Unprecedented Global Monetary Policy As World Trade Volume Craters

Zero Hedge ^ | Frbruary 2, 2012 | Tyler Durden

[lbryce]

With the IMF cutting its global growth forecasts and signs of slowing evident in the dramatic contraction in World Trade Volume in the last few months, it is perhaps no surprise that the central banks of the world have embarked upon what Goldman Sachs calls an 'Unprecedented Alignment of Monetary Policy Across Countries'. Our earlier discussion of the European event risk vs global growth expectations dilemma along with last night's comments on the impact of tightening lending standards around the world also confirms that this policy globalization is still going strong and is likely to continue as gaming out the situation (as Goldman has done) left optimal CB strategy as one-in-all-in with no benefit to any from migrating away from the equilibrium of 'we all print together'. Perhaps gold (and silver's) move today (and for the last few months) reflects this sad reality that all your fiat money are belong to us, as nominal prices rise (but underperform PMs) in equities (and risky sovereigns and financials).

While the 25 year low in Baltic Dry is explained away by the simple over-supply of ships (as if that is a good thing) with little thought as to the near-record high inventories of Iron Ore and so on around the world, the reality as shown above is a world in which trade volumes are down dramatically. The 3 month rate of change has turned negative and that trend is accelerating as the 6 month average is about to turn negative - a very weak signal.

Goldman Sachs:- The 'Globalization' Of Monetary Policy

In this daily, we draw attention to the intensification of monetary policy coordination around the world. We show that the magnitude of policy synchronization has been unprecedented since the financial crisis...

[lbryce]

Perhaps gold (and silver's) move today (and for the last few months) reflects this sad reality that all your fiat money are belong to us..

fiat money...
Let's dispense with the $10,000 per word business school jargon, shall we, and speak in regler English.
monopoly money sez it betterer, more to the cold-hard reality of what our currencies are really all about.

[Eureka_Lead]

winner.....

all additional posts will echo the same thought...

They BS and invent “money” then wander about inventing huge words and conversation and political coverup’s so we dumb humans are made to think it is actually real.

ummss... your right.... monopoly money is all it is.

EL

[ZX12R]

If a tree falls in the forest, and no one is around to hear it, does it still make a sound?

If there are printing presses running in the basement, but there is no one around to hear them, do they still prop the economy up?