G20 Says Yes – Just Print More

Sydney-Australia (Feb 23)   The world’s biggest economies vowed Sunday to boost global growth by more than $2 trillion over five years, shifting their focus away from austerity as a fragile recovery takes hold.

Finance ministers and central bank governors from the Group of 20, which accounts for 85 per cent of the world economy, also agreed to pursue greater transparency about monetary policy after rifts about the US taper.

They expressed “deep regret” that reforms to the International Monetary Fund have stalled, because the United States Congress has yet to ratify them.

After their meeting in Sydney, the G20 ministers issued what host Australia called “an unprecedented” and unusually brief two-page statement to drive “a return to strong, sustainable and balanced growth in the global economy”.

“We will develop ambitious but realistic policies with the aim to lift our collective GDP by more than two per cent above the trajectory implied by current policies over the coming five years.”

In other words……the “powers that be” have more or less thrown the towel in on any kind of “real growth” and have pretty much opened the “global door” wide enough to accommodate any number (or size) of printing presses.

We’ll see how markets react but perhaps the can will just get kicked “around the globe” a little while longer……an obviously “bullish signal”.

I’m looking for whatever additional USD strength we see this week to bank profits , and then prepare for further desecration. On the back of this news it looks “relatively obvious” that those with printing presses have been given the global green light so…..if you can’t beat em you might as well just keep making money.


8 Responses

  1. JSkogs February 23, 2014 / 2:46 pm

    Hope you had a good weekend, Kong. I only read a couple news articles about this but I haven’t really seen anything trade-able in the articles other than ‘big commitments’. So I’m skeptical of any major market reaction. I could be wrong obviously though.

    • Forex Kong February 23, 2014 / 3:11 pm

      I don’t think it’ll make any immediate difference no but……

      “Once again” the general message suggests Central Banks will be there at every turn to keep the show on track.

      • JSkogs February 23, 2014 / 3:19 pm

        Oh absolutely man you are no doubt right. It’s going to be the same story for a long time until the ‘developed’ nations debt is inflated away or miraculously incomes catch up

        • Forex Kong February 23, 2014 / 3:40 pm

          You bet – more of the same so……I guess we “get out the crayons” and keep drawing charts as we’ve been doing this past year.

          The race for the bottom continues.

      • JSkogs February 23, 2014 / 3:22 pm

        I bet the last few years relentless pullback in gold will make people so angry because there is only one way out and gold will be the beneficiary

  2. schmederling February 23, 2014 / 7:57 pm

    Dr. Kong – any interest in the AUD/NZD pair? – I have something brewing currently across the board from the 30min to 4hr

  3. schmederling February 23, 2014 / 8:31 pm

    I am front-running the trade here a little – limping in short Aud/Nzd…. we will see how this pans out….

  4. Careydina February 24, 2014 / 5:25 am

    I have re-entered short aud/jpy and aud/usd

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