RBA QE now driving Aussie asset prices up?
While the Reserve Bank (RBA) has resisted implementing Quantitative Easing (QE i.e. money printing) over the last 12 years, over the last couple of months that has changed. In the initial RBA QE program, $100billion of Federal and State government bonds will be purchased. https://www.abc.net.au/news/2020-11-04/what-is-quantitative-easing-and-how-does-it-work/12842746 Over the last 12 years, in response to the Global Financial Crisis (GFC) major central banks around the world
Disconnect between Main St and Wall St - El Erian
Wall St (The US stock market) is around record highs, yet the Main St ( the average person) as reflected for example by the health of the US economy is not at all feeling healthy. When the government has to pump historical extreme fiscal deficits into the economy just to keep the economy "afloat", then the economy is not healthy. When the unemployment rate is very high (like now), the economy is not healthy - and many average people in community are struggling. Historical ext
