Following the Federal Reserve’s decision to throw two football fields worth of dollars at the US economy all that has been achieved is a fall in unemployment from 10 percent to 9.1 percent, according to Philippe Gijsels, the head of research at BNP Paribas Fortis Global Markets.
The two football fields of money refers to the second round of money creation, known as quantitative easing, and the money that has been pumped into the US and global economy.
“Before the two football fields of money, US unemployment stood close to 10 percent.
Now it stands at 9.1 percent. This can hardly be called a great success,” said Gijsels in an interview with CNBC.com.
. . .
“Two things are clear in my mind. We will see a volatile summer. And we may be re-writing the rules of the market game once again. So please pay close attention” said Gijsels.
June 13, 2011