Why you’ll get no QE3

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As Jackson Hole approaches so too does disappointment on QE3. It’s one simple word: oil. Here is the history:

Here are the charts for US gas and diesel prices:

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The more things change the more they stay the same. Why give more destabilising QE when the “QE put” is inflating everything already. Or, from the market’s perspective, you don’t get bailed out until you fall over.

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.