TrendCalls Team wrote about G7 Meet that Leaders will agree to disagree later to show their countrymen they did their best for the country & they did exactly the same at the G20 meet. The markets are focussed on the action of Fed & the effects of the action. Fed is giving the big American banks a earning bonanza in which the banks earn bounty for themselves by borrowing at lower rate & giving back Fed the money at higher rate. In TrendCalls Team view why would banks lend to the working economy if they get this earnings safely from Fed. This may indeed be a wrong policy decision made by the authorities, who think that artificial inflation of the asset prices will help the real demand cycle. Fed is looking at nominal inflation & not the real inflation which is being created. The monster demon will come to haunt them sooner than they think. Will they then be able to quickly adapt to new dynamics or once again world be tripped into a new kind of trauma. The answer to this ? lies in the future. Till then We hope all goes well.
Views Given By TrendCalls Team
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