and can be easily adopted (like Bitcoin) the people will move there and no amount of government's violence will prevent them from going there. Just because they need to have money to eat. In Zimbabwe the government destroyed the currency and now they have no government produced legal tender. Now they just have five or six foreign currency as legal tender (USD, EURO, UK Pound, Sud Africa Rand, Yuan and Yen).

If the biggest, largest, currencies start all together being ditched by their users because they are become a tool to syphon out their wealth, Bitcoin will be available to fill in the void left.

[687_2]

They must coordinate their QEs, because if they do not, they would not be working.

This is the right answer - global finance is interconnected.

It feels to me like the nations are getting into position for war.

The US government seeks conflict to maintain and improve the US economy. It's just another Keynesian public works project, based on the false assumption that prosperity is a result of war.

[IIOII]

It feels to me like the nations are getting into position for war.

The US government seeks conflict to maintain and improve the US economy. It's just another Keynesian public works project, based on the false assumption that prosperity is a result of war.

I agree that the US use conflict as an economic tool. But it's wrong that "prosperity is a result of war" is an entirely false assumption - at least it's often true for the winner, that's why the US keeps doing it.

I don't know if QE is somehow coordinated between nations, but it's likely that the US will try to get their "allies" (servants) to shoulder at least a part of the expense of fighting the enemy (Russia/China).