The World Economic Forum begins in Davos, Switzerland on Jan. 19th, and besides it being a bit more expensive for the 1 percenters, publicly there appears little monetary policy will be addressed.
Sure Christine Lagarde, Managing Director, International Monetary Fund (IMF), and the Governors of the Central Banks of Brazil, Canada, England, France, Italy, Japan, Mexico and Switzerland will discuss QE and its mixed results for economic and employment growth (see US and Japan).
But that discussion may be moot, since we should hear from Mario Draghi and the ECB on its plans or non-plans but discussions on QE at Thursday’s meeting.
I would say the odds are in favor of some bond purchases being made by the ECB — given the Swiss National Bank’s decision to depeg the franc from the euro last week.
The Swiss action could be taken as easing since in one fell swoop it devalued the euro by some 20%.
As I said earlier 2015 will be a year of Beggar Thy Neighbor, where central banks will devalue their currencies in race to spur growth.
This will benefit the northern euro countries while debt in the PIGS will become too burdensome.
Back to the WEF, yes former Veep Al Gore will trout out his charts saying it was a record year for high temperatures on the planet, yet the US set more record cold temps than warm in 2014.
Don’t tell me this is settled science, all it really is is settled global tax policy on carbon usage. Another way to cripple an recessionary global economy while keeping emerging markets in check.
Read the Kyoto treaty thoroughly and not listen to just the sound bites.
Just look at Gore’s investments, he and Goldman Sachs as well as other 1 percenters will benefit greatly from additional carbon reduction measures. Just follow the money on this.