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quantitative easinglatest news & developments
What goes up must come down: Federal Reserve Board Chair Jerome Powell leaves a news conference in Washington. The Fed’s hiking cycle contributed to the sudden collapse of tech
lender Silicon Valley Bank recently. Photo: Saul Loeb/AFP

Banking shock exposes cheap cash addiction

The turmoil, which some say was inevitable given aggressive hiking cycles, exposes the dependency of advanced economies on cheap credit

The US Federal Reserve’s Federal Open Market Committee has broken its 14-month policy pause with a significant 50 basis point cut to the federal funds rate. (Mark Wilson/Getty Images)

If the inflation-driving supply strain in the US lasts, it could put South Africa in a chokehold

In South Africa, a strong trade surplus, buoyed by robust commodity prices, will cushion our economy against pressure arising from US policy

A picture taken in Vosloorus, southeast of Johannesburg, on July 12, 2021 shows the Gold Spot Shopping Centre after being looted. – South Africa said it was deploying troops to two provinces, including Johannesburg, after unrest sparked by the jailing of ex-president Jacob Zuma led to six deaths and widespread looting. Overwhelmed police are facing mobs who have ransacked stores. Six people have died, some with gunshot wounds, and 219 people have been arrested, according to a police tally issued before the army deployed. (Photo by GUILLEM SARTORIO / AFP) (Photo by GUILLEM SARTORIO/AFP via Getty Images)

The looting of shops during protests is a greater societal problem than meets the eye

This is not a protest, it is a ripple effect of poverty

Suspended ANC secretary general Ace Magashule.

Waving a magical ‘quantity easing’ wand won’t solve the problem

Unlike South Africa, the inflation in developed economies allows for central banks to make use of such unconventional policy tools

Japan’s Shinzo Abe flouts economics 101

In the major powers, it’s called quantitative easing. In plain terms, it’s printing money. And Japan’s prime minister has begun doing it in a big way.

QE has made the very rich even richer

Credit Suisse’s Global Wealth Report makes for interesting reading for those who suspect quantitative easing is more about propping up asset prices.

Mellow yellow: Gold saw a slight rise and held firm this week and the SPDR Gold Trust said its holdings rose by 3.89 tonnes on Tuesday.

No respite for emerging markets

US and Chinese figures are testing the nerves of investors still coming to terms with the QE retreat.

New head of the US Federal Reserve Bank

Yellen’s over, now the work begins

Reversing QE has begun and the challenge now is for the Fed’s new chairperson to keep it in check.

SA retail stocks advance for second month

South African retail stocks have risen for a second month, on speculation that the US Federal Reserve will maintain stimulus.