Recent meeting at Jackson's Hole of central bankers and economists proved that they disagree on how to support economic growth. Trichet will continue on fiscal austerity while the US is contemplating another stimulus program.
Like I stated in my previous blog, Chairman Bernanke at the Fed is running out of options. There is very little he can do, except for controlling expectation and mentioning words of encouragement about the economy. Policy of buying long term treasuries will have minimal effects on economic growth. There are other dynamics that are effecting the U.S. economy like the rising influences of China and India.
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